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WHAT IS INSETTING?
Decarbonizing your supply chain from within
THE CHALLENGE
High costs, slow action
- Downstream companies (retailers, food brands) need Scope 3 reductions but don’t directly control on-farm or production emissions.
- Upstream companies (fertilizer producers, farmers) have solutions but often lack the financial resources to implement them at scale.
Insetting ensures that sustainability isn’t an isolated effort—co-financing turns climate action into a shared opportunity.
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SUPPLY CHAIN PARTNERSHIPS
How co-financing works with insetting
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Cost-sharing for faster adoption
- Downstream companies help fund climate-smart practices, easing the financial burden on farmers and other actors in the value chain.
- This speeds up adoption, making solutions viable now.
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Win-win financial incentives
- Farmers and other upstream actors: Access low carbon technologies without the financial risk.
- Agri-buyers and food brands: Get verified Scope 3 reductions which they can report to their SBTi commitments and get a more resilient supply chain.
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Beyond carbon: economic & market advantage
- Co-investment boosts productivity, soil health, and supply chain resilience.
- Companies gain priority access to low-carbon commodities and enhance regulatory and market positioning.
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Claim your share of carbon finance. See how insetting makes sustainability pay off.
CASE STUDY
How co-financing scales low-carbon agriculture
A major food company partnered with a fertilizer producer and an agricultural cooperative to co-finance the adoption of nitrogen stabilizers and the switch to low-carbon fertilizers. Instead of shifting costs onto farmers, the companies contributed funding, allowing rapid adoption.
Impact:
✔ Each hectare reduces up to 2 tonnes CO₂e per year.
✔ Cost per tonne of CO2e: €50-€100, well within the range of other abatement alternatives.
✔ Farmers improve soil health and yields, making sustainability profitable.
Comparison Table
Features | Co-financing (insetting) | Traditional offsetting |
---|---|---|
Cost efficiency | Lower costs by sharing investment | Full cost paid by company |
Supply chain impact | Stronger supplier-buyer relationships | No direct supply chain engagement |
Scope 3 benefits | Verified reductions within supply chain | No impact on internal emissions |
Long-term value | Resilience & compliance | One-time carbon credit purchase |
Is insetting right for your business?
Any partner in your supply chain, such as food brands, retailers, commodity traders, and fertilizer producers, can co-finance sustainable practices to reduce emissions.
You get verified Scope 3 emissions reductions, a more resilient supply chain, and access to low-carbon commodities. All at a lower cost than traditional offsets.
Co-financing lowers the financial burden by distributing costs across supply chain partners, making sustainability investments more scalable and cost-effective. Unlike traditional corporate-funded sustainability projects, insetting ensures mutual benefits—farmers adopt low-carbon solutions without financial risk, while downstream companies gain verified Scope 3 reductions at a lower cost than offsets.