Insetting Solutions

Move beyond traditional offsetting and make your sustainability investments count where it matters most — within your own operations and value chain. Kyoto Network’s Insetting Solutions, powered by our proprietary Supply Chain Emission Reduction Method (SCERM), allow you to generate verified, auditable emission reductions directly from your supply chain.

This isn't about compensating for emissions elsewhere; it's about eliminating them at the source and transforming your sustainability expenditure into a strategic, compliance-ready asset.

Standards

Independent certification frameworks used to validate Kyoto Network’s insetting projects.

GHGP – Greenhouse Gas Protocol

GHGP – Greenhouse Gas Protocol

Provides the world's most widely used greenhouse gas accounting standards. It sets the framework for calculating corporate emissions (Scopes 1, 2, and 3) for insetting and also provides the accounting basis for many carbon credit project methodologies.

SBTi

SBTi

(Science Based Targets initiative)

GRI (Global Reporting Initiative)

GRI (Global Reporting Initiative)

Provides the world's most widely used standards for sustainability reporting. Its guidelines include specific disclosures for an organization's emissions footprint (insetting) and its use of carbon credits (offsetting).

TCFD (Task Force on Climate-related Financial Disclosures)

TCFD (Task Force on Climate-related Financial Disclosures)

Provides a framework for companies to disclose climate-related financial risks and opportunities. This includes the strategic implications and financial impacts of both purchasing carbon credits and investing in internal decarbonization (insetting).

CDP (Carbon Disclosure Project)

CDP (Carbon Disclosure Project)

A global non-profit that runs the world’s leading environmental disclosure system. It pushes companies and governments to report their environmental impact, including their use of carbon credits and progress on internal emission reductions (insetting).

ISO 14064

ISO 14064

An international standard specifying principles for quantifying and reporting greenhouse gas emissions and removals. It provides the core accounting foundation for both organizational inventories (insetting) and project-level carbon credit validation.

ISO 14001

ISO 14001

The international standard for Environmental Management Systems (EMS). It provides a framework for an organization to manage its environmental responsibilities, forming the operational backbone for measuring and reducing its own emissions through insetting.

EMAS (Eco-Management and Audit Scheme)

EMAS (Eco-Management and Audit Scheme)

A premium EU voluntary environmental management instrument. It helps organizations evaluate, report, and improve their environmental performance, which is directly aligned with managing and reducing internal emissions for insetting.

CDSB (Climate Disclosure Standards Board)

CDSB (Climate Disclosure Standards Board)

Provides a framework for reporting environmental information in mainstream financial reports. It helps companies disclose climate-related risks, opportunities, and performance, which is essential for communicating both offsetting and insetting activities to investors.

BS8555

BS8555

A British Standard that provides a phased guide for implementing an environmental management system (EMS). It helps organizations measure and manage their direct environmental impacts, which is the foundation for generating internal emission reductions (insetting).

ISCC (International Sustainability and Carbon Certification)

ISCC (International Sustainability and Carbon Certification)

A globally leading certification system for biomass, bioenergy, and circular economy materials. It provides a framework for verifying sustainability and greenhouse gas emissions along the entire supply chain, making it relevant for both insetting projects and certain types of carbon credit projects.

Key Information

What is SCERM?

SCERM (the Supply Chain Emission Reduction Method) is Kyoto Network’s approach for turning real emission reductions inside a company’s supply chain into verified, auditable and compliance-ready outcomes. Unlike traditional insetting, SCERM uses digital MRV, field verification, and traceable supply-chain linkage to prove that reductions genuinely occur within a company’s value chain.

How is SCERM different from traditional insetting or offsetting?

Traditional insetting often relies on narrative reporting and inconsistent data. SCERM replaces this with a fully verifiable process: measurable field data, supplier-level linkage, third-party MRV, and a secure digital ledger. Offsetting compensates for emissions elsewhere; SCERM reduces emissions inside the supply chain that companies are directly responsible for.

What types of projects can qualify under SCERM?

Any project that measurably reduces emissions within a supply chain can qualify — provided it meets Kyoto’s MRV and traceability standards. If the reduction can be measured, verified, and linked to a supplier or material flow, it can be SCERM-eligible.

How does Kyoto Network verify emission reductions under SCERM?

