Emissions Management Process - Stage 1: Emissions Measurement

Effective management of emissions, and therefore the ability to maximise cost savings, is only possible if there is accurate information on the quantity of emissions. Therefore robust measurement of the carbon footprint is the key first step in the process.

CarbonGroup produces organisational carbon footprints according to the leading international standards (ISO14064:1 and the GHG Protocol: A Corporate Accounting and Reporting Standard). This provides organisations with the confidence that the carbon footprint has been produced in a standardised manner, according to latest industry standards.

The production of an organisation’s carbon footprint is a five stage process:

1. DEFINING THE ORGANISATIONAL BOUNDARY

For most businesses, especially small to medium enterprises, defining the organisation’s boundary is straightforward; it will usually be the activities over which the organisation has operational control. For organisations which have more complex ownership structures (for example companies with joint owners), there may be a need to consider either the ownership (equity share) or the financial control.

2. IDENTIFYING EMISSION ACTIVITIES

Once the organisational boundary has been defined, then the main activities which result in GHG emissions are identified, in line with the international standard. Both direct and indirect sources of emissions need to be identified.

A direct source is one which is owned by, and under the control of, the organisation (for example, a company vehicle); whereas an indirect source is one which results from the company’s activities but is not owned by, or under the control of, the organisation (for example, business flights, printing paper production).

Therefore, indirect sources can include emissions upstream (e.g. raw material production) and downstream (e.g. product use) of the organisation’s activities.

The international standard defines three source areas:

• Scope 1 - Direct sources. 
  Typical activities include:
  • Use of company controlled vehicles (e.g. company cars)
  • On-site generation of power (e.g. diesel generator)
    
• Scope 2 – Indirect sources (purchased electricity use).
  Typical activities include:
  • Use of mains electricity supplied by a network electricity provider
    
• Scope 3 – Indirect sources (other).
  Typical activities include:
  • Employee business travel (e.g. air flights)
  • Production of purchased materials (e.g. office equipment, stationery)
  • Disposal of solid waste
  • Staff commuting

3. DECIDING ON ACTIVITIES TO INCLUDE IN CARBON FOOTPRINT

Once the sources of emissions have been identified, they are analysed to determine whether they should, or can, be included in the carbon footprint. Scope 1 and 2 activities are mandatory, whereas Scope 3 activities are optional.

Three factors are considered to determine which Scope 3 activities are included: the significance of the activity (in emissions terms); whether there is available data on the amount of the activity that has taken place; and whether there is a reliable way to estimate the amount of emissions for each unit of activity (i.e. an emissions factor). Generally, only those scope 3 activities which satisfy all three conditions are included. (In general, this means that activities associated with the supply chain, and service/product use, are excluded, as reliable emissions data is not yet available.)

The identified activities constitute the organisation’s GHG inventory boundary.

4. CALCULATING THE CARBON FOOTPRINT

For each activity in the GHG inventory, the following steps are undertaken:

• identify the appropriate activity data unit and emissions factor (i.e. amount of GHG emissions per unit of activity)
• collect the activity data for the reporting period (usually a calendar, or financial reporting year)
• calculate the estimated emissions by multiplying the activity units by the emissions factor

The emissions estimates for each activity are then aggregated to produce the carbon footprint.

5. REPORTING THE RESULTS

Publication of the carbon footprint results to stakeholders (both internal and external) is important and a requirement of the international standards. It helps to demonstrate the seriousness with which the organisation views its wider responsibilities and its commitment to environmental improvement.

NEXT: Stage 2 - Emissions Reduction»