Calculating an organisational carbon footprint

Calculating an organisational carbon footprint is a critical step for UK businesses aiming to understand and mitigate their environmental impact. This process involves quantifying the greenhouse gas (GHG) emissions associated with an organisation's operations, providing a foundation for developing effective carbon reduction strategies.

Understanding Emission Scopes

The Greenhouse Gas Protocol categorises emissions into three distinct scopes:

• Scope 1: Direct emissions from sources owned or controlled by the organisation, such as fuel combustion in company vehicles or on-site heating systems.

• Scope 2: Indirect emissions resulting from the consumption of purchased energy, including electricity, heating, and cooling.

• Scope 3: All other indirect emissions that occur as a consequence of the organisation's activities but stem from sources not owned or directly controlled by the business. This encompasses emissions from the entire value chain, such as business travel, procurement, waste management, and product use.

Steps to Calculate Your Carbon Footprint

1. Define Organisational Boundaries

   Begin by determining the boundaries of your carbon footprint assessment. Decide whether to adopt an operational control approach, focusing on operations where your organisation has authority, or an equity share approach, considering emissions proportional to your ownership stake in various operations.

2. Identify Relevant Emission Sources

   List all activities that result in GHG emissions across all three scopes. For Scope 1, this includes on-site fuel combustion and company-owned vehicle emissions. Scope 2 covers purchased electricity and heating. Scope 3 is more extensive, involving emissions from suppliers, product distribution, employee commuting, and waste disposal.

3. Collect Data

   Gather data pertinent to each identified emission source. This may involve:

   • Utility bills for electricity, gas, and water usage.

   • Fuel consumption records for company vehicles.

   • Expense reports detailing business travel.

   • Procurement records from suppliers.

   • Waste management records.

   Ensure the data is comprehensive and covers a consistent reporting period, typically one year.

4. Convert Data into Emissions

   Utilise appropriate emission factors to translate activity data into CO₂ equivalent (CO₂e) emissions. The UK government provides annually updated conversion factors to assist in this process. The general formula is:

   $Emissions\; (CO₂e)=Activity\; Data\times Emission\; Factor$

   For example, to calculate emissions from electricity consumption:

   • Determine the total kilowatt-hours (kWh) used.

   • Multiply by the emission factor for electricity (kg CO₂e per kWh).

5. Utilise Carbon Footprint Calculators

   To streamline calculations, consider using tools like the Carbon Trust's SME Carbon Footprint Calculator, designed to assist UK-based SMEs in measuring their corporate emissions following GHG Protocol guidance.

6. Compile and Analyse Results

   Aggregate the emissions data across all scopes to determine your organisation's total carbon footprint. Analyse the results to identify major emission sources, which can inform targeted reduction strategies.

Setting Reduction Targets and Developing Strategies

With a clear understanding of your carbon footprint, set realistic and measurable reduction targets. Develop strategies to achieve these goals, such as:

• Energy Efficiency: Implement measures to reduce energy consumption, like upgrading to energy-efficient lighting and equipment.

• Renewable Energy: Transition to renewable energy sources, such as installing solar panels or purchasing green energy tariffs.

• Sustainable Transportation: Encourage the use of public transport, carpooling, or electric vehicles for business travel and employee commuting.

• Supply Chain Engagement: Collaborate with suppliers to minimise emissions associated with raw materials and product distribution.

• Waste Reduction: Implement recycling and waste reduction programs to decrease emissions from waste disposal.

Monitoring and Reporting Progress

Regularly monitor your emissions to track progress towards your reduction targets. Transparent reporting, both internally and externally, can enhance stakeholder trust and demonstrate your organisation's commitment to sustainability.

Review

Calculating your organisational carbon footprint is a foundational step towards environmental stewardship. By systematically assessing and addressing GHG emissions, UK businesses can contribute to global climate change mitigation efforts while realising operational efficiencies and strengthening their market position.