Carbon compensation is vital in enhancing corporate social responsibility (CSR). By implementing carbon offset initiatives, companies can effectively address their hard-to-abate and past carbon emissions and contribute to environmental sustainability. This proactive approach aligns with CSR principles, demonstrating a commitment to minimising ecological impact and supporting conservation projects. It enables companies to improve their carbon footprint and reporting, aligning with investor mandates. It also elevates a company's reputation and fosters positive stakeholder perception by actively participating in global environmental efforts. Overall, integrating carbon compensation into CSR strategies reflects a business's dedication to being a responsible and conscientious corporate citizen.