5 Business Benefits of Carbon Offsetting with Nature-Based Solutions
It’s no surprise that today, where sustainability and environmental responsibility are at the forefront, people are looking at ways, both as individuals and businesses, to reduce their carbon footprint, and carbon offsetting is an actionable and often straightforward option. Carbon credits allow companies to offset their own emissions while contributing to projects focused on climate mitigation, ecosystem restoration, and the green economy.
This is where Nature-based Solutions (NbS) come in. NbS could be considered as working with nature-protecting forests, restoring wetland and peatland, or practicing regenerative agriculture. Nature-based solutions do not simply sequester carbon; they increase climate resilience, promote human health, and create jobs and biodiversity.
From reforestation to restoring mangroves to providing energy-efficient cookstoves in rural communities, NbS solutions are already proving value. In fact, the World Economic Forum estimates that nature-based solutions could provide up to 30% of carbon reductions by 2030 to align with the Paris Agreement’s 1.5°C target.
Even if you’ve never considered offsets before, there are 5 wins of carbon offsetting with NbS for businesses that can have a real impact.
1. Enhancing Brand Reputation & Stakeholder Trust
Customers and investors are increasingly looking for genuine climate action, rather than slogans. In Edelman's 2025 Brand Trust special report, 64% say they pick which brands to support based on their beliefs, and climate impact is listed as an explicit `political' brand action consumers survey.
And it's not just intent: 49% of consumers say they pay a premium (+59% on average) for products that have ESG branding (which is now a commonly understood term for environmentally sustainable and socially responsible).
How NbS helps (What the science says)
Nature-based Solutions (NbS) = actions to protect, manage, and restore ecosystems that result in societal benefits and biodiversity and human well-being benefits (IUCN standard definition).
Mitigation at scale: Natural Climate Solutions (NCS) like reforestation, avoided deforestation, wetland/grassland restoration, and better agronomic and forest management, can deliver about 37% of the cost-effective CO₂ mitigation we will need through 2030 (approximately 11.3 Gt CO₂e/year using a $100/t social cost).
Wetlands and 'blue carbon' punch above their weight: peer-reviewed work shows that coordinated replanting and restoration of the mangrove ecosystem have increasing benefits in soil organic carbon sequestration and stability. Additionally, there is good economic news as coastal wetland restoration is emphasized, with additional co-benefit effects included in the analysis.
Why this resonates: NbS yields visible, local co-benefits (flood buffering, biodiversity, cleaner water), which are understandable and seen by people- potentially one reason they are easier to understand and garner support for than abstract offsets.
Why NbS builds credibility in ESG reporting
NbS projects can be assessed against endorsed NbS standards/criteria (IUCN Global Standard) which would enhance auditability and reduce the risk of greenwashing associated with non-descriptive benefits.
They produce measurable nature and climate benefits (hectares restored, tCO₂e sequestered/avoided, species/habitat indicators) that are more directly tied to assurance-ready metrics than general CSR narratives.
Case examples (proof in market)
Unilever: In 2020, they launched a new €1 billion Climate & Nature Fund to fund restoration, protection, water security, and resource-efficiency projects as part of a broader nature & regenerative agriculture strategy.
Patagonia: In 2022, ownership was restructured to ensure all profit goes towards fighting the climate and extinction crisis. They also fund regenerative agriculture and restorative ocean farming work through Tin Shed Ventures and Patagonia Provisions.
Business takeaway
Sustainability- and in particular, credible, standards-aligned NbS-is no longer simply a PR gift
It is now a growth and trust differentiator that taps into material, verifiable climate impact (with co-benefits customers are able to experience locally).
Strengthens brand preference and pricing power among belief-driven buyers and, as an outcome, institutional stakeholders
2. Cost-Effective Carbon Removal
Technologies like Direct Air Capture (DAC) sound exciting- pulling carbon directly from the sky but they remain incredibly expensive, ranging from $100 to over $1,000 per ton. Even if costs fall to around $200, scaling DAC will still require huge infrastructure and renewable energy inputs.
Why Nature-Based Solutions Work Today
In contrast, Nature-based Solutions (NbS) are ready now. Forests, soils, and wetlands have been storing carbon for millennia affordably and reliably.
