# My GHG report shows net emissions after subtracting carbon offsets. Is that allowed?

Canonical: https://senseible.earth/answers/can-a-ghg-report-subtract-carbon-offsets

No. A GHG inventory reports gross emissions by scope. Carbon credits you bought and retired are reported separately, with the registry, project and quantity, never subtracted from Scope 1, 2 or 3. If you make a carbon neutral claim, show the gross footprint and the credits retired side by side.

## What the standards say

- GHG Protocol Corporate Standard: scopes are reported as gross figures; offsets bought or sold are optional information reported separately.
- ISO 14064-1: the inventory reports emissions and removals within your boundary; purchased credits are not part of it.
- SBTi: credits do not count toward a near-term reduction target.
- BRSR: Scope 1 and 2 are disclosed as gross emissions.

## How to present credits correctly

1. Report Scope 1, 2 and 3 as calculated.
2. Below them, list credits retired in the period: quantity, registry, project ID, vintage and serial numbers.
3. If you claim carbon neutrality for a product, event or the company, name the standard you follow, such as ISO 14068-1, and its reduction requirements.

## Why netting is a red flag

A net figure hides whether emissions actually fell. A buyer comparing suppliers, or a lender checking a sustainability-linked loan KPI, needs the gross number, and a netted figure is likely to be questioned. In the EU, product claims of neutral or reduced impact based on offsetting are banned from 27 September 2026.

## Removals inside your boundary are different

Carbon removed on land you own, such as trees on your premises, is reported as removals separately from emissions under ISO 14064-1. It is still not subtracted inside a scope total.

## Worked example: presenting credits next to the inventory

- Scope 1 and 2: 1,200 t CO2e (gross)
- Credits retired in the year: 300 t, listed with registry, project and serial numbers
- Correct: report 1,200 t and, separately, 300 t of credits retired
- Wrong: report net emissions of 900 t

## What Senseible does here

Senseible reports gross Scope 1, 2 and 3 figures built from your documents. Carbon credit eligibility signals and marketplace listings sit separately and are never deducted from the inventory.

- [Can credits count toward an SBTi target](https://senseible.earth/answers/can-carbon-credits-count-toward-sbti-target)
- [ISO 14068 carbon neutral requirements](https://senseible.earth/answers/iso-14068-carbon-neutral-requirements)
- [Net zero vs carbon neutral](https://senseible.earth/answers/net-zero-vs-carbon-neutral)

Sources: [GHG Protocol Corporate Standard, reporting GHG emissions](https://ghgprotocol.org/corporate-standard), [ISO 14064-1:2018, organisation-level GHG inventories (iso.org)](https://www.iso.org), [SBTi Corporate Net-Zero Standard](https://sciencebasedtargets.org)

Last reviewed 2026-10-20.