{"id":1755,"date":"2021-10-21T11:18:38","date_gmt":"2021-10-21T09:18:38","guid":{"rendered":"https:\/\/climatetrade.com\/?p=1755"},"modified":"2023-08-10T09:35:34","modified_gmt":"2023-08-10T07:35:34","slug":"how-to-calculate-the-carbon-footprint-of-your-company","status":"publish","type":"post","link":"https:\/\/climatetrade.com\/how-to-calculate-the-carbon-footprint-of-your-company\/","title":{"rendered":"How to calculate the carbon footprint of your company?"},"content":{"rendered":"

With ClimateTrade<\/a>, organizations can easily calculate their carbon footprint.<\/span><\/p>\n

Faced with the heated discussion about the climate crisis and the urgency of taking effective actions to reduce the consequences of global warming, many companies are beginning to work on their ESG (Environmental, Social and Government) objectives<\/strong>. Among which is the \u201ccalculation of the carbon footprint\u201d<\/strong>, which allows them to visualize a clear panorama of the impacts caused to the environment resulting from their business models.<\/span><\/p>\n

Calculate carbon footprint<\/h2>\n

In a net zero world, every company will be required to calculate and <\/span>offset its carbon footprint<\/span><\/a> via different CO2 emissions offsetting projects. <\/span><\/p>\n

In many countries, large companies in polluting sectors are already asked to do so by law, and by the end of this decade, this requirement will be extended to many more countries, sectors, and types of companies. In other words, now is the time to prepare for this obligation.\u00a0<\/span><\/p>\n

Do you need help to calculate the carbon footprint of your company? Fill in the form and a ClimateTrade expert will contact you.<\/strong><\/em><\/p>\n

What is the carbon footprint?<\/b><\/h2>\n

The carbon footprint<\/a> is the sum of all the greenhouse gases a person, company or even country releases into the atmosphere, expressed in CO2 equivalent. These emissions are responsible for global warming, and as such, they need to be addressed in the fight against climate change. This is why many governments are putting a limit on the amount of emissions companies can produce, which is often combined with a tax on carbon. Many countries and companies have pledged to be net zero by 2050, which means that all their carbon emissions will be offset, and none will enter the atmosphere and destabilize the climate.<\/span><\/p>\n

Calculating the carbon footprint of a company means assessing its impact on the climate. It is a necessary step in combating climate change at company level.<\/span><\/p>\n

Methodology to calculate CO2 emissions<\/b><\/h2>\n

Whatever your sector is, it is crucial to follow standard methodology to calculate your carbon footprint. This will ensure you are aligned with industry best practices, and make it easier to report and offset your emissions.<\/span><\/p>\n

Greenhouse Gas Protocol<\/b><\/h3>\n

The most widely used methodology to calculate carbon footprint, whether manually or through a carbon footprint calculator, is that of the Greenhouse Gas Protocol (GHG Protocol). The first edition of this standard was published in 2001 after a decade of international cooperation. In 2016, 92% of Fortune 500 companies reported using this standard for carbon emissions calculation.<\/span><\/p>\n

The <\/span>GHG Protocol<\/span><\/a> offers several relevant methodologies: <\/span>The Corporate Accounting and Reporting Standard is its generic guidance for companies and other organizations preparing a corporate-level GHG emissions inventory; the Corporate Value Chain Standard focuses on scope 3 calculation and reporting; and the Product Life Cycle Standard can be used to understand the full life cycle emissions of a product and focus efforts on the greatest GHG reduction opportunities.<\/span><\/p>\n

Emissions classification to calculate carbon footprint<\/b><\/h2>\n

\u00a0<\/b>With this protocol, emissions can be classified into three areas:<\/span><\/p>\n

\"classification<\/b><\/p>\n

Scope One: Direct GHG Emissions<\/b><\/h3>\n

Scope 1 emissions are those generated by a company\u2019s own operations.<\/span><\/p>\n

For instance, for oil and gas companies, scope 1 represents a very large share of the carbon footprint: their core activities of drilling, extracting and refining petrol and natural gas release large amounts of greenhouse gases into the atmosphere. <\/span><\/p>\n

On the other hand, service-oriented companies such as banks and financial institutions tend to have small amounts of scope 1 emissions, since they work in offices and don\u2019t use polluting processes to make their products.<\/span><\/p>\n

To calculate your scope 1 emissions, think about what you and your employees do on a daily basis. Where do you work (office, factory, field, etc.)? What do you do? How polluting are your daily activities?<\/span><\/p>\n

Scope Two: Indirect GHG emissions associated with electricity<\/b><\/h3>\n

These are indirect GHG emissions generated by electricity, process heat or cold, or steam used in processes, as well as transportation. They can begin to be counted from the invoices of the energy supply companies with the breakdown of the kilowatt-hours, therms or cubic meters that they supply.<\/span><\/p>\n

All sectors require electricity to operate, so all companies need to calculate scope 2 emissions. Start with your power supply: how much of it comes from renewable sources, and how much from fossil fuels? How much power do you use for your operations on a yearly basis?\u00a0 This will help you assess how much of your carbon footprint comes from electricity. <\/span><\/p>\n

The same exercise applies to heating or even cooking: companies often use natural gas for these activities, so it is important to calculate the emissions related to them.<\/span><\/p>\n

Then, look at transportation: does your company operate a fleet? Do your vehicles have combustion engines or are they electric? What kind of distance do they drive every week, month or year? This information will allow you to calculate the emissions related to the transportation fuel you use for your operations.<\/span><\/p>\n

Scope Three: Other indirect emissions<\/strong><\/h3>\n

Scope 3 emissions can be considered \u201cout of your control\u201d: they include the emissions generated by your providers and by your clients in the lifecycle of your product or service. <\/span><\/p>\n

For instance, going back to oil and gas companies, while the extraction and refining of the raw material belongs to scope 1, the combustion of these products in everyday activities such as driving or cooking are part of their scope 3.<\/span><\/p>\n

This is why the general carbon footprint calculation methodology includes scope 3: companies have to make changes and incentivize decarbonization throughout their supply chains.<\/span><\/b><\/p>\n

What to include in the Scope 3 carbon footprint of an organization?<\/p>\n

\u00a0<\/b>In particular, it is recommended to include:<\/span><\/p>\n