Z Energy will spend $1.5 million this year in forestry projects to voluntarily offset the emissions from its fuel delivery operations.
The company says it represents the largest voluntary purchase of units from permanent forest sinks seen in New Zealand to date.
Z's sustainability manager, Gerri Ward, said her company had committed to reducing operational carbon emissions by 30 per cent by 2020, and offsetting those it was unable to avoid.
The offset scheme covers the impact of transporting Z fuel around the country by road and sea, corporate travel and electricity. It does not cover the cost of offsetting emissions from the fuel it sells which she said was estimated at $70m.
Ward said the company didn't want to overstate its green credentials.