Carbon Footprint Analysis

Early action on global warming will help you gain competitive advantage while preparing your business for possible future greenhouse gas reduction legislation.

A carbon footprint is the total amount of carbon dioxide (CO₂) and other greenhouse gases (GHG) emitted over the full life-cycle of a product or service, or in a financial year for a business. A carbon footprint is usually expressed as kilograms of CO₂ equivalents, which accounts for the different global warming effects of different greenhouse gases.

Calculate your carbon footprint

A carbon footprint analysis is one of the most effective and important steps an organisation can take to lower its carbon footprint. Besides quantifying your organisation's total greenhouse gas impact, a carbon footprint analysis can:

Provide your organisation with a comprehensive greenhouse gas (GHG) inventory, allowing it to identify and target reductions from its major emissions sources
Participate in global carbon footprint reporting and public disclosure initiatives
Determine the business case for carbon neutrality or other internal emission reduction targets

This carbon footprint methodology is compliant with the Greenhouse Gas (GHG) Protocol and will capture 100% of the emissions for which an organisation is responsible. This report can isolate each emission source, allowing your organisation to determine and model emission reduction strategies to determine their payback and viability.

Carbon emissions accounting

It is now commonly understood that claims of carbon neutrality or carbon reduction must be substantiated and supported by best practice auditing and carbon emissions accounting methods. If such standards are not followed, your organisation's best intentions to reduce carbon emissions will be subject to criticism, which may act to harm rather than enhance its reputation.

GHG Protocol

The GHG Protocol contains universally recognised accounting methods and boundaries that can be applied to different levels, sizes and types of organisations when creating their GHG inventory. This includes multinational organisations, energy intensive primary industry, as well as small to medium enterprises (SME). Boundaries are important when compiling a GHG inventory, as they give organisations consistency and scope when accounting for their emissions.

Download Corporate Accounting and Reporting Standards or Project Accounting Protocol and Guidelines

Emissions boundaries

There are two ‘types' of carbon emissions boundaries that need to be set when compiling a GHG inventory; an organisational boundary and an operational boundary. Dividing emissions up into different scopes allows an organisation to determine opportunities for emissions reduction, as well as knowing where their emissions are occurring along the value chain.

Organisational boundaries allow a business to distinguish between GHG emitting activities which are attributable to their organisation, and those which are not.
Operational boundaries allow an organisation to define the emissions they own or control and categorise them into different scopes (as either direct or indirect).

The main function of operational boundaries is to create different scopes for organisations to separate and define the emissions produced from their operations. The 3 scopes are defined below:
1. Direct GHG emissions: Carbon emissions occurring from sources that are owned or controlled by the company (e.g. emissions from combustion in owned or controlled boilers, furnaces and vehicles).
2. Electricity indirect GHG emissions: Carbon emissions from the generation of purchased electricity consumed by the company.
3. Other indirect GHG emissions: Carbon emissions which are a consequence of a company's activities, but occur from sources not owned or controlled by the company (e.g. emissions from waste, the extraction and production of purchased materials; and employee travel to and from work).
The GHG Protocol describes scopes 1 and 2 as mandatory reporting categories, and scope 3 as a voluntary reporting category.

Reduce your carbon footprint

Once you have completed your emissions assessment, we suggest a number of ways to lower your greenhouse gas emissions which will, in turn, reduce the carbon footprint of your business. A few examples are below:

Switch to green power - In most office-based businesses, carbon emissions from electricity are the greatest carbon footprint component. Green power is renewable energy, sourced from the sun, wind, water and waste and it will lower your carbon footprint considerably.
Energy efficiency for your business - Starting with lighting, replace inefficient lighting with new energy efficient lights. Install time sensors that switch off lights when no one is in the room. This will not only reduce your carbon footprint but also save you money!
Staff practices and education - Encourage staff to take public transport or to car-pool and remind everyone to switch off computers, monitors and printers at night.
Reduce business air travel - Emissions from air travel are significant and if you fly staff domestically or internationally, this will have a big impact on your carbon footprint. An economy ticket on return flight to London from Sydney is responsible for 10.11 tonnes of GHG emissions.

An alternative to flying your managers to meetings could be video conferencing.
Fuel switching - Many diesel engines can be run on biodiesel or a mix of diesel and biodiesel. For companies with fleets of trucks or diesel driven machinery, this is an effective method for lowering your carbon footprint.

Carbon Reduction Institute. With a clear understanding of the interaction of business and climate change, the Carbon Reduction Institute offers a variety of effective carbon management solutions to educate your staff, engage your stakeholders, reduce the costs of emissions trading, increase the profile of your business and reduce its impact on the climate. For further information about this please visit our website at www.noco2.com.au
First published: 29 September 2008.
Last updated: 29 September 2008.