Many large Malaysian companies and more significant energy users have reported on their carbon emissions by law for over ten years. Many are beginning to make carbon a crucial part of their procurement process. In the public sector, buyers are increasingly requesting evidence of reducing carbon emissions as a portion of their social value commitments.
Companies of all sizes worldwide are engaging in net-zero emissions – and you can’t set a target without calculating your carbon footprint first. 2022 is undoubtedly the right year to get started. Being noticed as a ‘green’ business has already become more important in the wake of COVID-19.
What exactly is a carbon footprint?
So what is a carbon footprint? To put it out there, it’s an effort of your contribution to climate change. There are commonly two types – organisational carbon footprints and product carbon footprints. This article concentrates on the former.
For more insight, read our blog: Carbon Footprint: Cost, Effects and an Environmental Catastrophe
There is a detailed ‘emissions conversion factor’ for most emissions sources to estimate the total carbon from that activity. For instance, to measure the carbon emitted by a car that runs on diesel, you take the litres of diesel consumed and multiply it by the affiliated emissions factor for diesel.
A quick step-by-step guide
Begin by setting the limitations for your footprint. For most small companies measuring their footprint for the foremost time, the emissions from your heating, electricity consumption and automobile use are a good start. The most suitable strategy for you will lean on your effective emissions sources, which sources you have the most leverage over, and how much information is available to you.
Collect the data
Once you’ve recognised all the activities you want to calculate, begin collecting data for each utilising a relevant metric, mileage for vehicles, e.g. litres of fuel, kWh of electricity or gas from your power bill/meter, cubic metres of water from your water bill/meter, and so on. Track them in a spreadsheet, dividing them into different scopes.
Calculate
It’s common practice to estimate your carbon footprint every year. You may want to align it with your estimation period. To assess your footprint, transform the data in your spreadsheet utilising the relevant CO2e conversion element for each of your emissions, or use an online web tool such as the Carbon Trust’s SME Carbon Footprint Calculator.
Take actions accordingly
Once you have your carbon footprint, utilise the data to decide the most appropriate actions to lessen your emissions and make cost savings. If electricity use is by far your most significant contributor to your carbon footprint, for example, prioritise efforts that reduce your electricity use.
Offsetting Carbon
You have presumably come across the term carbon offsetting, where you purchase ‘credits’ from schemes that remove carbon from the atmosphere (tree planting) to compensate for your emissions. It can be alluring to jump for this option straight away to get the most out of your carbon reduction journey, and it should be the last resort if you can’t eliminate or reduce the emissions themselves.
Offsetting your entire carbon footprint is a massive missed opportunity to make efficiency gains in your business and profit your bottom line. As a rule of thumb – focus on efficiency foremost, then look at indirect measures such as ensuring a 100% renewable electricity reserve, and only explore offsetting once all other routes have been tired.