A person, organization, or product's total greenhouse gas emissions are its carbon footprint. It is usually calculated in metric tons of carbon dioxide equivalent (CO2e), which accounts for greenhouse gas global warming potentials.
According to the International Energy Agency (IEA), there was a 0.8% or 36 Mt rise in emissions in the US. Considering the looming threat of climate change, stopping and reversing such trends is crucial.
While governments must play the leading role, organizations also have a key role in this fight. As such, as a business leader, knowing your company’s footprint is essential. All this begins with understanding carbon footprint components, its business impacts, and reduction techniques.
Read on to learn everything about greenhouse gas emission reporting and disclosure and how to reduce your emissions.
Carbon footprint refers to the amount of greenhouse gases (GHG) that a person, organization, event, or product emits into the atmosphere. Greenhouse gases are gases that contribute to climate change and global warming because they have the ability to trap heat in the atmosphere.
As an organization, taking control of your emissions is key to helping address the climate change problem. In this regard, you must know the various ways you contribute to the challenge. Otherwise, your efforts to reduce emissions may not be comprehensive.
Here are the three scopes that make up your carbon emissions:
Beyond the various emission scopes, there are also different types of carbon footprint depending on the cause. They include:
Now that you have a clear picture of how you contribute to global emissions, the next thing is to find out what proportion you're responsible for. The greenhouse gas protocol is one of the most popular methods of calculating a company's greenhouse gas emissions.
This method involves converting emissions to CO2 depending on their global warming potential. After doing this, you can measure the CO2 emission in metric tons to know your actual emissions.
From a purely business perspective, investing in lowering carbon emissions may seem counterproductive. However, that’s not remotely true. Keep in mind that with consumers becoming more conscious, proactive, and outspoken about the need to protect the environment, they'll expect the same from the brands they buy from.
So, along with complying with regulations, there are a lot of incentives for your brand to invest in reducing emissions.
As the need to curb emissions rises to critical levels, governments and industry regulators are implementing strict guidelines for controlling carbon emissions. Failing to comply with these standards can result in penalties, fines, and reputational harm.
Therefore, as you take a greener approach, you must understand the regulatory framework in your sector and comply.
With everyone looking to ensure future generations can enjoy favorable conditions, there’s a lot of focus on what corporations are doing. As such, businesses that promote sustainability and reduce their GHG emissions are more likely to gain consumers, workers, and investors' trust.
Conversely, organizations that don't control their carbon impact suffer brand damage.
On the surface level, reducing carbon emissions is expensive and offers no return. However, while you may not earn directly from it, such initiatives will enhance your company's financial position in the long run.
By branding yourself as a sustainable enterprise, you'll attract more investment, enjoy lower insurance premiums, and improve your credit rating. Moreover, you'll earn consumers' loyalty through such initiatives resulting in increased revenues.
One of the trickle-down benefits of managing carbon emissions is reducing your risk. So as you work towards developing sustainable products and services, you'll align your brand to the rising demand for eco-friendly alternatives.
In your pursuit of sustainability and environmental management, you must reduce your greenhouse gas emissions. While it may seem intimidating, decreasing carbon footprint may lead to cost savings, efficiency gains, and new business prospects.
Moreover, there’s a great need to do so quickly. The Intergovernmental Panel on Climate Change (IPCC) has cautioned that the world has a limited time to avert the worst impacts of climate change, and cutting carbon emissions is one of the most effective solutions.
A comprehensive strategy for reducing carbon emissions is needed. These are some ways corporations can achieve this:
Renewable energy sources, including solar, wind, hydro, and geothermal power, create electricity without greenhouse gas emissions, making them a clean and sustainable alternative to fossil fuels.
Steps for implementing renewable energy sources include:
Energy usage is among the biggest contributors to carbon emissions. As such, using energy more efficiently is one of the best strategies to cut carbon emissions. Such a move will not only lower your emissions but also reduce your energy costs.
Some of the steps you can take to become more energy efficient include:
Companies can lower GHG emissions by reducing waste and encouraging a circular economy. A circular economy aims to retain goods, components, and materials at their optimum value and utility.
You can reduce waste and support a circular economy by:
Also, encouraging a circular economy and reducing waste might involve obtaining goods from vendors with sustainable sourcing standards and pushing suppliers to decrease packaging and waste.
Another key emission contributor is the transport sector. You can help curb such emissions dramatically by promoting sustainable mobility.
Here are several methods to promote sustainable transportation:
Scope three emissions are indirect and come from the activities of your vendors and other stakeholders. You can help reduce it by engaging with them to develop aligned sustainability goals.
During engagement initiatives for stakeholders and suppliers, focus on the following:
Organizations may lower their GHG emissions and strengthen connections with consumers, workers, and communities by engaging stakeholders and suppliers.
With efforts to curb carbon emissions increasing, a key element is a need for organizations to report and disclose their emissions accurately. Otherwise, it may seem like the situation is improving while it gets worse.
This information is usually provided in sustainability reports, annual reports, or other public disclosures.
GHG reporting and disclosure can help you:
Here are some of the best practices for CO2 emissions reporting and disclosure:
Any money not spent on product development, marketing, or other processes that directly impact revenues can feel like a waste. However, some brands have demonstrated that investing in lowering the organizational carbon footprint can be beneficial.
As the world's largest furniture retailer, IKEA has committed to being carbon neutral by 2030. To achieve this, the company has made considerable investments in energy-efficient technology, sustainable technology, and renewable energy.
Along with reducing carbon emissions, these efforts have resulted in cost savings and increased operational efficiency.
