Carbon Insetting:
The 'Inside Out' Approach

Since 2016, Denmark-based fashion brand Ganni has been mapping out the carbon footprint of its entire value chain. Yet instead of offsetting, the brand works with third parties to carbon compensate clothing by supporting UN-approved clean energy projects. In the mission of carbon insetting, the  Scandinavian brand now vows to work directly with its suppliers and place investments in hotspots where carbon emissions can be mitigated. In evaluating its supply chain, Ganni will no longer work with tier 1 or tier 2 suppliers that use coalgenerated heat or energy by 2025. In a trial, the brand will build a solar plant in partnership with its longtime cotton t-shirt supplier and further support them in transitioning to renewable energy and electricity. Ganni also developed a circular business model from packaging to instore interior materials, as well as using recycled fabrics to reduce waste. The brand will be exploring next-generation fabrics and phase out virgin animal leather. Carbon insetting is a long-term investment project where the brand will evaluate its success by measuring on-site carbon and biodiversity before and after implementation before scaling with other suppliers.

Every cup of Nespresso coffee is carbon neutral, achieved after more than a decade of interventions across its value chain to reduce and remove carbon emissions from the atmosphere. Nespresso has committed itself to become a carbon insetting business by tackling emissions from its supply chain all throughout its product’s life cycle and beyond, further investing in agroforestry projects and improving farmers’ livelihoods. The company has replaced fossil fuels and powers its operations with renewable energy, uses biogas in manufacturing, sources low-carbon materials, and optimizes logistic processes to lessen greenhouse gas emissions. Most notably, Nespresso plants trees in and around its coffee farms and invests in high-quality insetting projects. Aside from creating natural carbon sinks from tree planting, they have also been
implementing pollination protection, biodiversity monitoring, and improving water provisions. Through a Nespresso training program, smallholder
farmers are also encouraged and funded to practice regenerative agriculture practices in that to boost productivity and diversify farmers’ incomes. 

British luxury brand Burberry has committed itself to become climate positive by 2040 and introduced a carbon insetting project within its business to  decarbonize their supply chain. The brand is also on the trajectory of reducing its operational emissions by 95% in 2022, and is already carbon neutral in the Americas region and ongoing in its EMEIA and UK operations. In supporting its carbon regeneration project, it has created a regeneration fund to finance activities in tackling its environmental impact and to deliver regenerative agriculture practices within its own supply chain. The project will focus on farm-level training to improve carbon capture and storage, alongside biodiversity, ecosystem restoration, and supporting the livelihood of local producers. Burberry will be working alongside NGOs and green groups, including Pur Projet, an organization that helps companies compensate for their carbon emission through insetting and agroforestry. The project will firstly implement regenerative farming practices starting from its Australian wool producers and develop initiatives to improve carbon capture in soil, improve watershed and soil health, reduce dryland salinity and promote biodiverse habits. 

Kering, the French luxury conglomerate known for its brands from Gucci to Balenciaga, is also recognized as a global sustainable leader. Already on the pathway to becoming net-zero; the group have regular offsetting practices, and have embraced carbon insetting as part of its environmental accounting, starting by monitoring emissions from raw material sourcing in its supply chain. Gucci has already been offsetting all greenhouse gas emissions from its own operations and supply chain with forest conservation projects as the carbon-neutral luxury house continues to source more sustainable raw materials to supplement its sustainable manufacturing and sourcing to reduce their carbon emissions. An environmental profit and loss tool was developed to measure and quantify the environmental impact of activities, covering carbon emissions, water consumption, air and water pollution, land use, and waste production along its supply chain. Kering’s current goal seeks to convert one million hectares of farms and rangelands into regenerative agriculture by 2025 to restore and regenerate ecosystems whilst improving sourcing practices. 

Organic Valley, a low-carbon dairy brand, is launching a carbon insetting  program through onfarm carbon reduction strategies and regenerative practices. While the brand has already eliminated 440 million pounds of chemicals off the land, further powered by 100% renewable electricity, its insetting program will focus on creating a carbonneutral food system while supporting farmers with climate-smart farming practices. Organic Valley is one of the first major dairy producers to recapture all emissions on farms. The carbon insetting project will include tree plantings, improved manure management, renewable energy, energy efficiency, and enhanced grazing and cropland practices. Manure management will produce less methane and increase feed efficiency, while other practices will help sequester or draw carbon from the atmosphere to lock into the soil. The company is investing in farm owners to help make improvements with climate-smart farming practices to eventually reach carbon neutrality and beyond, without reliance on carbon offsetting.

Outdoor clothing and gear brand Patagonia has been a strong advocate for carbon reduction and is strengthening its environmental commitment through carbon insetting. The brand will be setting up a joint funding mechanism where other small brands can partner with Patagonia to invest and benefit from green factories together. In Patagonia’s goal of achieving carbon neutrality by 2025, the brand will be reducing emissions from its own supply chain through green energy projects, switching to recycled and renewable energy inputs. In 2019, nearly threequarters of  all materials used in Patagonia productswere made from recycled fabrics. The brand is further developing new materials that are biobased and biodegradable, and exploring using low-emission dying techniques. Further investment in carbon sequestration projects to remove carbon is also taking place, including regenerative organic agriculture in nutrition soil to store carbon and reforestation projects to grow more trees.