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 1. Determining the carbon footprint for companies

 

An organisational (corporate) carbon footprint measures the GHG emissions from all the activities across the organisation, including energy used in buildings, industrial processes and company vehicles.

 

Determining the GHG emissions helps us to understand what the key emissions sources are (e.g. hot spots), how the organisation contributes to the global emissions, and what opportunities are there to reduce the emissions. Knowing the main emissions, we can develop a carbon reduction plan, identify ways to reduce the carbon footprint (e.g. green procurement), limit emissions from future activities and, at a later stage, measure the progress we have made. An important aspect is to comply with national and the EU rules.

 

Once we have calculated the organisational carbon footprint (CF), we can report (communicate) it internally, externally or both, e.g. in the Corporate Social Responsibility reports.

 

After verification by a third party, we can obtain a certificate, which can be used as a marketing tool in promoting our products and/or services.

 

There are two main reasons to calculate the company carbon footprint:

  • managing the GHG emissions and making reductions over time,
  • reporting the footprint to a third party.

 

The main six steps in calculating the organisational carbon footprint are:

1. Decide on the method to be followed,

2. Define organisational and operational boundaries,

3. Collect data,

4. Apply emissions factors,

5. Verify the results (optional),

6. Verify your emissions reductions (optional).

 

The CF for companies can be calculated by using the GHG Protocol (www.ghgprotocol.com).

 

2. Determining the carbon footprint for products

 

The product carbon footprint is a measure of the greenhouse gas emissions across the life of a particular product, i.e. throughout its life cycle. The production process is an integral part of a product’s life cycle and, at the same time, also plays a role in the organisational (company) carbon footprint.

 

The product carbon footprint is a useful tool to engage with employees, suppliers, investors and customers in reduction schemes. It can motivate employees to take action to reduce emissions, build brand awareness and value, and support the actions of suppliers and customers in reducing emissions. It may also identify inefficiencies and cost savings in the business processes and in the supply chain.

 

The product carbon footprint is a measure of GHG emissions at each stage of the product’s life, including:

  •  extraction and production of raw materials,
  •  transportation of raw materials,
  •  production/processing (or service provision),
  •  distribution,
  •  product use,
  •  disposal/recycling.

 

At each stage, the CF analysis should include GHG emissions resulting from any material inputs to or outputs from the process, e.g. energy use, transportation fuel and direct gas emissions and waste. In the case of a ‘service product’, the life cycle stages are defined individually for each service. The procedures can be used in B2B (business to business) and B2C (business to consumer) relationships.

 

There are three main reasons to calculate the carbon footprint of our product/service:

  •  driving change and reducing costs and emissions within the company,
  •  communicating it to others,
  •  making changes in the supply chain.

 

The main five steps in calculating the product/service carbon footprint are

1. Build a process map,

2. Check boundaries and determine priorities,

3. Collect data,

4. Calculate the footprint

5. Verify the footprint

 

The CF for products can be determined by using PAS 2050:2008 (www.bsigroup.com).

 

Product labelling

 

Previous studies have shown that consumers support carbon footprint labelling for products:

  • 72% of EU27 consumers are willing to buy products that have the carbon footprint indicated on the packaging (66% in Hungary),
  • 43% of EU27 consumers stated that the product label gives them confidence that the company is committed to reducing emissions (46% in Hungary). (source: Eurobarometer, 2009)

 

Using the CF in carbon management

 

Calculating the carbon footprint is only the beginning of carbon management. There is little point in calculating it if it is not followed by actions aimed at reducing emissions, improving efficiency and eventually embedding carbon management into the organisation’s strategy.

 

Carbon footprinting can be a useful exercise as part of a complete environmental management system. By applying it, it is possible to reach a carbon-neutral situation. The carbon management process can be based on the PAS 2060 standard (www.bsigroup.com).

 

Further information is available in the guidelines available in the menu (link).