Understand the basics
Begin by educating yourself and your team about the concepts of carbon accounting and footprinting. Understand the different scopes of emissions (Scope 1, Scope 2 and Scope 3), emission factors and global warming potentials.
Set goals and scope
Define your goals for carbon accounting. Are you aiming to reduce emissions, achieve carbon neutrality, or meet regulatory requirements? Determine the scope of your analysis, including which emissions sources you will include (eg: direct emissions, energy consumption, supply chain emissions).
Data collection
Collect relevant data for each emissions source within your chosen scope. This could include energy consumption, fuel use, transportation, production processes and more. Data collection might involve analysing invoices, utility bills and operational records.
Emission factors
Identify appropriate emission factors for your activities. Emission factors provide the conversion rate of activity data (e.g., fuel consumption) to CO2 equivalent emissions. These factors are often provided by environmental agencies or industry associations.
Calculate emissions
Use the collected data and emission factors to calculate your organisation's emissions for each relevant source. This might involve spreadsheet calculations or specialised software.
Software and tools
Consider using specialised carbon accounting software or online tools. These platforms streamline data collection, calculations and reporting.
Engage experts
If your organisation lacks expertise in carbon accounting, consider hiring consultants or experts who specialise in sustainability and emissions analysis. They can guide you through the process and ensure accurate calculations.
Verification
Depending on your goals and stakeholders, you might choose to verify your emissions data through third-party audits. This adds credibility to your reported emissions and sustainability efforts.
Develop reduction strategies
Analyse the emissions data to identify high-impact areas and develop strategies for emissions reduction. These strategies might include energy efficiency improvements, renewable energy adoption and supply chain optimisation.
Regular monitoring
Carbon accounting is an ongoing process. Regularly monitor your emissions and track progress toward your goals. This allows you to adjust strategies if needed and demonstrate continuous improvement.
Reporting
Communicate your emissions data and reduction efforts transparently to stakeholders. This could include sustainability reports, disclosures to investors and for large companies, participation in carbon reporting initiatives like the Carbon Disclosure Project (CDP).
Educate employees
Involve your employees in the carbon accounting process. Raise awareness about sustainability and encourage employees to contribute to emissions reduction efforts within their roles.
Supply Chain
For Scope 3 emissions, work with your suppliers to gather data and collaborate on emission reduction strategies. Supply chain engagement can have a significant impact on your overall footprint.