Reforestation projects: $15–$20 per ton
Voluntary market credits: $7–$24 per ton (Sylvera)
Engineered removals: $170–$500 per ton (Dendra)
That’s a striking cost advantage, especially when paired with biodiversity, water security, and climate resilience.
Risks and Safeguards
NbS aren’t risk-free — a forest fire could release stored carbon. That’s why strong design, permanence, and monitoring are critical.
Real-World Example: IKEA’s Forest Commitments
IKEA has pledged €100 million toward restoration and climate-positive forest projects and allocated 16,000 hectares in Europe for sustainable forest management. For them, NbS go beyond offsets - they’re part of a long-term climate strategy that builds trust with customers and resilience for the business.
For IKEA, this is not just about "offsetting." By committing their business to climate resilience, they are signaling to their customers their seriousness about the planet. Moreover, it also demonstrates how a global brand can mobilize NbS not just as an instantaneous measure but as a legitimate part of their long-term climate strategy.
The business takeaway
Sustainability will be or is already expected, at a minimum, to be considered more than "nice to have." Customers and investors expect action to be taken.NbS can provide an immediate, low-cost option for greater emissions removal, whilst engineered solutions continue to evolve. Smart businesses will engage in both: invest in nature now, and keep abreast of tech for the future.
Think of it as a portfolio-style approach:
Trees today - low-cost, visible impact, co-benefits.
Tech tomorrow - high-permanence, scalable in the longer term.
This is a great approach for demonstrating progress now, earning trust from stakeholders, and maintaining readiness for the next technological wave of carbon removal innovation
3. Supporting Ecosystems & Biodiversity
Your supply chains depend significantly on ecosystem services, such as flood buffering, soil fertility, raw materials, water provisioning, and pollination. If those ecosystem services degrade, so does the stability of operations. Scientists describe ecosystem services as the benefits we derive from ecosystems being naturally sustained, including water filtration, nutrient cycling, pollination, climate regulation, erosion control, and many more.
A 2023 S&P Global report identifies that many of the largest companies in the world have a structural dependency on nature, from the health and biodiversity of soils, to its provision of water supply through pollination, erosion control, and flood protection, which they also call ecosystem services.
Benefits of NbS Projects (Not Just Carbon)
Forests protect watersheds.
Healthy forests capture rainfall, recharge aquifers, filter pollutants, and regulate water movement—and their importance to water supply and drainage cannot be overstated for supporting agriculture, industry, and cities.
Mangroves protect coastal infrastructure.
For businesses that own or lease coastal infrastructure, mangroves and marshes buffer wave energy and storm surges and stabilize shorelines, and losing these natural structures introduces an increased risk of flooding and operational risk.
Biodiversity enhances food systems.
Many crops rely on insect pollination. Biodiversity loss diminishes yields, weakens agricultural pest mitigation, and diminishes soil health and fertility. Supporting and protecting ecosystems makes agriculture stronger, more resilient, and ultimately more sustainable.
Real-World Example: Nestlé
Nestlé explicitly links ecosystem services to supply chain resilience. Its Regenerative Agriculture Framework focuses on soil health, water conservation, and biodiversity restoration.
By the end of 2023, 15% of Nestlé’s key ingredients came from regenerative farms.
Programs like Nescafé Plan 2030 apply regenerative strategies adapted to local conditions, strengthening soil and water use
Nestlé acknowledges challenges, but stresses that ecosystem restoration ensures long-term supply stability
Business Takeaway
Protecting Nature = Protecting your supply chain.
When ecosystems collapse, the invisible infrastructure that supports your operations - water, pollinators, fertile soils, natural buffers - collapses too.
In practice, businesses should:
Map dependencies (water, pollinators, soils, coastal buffers) by geography.
Pilot NbS projects (forest buffers, riparian zones, agroforestry, mangrove conservation) in key sourcing regions.
Track co-benefits (water yield, reduced storm losses, yield stability) alongside carbon metrics.
Communicate value: show stakeholders that investing in NbS isn’t just climate action- it’s supply-chain insurance.
