Scope definition
The first step is to define the scope of the analysis. This involves determining the boundaries of what will be included in the assessment. For instance, an organisation might decide to account for emissions from its direct operations (Scope 1), emissions from purchased electricity and heat (Scope 2) and emissions from its supply chain (Scope 3).
Data collection
Gathering accurate data is crucial for meaningful carbon accounting. Organisations collect data on various activities, such as fuel consumption, energy usage, production processes, transportation and more. This data collection can involve sources such as utility bills, production records, transportation logs and supplier information.
Emission factors
Emission factors represent the amount of greenhouse gases emitted per unit of activity or consumption. These factors are standardised values provided by regulatory agencies, industry associations, or scientific research. For example, an emission factor might specify how much CO2 is emitted per litre of petrol burned.
Calculation
With the data collected and emission factors in hand, organisations calculate the emissions associated with each activity. This involves multiplying the activity data (e.g., miles driven, energy consumed) by the corresponding emission factor.
Conversion to CO2 equivalent
Different greenhouse gases have varying degrees of potency in terms of their impact on global warming. To compare them accurately, emissions of other gases are converted into CO2 equivalents using their Global Warming Potential (GWP) values. CO2 is assigned a GWP of 1 and other gases are scaled accordingly.
Aggregation and summation
Emissions from different activities and sources are aggregated to obtain a comprehensive carbon footprint. This can be done for a specific product, service, project, or the entire organisation. The aggregated emissions include both direct emissions (e.g., combustion of fossil fuels) and indirect emissions (e.g., electricity consumption).
Reporting and communication
The calculated carbon footprint is then presented in a clear and understandable manner. This could be in the form of a report, a label on a product, or an online platform. Transparency and accuracy are essential for effectively communicating the emissions information to stakeholders.
Setting goals and reduction strategies
Once the carbon footprint is known, organisations can set reduction targets and strategies. They can identify the areas where emissions are most significant and develop action plans to mitigate those emissions. This might involve investing in renewable energy, improving energy efficiency, altering production processes, or changing supply chain practices.
Monitoring and verification
Regular monitoring ensures that emissions are being accurately tracked and reduction strategies are effective. Some organisations may choose to have their emissions data verified by third-party auditors to enhance credibility.
Continuous improvement
Carbon accounting and footprinting are ongoing processes. As technology evolves, emission factors become more accurate and data collection methods improve, organisations can refine their calculations and better understand their carbon impact, leading to more effective emissions reduction strategies.
