Simplifying Carbon Emissions Tracking: A Beginner's Handbook for Companies
Calculating a Business's Carbon Footprint: A Step-by-Step Guide
For businesses looking to measure their impact on the environment, calculating a carbon footprint is an essential first step. Here's a structured process, based on the Greenhouse Gas (GHG) Protocol categories and best practices, to help you calculate your business's carbon footprint.
1. Define Organisational and Operational Boundaries
Determine which parts of your business and operations to include, clarifying what emissions sources are owned or controlled by the company (Scopes 1, 2, and 3) to avoid overlaps or omissions.
2. Identify Emission Sources (Scoping)
Categorize emissions by scope:
- Scope 1: Direct emissions from company-owned/controlled sources (e.g., fuel combustion in boilers, company vehicles).
- Scope 2: Indirect emissions from purchased electricity, heat, or steam consumption.
- Scope 3: Other indirect emissions across the value chain such as transportation of goods, business travel, employee commuting, waste from operations, and emissions from suppliers.
3. Collect Data
Gather activity data relevant to emissions like:
- Amount of fuel consumed (litres or gallons)
- Electricity usage (kilowatt hours)
- Distance traveled by company vehicles or business travel
- Quantity and type of waste generated
- Procurement data from suppliers
Identify internal and external data owners to source accurate information and fill gaps.
4. Apply Emission Factors
Convert activity data into CO₂ equivalent emissions by multiplying the amount of each activity by the appropriate emission factor (often provided by IPCC or relevant national databases). Emission factors quantify how much greenhouse gas is emitted per unit of activity (e.g., kg CO₂ per kWh of electricity).
5. Calculate Total Emissions
Sum the emissions from all sources across the scopes by multiplying activity data by their emission factors.
6. Analyze Results and Identify Reduction Opportunities
Review which operations or scopes contribute most to the footprint. Use the data to set reduction targets, improve energy efficiency, lower emissions in transportation or supply chain, and track progress.
7. Optional: Use Digital Tools or Consultants
Digital carbon calculators and professional consultants can facilitate accuracy, provide step-by-step guidance, and help with transparent reporting.
By following these steps, a company obtains a comprehensive and standardized carbon footprint estimate that supports sustainability efforts and compliance with reporting requirements.
Additional Information
- Scope 2 emissions are indirect emissions from purchased energy. These are generated from the production of electricity, steam, heating, or cooling that a company purchases and consumes.
This process roughly aligns with these key references:
- Defining scopes and data collection, followed by conversion and calculation [1][2][3].
- Emission factors application and boundary setting are foundational steps [1][3][4].
- Basic carbon footprint estimation can also be done using company expenditure data and industry averages if detailed operational data is unavailable [5].
In the context of environmental science, a company might consider incorporating the carbon footprint calculation into their business strategy, particularly in the realm of finance and business management. By adopting digital tools or consulting services, they can further enhance the accuracy and efficiency of their carbon footprint estimation.
Additionally, for a complete understanding of Scope 2 emissions, it's crucial to recognize that these indirect emissions originate from the purchased energy that contributes to the production of electricity, steam, heating, or cooling consumed by the company.
