As that song from The Sound of Music goes – let’s start at the very beginning. The beginning is to really understand your carbon footprint and it’s a very good place to start.
What’s in it for my organisation?
It is a really good idea to start an internal discussion about why the organisation should quantify and reduce its carbon footprint. This will help mobilise support and resources to undertake the tasks. Today, understanding your environmental impact isn’t just about being a good global citizen; it’s about future-proofing your business. Reducing your carbon footprint offers several tangible “wins”
Cost Efficiency: When you reduce emissions, you’re reducing energy consumption, streamlining logistics, or cutting down on material waste. That all reduces costs and, for businesses, immediately improves your bottom line.
Regulations: There are a number of mandatory reporting requirements (e.g. ESOS, SECR, TCFD) and so acting now will avoid the scamble, potential fines and risinf costs when deadlines loom.
Investor and Client Relations: Investors are increasingly using environmental criteria to vet companies and high carbon businesses can become high risk in the eyes of banks and private equity.
Brand Loyalty: Modern consumers – and B2B clients – are savvy. They want to partner with brands that align with their values.
How to measure –Scope 1,2,3 and Emission Factors
Measuring a carbon footprint can be made to feel like a dark art, but by using the internationally recognised “Scope” framework and published emission factors, you can organise your data into a manageable format.
Most start with deciding on a base year from which all changes will be reported. Choose a recent year for which data is still available and which wasn’t unusual. Collect data in its original form and categorize under the following:
Scope 1: Direct Emissions
These are the things you “own” or control directly. Think of the gas boilers heating your building or the fuel purchased for use in your company-owned vehicles. Try to get the energy (kWh) or volume (m3, litres) rather than just the cost.
Scope 2: Indirect (Owned) Emissions
This is primarily the electricity (and heating or cooling if you don’t have your own boilers/chillers) you buy. from a utility provider. You don’t burn the fuel yourself, but you’re responsible for the emissions created to generate that energy.
Scope 3: Indirect Emissions (Somebody Else’s Problem?)
This is sometimes called value chain emissions and covers everything else. It includes the emissions from your suppliers, the flights your team takes, and even the energy your customers use when they operate your products.
For most businesses, Scope 3 accounts for over 70% of their total footprint. Measuring is difficult as it relies on obtaining the carbon footprint data of third parties. As a start, most organisations collect the expenditure data from financial reports.
Once the data is all in, then you need to convert the kWh, litres, and £ expended into common units in order to compare. This is where emission factors are used; they are figures based on research that are published that convert the original units into a recognisable emission quantity. The most common emission unit is kg (or tonnes) of CO2e (carbon dioxide equivalent).
What the information tells us
Once you’ve crunched the numbers, you’re no longer guessing; you’re managing. This data provides a “heat map” of your operations.
Identify Hotspots: You might discover that a single raw material or purchase category in your supply chain is responsible for half of your emissions, or that your data centre uses more electricity than all the rest of your site.
Identify Trends: The data should allow you to see usage over time or between operations. You might find out that you use the same amount of energy when the site is shut (is this a control issue?) or that some sites use more energy for the same amount of output (is this a management or equipment problem?)
Risk Assessment: It reveals where you are vulnerable to future energy price spikes or increased taxes. If a specific process is carbon-heavy, it’s a financial liability waiting to happen.
Sharing and taking action
Data without action is just paperwork. Once you understand your footprint, it’s time to share an action plan.
Be Open and Transparent: Share your findings with your staff and stakeholders. It’s not about judgment but about the starting point. Keeping people informed will lead to them offering support and guidance when required.
Set Targets: Don’t just pick a random percentage. Set goals that actually align with your business and available resources and review regularly.
Choose your battles: Take action where you can have an immediate and significant effect; don’t immediately worry about the lighting if the heating produces three times the emissions. Don’t buy solar panels until you attend to the equipment left on out of hours.
Engage With Your Supplier: Since Scope 3 is usually the largest cause of emissions, talk to your suppliers. Ask your largest suppliers (by spend) for their carbon data. Your purchasing power can be a lever for change.
Iterate: Carbon management is a journey, not a destination. Measure, reduce, and repeat.
Where Next
Lowering your carbon footprint isn’t about doing less; it’s about doing better. It’s the ultimate lean business strategy for the 21st century. But like all business strategies, you need to have a proper plan, endorsed by stakeholders and supported by the right resources. Measuring, understanding and sharing an action plan – the best place to start the journey.
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