Carbon accounting is usually about making educated guesses rather than exact counts because it's hard to accurately track all the different ways carbon emissions can happen.
Carbon accounting is all about estimating, keeping track of, and sharing the amount of gases that can warm the planet (like carbon dioxide) released or captured due to an organisation's actions.
For this guide, we're focusing on SMEs, which stands for small to medium-sized businesses. Thankfully, there are established methods that provide rules to help all kinds of organisations, big and small, make their carbon tracking consistent.
One major method is the Greenhouse Gas Protocol, often called the GHG Protocol. It categorises emissions into three main areas: emissions from the company's own activities (scope 1), emissions from the energy the company uses (scope 2), and emissions related to making, using, and getting rid of the company's products or services (scope 3).
For small to medium-sized businesses, using the GHG Protocol is an excellent first step. It offers solid methods to identify which activities produce the most carbon emissions.
With this knowledge, these businesses can make smart choices about how to decrease their carbon emissions, which can help them save money and enhance their reputation.
Emissions from activities a company directly manages, such as heating systems, machines, and vehicles.
Emissions from the energy a company uses to run its operations, like electricity, heating, and cooling.
Emissions from activities not directly managed by a company, including getting raw materials, handling waste, and emissions from their products after they are sold.
Think about the main activities in your business that produce carbon emissions, like using electricity, driving vehicles, or making products. You don't have to tackle everything at once; just start with the big stuff.
Tip: What are the biggest activities in your business that use energy or create waste? Map them out in a flow chart.
Get your team excited about making changes and talk to the companies you buy from. Find out from them what types of data are available, be that spend, usage, or supplier-specific data.
Tip: Check where you spend the most money to find key suppliers and areas of focus. Talking to the person in charge of your bills can point you in the right direction.
Start keeping track of how much energy you use, how much you travel, and any other details that relate to your main activities. You can do this by looking at bills, receipts, or records of purchases.
Tip: Create a simple spreadsheet to write down your energy use, like electricity and fuel, and other materials you need for your business.
Start converting the gathered data into carbon dioxide equivalent emissions using established conversion factors. The UK Government provides these for free at BEIS. Resources like online calculators or software can also make this step more manageable.
Tip: Visit accountingcarbon.com for a free curated directory of the top available carbon calculators and software providers.
Reporting involves compiling the calculated emissions into a concise format useful for decision-making. For small businesses, reports should highlight key areas for emission reductions.
Tip: The GHG Protocol website provides a free downloadable template for carbon reporting here.
Verification by an independent third party adds credibility to your carbon reporting. While this is optional, SMEs aiming for certifications or looking to participate in competitive tenders may find it beneficial
Tip: Mistakes most commonly occur in using emissions factors from the wrong years or using inconsistent units.
Based on the information available, there are several different recommended methods. The general rule of thumb is always to use the highest quality data source available.
You have successfully subscribed to:
An Introduction to Climate by EcoHedge.
Check your inbox for your first video!
Our excellent customer support team is ready to help.
One of our team will be in touch soon 🙌.
Book your demo using the link below.
We've received your enquiry and one of our team will be in touch soon 😁
sales@ecohedge.com
Our excellent customer support team is ready to help.
Our carbon experts will be in touch to discuss your requirements.
Fill out the below form and our partnership team will be in touch.
Our excellent customer support team is ready to help.
Our excellent customer support team is ready to help.
We'll be in touch to arrange an initial call.
Fill in the form below to acccess your free guide.
On the call we will cover:
On the call we will:
Your payment was processed successfully. Congratulations!
You have cancelled the payment process.
This popup does not exist. I'm sorry.