Why should SMEs have a carbon footprint®?
In a global context marked by climate and ecological emergencies, governments and companies must adapt to ensure the sustainability of their services and the survival of their institutions. International agreements, objectives and regulations (both national and international) multiply every year.
France, for example, is committed to achieving carbon neutrality by 2050, as part of its ecological and energy transition to combat climate change. By 2050, all greenhouse gas (GHG) emissions will have to be offset by capturing carbon from natural sinks (oceans, atmosphere, forests). Reducing greenhouse gas emissions (and therefore your carbon footprint) as an individual, state or company is essential to achieving this goal. This includes small and medium-sized enterprises (SMEs).
SMEs are companies with no more than 250 employees and annual sales of no more than €50 million, or total assets of no more than €43 million. Combined with ETIs (intermediate-sized companies), they account for 30% of France's carbon footprint.
In this article, we discuss why SMEs should seriously consider the importance of carrying out a carbon footprint.
1. What is a carbon footprint®?
2. Why carry out a BEGES as an SME?
☁️Qu what is a carbon footprint®?
Let's start by defining the carbon footprint®, or greenhouse gas emissions balance (BEGES). It's a systematic assessment of the greenhouse gas emissions generated by a company's activities, such as the production of its products. Several methods exist for calculating this balance: the GHG Protocol, the ISO 14061 standard, the regulatory method (called the regulatory method because it has been used as part of the mandatory balance for certain entities since the Grenelle II law), and the Bilan Carbone® method supported by ADEME.
The GHG Protocol is the first method to define the 3 scopes, which will be used in other methods but in the form of categories (based on ISO 14061).
- Scope 1 refers to the company's direct emissions.
- Scope 2 refers to the company's indirect emissions that it can control (e.g. energy purchases and consumption).
- Scope 3 refers to indirect emissions that the company cannot control.
Carrying out an assessment of the greenhouse gas emissions of your company's activities is an excellent way of quantifying your carbon footprint and putting in place an effective emissions reduction plan.
❓Why carry out a BEGES as an SME?
Let's now explore the benefits of carrying out the BEGES for SMEs.📜Anticipate regulations.
It is compulsory for companies with more than 500 employees and local authorities to produce a BEGES. local authorities of more than 50,000 inhabitants, since the Grenelle II law (2010). This system is governed by Article L. 229-25 of the French Environment Code. The report must be drawn up every 4 years, published on the ADEME website and accompanied by a transition plan.
The calculation of scope 3 is mandatory since the BEGES Decree of July 2022.
GHG assessments are not yet mandatory for SMEs in France, but regulations are rapidly moving in the direction of full, compliant GHG assessments. It would be advantageous for SMEs to get ahead of the curve and carry out a GHG balance sheet before it becomes mandatory.
In fact, since January 2024, the CSRD has applied in France. This is a new European directive setting new non-financial reporting standards for European companies. In 2026, it will concern listed SMEs, which will then be legally obliged to provide more ESG (environmental, social and good governance) information in their annual reports. This will include GHG emissions reporting.
💰Subsidies are available
For helping SMEs in carrying out their GHG emissions assessments, and the encourage you to do itthe French government has set up two main subsidy schemes for SMEs. The device Diag'Décarbon'Actionlaunched by BPI France in partnership with ADEME and the Bilan Carbone® association, provides subsidies ranging from 40 to 60% of the total cost of the assessment proposed by the system (€10,000), depending on the number of employees. Public assistance Springboard for the ecological transitionThe ADEME-financed scheme enables you to benefit from a subsidy of 80% of the total cost of carrying out the assessmentup to a maximum of €5,000. We invite you to readthis articlefor more details.🌍Fighting climate change
Anthropogenic emissions of greenhouse gases are at the root of the climate change we are experiencing today. These gases trap the infrared rays emitted by the sun in the atmosphere, causing the average temperature to rise, among other consequences. GHG emissions have a considerable impact not only on our climate, but also on our entire ecosystem.
Quantifying your emissions and identifying your main emission sources with a complete, compliant GHG balance sheet is the best way to implement an effective decarbonization strategy, to be part of the collective effort to achieve an ecological and energy transition, and to reduce your impact on the climate, whatever your sector of activity (,tertiary, events, transport...) or the size of your business. In 2023, 67% of SME and ETI managers said they were keeping abreast of climate change within their company.
Reduce costs (energy bill)
Carrying out a GHG assessment also makes it possible to identify potential energy savings, and thus reduce costs. For example, scope 2 emissions are linked to the purchase and consumption of energy supplied by suppliers and necessary for the company's operations. Reducing this consumption by improving the energy efficiency of your premises, equipment, tools and production processes can be an excellent way of cutting your GHG emissions, while also reducing your bills!
