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 inventory 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
To help and encourage SMEs to carry out their GHG emissions assessments, the French government has set up two main carbon assessment subsidy schemes for SMEs.
The Diag'Décarbon'Action scheme, launched by BPI France in partnership with ADEME and the Bilan Carbone® association, offers subsidies ranging from 40% to 60% of the total cost of the assessment proposed by the scheme (€10,000), depending on the number of employees in the company.
The Tremplin pour la transition écologique (springboard for ecological transition) public aid scheme set up by ADEME provides a subsidy of 80% of the total cost of carrying out the assessment, up to a maximum of €5,000.
We invite you to read thisarticle formore 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 inventory 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!
🔆Brand image
Adopting an eco-responsible approach by committing to a CSR program, or by carrying out a carbon audit, strengthens the brand image of SMEs. Consumers are increasingly sensitive to environmental issues, and give preference to companies committed to sustainable practices and a CSR strategy. A positive carbon footprint®, accompanied by actions and a plan to reduce emissions, thus becomes a differentiating factor in an increasingly competitive market.
💸Capital for SRI funds
Investors now demand a great deal of extra-financial information on the companies - including SMEs - in which they are considering investing. This enables them to assess the risk of their investment, but also to gauge the responsible positioning of their investment. So as not to miss out on SRI (socially responsible investment) funds, SMEs have every interest in providing extra-financial information on their ecological commitment and approach, and a GHG inventory - accompanied by actions and a decarbonization plan - is an excellent candidate.
Convinced? All you have to do is carry out your own GHG assessment and get involved in the fight against climate change!
