Increasing regulatory measures like NGER means for many businesses the ability to measure and report on carbon is essential. But there are many other drivers behind corporate social responsibility initiatives on carbon reduction. Stakeholder and customer demands for business to be transparent about carbon emissions are a major factor. So are risk mitigation and corporate reputation management - not to mention mitigating rising energy costs. Sometimes, it’s just about doing the right thing.
Of course establishing a clear baseline from which to track progress in reducing emissions and identifying those areas of the business that need prioritisation is a rigorous process. It should also be remembered that NGER only covers a businesses direct emissions and those indirect emissions associated with purchased energy (i.e. scope 1 & 2). It does not cover the emissions attributable to the products and services that you buy (scope 3). In the event of a carbon trading scheme prices will increase in line with the carbon intensity of the product.
The chart below illustrates the 6 key steps in the process for evolving carbon data management. The process starts with scoping core business interests and identifying carbon-heavy activities. Then capturing data across all business units segmented by carbon category. The data then needs to be managed with appropriate tools and audited for accuracy, stored and backed up. Then analysed and assessed against targets. Communicating this analysis internally and externally - with the corporate affairs team leveraging the information to build corporate reputation and trust.
Measuring the carbon footprint of a company involves a whole new range of processes and data sets.
– including both direct and indirect emissions such as:
• Direct emissions from onsite heating or electricity generation, split by fuel type
• Direct emissions from onsite industrial use or manufacturing process
• Direct emissions from owned transportation fleets
• Indirect emissions from energy purchased, split by fuel type or generation method
• Indirect emissions from business travel by rail, air, taxi
• Indirect emissions from supply chain like production, logistics and transportation
But measuring a corporate carbon footprint is a commitment that is so much more than just the fundamentals of calculating GHG emissions or reporting to government. Indeed collection and calculation are only a part of the journey. And good carbon data is certainly not an end in itself.
It’s the action taken as a result of having good information that really counts. It’s moving beyond compliance and starting a journey along a corporate social responsibility value curve. It’s about leveraging the data to build corporate reputation and use as a key differentiator in the market. It’s about cultural change for the betterment of the planet as well as the bottom line.
It’s about identifying key triggers in all areas of the business and in business relationships. From scrutinising the supply chain and procurement policies - checking trading practices, product composition and lifecycle management policies. To digging deeper into business partners’ activities and the impact of any hazardous components in the supply chain. It’s also about reducing business travel by facilitating e-meetings and using videoconferencing to cut the carbon emissions associated with flying, taxis and hotel stays. It’s about formalising working at home practices across the business at all levels of responsibility.
This journey simply can’t be achieved overnight. It’s a huge undertaking and a commitment across the entire business and business partners. It is so much more than just getting the staff to switch off their desktops when they go home at night.