At Brightly, we believe food loss and waste (FLW) reduction is a powerful climate solution at every step of a business’s value chain. That’s where insetting comes in. For companies looking beyond traditional offsetting, FLW insetting offers a strategic way to reduce Scope 3 emissions while supporting local impact. Here’s a quick FAQ to help you better understand how insetting with Brightly works and how to get started.
What is the difference between carbon insetting and carbon offsetting?
Offsetting is when you fund emissions reductions outside your business, applying those credits against your own carbon footprint. For example, companies can purchase Brightly’s food rescue carbon credits to fund local organizations distributing food to those in need while preventing methane emissions from food waste (learn more about these credits here), at the same time reducing their Scope 3 emissions.
Insetting, on the other hand, focuses on reducing emissions within your supply chain or value chain. For example, if you invest directly in preventing food waste at your own retail locations, or support your agricultural suppliers in redirecting on-farm surplus to animal feed, this could be considered insetting.
Which approach is best for your goals depends on your company’s opportunities, supply chain relationships, timeline, and climate targets.
Does insetting generate carbon credits?
It can — but not always. Some insetting projects are structured to generate carbon credits through rigorous third-party verification, which can be sold through carbon markets for additional revenue. Others focus on measurable emissions reductions which can be counted toward corporate climate goals, without creating tradable credits. Whether or not credits are generated depends on the project's design and the company’s needs.
How are insetting projects verified and certified?
If an insetting project is designed to generate carbon credits, it goes through third-party validation and verification by an accredited registry, such as Verra, to ensure emissions reductions are measurable, permanent, and additional.
If your insetting project does not aim to generate credits but still wants to measure internal emission reductions, Brightly can support you with Measurement, Reporting, and Verification (MRV) services, including an optional third-party review. This helps build stakeholder confidence and ensure credible sustainability reporting.
What data do I need to start a FLW insetting project?
A credible insetting initiative starts with good data. Brightly helps you collect and organize the information you need, including:
Food waste volumes (by weight and type) To calculate methane generation potential and determine emissions impacts.
Waste destinations (e.g., landfill, compost, donation) To assess the emissions profile of each pathway.
Site, supplier, or facility-level data To confirm insetting eligibility and quantify any associated project emissions (e.g., from energy, packaging, transportation, or leakage).
Our team can guide you through each step, so you’re confident your project meets standards and achieves measurable results.
What kinds of food waste initiatives can qualify as insetting?
If your food waste intervention happens within your value chain and meets requirements for additionality, it may qualify as insetting. Specific data and evidence availability are also required. Examples include:
Food waste prevention: Kitchen- or store-level waste reduction practices that reduce overproduction, spoilage, or expiration — like improved labeling, storage, or food prep.
Inventory optimization tools: Systems and technologies to forecast demand, manage stock, and reduce surplus.
System-wide prevention strategies: Redesigning manufacturing or retail processes, updating sourcing protocols, or working with suppliers to cut waste at the source.
Surplus food diversion: Donations to food banks, redirecting food waste for animal feed, compost or aerobic digestion, or anaerobic digestion.
Is third-party auditing required for insetting?
If you want to generate verified credits for insetting, third-party auditing is essential.
If you’re strictly reporting on insetting progress in sustainability disclosures, third-party audits aren’t mandatory, but they can add significant credibility and trust for stakeholders and investors.
What is the process for generating a carbon credit through insetting?
If you want to turn an insetting project into verified carbon credits, the steps are clear:
Project Design Develop a Project Design Document (PDD) aligned with a recognized methodology like Verra’s VM0046 for avoided food loss and waste, meeting all criteria set in applicable Program Standards, such as Verified Carbon Standard (VCS).
Data Collection & Emissions Tooling Gather operational data (food waste volumes, destinations, etc.) and our team will precisely calculate emission reductions using our proprietary software.
Validation Submit the PDD to a Verra-accredited Validation and Verification Body (VVB) for review to confirm the project meets all requirements.
Verification Have the project periodically audited by a VVB to confirm emissions reductions are real, measurable, and continuing. This includes preparing a comprehensive Monitoring Report with supporting data and evidence.
Issuance & Sale Once verified, Verra issues verified carbon units (VCUs), which can then be sold to companies looking to meet high-integrity climate commitments.
Ready to explore insetting? Brightly can help you design and implement impactful, credible projects that reduce emissions in your supply chain while advancing your sustainability goals. Reach out to us to get started!
Olivia Whitener
Jul 14, 2025