4. Managing Regulatory & Climate Risks
The EU Corporate Sustainability Reporting Directive (CSRD) requires disclosures on various sustainability topics according to European Sustainability Reporting Standards (ESRS) that cover climate, biodiversity, and other nature-related indicators (Climate Governance Hub). In the United States, SEC climate rules increase the scrutiny on how companies measure, manage, and disclose climate-related risks, including factors related to nature.
Through the Taskforce on Nature-related Financial Disclosures (TNFD), companies are expected to disclose not only emissions, but also their dependencies on ecosystems, their impacts on those ecosystems, and risks associated with natural capital.
In short: investors, regulators, and stakeholders are evolving towards requiring companies to disclose climate and nature risks in a credible and transparent way. Nature-based Solutions (NbS) can aid companies in strengthening their narrative, as well as their performance.
How NbS Helps
*Credible Carbon Accounting*
NbS (such as soil carbon, forest management, or reforestation and wetland and other management) provide measurable removals or avoided emissions, if they have robust monitoring, reporting and verification (MRV) processes.
For example, Microsoft's contracts for removal of soil carbon (Agoro) and forest management (Anew/Aurora) clearly shed light on durability and permanence and include a third party verification process (Microsoft; Sustainability Magazine; Carbon Herald).
NbS, as long as they contain strong MRV processes, provide credible disclosures and can lessen accusations of weak offsets and greenwashing.
2. Proactive vs. Reactive ESG Strategy
Integrating NbS early gets companies ahead of tightening regulations and changing expectations in the market. It represents a shift from just “compliance” to “contribution,” or fixing ecosystems and building resilience.
Case Study: Microsoft's Carbon-Negative Strategy
Commitment: carbon negative by 2030; remove/offset all historical emissions by 2050.
Carbon Removal Program: focused on durability, scientific credibility, and social safeguards.
Deals:
Agoro 12-year soil carbon contract (~2.6MT).
Anew/Aurora 10-year forest carbon contract (~4.8MT).
Strategy: scale up improved forest management (IFM) and soil carbon projects - "low durability," but key for near terms to remove carbon.
These decisions show Microsoft's considered investment in high-integrity NbS with immediate delivery on carbon, biodiversity, and resilience co-benefits.
Natural Insurance: NbS and Climate Risk
Ecosystems such as mangroves, reefs and wetlands provide a natural form of defense from storms, flooding, and sea level rise.
OECD: Every year, mangroves protect approximately 15 million people from flooding.
RVO.nl: Blue carbon restoration means less damage from waves and carbon is secured.
UNEP FI and CISL: Insurers are now viewing NbS as a way to reduce losses, claims and volatility in premiums.
NbS therefore reduces physical climate risk and increases stability in risk models with benefits to insurance for businesses.
Business Takeaways: Why NbS Are Strategic
Regulatory Risk Reduction: Stronger positioning under CSRD, SEC, TNFD.
Resilience & Insurance: Ecosystem buffers reduce damage, losses, and costs.
Reputation & Market Trust: Nature-positive narratives enhance credibility.
Finance & ESG Alignment: Unlock climate bonds, green debt, and blended finance.
Beyond Carbon: Support biodiversity, water, soils, and communities - securing social license and stakeholder goodwill.
5. Delivering Social & Economic Co-Benefits
Nature-based solutions (NbS) provide not only carbon sequestration, but also valuable social and economic outcomes. For businesses, these benefits can bolster brand protection, investor confidence, and community trust.
At the community level, NbS projects support job creation for rural and indigenous communities, from planting trees to restoring ecosystems and monitoring outcomes, while providing skills development for people to provide sustainable livelihoods based on conservation, not extraction. These co-benefits address many UN Sustainable Development Goals (SDGs) including poverty (SDG 1), health/well-being (SDG 3), clean water (SDG 6) and climate action (SDG13).
A strong example of NbS is the FairClimateFund, which collaborates with communities in India and Africa to use clean cookstoves. The projects reduce emissions by decreasing firewood use, improve indoor air quality (reducing respiratory illness), and free up time for women and children typically spent searching for and gathering fuel (FairClimateFund).
