Offshoring means the relocation of [insert business activities] to another country or the outsourcing of such activities to a third party in another country for the purpose of:
(a) reducing its emissions;
(b) avoiding [Environmental Performance] targets in [original country] due to more lenient environmental regulation in [the country of relocation];
(c) using unreasonably low-cost labour;
(d) exploiting weaker labour laws and practices in [the country of relocation];
(e) carrying out practices in [the country of relocation] which would be illegal in [original country]; or
(f) carrying out practices in [the country of relocation] which could be reasonably considered to adversely affect achieving [a just transition] [and] [the UN Sustainable Development Goals/ wider social and ecological goals].
Offshoring describes geographically relocating a company’s high greenhouse gas emitting activities to another country. Importing goods and services is a form of emissions offshoring.
Emissions offshoring could be used to make it appear that a company has reduced its greenhouse gas emissions. Where companies are measuring their Scope 3 Emissions, these must cover any offshored emissions.
Studies show that when firms increase their imports, their own emissions fall with a corresponding rise in supplier generated emissions.
This definition is deliberately broad so it can be easily adjusted to fit a variety of contracts and contexts.
Commercial leases, project finance documents, employment contracts, consumer goods and supply chain clauses, government guidance and share purchase agreements.