What is the outcome of a business purchasing carbon offsets?

Purchasing carbon offsets is primarily aimed at helping a business meet its carbon reduction goals. This is because carbon offsets allow organizations to compensate for their own greenhouse gas emissions by funding equivalent carbon dioxide savings elsewhere, such as through renewable energy projects, reforestation, or energy efficiency initiatives. By investing in these projects, businesses can effectively balance out their emissions, which supports their efforts to align with specific sustainability targets or commitments.

While the purchase of carbon offsets can contribute to a reduction of overall greenhouse gas emissions in a broader sense, the primary outcome for the business is that it can demonstrate progress towards achieving its individual carbon reduction objectives. This often forms part of a larger strategy for sustainability, enabling companies to take actionable steps toward minimizing their carbon footprint. It is also important to note that simply purchasing offsets does not inherently reduce emissions but rather facilitates an approach towards achieving the desired reduction goals.