Step-by-Step Guide to Carbon Footprint Tracking for Businesses

Tracking carbon emissions is a crucial step in learning the impact your company has on the environment. Be it a startup or an established organization, knowing the emission origin source is the preliminary step towards reducing it. Using a carbon footprint calculator provides clearer insight into your company's output.

Here are the steps to track the company’s carbon footprint.

1. Take Care of the Basics

Start by understanding what is meant by a carbon footprint. It refers to the total greenhouse gases your company releases. It is measured in carbon dioxide equivalents (CO₂e). It comprises operational emissions and those from energy usage, travel, and material emissions. It also accounts for the emissions generated by your suppliers.

Broadly, the process divides emissions into three categories:

1. Scope 1: It covers sources owned or controlled by the company. For example, fuel combustion or onsite processes.
2. Scope 2: Indirect emissions from the purchased steam, electricity, or heating.
3. Scope 3: Indirect emissions from all other sources along the supply chain, waste management, use of water, business travel, and more.

2. Gather the Data

Compile the data on every activity that adds to the emissions. It primarily includes:

• vehicle-damaging incidents
• employee commuting activities
• fuel consumption
• energy consumption
• shipping records

Be thorough and do not take half measures. Incomplete data will significantly impact your results. So, be cautious while gathering emissions information. Most companies underestimate the impact of their Scope 3 emissions, which constitute the majority of their footprint.

3. Select the Tool

A carbon footprint calculator is designed to help you understand all the data you have collected. It accounts for everything, including energy, usage, and supply chain information, and converts it into CO₂e emissions.

Go for a tool that suits your business type and size. Some tools focus on energy and travel, while others cover waste and procurement data. Cloud-based calculators allow added flexibility and automation for regular tracking.

4. Run the Calculations

Input all your data into the carbon footprint calculator. Most calculators provide pre-set emission factors, or the average greenhouse gases released per activity (such as per kWh of electricity or per km driven). Many reliable ones offer a user-friendly design for companies unfamiliar with emission terminology. However, double-check the unit conversion and currency.

5. Analyze the Results

Review the emission figures when they show on the calculator. Next, identify the high-emission areas.

Common emission hotspots typically include:

• heating
• vehicle fleets
• overseas shipping
• cloud computing

Evaluate your operations' emission-contributing sites for alternatives, such as green energy providers, renewable energy contracts, and teleconferencing instead of business travel.

6. Document and Report

Describe the calculations in detail while explaining the data included or excluded. Transparent reporting supports internal planning and is typically required for any Environmental, Social, and Governance (ESG) or B2B contracts. If tracked annually, it helps to keep a tab of the situation and maintain sustainability targets. Reporting your results may reinforce the trust of your stakeholders and support employee engagement.

7. Take Action

Knowing your emissions is just the beginning. Use your data to start planning for emissions reduction. Take smaller steps, such as using LED lighting, encouraging carpooling, and purchasing from local suppliers. Gradually, larger steps, such as installing solar panels and redesigning the product life cycle, should be taken. Carbon footprint calculators can be revisited to assess the effectiveness of these changes.

Final Thoughts

Keeping track does not have to be difficult. With the right tool and accurate data, a company can determine its carbon footprint. Once this data is acquired, a company can develop a clear strategy and take concrete steps toward sustainability. These steps will play a crucial role in mitigating the adverse effects on the environment. The actions will simultaneously enhance the brand image and attract customers who identify with the green cause. Additionally, it will help meet compliance requirements and reduce medium- to long-term costs.