Decarbonisation refers to the process of reducing or eliminating carbon dioxide (CO2) emissions and other greenhouse gases from various sectors of the economy. This effort is crucial in combating climate change and achieving global temperature targets, particularly the goal to limit warming to 1.5°C above pre-industrial levels. 

Many companies aim to reach net zero emissions by 2050, which means balancing the amount of greenhouse gases emitted with an equivalent amount removed from the atmosphere.

The Science-Based Targets initiative (SBTi) is a global organisation that empowers companies and financial institutions to set greenhouse gas (GHG) emissions reduction targets that are aligned with the latest climate science. 

By providing a common framework, it helps to reduce confusion and accusations of greenwashing, ensuring that companies' climate commitments are credible and transparent.

As of 2023, over 4,000 companies and financial institutions have committed to setting science-based targets, demonstrating leadership in climate action and contributing to the global effort to mitigate climate change.

Offsetting involves investing in external projects that reduce emissions or remove carbon from the atmosphere, such as renewable energy, reforestation, or carbon capture and storage. 

Whereas, Insetting focuses on reducing emissions within a company's own value chain and supply chain.

While offsetting can be a useful tool to compensate for unavoidable emissions, insetting is generally considered a more effective and transparent approach to driving real emissions reductions within a company's operations and supply chain. 

However, a combination of both offsetting and insetting may be necessary for companies to achieve their net-zero goals.

1. Scope 1 emissions are the direct GHG emissions that occur from sources owned or controlled by the company. This includes: Combustion emissions, Fugitive emissions and Process emissions.

2. Scope 2 emissions are indirect GHG emissions associated with the generation of purchased energy. This includes emissions from: Electricity

3. Scope 3 emissions encompass all other indirect emissions that occur in a company's value chain, both upstream and downstream, and are often the largest share of a company's total emissions. This includes:
- Upstream activities such as emissions from the production of purchased goods and services, employee commuting, and waste disposal.
- aDownstream activities like emissions from the use of sold products and transportation of products to customers .