Companies of every size are scrambling to show their progress to be carbon neutral. For large enterprises, this has been a requirement since 2013, but since COP26 last November, even the smallest firms see the public relations benefits of voluntary actions to reduce their CO2 emissions.
Humperdinck Jackman, Managing Director of ESG PRO Ltd., a pan-European provider of ESG and carbon footprint reporting services, explains what’s involved, how to report and how to maximise the return on the time and cost.
Since COP26, the quest for all businesses to become carbon neutral is unrelenting. Large enterprises – even certain large partnerships – have had to report on their CO2 footprint since 2013, but for everyone else in the UK it remains voluntary.
Yes, UK business is booming, but your competitors aren’t asleep! You should seize the opportunity to attract customers who value your lower carbon impact, because a genuine sustainability message sells. Consumers, especially, are convinced.
While the government is considering a direct carbon tax, no details have yet been released. Don’t dismiss this, because carbon neutrality is critical for any organisation which sells to larger businesses required to report on their emissions. The supply chain is driving uptake across all industries.
Use reporting to reduce costs
Of course, every effort requires a degree of expenditure, but carbon reporting is a vital component of reducing your total energy and transportation costs, and never has that been more critical than in 2022. While making a start also protects you from the inevitable regulatory demands which lie ahead, it’s surely as much the overall benefit to society which serves as a motivation.
Your carbon reduction journey requires attention to SECR (Streamlined Energy and Carbon Reporting). While there’s no set methodology under the legislation, organisations are required to disclose how they calculate their data. For effective emissions management and transparency, the most accepted methods are from the GHG Reporting Protocol, Corporate Standard, the Global Reporting Initiative, ISO 14064-1:2018, and the BSi PAS 2060.
The legislation governing emissions does not require an independent audit of either your energy use data, or of your supporting narrative which references your plans for improved energy efficiency.
Since your carbon footprint claims can be challenged, shortcuts are not an option. Software platforms exist for you to learn how to do it yourself, and the other option is to engage a consultant who can relieve you of the repetitive number crunching.
You will be surprised by the depth of investigation required, and there’s a strong case for outsourcing the task. Be aware that documenting and executing your strategy to subsequently reduce your carbon footprint is actually a greater challenge than the reporting itself, and external expertise is highly recommended.
What about auditing?
At ESG PRO, we recommend voluntary independent assurance on the accuracy, completeness and consistency of energy use, GHG emissions data and energy efficiency action plans. This is beneficial for both internal decision-making and for external stakeholders.
Consider what to do with your carbon data. When coupled with independent assessment, the standards above protect you from spurious demands for evidence, but that’s only part of the picture. With your carbon footprint report completed, the logical next step is to consolidate this into a formal ESG report. This adds instant value and credibility to your organisation.
Detailing your carbon footprint within your Environment, Social, and Governance (ESG) report gives your organisation, no matter how small or large, the opportunity to receive an internationally certified performance rating. Your ESG report is the encapsulation of all your positive contributions to society. It evidences how you treat your employees, and it assures your customers that your organisation is run ethically. Your CO2 emissions reduction strategy takes centre stage within the environment component. The result is added value to your organisation.
Supply chain demands
For many, ESG reporting is now an imperative. At ESG PRO, we’ve seen first-hand how tender responses are having a 20% weighting for the supplier’s ESG performance. In January alone, five managing directors of small to mid-sized firms and three with AIIM listed Plcs highlighted this as a primary concern. Increasingly, commercial clients are demanding to know the precise carbon footprint they inherit through using your firm. Remember, every tangible product or intellectual service generates carbon in some form. Everyone is affected, from law firms to those in construction. It’s time to start.
Your carbon footprint explores in meticulous detail virtually every source of emissions caused by the activities of your organisation. Even the most eco-friendly office probably uses cloud software, and so the energy used in the providers’ data centres has an impact.
The following also need to be taken into consideration:
- Fuels, including heating oil, diesel, petrol, natural gas, LPG, etc. lubricant, waste oil etc.
- Public transport – aeroplane, taxi, bus, train, etc
- Delivery vehicles – HGV, refrigerated, van, motorbike, car etc
- Waste, including metal, plastic, paper, construction, refuse, electrical etc.
- Business travel, by air, sea, car, motorbike etc.
- Location of staff, including office workers, home workers, hybrid workers.
- For a free two-hour consultation on ESG and Carbon Footprint reporting, contact ESG PRO Ltd. and quote reference ATB CO2
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For more information contact ESG PRO Limited at www.esgpro.co.uk or email info@esgpro.co.uK