Reuters highlights our work with Reckitt

Nature-based Insights (NbI) has been featured in a recent Reuters article highlighting corporate efforts to reduce greenhouse gas emissions within supply chains.

Nature-based Insights is playing a key role in a project with Reckitt, the consumer goods giant behind brands like Durex. The initiative focuses on integrating agroforestry into Reckitt’s rubber supply chain across Thailand, Malaysia, and Indonesia. Unlike carbon offsetting, which allows companies to neutralize emissions through external projects, insetting concentrates on reducing emissions within a company’s own supply chain.

Maximizing Impact

To maximize impact, interventions at a landscape level are considered the most effective. In industries such as food and agriculture, where multiple companies rely on the same suppliers, collective action is more efficient than isolated projects.

Insetting is gaining traction among major corporations. Danone’s Chief Sustainability and Strategic Business Development Officer, Henri Bruxelles, advocates for this approach, arguing that sustainable practices are not just a corporate responsibility but also a necessity for resilience and competitiveness. Nestlé is similarly committed, supporting 15 landscape initiatives worldwide in line with its 2030 target of sourcing half of its products from regenerative farms.

Concerns

One of the primary concerns is ensuring that insetting efforts are not perceived as greenwashing. A 2023 report from Carbon Market Watch and the NewClimate Institute criticized certain insetting projects for relying on non-permanent carbon removal methods, such as reforestation and regenerative farming, which are more vulnerable to external factors than geological sequestration. The report also highlighted challenges in calculating the precise impacts of insetting, particularly regarding causation, additionality, and attribution.

To mitigate these concerns, some experts recommend placing suppliers at the center of the reporting process for Scope 3 decarbonization. Upcoming regulations, such as the European Union’s Carbon Removals and Carbon Farming Regulation, aim to provide greater clarity on these issues. Additionally, brands must find ways to incentivize suppliers to participate in sustainability projects. Transitioning to more sustainable practices often requires significant upfront investment, and while companies typically cover the costs of project management and training, suppliers may still face financial barriers.

Crucial Role

In the case of Reckitt’s agroforestry initiative, Nature-based Insights plays a crucial role in assessing the biodiversity impacts of these efforts. By leveraging scientific expertise, NbI helps ensure that corporate sustainability initiatives deliver measurable and verifiable environmental benefits. This evidence-based approach is critical in maintaining credibility and securing continued investment in nature-based solutions.

As corporate sustainability strategies evolve, insetting is emerging as a crucial tool for reducing emissions and enhancing supply chain resilience. The work of organizations like Nature-based Insights ensures that these efforts are grounded in robust scientific analysis, helping brands navigate the complexities of insetting while maximizing environmental and social benefits. With growing regulatory clarity and increasing corporate commitment, insetting has the potential to reshape supply chain sustainability, offering a viable alternative to traditional offsetting models.