For business, the message is clear: by investing in NbS, a shared value is created. Climate mitigation comes with transparent social outcomes which businesses can communicate to various stakeholders like regulators, customers, or investors. As our world progresses in a climate and community context, stakeholders (e.g. community, social media, activists, governments) are expecting companies to do both. Nature-based solutions provide an increasingly viable pathway forward.
Challenges and Criticisms of Carbon Offsetting
Touch on “greenwashing” concerns.
Stress quality verified NbS (Forest Carbon Partnership Facility, Verra Verified Carbon Standard).
Encourage businesses to prioritize emissions reductions first, then offsets.
How students/startups/colleges can help: Challenges and Criticisms of Carbon Offsetting
Greenwashing risks. This practice is often described as a means for companies to "appear" to be climate-friendly while continuing high levels of emissions.
A project may be poorly designed, may overstate carbon "savings, and may not be permanent, and may not be good for people and the socio-ecosystem."
Have high-quality verification: Only higher-quality offsets with rigorous standards will guarantee the carbon savings are real, measurable, and additional-such as offsets offered by Gold Standard or VERRA-verified carbon standard projects.
Independent monitoring and transparency are critical to creating a credible project.
Reduce first, offset second.
Offsets should supplement a plan to reduce emissions, but they are not intended to replace reducing the direct emissions.
All companies should reduce energy efficiency (or improve) and renewable energy expansion and redesign supply chain operations before offsets would be employed.
From a business perspective.
A 'reduce first, offset second' strategy stands to lessen reputational risks associated with offsets, assures compliance with rapidly evolving ESG standards, and provides potential for financing change agents that would benefit climate and community as
The Role of Hestiya
Hestiya believes it is more than just a carbon offsetting organization; it believes it is the link between businesses, trusted climate solutions, and the future obligations of measurement requested by investors and stakeholders. For companies looking to explore the 5 core business associations that come with carbon offsetting with nature-based solutions, Hestiya is there, providing practical, science-based ways to deliver climate impact and commercial value.
1. Improved Brand & Stakeholder Trust:
Hestiya curates projects to ensure compliance with the best-known standards globally (Verra, Gold Standard, IUCN NbS frameworks), which helps businesses to ensure credibility in order to avoid greenwashing. This increases the organizations’ ESG reporting and consumer trust.
2. Cost-Effective Approaches to Carbon Removal:
Through securing high-quality NbS credits such as reforestation, such as seagrass and kelp restoration, or regenerative agriculture, Hestiya can position businesses to offset emissions using a fraction of the costs of engineered solutions while still providing visible co-benefits such as biodiversity and clean water.
3. Supporting Ecosystem & Supply Chain Resilience:
Hestiya can map ecosystem dependencies and help an organization understand or align offset investments with business activities. For example, food and beverage companies may prioritize offset investments in terms of watershed projects, compared to logistics players, who may better understand offsets in coastal wetland protection.
4. Climate Risk and Regulatory Management:
Through a robust monitoring, reporting, and verification (MRV) process, Hestiya can guarantee that offsets will hold up under tightening disclosure frameworks such as CSRD, SEC, and TNFD—positioning businesses as proactive, not reactive, on compliance.
5. Achieving Social Co-benefits:
Numerous Hestiya projects bolster rural and Indigenous communities, generating employment, improving livelihoods, and achieving UN SDGs. This does not only have information value by offsetting emissions but also provides a company with a social license to operate.
In summary, Hestiya facilitates carbon offsetting as a strategic ESG investment that achieves measurable climate change, secures supply chains, and increases stakeholder trust.
Conclusion
Nature-based solutions (NbS) are much more than a mechanism for carbon offsetting - they represent a full-spectrum solution that creates brand value, financial resiliency, eco-restoration. regulatory preparedness, and social impact. By weaving NbS into their operations, companies can address climate risk while enhancing stakeholder trust, and unlocking co-benefits that reach beyond carbon accounting.
In the future, the companies that align their operations and strategies to nature will be at the leading edge of the next wave of sustainability. From investors who expect more robust ESG disclosures to customers who will reward authentic climate action, the market will start to place greater value on organizations and their contributions rather than compliance.
As the saying goes, investing in nature is not only about saving the planet - it is about securing the future of business.
