Is Carbon Offset Trustworthy? Avoiding Greenwashing and Carbon Scams

In the race to present greener, cleaner brand identities, carbon offsetting has emerged as a popular tool. But with popularity comes scrutiny, and the question on everyone’s mind is: is carbon offset trustworthy? The urgency of the climate crisis has made carbon offsets a useful mechanism for companies wanting to neutralise their emissions. Yet, without transparency and rigorous standards, this well-meaning solution can start to resemble something far murkier.

Shein in the carbon offset spotlight

Take the recent example of Shein, fined €1 million by Italian regulators for misleading environmental marketing. The fashion giant promoted sustainability claims that lacked substance and proof, undermining the credibility of its message. This is a growing pattern. Greenwashing—making vague or false environmental claims—is no longer just a PR misstep. It’s now a regulatory risk, and increasingly, a reputational one too.

In response to public pressure and tightening regulations, companies can no longer afford to be vague about their climate strategies. A generic 'carbon neutral' claim without detail or verification simply doesn’t cut it. Customers want to know where their money is going and how that translates into real-world impact. So, is carbon offset trustworthy? It can be, but only if done with transparency, traceability, and accountability.

What makes Fig carbon offset different?

At Fig, we’ve built our carbon offset offering around those principles. Every offset is verified and certified by Cercarbono, traceable via EcoRegistry, and tied to a real reforestation initiative in Ghana led by a UK-based team. There’s nothing abstract or vague about it. We ensure that what’s promised is measurable and independently validated. We also include insurance to account for risk, further reinforcing the credibility of the credits we issue.

Why does this level of scrutiny matter? Because not all carbon offset projects are created equal. Without independent oversight, it's far too easy to fall into the trap of carbon scams. These scams exploit the good intentions of businesses and consumers by offering credits from projects that either don’t exist or don’t deliver any meaningful climate benefit.

Trustworthy carbon offsets are those that are rigorously verified by third parties, transparently documented, and subject to continuous monitoring. They’re rooted in real-world outcomes, not marketing narratives. And increasingly, they must meet growing regulatory expectations designed to protect both consumers and the climate.

A shift in carbon offset regulation?

Shein’s recently reported issues underscore the broader shift in public and regulatory attitudes. Environmental claims are now being treated like financial ones: subject to audits, verification, and penalties when misrepresented. This is not just a warning to fashion brands. It’s a wake-up call for any organisation incorporating sustainability into its messaging.

Of course, that doesn’t mean companies should shy away from climate action. On the contrary, this is an opportunity to do better. By embracing verified carbon offsetting, companies can still tell compelling stories grounded in data and accountability. They can inspire trust instead of doubt, and build long-term credibility instead of risking short-term backlash.