3 Tips for Reducing Your Company's Carbon Footprint

👩‍🏫What is a company's carbon footprint?

The carbon footprint represents the total amount of greenhouse gas (GHG) emissions produced directly or indirectly by a company. To determine the carbon footprint of a given activity, it is necessary to conduct a carbon assessment. This calculation makes it possible to evaluate the activity’s environmental impact and implement measures to reduce it.

This process requires you to assess the emissions from your operations, which are categorized into three scopes:

🔥 Scope 1:These are direct emissions from sources directly controlled or owned by the company. This includes the company’s facilities, industrial and manufacturing processes, and on-site fossil fuel combustion.

💡 Scope 2: These are indirect emissions resulting from the consumption of electricity, heat, or steam purchased by the companyfrom third parties, such as energy suppliers.

🚛 Scope 3: These are indirect emissions other than those in Scope 2 that result from a company’s activities but are not controlled or owned by it. For example, employee travel, purchases, waste, etc.

📚The Calculation Methodology

ADEME’s Bilan Carbone® method, the GHG Protocol, and the ISO 14067 standard are standards used to assess the greenhouse gas (GHG) emissions of an organization, product, or service. They offer each company the flexibility and adaptability essential for meeting its emissions management needs. They differ in their approaches, scopes, and applications.

The GHG Protocol is an international standard developed by the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD). It is the most widely used method in the world because it establishes international consistency in the measurement of greenhouse gas emissions. It offers a high degree of flexibility in the choice of calculation methods and emission sources.

It identifies three emission scopes for preparing a BEGES: Scopes 1, 2, and 3, as discussed earlier.

A quick reminder:

• • Scope 1: Direct emissions (combustion of fuel oil, natural gas, etc.).
  • Scope 2: Indirect emissions associated with purchased energy (electricity, steam, etc.).
  • Scope 3: Indirect emissions related to the supply chain and downstream activities (transportation, waste, etc.).

The ADEME’s Bilan Carbone® calculation method, which is very similar to the GHG Protocol, is a system for calculating greenhouse gas (GHG) emissions. It incorporates tools and training programs, is widely used in France, and takes into account all the gases defined by the IPCC. It also accounts for Scope 1, 2, and 3 emissions. The Bilan Carbone® and the GHG Protocol can be considered equivalent, but the Bilan Carbone® is intended to be more comprehensive and rigorous than the GHG Protocol.

It consists of six steps:

1. 1.  Framing
   2.  Transition Plan
   3.  Online Publication
   4.  Identification of Sources and Emissions
   5.  Data Collection
   6.  Calculation and Analysis of the Balance Sheet

ISO 14064 is an international standard that, like the GHG Protocol, focuses on the quantification and reporting of greenhouse gas (GHG) emissions, as well as the verification of those emissions. This standard consists of three main parts:

📋 Principles and Requirements: This standard specifies the principles and requirements for the design, development, management, reporting, and verification of a greenhouse gas (GHG) inventory within an organization, as well as the related disclosures.

📊 Qualification: This section provides guidelines for an organization to quantify, monitor, and report its direct and indirect GHG emissions.

✅ Verification Guidelines: These guidelines detail the requirements for the verification of an organization’s GHG emissions reports by an independent third party.

🧊 Global Warming: A Top Concern

As we have seen previously, the global context is becoming increasingly significant, and most countries are being compelled to reduce their greenhouse gas emissions to meet the goals set by the Paris Agreement—namely, to keep “the rise in global average temperature well below 2°C above pre-industrial levels.” With this in mind, governments—such as France’s—are committing to the energy transition and implementing policies, such as the Law on the Energy Transition for Green Growth (TEPCV). Companies are thus faced with a major challenge: reducing their carbon footprint to actively contribute to the fight against climate change.

In particular, because transparency regarding greenhouse gas emissions has become a key factor in meeting the growing expectations of stakeholders, consumers, and investors, who are placing increasing importance on sustainable practices.

🧑‍⚖️ Increasingly Strict Regulations

Furthermore, conducting a carbon footprint assessment has become essential, above all, to remain compliant with the growing requirements in this area. Since the Grenelle II Act in 2010, carbon footprint assessments have been required to include Scope 1 and 2 emissions. And since 2022, with the BEGES Decree (Decree on Greenhouse Gas Emissions Assessments), Scope 3 emissions have also become mandatory; for companies with more than 500 employees in metropolitan France and for companies with more than 250 employees in the overseas departments.

It should be noted that carbon taxes continue to change significantly and are expected to keep rising in the coming years. Since 2014, we have seen a steady increase in the carbon tax, which rose from 7 euros per metric ton of CO2 to a level that has remained stable at 46.6 euros since 2018 in France. This upward trend is expected to continue. The guidelines of the Energy Transition for Green Growth Act indicate an upward trajectory for the carbon component, with an increase to 100 euros per metric ton of CO2 by 2030.

In addition to its environmental and regulatory significance, reducing the carbon footprint also presents economic and strategic challenges for companies.

