How to Reduce Carbon Footprint for Businesses  

How to Reduce Carbon Footprint for Businesses  

In your personal life, you may be trying to reduce your carbon footprint, whether it’s through traveling less, eating local, reducing meat consumption, buying sustainable products, investing in an electric vehicle or even something as simple as taking your own bag to the supermarket.  

But it’s often our commercial activities that leave a much bigger carbon footprint than our personal lives.  

So, question is how can business reduce their carbon footprint and contribute to tackle climate change? 

We’ve put together this handy guide to answer just that. 

What is a carbon footprint? 

A carbon footprint is a measure of the total amount of greenhouse gases, mostly carbon dioxide, that are released into the atmosphere due to the way we live our lives and conduct business. Both individuals, businesses and organisations have a carbon footprint.  

What are the effects of a carbon footprint? 

Now you know what a carbon footprint is, you need to understand the effects they can have on the planet. Some of the ways in which it can affect the environment include:  

• Greenhouse gas emissions accelerate climate change and global warming, which we have seen cause extreme weather conditions such as droughts, floods and famines.  

• In urban landscapes these emissions are affect the air quality leading to some individuals developing respiratory diseases and conditions.  

• In extreme cases it can lead to toxic rain which has adverse effects on humans, animals and plants. 

• Greenhouse gases can also be directly linked to rising global temperatures, this has accelerated the melting of polar ice caps and acidification of ocean water, killing marine life and removal of usable land.  

These are just some of the possible effects of greenhouse gases, there are many more which is why it’s vital that we as individuals and businesses begin to look to tackle this issue.  

What are the different types of emissions? 

When looking at emissions there are several different types, which is why in the industry we have broken them down into 3 categories:  

Scope 1 emissions: 

This group refers to emissions from direct sources within an organisation, they are emissions that are from business activities that are owned or controlled. This can be main business activities, such as the petrol emissions from delivering your products.  

Scope 2 emissions: 

These emissions come from indirect business activities, like heating and lighting offices, cafes, or restaurants. However, they only count if the energy used comes from non-renewable sources. 

Scope 3 emissions: 

This group covers any other indirect emissions, normally created by the businesses supply chain and/or partners, these are not direct business activities. An example would be if you were a restaurant and get all supplies delivered to your premises, the petrol fuelled vehicles that deliver these will create carbon emissions which would fall in this category.  

What are the common sources of carbon emissions for businesses? 

Although every business is different, whether you are a large nationwide business or a small local business, there will be some commonalities in sources of carbon emissions. Some of the most common include:  

Energy consumption: Every business will need some form of energy to conduct their activities, which means this is the only source we can definitively say all businesses will create some kind of carbon emissions. If you have an energy contract with an energy supplier, you will be producing carbon emissions. Unless you are generating your own renewable energy, then the energy your business is consuming will come from your supplier’s energy mix, this could include oil, gas, nuclear, biomass, solar, even geothermal energy.  

Supply chain: Most businesses will have a supplier, whether it’s a beer for a pub or parts for a garage. These products are usually made in a factory or warehouse and then transported to your premise, producing carbon emissions along the way.  

Industrial process: As previously mentioned above, the majority of products sold in the UK are manufactured in factories then stored in warehouses. The processes needed to create these products require fuel, which adds to the indirect emissions for your business.  

Waste management: Every business will have some level of waste, some higher than others, this can be food waste, agricultural wastes, used oil, basically anything that needs to be disposed. The process of collecting, and in some cases incinerating these waste products emits carbon.  

Now these are not all the areas that will contribute to your carbon emissions, but they form the main basis for where your emissions are likely to be generated from.  

How is a carbon footprint measured? 

A carbon footprint is the sum of all the direct and indirect emissions that a business produces. It is calculated by summing the scope of emissions from every stage of the product or services lifetime, this could be everything from the manufacturing of the product you sell, transportation of supplies and products and waste after unpacking or consumption.  

How can we calculate a business’s carbon footprint? 

If you want to calculate your carbon footprint, you can do this yourself or you can employ a company to do this.  

To get started you will need to collate some information about your business, we advise you have a document or better yet a spreadsheet ready for this.  

Follow the process below to calculate your carbon footprint:  

Determine your scope 1 and 2 activities: These are the parts of your business that you own or have complete control over. If you are small business and own all your business operations, include everything. If you are a larger business with franchises and partners, then it’s up to you to decide which elements of your business you control to include in your direct emissions. If you need some help with this, you can use the official government guidelines to help.  

