The key difference lies in where the carbon reduction activities take place. Carbon offsetting involves investing in environmental projects outside of your company's operations to compensate for your unavoidable emissions. These projects can include renewable energy, reforestation, or other GHG absorption initiatives. In contrast, carbon insetting focuses on reducing emissions within your own company's value chain. This means making improvements in your processes, supply chains, and operations to primarily reduce emissions linked to your business activities, particularly those under Scope 3 emissions.