Along with being a leader in the IT industry, Microsoft is also playing a leading role in reducing emissions. It has pledged to become carbon neutral by 2030 as part of its overall business strategy. To accomplish this goal, the corporation is investing in alternative forms of energy and technology that collect carbon. It is also putting energy-saving procedures into practice throughout all of its activities.
Because of these efforts, not only have carbon emissions been lowered, but the company's image as an industry pioneer in terms of sustainability has also improved.
As a consumer product manufacturer, Unilever has committed to becoming carbon neutral by 2039. In order to accomplish this goal, the firm is actively working to reduce waste across all of its activities, source renewable energy, and implement energy-efficient procedures.
Because of these efforts, Unilever has managed to improve its bottom line and operational efficiency, reduce costs and reduce carbon emissions.
As a data management company, Veritas understands the key role it can play in reducing emissions. And our commitment to doing this has been evident over the last few years. These efforts align with our beliefs about sustainable business practices, human rights, and responsible sourcing, and specific, measurable goals accompany them.
To begin with, Veritas supports the following Sustainable Development Goals (SDG):
Such efforts are accompanied by the commitment to monitor and reduce GHG emissions. We measure Scope 1, 2, and 3 emissions every financial year. This is why we're proud to see progress, such as our greenhouse gas emissions reducing by 34% in FY2022 compared to FY2019.
Moreover, Veritas has a Supply Chain Sustainability Program. Its goal is to promote sustainable initiatives throughout our supply chain ranging from transportation to manufacturing.
Overall, GHG emissions reduction improves corporate performance. By reducing carbon emissions, organizations can:
Setting ambitious targets, engaging stakeholders, and regularly assessing and improving performance are key to successful reduction programs. While reducing emissions, suppliers, consumers, and other stakeholders must be considered.
Managing an organization's CO2 emissions is becoming more important as climate change progresses. Proactive greenhouse gas emissions management may improve operational efficiency, decrease costs, boost reputation, and boost stakeholder participation.
Organizations must be aware of carbon footprint management trends, technology's role, and future legislation to stay ahead of the curve.
Science-based carbon footprint objectives are a growing trend. These are greenhouse gas reduction targets based on science that meet the decarbonization needed to keep global temperature rise below 2 degrees Celsius relative to pre-industrial levels. As a result, many organizations rely on Science-based goals to achieve their carbon emissions goals.
Another trend is life cycle assessment (LCA) to determine a product or service's complete carbon impact. From raw material extraction through end-of-life disposal, LCA accounts for emissions across a product or service's life cycle. This lets companies find emissions reduction options across the value chain.
Moreover, transparency and disclosure rates, and accuracy are rising. Many businesses post carbon emissions reports and other sustainability-related information to demonstrate their commitment to sustainability and engage stakeholders.
Carbon footprint management relies on technology to detect, monitor, and manage carbon emissions. For instance, carbon accounting software may automate data collection on energy use, travel, and other emissions sources, making it easier for enterprises to measure their greenhouse gas emissions over time.
Internet of Things (IoT) technologies can also help control carbon emissions. For example, buildings, factories, and other facilities may employ IoT-enabled sensors and devices to monitor energy use and decrease carbon emissions.
Blockchain technology is also being used to control carbon footprints. Blockchain can establish transparent and secure systems for tracking carbon emissions and offsetting, improving carbon market responsibility and confidence.
As countries worldwide handle climate change, carbon emission limits and policies may increase. Therefore, organizations must actively manage their GHG emissions to comply with these laws and avoid penalties.
The European Union's Emissions Trading Scheme (ETS) affects carbon emissions management (ETS). Power and industrial enterprises must buy carbon emission permits under the ETS, offering a financial incentive to reduce emissions.
In the future, carbon pricing mechanisms like carbon taxes or cap-and-trade systems may be more widely adopted, which might further motivate enterprises to limit their carbon impact. Organizations may also need to measure and regulate supply chain emissions.
Climate change makes GHG emissions management more vital. By remaining informed of evolving trends, using technology, and planning for possible laws, enterprises may satisfy compliance needs, achieve strategic benefits, and improve their reputation as sustainable businesses.
As climate change continues, corporations now realize the necessity of managing their greenhouse gas emissions. But beyond the environmental rewards, it also offers numerous business benefits. For example, proactively reducing carbon emissions may increase operational efficiency, lower costs, and boost reputation.
Organizations will need to be aware of developing CO2 emissions management trends like science-based objectives and life cycle assessment and use technology to better monitor and control their emissions. They'll also need to plan for carbon pricing and supply chain emissions rules.
A person, organization, or product's total greenhouse gas emissions are its carbon footprint. It is usually calculated in metric tons of carbon dioxide equivalent (CO2e), which accounts for greenhouse gas global warming potentials.
Climate change makes carbon emission management more vital. By proactively controlling carbon emissions, enterprises may decrease their environmental impact, improve operational efficiency, cut costs, improve reputation, and promote stakeholder involvement.
Science-based objectives are greenhouse gas reduction targets that meet the decarbonization needed to keep global temperature rise below 2 degrees Celsius relative to pre-industrial levels. They're based on the latest climate research and independently confirmed.
Technology may be used to manage carbon emissions in many ways, including carbon accounting software, IoT-enabled sensors and devices for energy monitoring, and blockchain for transparent and secure carbon emission tracking and offsetting.
Supply chain emission controls and carbon pricing mechanisms like carbon taxes or cap-and-trade systems may be implemented to manage CO2 emissions. These policies boost carbon market transparency and provide financial incentives for enterprises to control their carbon impact.
Managing an organization's carbon footprint improves operational efficiency, reduces costs, boosts reputation, and engages stakeholders. As a result, companies may contribute to a sustainable future and succeed in the changing business landscape by reducing their carbon footprint.