💪 A Key Asset in Carbon Competitiveness®

In fact, decarbonization has become a key differentiator in the market. Consumers are increasingly concerned about environmental issues and favor companies that are committed to reducing their carbon footprint. Numerous studies show that consumers are increasingly inclined to choose environmentally friendly brands.

It is clear that this initiative represents much more than a mere regulatory requirement; it offers a strategic opportunity to strengthen our competitiveness in a market where environmental sustainability is becoming an increasingly important factor for consumers.

Carbon competitiveness® is the ability to demonstrate, while maintaining the same quality of service or product, lower GHG emissions than one's competitors.

It thus becomes an asset for any company that wants to attract more consumers and thereby improve its competitiveness in the market.

Given that Scope 3 emissions can account for up to 90% of greenhouse gas emissions, decarbonizing this category of emissions (supply chain, employee travel, waste, etc.) plays a key role in reducing companies’ overall carbon footprint. A company’s carbon competitiveness® depends primarily on its suppliers, which in turn determines that of their customers, and generates benefits for everyone:

A virtuous relationship that fosters the creation of a lasting partnership based on progress and mutual benefits among the parties involved.

The guarantee of accelerating a robust low-carbon transition, by involving all stakeholders—a transition that benefits everyone and is crucial to our shared fight against climate change.

Ultimately, adopting practices and technologies that promote decarbonization can strengthen a company’s competitiveness in the market by meeting consumers’ growing expectations regarding sustainability and anticipating future environmental regulations.

📋 Tip #1: Create action plans by topic

Creating a theme-based action plan is an effective strategy for reducing one’s environmental footprint for several reasons. First and foremost, it is essential to identify the key themes relevant to the intended goal.

🕵️‍♀️ Each topic must be analyzed in depth in order to identify the key issues and available solutions.

🎯 Once the challenges have been identified, clear and measurable objectives must be defined for each topic, taking into account available resources and any constraints.

📅 Finally , detailed action plans must be developed, including specific measures, deadlines, clear responsibilities, and monitoring indicators to assess progress. For each mitigation action defined in the action plans, one or more themes related to that action can be identified.

For example, an action plan might focus on:

• reducing energy consumption
• optimizing waste management
• the development of more sustainable modes of transportation

With the Decarbo’Solution® platform, we can develop action plans tailored to specific themes. Each mitigation action can be linked to GHG inventory categories such as energy, transportation, waste, materials, and input services. This information can be added manually or automatically when simulating an action. The platform also allows users to add a customizable list of themes specific to the company’s business activities.

📉 Tip #2: Identify low-carbon pathways

A low-carbon pathway is a set of guidelines and projections that detail how greenhouse gas (GHG) emissions from various activities will be reduced over time.

To chart a consistent and up-to-date course, it is essential to closely monitor progress toward reducing greenhouse gas emissions as it unfolds. This requires establishing monitoring metrics to assess the effectiveness of the actions taken. And if the results are not satisfactory, your organization must be prepared to adjust its strategy accordingly. This calls for a reassessment of objectives, which is therefore an important step that should not be underestimated.

To rely on more accurate data, we have Science-Based Targets (SBT), a partnership established between the Carbon Disclosure Project (CDP), the United Nations Global Compact, the World Resources Institute (WRI), and the World Wildlife Fund (WWF). Science-Based Targets (SBTs) are greenhouse gas (GHG) emission reduction targets that are aligned with the latest scientific advances in the fight against climate change.
By drawing on this scientific data, the low-carbon pathway gains greater precision, credibility, and transparency, thereby strengthening the confidence of stakeholders such as investors and consumers.

The Decarbo’Solution® platform offers you the SBTi trajectory creation tool combined with a GHG inventory—a feature designed to help you align your company with a low-carbon trajectory. With this tool, you can create a trajectory that reflects the latest regulatory changes, comprising both short-term and long-term components. You can choose the scenario to apply to Scope 3 emissions and determine what portion of Scope 3 emissions to include. With Decarbo’Solution®, set your company on the path to reducing carbon emissions.

🤝 Tip #3: Involve Your Suppliers in Your Decarbonization Strategy

To effectively and sustainably reduce your company’s carbon footprint, supplier engagement is essential. These business partners contribute significantly to the company’s indirect emissions. Engaging these suppliers is therefore a powerful strategy for achieving these reduction goals.

Here are a few tips for engaging your suppliers:

• Determine your suppliers’ carbon footprint: An important first step is to assess the carbon footprint of your current suppliers and prioritize those who have already adopted sustainable practices.
• Select and encourage your suppliers: It is also essential to encourage suppliers to adopt environmentally friendly initiatives and meet emissions reduction targets, while incorporating sustainability into the criteria for selecting new suppliers.
• Share best practices: Sharing best practices and fostering open dialogue promote continuous improvement.
• Promoting transparency and traceability: Requiring suppliers to be transparent about their carbon emissions and the measures they have taken to reduce them is important for effective collaboration in reducing the carbon footprint.

To learn more, check out our guide to decarbonizing procurement or our webinar on decarbonizing procurement.