SCERM uses a multi-layer verification system that combines digital monitoring (satellite, drone, sensor data), third-party audit reports, supplier documentation, and on-the-ground validation from Kyoto’s regional teams. Every verified result is hashed on a secure digital ledger, creating an immutable trail from field activity to corporate reporting. This ensures the reduction is real, traceable, and accepted under emerging compliance frameworks.

What benefits does SCERM offer my organisation?

SCERM enables organisations to recognise supply-chain emission reductions with a level of integrity that satisfies voluntary and compliance-grade reporting. This improves Scope 3 accuracy, reduces duplicated MRV costs, strengthens CBAM/ETS submissions, enhances ESG disclosures, and increases the financial value of sustainability investments. In short, SCERM turns sustainability spending into verifiable, reportable, and compliance-aligned impact.

What is SCERM Insetting?

While traditional offsetting funds external projects, SCERM Insetting is a rigorous, data-driven methodology. It focuses on verifying emission reductions from projects traceably linked to your value chain, enabling you to integrate them directly into your corporate carbon accounting.

This turns voluntary climate action into a recognised source of value under frameworks such as the EU Carbon Border Adjustment Mechanism (CBAM) and Emissions Trading System (ETS).

From offsetting to insetting

  • • Shift climate finance into your own supply chain.
  • • Turn project outcomes into recognised carbon assets.
  • • Strengthen compliance readiness for CBAM and ETS.
  • • Deepen supplier engagement and resilience.
Insetting Solutions

The SCERM Advantage: Integrity by Design

Our method is built on verifiable data and independent assurance, ensuring every tonne claimed is a tonne you can trust. SCERM is designed to withstand technical scrutiny while remaining practical for real-world supply chains.

Rigorous Verification

We apply a multi-layered verification model aligned with ISO 14064, the GHG Protocol and other global standards. Independent third-party audits validate emission reductions before they are integrated into your inventory.

Immutable Data Traceability

Advanced digital ledger technology creates a secure, tamper-evident chain of custody from project implementation to your corporate ledger, preventing double-counting and strengthening audit readiness.

Proof-of-Linkage

A core innovation of SCERM, Proof-of-Linkage verifies the data-backed connection between project outcomes and your specific procurement and production activities, ensuring reductions genuinely belong to your value chain.

The SCERM Process: From Action to Asset

We guide you through a structured process that transforms project impact into a recognised corporate asset — creating a transparent bridge from local interventions to board-level reporting.

Step 01

Project Implementation

Develop high-integrity sustainability projects within or closely linked to your supply chain, targeting clear emission reduction opportunities.

Step 02

Supply-Chain Linkage

Establish a traceable link between project activities and your procurement, production or logistics flows using SCERM’s linkage framework.

Step 03

Quantification & Verification

Convert project outcomes into verified emission reductions using accredited methodologies and independent, third-party verification.

Step 04

Corporate Integration

Integrate verified data into your GHG inventory, sustainability dashboards and ESG management platforms.

Step 05

Value Realisation

Leverage verified reductions in compliance reporting, investor disclosures and climate-related communications.

Who Benefits from SCERM Insetting?

Our methodology is designed for forward-thinking businesses across sectors where supply chains are both a major risk and a powerful lever for change.

Agriculture & Forestry

Generate verified reductions from regenerative practices and land-use improvements linked directly to your raw material sourcing, from farms to forestry.

Manufacturing & Industry

Capture and monetise process emissions, lower product-level carbon footprints and embed decarbonisation into procurement and production decisions.

Logistics & Transportation

Decarbonise distribution networks, from modal shifts and routing optimisation to fuels and fleet upgrades, with verified reductions feeding into Scope 3 reporting.

Why Partner with Kyoto Network?

We combine technical depth, digital infrastructure and project experience to turn insetting from a concept into a practical, value-generating part of your climate strategy.

Bridge to Compliance

Unlock the potential for your insetting investments to be recognised within emerging compliance systems, including CBAM-aligned reporting and ETS-linked mechanisms.

Capital Efficiency

Our streamlined model turns climate spend from a pure cost into a value-generating asset that strengthens your balance sheet and reputation.

End-to-End Service

From project identification and design through to verification, integration and reporting, we manage the process end-to-end with integrity at every step.

Ready to build a verifiably greener value chain?

Speak to us about how SCERM Insetting can unlock credible, traceable emission reductions within your own supply chain and help position your organisation for the next generation of climate regulation.