Why calculate the carbon footprint of your company? Method, costs, benefits.
The carbon footprint is an indicator that measures the impact of an activity on the environment, and in particular its greenhouse gas (GHG) emissions.
Each decision taken by society always has an impact on the climate. It is therefore very important to measure precisely these greenhouse gas emissions in order to identify the best ways to reduce them
In a carbon footprint, GHG emissions are broken down into three into three emission scopes:
- Scope 1 includes all emissions generated directly by the company and its activities;
- Scope 2 considers all emissions associated with the company's consumption of electricity, heat or steam in its facilities or vehicle fleets;
- Scope 3 corresponds to all other indirect emissions occurring upstream or downstream in the company's value chain.
By definition, a GHG inventory® will always have a positive impact on the climate impact, and also on the economic performance of the company.
It should be noted that the consideration of scope 3 is essential, especially within production and distribution companies, as this scope represents a preponderant part of total GHG emissions.
Please note that the carbon footprint is to be distinguished from the ecological footprint. The latter evaluates the surface of productive land required to produce - in other words, the number of "Earths" necessary to absorb the production of a good or service. The Carbon Footprint establishes a balance sheet of all the greenhouse gas emissions of an organization's activities, whether public or private.
In this publication, we review the methodology, costs and benefits of calculating the carbon footprint of your company.
1. The obligation to calculate the carbon footprint
2. Greenhouse gases taken into account for the calculation of the carbon footprint
3. The need to know the carbon footprint of one's company to ensure its sustainability
Theobligation to calculate your company'scarbon footprint
In simplified terms, the principle of calculating a company's carbon footprint is based on the following model:
➡️ CO2 emissions = quantities consumed x emission factor
In fact, measuring and analyzing all CO2 emissions to know the carbon footprint of a company is equivalent to calculating its GHG inventory®. As part of its National Low-Carbon Strategy, the French government urges entrepreneurs to establish their GHG inventory using this method developed by ADEME. The objective set by the government via this plan is to "achieve carbon neutrality, i.e. zero net emissions, by 2050".
Reminder on the National Low-Carbon Strategy: the SNBC is a roadmap for France to reduce their carbon footprint. It was introduced by the Energy Transition for Green Growth. The SNBC provides guidance to companies in France to achieve the GHG reduction target for the climate.
⚖️ Since July 2022, the decree n° 2022-982 calls more firmly for all French public and private organizations to carry out their complete GHG inventory. Indeed, the scope of the emissions now obligatorily takes into account the three emission scopes, i.e. direct, energy and indirect greenhouse gas emissions, and the company must clearly display and demonstrate its low-carbon trajectory from one fiscal year to the next (energy transition report to be provided to the administration and auditors)
⚖️ From January1, 2023, this legislation will apply to companies with over 500 employees in mainland France, and to companies with over 250 employees in overseas territories. Failure to produce a complete carbon footprint(scopes 1, 2 and 3) will be punishable by a fine of 10,000 euros, up from 1,500 euros previously.
As the carbon footprint of large companies depends on those of their suppliers and service providers, the latter are also concerned by this obligation to measure and reduce their greenhouse gas emissions, as a guarantee of their Carbon Competitiveness®, which consequently becomes a discriminating criterion in calls for tender. Find out how to improve your GHG footprint thanks to your suppliers' commitment.
Greenhouse gases in the carbon footprint
The following list identifies the main origins of each of the greenhouse gases:
✅ Carbon Dioxide (CO2):
- Combustion of fossil fuels
- Agriculture and intensive livestock farming
- Deforestation
✅ Methane (CH4)
- Cattle and ruminant farms
✅ Hydrofluorocarbon (HFC):
- Mining and petroleum operations,
- Garbage dumps
✅ Nitrous oxide (N20)
- Refrigeration and automotive industries
✅ Perfluorocarbon (PFC)
- Air conditioners and cooling systems,
- Fire extinguishers
✅ S ulfur hexafluoride (SF6)
- Pharmaceutical industry
The collection of all the data associated with an emission factor is necessary to calculate its carbon equivalent. For a rough estimate of your company's carbon footprint, there are many free calculators available today. However, the government's legislated obligation, and the requirements of major clients, compels most private and public organizations to provide an accurate and certified measurement of their carbon footprint with the GHG inventory.
🔵 The GCI calculator makes it possible to meet this demand. Global Climate Initiatives offers private and public companies, organizations and communities of all types and sizes, online tools and services to identify, calculate, reduce their carbon footprint, and carry out their GHG assessment in full compliancé́ with international texts, benchmarks, standards and norms.
GCI offers best-in-class reporting on greenhouse gas accounting and reporting practices.
This initiative is fully in line with the indispensable dynamics of an ecological transition geared towards low-carbon and decarbonized energies, and of permanent improvement of energy efficiencý́ instilled by theParis Agreement.
The need to know the carbon footprint of one's company to ensure its sustainability
The imperative of knowing one's company's carbon footprint is part of a broader framework of public and international policies to combat global warming. From the Kyoto Protocol in 1997 to COP27 in 2022, initiatives to build a legal framework around carbon emissions and consolidate the Global Carbon Market are anchoring the "zero-carbon" objective as a priority.
For several years, the carbon tax base has been following an exponential interest curve and carbon emission pricing schemes have been multiplying (allowances, carbon tax...). As a result, the price of the carbon ton of allowances has been steadily increasing since 2014, having risen from €7 per ton to €56 in 2020, "until reaching more than €90 in early 2022" according to the Banque de France.
💪 Controlling the carbon footprint is therefore becoming a strategic tool for entrepreneurs concerned about thesustainable activity of their company, from an ecological as well as an economic point of view.
The implementation ofeco-actions in the company is also an excellent lever to control its carbon footprint.
