Glossary term


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Definition 1

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 one or more of the following:

(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]

(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 OR wider social and ecological goals].

Drafting notes and guidance

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.

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