Carbon Credits Explained

Two very different products

The term “carbon credit” covers two fundamentally different things that are often confused. Understanding the distinction matters because buyers, auditors, and regulators treat them very differently.

Voluntary offsets

A charitable contribution to an environmental project — tree planting, ocean restoration, clean cookstoves. You are funding good work, not making a verified carbon claim. Suitable for internal sustainability goals and stakeholder communications.

Retirement certificates

A verified carbon credit — issued by a recognised registry (Gold Standard, Verra VCS) — permanently retired in your company’s name. Carries a unique serial number. Suitable for formal ESG reporting, supply chain questionnaires, and audit purposes.

When do you need each?

Situation	Voluntary offset	Retirement certificate
Internal net-zero target	✔ Sufficient	Optional
Website / marketing claim	✔ Sufficient with caveats	Stronger claim
Buyer ESG questionnaire	Often accepted	✔ Preferred
Formal ESG report (GRI, TCFD)	Disclose separately	✔ Required for offset claim
CSRD supply chain data request	Not sufficient	✔ Required
ISO 14064 verification	Not sufficient	✔ Required

How SolvingESG handles voluntary offsets

When you complete a carbon footprint assessment on SolvingESG, the platform calculates your total Scope 1, 2, and 3 emissions in tonnes CO₂e. You can then purchase voluntary offsets directly through the platform — funding land restoration via Just One Tree and ocean restoration via SeaTrees. These are genuine charitable contributions to environmental projects, clearly described as such.

The platform does not claim these offsets are equivalent to verified retirement credits. The offset certificate you receive shows the donation amount, the projects supported, and a unique reference number — suitable for internal reporting and stakeholder communications.

Where to find audit-standard retirement certificates

If you need verified retirement credits for formal ESG reporting or supply chain questionnaires, you should purchase directly from a recognised registry or accredited broker. The following are widely accepted by auditors and buyers:

Gold Standard (goldstandard.org) — the most widely recognised standard for carbon projects. Retirement certificates carry a unique serial number and are publicly verifiable.
Verra VCS (Verified Carbon Standard) (verra.org) — the largest voluntary carbon market registry. VCUs (Verified Carbon Units) are retired in the Verra registry under your company name.
South Pole (southpole.com) — a leading carbon project developer and broker. Offers Gold Standard and VCS credits with retirement documentation.
Climate Impact Partners (climateimpact.com) — UK-based, ICROA-endorsed. Strong audit credibility for UK businesses.

What to ask for when purchasing

When purchasing audit-standard credits, request the following documentation:

Registry retirement certificate with your company name
Unique serial number traceable in the public registry
Project name, type, and location
Vintage year (the year the emissions reduction occurred)
Verification standard (Gold Standard, VCS, etc.)

Tip: check the registry directly

Both Gold Standard and Verra maintain public registries where you can verify that a credit has been retired in your name. Your auditor may check this independently.

A note on greenwashing risk

The UK Competition and Markets Authority (CMA) and the Advertising Standards Authority (ASA) have both issued guidance on environmental claims. Using voluntary offsets to claim your business is “carbon neutral” or “net zero” without verified retirement certificates and a credible reduction plan carries material greenwashing risk. The safest approach is to describe voluntary contributions accurately — “we fund land and ocean restoration projects” — and reserve “carbon neutral” or “net zero” claims for situations where you hold verified retirement certificates.