A carbon footprint is defined by the greenhouse gas (GHG) emissions associated with any specific activity or transaction. The carbon footprint is often broken down into three scopes of emissions:

(i) scope 1 emissions are direct emissions from the use of fossil fuels. This could be the emissions that are directly generated by manufacturing goods. It also includes fuel combustion, company vehicles, and fugitive emissions.

(ii) scope 2 emissions are indirect GHG emissions from the consumption of purchased electricity.

(iii) scope 3 emissions are all other indirect emissions (or value chain emissions) related to the company’s activities, including emissions caused by vendors within the supply chain, outsourced activities, employee travel, and commuting. In many industries, Scope 3 emissions account for the largest amount of GHG emissions.

Each carbon offset (or carbon credit) represents 1 tonne of greenhouse gases (GHG) emissions, in carbon dioxide equivalent (CO2eq), that has been reduced, captured, or avoided through the implementation of a project activity that would not have taken place without the sale of carbon offsets. The terms "carbon offset" and "carbon credit" can be used interchangeably.

Carbon offsets are issued by independent carbon certification bodies once a project has demonstrated it has reduced, avoided, or captured emissions of carbon, following the guidance of the respective carbon certification body it is certified or registered with. Each emission reduction needs to meet basic principles to qualify as carbon offset: be additional, be measurable and auditable, be permanent, and be unique.

Emission reductions enabled by project activities and certified to a credible carbon certification body must adhere to the principle of “additionality” to be materialised and monetised as carbon offsets. This means that the projects are being implemented as a result of the (expected) proceeds from the sale of carbon offsets, enabling project developers to overcome the difficulties they face. In other words, organisations are not supporting a project that would have been carried out anyway.

The carbon offsets are funding additional carbon mitigation. Often, projects are not financially attractive to investors without the sale of these carbon offsets and would therefore not materialise. The additionality case is checked by third-party auditors and the respective carbon certification body at project inception.

Science is clear: a quantity of greenhouse gas (GHG) emissions emitted in one place has the same global warming potential as the same quantity of GHG emissions emitted anywhere else. It is the same thing for a quantity of GHG emissions reduced or avoided. Climate change is happening due to the increasing concentration of GHG emissions in the atmosphere and it is of the utmost importance to reduce the pace at which GHG emissions enter the atmosphere. One way to do so is to support low-carbon and modern project activities that displace high-carbon and traditional alternative activities. In many sectors and countries, these low-carbon activities face economic barriers that prevent them from taking place. As a result, they are allowed to sell carbon offsets, which enable projects to take place and reduce emissions. By offsetting its carbon emissions, an organisation is outsourcing emission reductions and mitigating climate change by supporting relevant project activities.

To ensure the offset has a positive impact on the environment, Iberia has partnered with climate technology company CHOOOSE™ which offers a digital solution that enables individuals and organisations to support climate solutions with high environmental integrity to address their carbon footprint.