CARBON OFFSETS AS STRATEGIC INSTRUMENTS: EVIDENCE FROM CORPORATE CLIMATE GOVERNANCE AND REPORTING

This study examines the strategic use of carbon offsets within corporate climate strategies and their relationship with internal decarbonization outcomes. While offsets are intended to address residual emissions, firms increasingly deploy them as a primary mechanism to meet net-zero and carbon-neutral claims. Using a secondary analysis of existing literature,this research explores how governance structures, behavioural dynamics, and data transparency shape offset reliance. The findings suggest that heavy dependence on offsets is associated with slower internal emissions reduction and increased decoupling between climate claims and operational performance. Strong governance and AI-enabled measurement systems moderate these effects, highlighting offsets as conditional strategic tools rather than neutral mitigation instruments.