Environmental Offsetting: An Effective Practice or an Ego Strategy?

Abstract

With the expansion of environmental consciousness and the growth of nature loss awareness, people, governments, organizations and companies are devoted to achieve sustainable development. Businesses around the globe are facing the challenge of minimizing environmental impact, improving social responsibility, attending governance standards and, mostly, keeping the company financially stable. In order to achieve that goal, many are counting on offsetting schemes, most known as a way to compensate for biodiversity loss with environmentally positive initiatives. This article aims to analyze from an ESG perspective whether these initiatives effectively bring environmental benefits or are just a form of self-promotion and greenwashing. The study was conducted using bibliographic analysis, conceiving a small review on the subject matter. In conclusion, this article intends to serve as motivation for the debate and investigation of sustainable practices.