Identify the activities that release carbon: these might include electricity and gas, waste management, recycling, and transportation, for example. 

Measure over a 12 month period: This is where the spreadsheet will come in handy, you will now need to input your carbon output figures. These measurements are pre-determined so it’s not complicated at all, please see the table below for guidance: 

If you are finding it difficult to accurately measure or track certain activities, use your best estimate instead. Please be as honest as possible as the better your data the more accurate the carbon footprint you’ll be able to calculate.  

Now it’s time to convert your data and calculate your greenhouse gas emissions. There are many ways to do this, and it doesn’t have to be manual, the easiest way for busy business owners like yourself is to use an online carbon calculator like the one the SME climate hub provides, you can access this here.  

This online tool will work out the amount using an emission factor, this is a coefficient that describes the rate at which an activity releases greenhouse gases into the atmosphere.  

How can businesses reduce their carbon footprint? 

There is a range of different ways a business can reduce their carbon footprint; we have highlighted some of the keyways achieve this below: 

Reduce energy consumption: This is the biggest factor, every business needs energy to conduct their business activities. Extensive changes like new equipment or simply changes like changing lightbulbs to the more efficient LED bulbs can have a significant difference. For more insights on this, you can head over to our dedicated blog how can businesses reduce their energy consumption.  

Invest in carbon offsetting initiatives: Investing in carbon offsetting initiatives means supporting projects like re-forestation efforts to capture the amount of carbon you are emitting. 

Education: Updating company policies and training to include green practices and refresh employee and stakeholder knowledge on carbon emissions and the damage they do. You can also include policies such as a cycle to work scheme to encourage them to adopt more sustainable habits at work and in their personal lives.  

Use smart energy management tools: In everyday life we have access to so much technology and the energy industry is no different. If you have a complex business operations, you can use this technology to effectively monitor, track and optimise your business operations and energy usage. You can then make improvements where necessary, cut costs and reduce your cargo in the process.  

Invest in renewables: Using traditional fossils fuels to create energy will only increase your carbon footprint. Swapping to renewable options could reduce it, it may even contribute to your business becoming carbon negative. Business can install a range of renewable energy generators on site such as micro turbines, solar panels, biomass and even geothermal heat pumps to replace reliance on gas and electricity.  

Use of sustainable supplier: Review your suppliers and swap to those who have sustainability high on their priority list. There are many suppliers out there now that focus on things like sustainable packing. Or you could consider using local suppliers which would reduce emissions and the cost of transportation. 

What are the benefits for businesses to reduce their carbon footprint? 

Adopting a sustainability first business strategy or just making a few changes around your business all count towards reducing your carbon footprint. But did you know there are also a bunch of financial benefits as well? Read on to find our more: 

Cost savings: Implementing sustainable practices like cutting waste and using energy efficient practices to name a few can all lead to cost savings. This means you will save on your energy bills, lower costs for waste removal which is all beneficial to your bottom line.  

Possible new revenue stream: If you have chosen to install a renewable energy generator on site, if this produces more energy than your business is consuming this could potential be an added revenue stream. You can sell the excess energy generated back to the national grid.  

Enhanced Brand Image: Embracing sustainability and cutting carbon emissions can improve a company’s brand image. In the eyes of the end user, a business that has adopted green practices may be more attractive than one that is not. This is especially important in today’s climate with 21% of Britons saying they are willing to invest more in products that favour sustainability. This could lead to greater trust between the client and your business and create a loyal following whilst also offering you a competitive advantage over to other in the market.  

More attractive to investors: If you are looking for investment, being mindful of your carbon footprint could make your business more attractive. Many investors are now increasing interested in supporting sustainable and socially responsible projects, but this is only possible if you can demonstrate this. You must also make sure your efforts are genuine and will not be classed as ‘greenwashing’. If you are found to be promoting sustainability with actually demonstrating this, it could lead to a damaged brand image and will reduce the potential of investment. 

Government incentives: Did you know that going green could unlock some opportunities for government incentives such as small business grants. These are often allocation by local councils so check your local government website for more information. But you could also see a reduce rates on green taxes that businesses pay including climate change levy and you could avoid any future taxes.  

Switch to a green energy supplier like Dyce Energy 

Reducing your carbon emissions isn’t just about meeting regulations, it’s an opportunity for your business to save money, boost energy efficiency and build a positive brand reputation.  

By taking action now your business can contribute to the fight against climate change while reaping the long-term benefits. 

Ready to start your journey? 

Get a free no obligation quote for our renewable energy today!