Carbon Footprint For Businesses: Calculate, Reduce And Report

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Climate change has become one of the most crucial concerns for us. With the increased globalization, it is our environment and its ecosystem that are actually suffering. 

Till now, we have just thought about ourselves, the humans, the smartest creature on this planet. And the smartest being will never risk its own home for anything. So, we can not gamble without a home, Earth. 

We are also not. Only using eco-friendly bags is not going to help. It should be done in a wider way. More awareness campaigns are being held, and more companies and businesses are adopting eco-friendly and sustainable operation procedures. 

Carbon footprint calculation is one of them. 

As the name suggests, it has something to do with the carbon along with those greenhouse gasses that are responsible for raising the temperature of the earth. In our daily activities, we are adding more carbon and greenhouse gas into the environment. 

Businesses are doing the same thing that is completely normal. But not taking necessary precautions is something that is not normal. That is why more companies and businesses are thinking about; 

It is really great that you are also considering the same for your business, and that is why you are searching for reliable solutions. 

What Is A Carbon Footprint For Businesses?

Every living object on this planet has its personal carbon footprint. 

So do the companies. 

Companies carry out activities that produce greenhouse gasses. During the manufacturing operations, along with the transport of those products, they produce greenhouse gasses. 

With the carbon footprint of a business, the organization measures the amount of all the greenhouse gas emissions through the activity carried out, which can be direct or indirect. 

How To Calculate Carbon Footprint? 

You first need to calculate the carbon footprint for business to know its impact on the planet. You will also take the necessary steps in order to reduce greenhouse gas emissions. So, now we will talk about how you can calculate the carbon footprint for your business. 

There is a simple formula to calculate the carbon footprint of your company. 

Carbon footprint = Activity Data × Emission Factor

  1. Activity Data

It is the particular parameter that defines the accurate level of activity, which is responsible for producing greenhouse gas emissions. Activity data is mainly divided into 3 main scopes. 

Here they are- 

  • Scope 1: It is basically the direct greenhouse gas emissions controlled by a company. It typically includes fuel consumption, process equipment, heating, vehicles, refrigerant system, manufacturing, and on-site waste facilities. 
  • Scope 2: Now, these are the indirect emissions, which are associated with the energy consumption, that is acquired and consumed by the organization. This includes water heaters, equipment, lighting, and the like. 
  • Scope 3: These are the particular type of greenhouse gas emissions that your company can influence but can not control directly. This usually includes transporting raw materials for production, employees commuting to work in vehicles not owned by the company, business travel, and also transportation of the purchased fuel. 
  1. Emission Factor

This is the amount of greenhouse gasses that are emitted for every activity. 

Just follow the below-mentioned steps for calculating the carbon footprint. 

  • First, pick up the year of calculation.
  • Then, establish operational and organizational limits
  • Gather consumption data
  • Do the calculations by multiplying the emission factors with the activity data.
  • Create the reduction plan along with the measures that are required to be carried out. 

How A Company Can Reduce Carbon Footprints

Now, we believe you got a basic idea about carbon footprint and how you can calculate the carbon footprint for your business. It is time to work on reducing the carbon footprint. Just by following some said ways, your business can reduce its carbon footprint. 

Different Ways To Reduce Carbon Footprint

  • Enhancing your energy efficiency along with saving money on your energy expenses. 
  • Consume renewable energy and also participate in the transition of this particular kind of energy. 
  • Conducting awareness campaigns. 
  • Including a corporate social responsibility strategy. 
  • Buying tons of carbon dioxide in the international emissions market. 
  • Putting business money into environmental projects. 

Things To Do

In case you are looking to reduce your carbon footprint for your business, let us tell you that it is completely possible to offset part of the carbon dioxide emissions considered unavoidable and also can achieve a zero carbon footprint. 

Following are the steps to achieve carbon neutrality.

  1. Know and measure your carbon footprint
  2. Reduce the amount of your greenhouse gas emissions just by reducing your dependency on fossil fuels.
  3. Compensate for the carbon admissions, which can be avoided in the second stage. In order to achieve carbon neutrality, the entire financing of the environmental project has to correspond to the amount of the produced carbon dioxide.

Read: How Can Transaction Monitoring Protect Your Business?

The Reporting Requirements

On the basis of the size of the company, the requirements are different when it comes to complying with the rules and regulations. Here are the basic ones. 

  • Need to report on the annual measurement of carbon footprint
  • Describe the main measures taken to increase energy efficiency

Report on the purchase of electricity.

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