Offsetting is often misunderstood. Used responsibly, carbon credits play a critical role in the global climate solution by enabling the funding of verified emissions reductions and removals projects. Oftentimes, these projects would otherwise not go ahead.
At Toitū, offsetting is done with integrity. It’s a final step in our clients' broader strategy that prioritises measuring, managing, and reducing emissions at their source. The ability to offset only comes after a business has taken all reasonable steps to decarbonise its own operations and partner emissions. Only then do carbon credits have integrity as a tool for addressing the hardest-to-abate emissions.
Our approach reflects international best practice. Standards such as the Science Based Targets initiative (SBTi) and guidance from the Integrity Council for the Voluntary Carbon Market (ICVCM) and the International Carbon Reduction & Offset Alliance (ICROA) all stress that offsetting must not come at the expense of genuine, near-term emissions reductions.
And the evidence is growing that this responsible approach works.
A 2023 research report published by Conservation International and UC Berkeley found that companies investing in voluntary carbon markets tend to decarbonise faster than those that don’t. Far from being a way to delay action, high-integrity offsetting can act as a catalyst - reinforcing climate commitments, driving transparency, and channelling finance toward global emissions reductions and removals.
What does credible offsetting look like?
At a minimum, it means using high-integrity credits that represent validated climate outcomes. These projects - whether nature or technology based - must be provided by an organisation that is approved by an independent, globally recognised third party. This ensures the credits are from projects validated and verified under an approved international standard, and they are accurately and transparently retired.
It also means being clear and honest about the role offsetting plays in your organisation's climate claims. For example, claims should be made alongside active emissions reductions to a long-term science-based target.
Toitū helps businesses navigate this complexity. As one of New Zealand's first ICROA-approved providers, we ensure that the credits offered meet the highest possible standards of integrity, are transparently retired, and are aligned with a credible, science-led path to net zero.
Offsetting is a critical short-term solution to climate change. When used carefully, it offers support where its needed most - by accelerating investment in underfunded climate solutions, while businesses do the crucial work of reducing all emissions possible at the source.
The difference lies in how it's done; with integrity.
Carbon credit thought leadership series
This article is part of Toitū’s thought leadership series on carbon credits - exploring what integrity looks like in today’s voluntary carbon market, why credible offsetting matters, and how Toitū is helping shape a high-standard future for New Zealand and beyond. Read the full series below.