A guide to transparent and credible corporate climate communications

The document argues that traditional carbon offsetting is inherently deceptive because carbon credits cannot reliably counterbalance emissions on climate-relevant timescales. It advocates for the 'beyond value chain mitigation' (BVCM) approach, where credits are treated as contributions to global climate action rather than offsets. The guide outlines principles for credible communication, including the prioritisation of internal decarbonisation and the use of transparent, non-ambiguous language. It also provides case studies of misleading claims from entities like Climate Impact Partners, Audi, and Apple, and offers recommendations for policymakers to ban offsetting claims and for consumers to identify 'red flags' in corporate communications.

• Carbon offsetting is fundamentally flawed because research indicates that a single carbon credit cannot reliably offset one tonne of CO2 on climate-relevant timescales, with one study finding that over 80% of credits across more than 2,000 projects likely deliver far less climate benefit than claimed.
• The 'beyond value chain mitigation' (BVCM) model, also referred to by the Science Based Targets Initiative (SBTi) as 'ongoing emissions responsibility' (OER), is presented as a credible alternative to offsetting. Under BVCM, carbon credits are viewed as a contribution to climate action rather than a form of compensation, and must be paired with a priority on internal emission reductions.
• To ensure credible climate communications, companies must prioritise internal decarbonisation aligned with a 1.5°C trajectory, fully disclose disaggregated emissions data across Scopes 1, 2, and 3, and ensure their lobbying efforts do not oppose the Paris Agreement.
• The guide identifies specific misleading claims: Climate Impact Partners' 'CarbonNeutral Protocol' is criticised for supporting a 'tonne-for-tonne' approach; Audi's 'net carbon-neutral' production site claim is flagged for lacking disaggregated emissions data and relying on market-based accounting for Scope 2; and Apple's use of 'high-quality, nature-based carbon removal projects' to 'balance' emissions is deemed misleading because nature-based removals are temporary and subject to reversal risk.
• EU member states are required to apply updated consumer protection laws starting in September 2026 that prohibit product-level offsetting claims due to their deceptive nature.
• Consumers are advised to treat terms such as 'offset', 'balance', 'counterbalance', 'compensate', or 'neutralise' as red flags when used to suggest emissions have been cancelled out, and to verify if companies provide a publicly available ambitious climate plan detailing internal decarbonisation efforts.

APA

Nilles, L. O., Mair, G., Zawieracz, M., & Hirschberg, G. (2026). A guide to transparent and credible corporate climate communications. Carbon Market Watch. https://carbonmarketwatch.org/wp-content/uploads/2026/05/2026-04_How-to-spot-and-avoid-offsetting-claims.pdf

Chicago

Nilles, Lindsay Otis, Gavin Mair, Magdalena Zawieracz, and Greta Hirschberg. A guide to transparent and credible corporate climate communications. Carbon Market Watch, 2026. https://carbonmarketwatch.org/wp-content/uploads/2026/05/2026-04_How-to-spot-and-avoid-offsetting-claims.pdf.

Wikipedia

{{cite report |last1=Nilles |first1=Lindsay Otis |last2=Mair |first2=Gavin |last3=Zawieracz |first3=Magdalena |last4=Hirschberg |first4=Greta |title=A guide to transparent and credible corporate climate communications |publisher=Carbon Market Watch |date=April 2026 |url=https://carbonmarketwatch.org/wp-content/uploads/2026/05/2026-04_How-to-spot-and-avoid-offsetting-claims.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{nilles2026guide, author = {Nilles, Lindsay Otis and Mair, Gavin and Zawieracz, Magdalena and Hirschberg, Greta}, title = {{A guide to transparent and credible corporate climate communications}}, institution = {Carbon Market Watch}, year = {2026}, month = apr, url = {https://carbonmarketwatch.org/wp-content/uploads/2026/05/2026-04_How-to-spot-and-avoid-offsetting-claims.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }