Beyond Reduction: Removals, Insetting, and Authentic Communication
This morning's news, with the UK’s Energy Secretary Ed Miliband publicly defending and reinforcing the UK's 2050 Net Zero target, serves as a powerful anchor for our final article in this series. Despite ongoing political debates, the long-term direction of travel for British industry is clear: building a credible decarbonisation strategy is not a "what if," but a "how, and how soon?"
Over the last three weeks, we've mapped out the 'how'. We started by decoding the language of Scopes 1, 2, and 3. We then moved on to practical strategies for reducing our direct operational emissions (Scopes 1 & 2), followed by the immense challenge of tackling our value chain footprint (Scope 3).
This brings us to the final, crucial questions: What do we do with the small fraction of emissions that are currently impossible to eliminate? And just as importantly, how do we talk about all this work authentically, without falling into the greenwashing traps that regulators and citizens are now so alert to?
The "Reduce First" Mantra: The 90% Rule
Before we discuss anything else, one principle must be absolute. Any credible Net Zero strategy, such as that defined by the Science Based Targets initiative (SBTi), requires that companies reduce their emissions by at least 90% before considering any form of neutralisation. The focus of your time, investment, and effort must be on the deep decarbonisation strategies we discussed in Articles 2 and 3. What follows here is only for dealing with the final, truly residual 5-10% of emissions.
Dealing with Residual Emissions: Offsets vs. Removals
The voluntary carbon market can be a minefield. It's essential to understand the difference between two key concepts:
Carbon Offsets (Avoidance Projects): This is the 'traditional' model. A company funds a project that avoids emissions being released elsewhere – for example, by funding a renewable energy farm to replace a planned coal plant, or protecting a forest from deforestation. While well-intentioned, these are increasingly seen as insufficient for a corporate Net Zero claim because they don't neutralise the emissions you have already released into the atmosphere.
Carbon Removals (Neutralisation Projects): A removal project physically pulls existing carbon dioxide out of the atmosphere and stores it durably.
Nature-Based: Reforestation, afforestation, soil carbon sequestration through regenerative agriculture, biochar.
Technology-Based: Direct Air Capture (DAC) with long-term geological storage, enhanced rock weathering.
Unfortunately, with news of an increasing number of fraudulent accounting, double counting, and downright scams, even seemingly high quality offset schemes such as REDD+ and Climeworks, have been seriously questioned for the ability to remove CO2 from the atmosphere.
A Better Approach? The Rise of "Insetting"
Rather than buying generic, and possibly fraudulent, removal credits on the open market, many forward-thinking companies are turning to "insetting." Insetting means investing in carbon reduction and removal projects within your own value chain.
For a drinks business, this is a powerful and authentic approach. Examples include:
Funding a transition to regenerative agricultural practices with the farmers who grow your barley or grapes, directly sequestering carbon in the soil of your own supply chain.
Investing in an agroforestry project with your fruit or botanical suppliers, planting trees that draw down carbon while also improving biodiversity and soil health.
Partnering on a project to restore peatlands or forests in the watershed from which you draw your water.
The benefits of insetting are clear: it's directly linked to your business, it builds resilience in your own supply chain, it supports your supplier relationships, and it provides a far more compelling and authentic story than buying anonymous credits.
Communicating Your Journey Authentically
How you communicate your Net Zero journey is as important as the actions you take. In an age of heightened scrutiny (as we explored in our DMCC Act series), transparency is your greatest asset.
Lead with Reduction, Not Neutralisation: Your primary story must be about your efforts to reduce emissions across Scopes 1, 2, and 3. Any mention of removals should be a secondary point, clearly positioned as the final step for residual emissions only.
Be Radically Transparent: Talk about your progress, not perfection. Share your emissions baseline, your targets, your successes, and your challenges. If you're struggling with obtaining Scope 3 data, say so. Honesty builds trust.
Avoid Misleading Language: Don't claim a product is "carbon neutral" if this is based purely on avoidance offsets. Be specific. Say "we've reduced our operational footprint by X% and neutralised our remaining residual emissions with high-quality carbon removals."
Back It Up with Data: Your claims must be substantiated. Link to your sustainability reports, methodologies, and the verified removal projects you support.
Conclusion: Our Series Wrap-Up
The UK government's reaffirmation of its Net Zero target solidifies the path ahead. For the drinks industry, the journey is clear and requires a structured approach. Over this four-part series, we have created a roadmap:
Part 1: We decoded the language, understanding Scopes 1, 2, and 3.
Part 2: We focused on getting our own house in order, tackling direct emissions.
Part 3: We addressed the elephant in the room: our Scope 3 value chain.
Part 4: Today, we've looked at the endgame: neutralising residual emissions with credible removals or insetting and communicating transparently.
The path to Net Zero is a marathon, not a sprint. It demands rigour, investment, collaboration, and above all, honesty. By following this roadmap, drinks businesses can not only play their vital part in achieving national and global climate goals but can also build more resilient, reputable, and future-fit brands.
Thank you for joining us on this series. We at Avallen Solutions are here to support you every step of the way.
