Carbon Footprint Reporting Requirements… but an Opportunity to Reduce Emissions!
"Establish a requirement to disclose the carbon footprint of products and services"
In 2020, the first of the 146 measures proposed by the Citizens’ Climate Convention required companies to calculate and disclose their Bilan Carbone®, also known as BEGES (Greenhouse Gas Emissions Report). To this end, the authors of the measure proposed developing a corresponding carbon score, modeled after the Nutri-Score.
What is the situation now?
1. Create your BEGES…
The law requires the following organizations to prepare a BEGES, or greenhouse gas emissions inventory:
- (Article L 229-25 of the Environmental Code ofNovember 9 , 2020): Federal agencies, regions, departments, metropolitan areas, communities with more than 50,000 residents, public-law organizations employing more than 250 people, and companies employing more than 500 people.
- (Decree No. 2021-1784 of December 24, 2021): Companies with 50 or more employees that receive aid under the Recovery Plan
Until now, BEGES has made it possible to confidently continue efforts to reduce carbon emissions, in accordance with the roadmap of the National Low-Carbon Strategy (SNBC): “to achieve carbon neutrality—that is, net-zero emissions —by 2050— a goal introduced by the July 2017 Climate Plan and enshrined in law—and to reduce the carbon footprint of the French people.”
However, since Decree No. 2022-982 of July1,2022, the French government’s requirements have become more stringent: simply preparing a BEGES report on direct and indirect emissions related to energy consumption is no longer sufficient. Companies must also include all of their indirect emissions (Scope 3) and submit a strict “transition plan” committing to a low-carbon trajectory in line with national obligations.
This new pressure not only requires companies to report on and demonstrate their efforts to reduce energy production and consumption (i.e., Scopes 1 and 2), but also to account for (and subsequently reduce) these other indirect carbon emissions—whether upstream or downstream in the production chain—which are generally the most significant. ThisScope 3 is therefore becoming mandatory: upstream, it involves design and procurement processes (travel, supplier impact, etc.); and downstream, it involves the supply and consumption of the product or service (including the recycling of generated waste, employees’ commutes, etc.).
Since the decree of July1 now takes into account the total volume of greenhouse gas emissions, it requires companies to conduct a more comprehensive (and accurate) carbon footprint assessment to justify their reduction trajectory for both direct and indirect emissions. Finally, Article L. 229-25 is significant: it requires that a description of the actions implemented and the results achieved during the period preceding the assessment—in line with the objectives set at that time—be included with the mandatory carbon assessment. Companies must therefore also demonstrate the consistency of their long-term low-carbon trajectory between set and achieved objectives.
In short, the message of the latest official decree is this: “You need to weigh yourself and… lose weight!”
To this end, the method for calculating GHG emissions published by ADEME and distributed by the Association Bilan Carbone (ABC) is a very useful tool for learning about the process, but it does not take these new challenges into account—unless consultants are brought in, which is often very costly.
To take action independently, without delay, and at minimal cost, Decarbo’Solution® ( Decarbo’Solution®) offers its service platform to support private and public companies, enabling them to meet these new requirements in the short term and, in the long term, to chart a low-carbon course that is consistent with the company’s business model—in other words, a successful one.
As a member of the ABC, Decarbo’Solution® enables public and private organizations to independently calculate their BEGES, reduce their emissions, and offset their unavoidable emissions if desired. No one—from very small businesses to large corporations—should hesitate to use its services, which have been carefully developed over the past ten years to ensure compliance, simplicity, and progress for everyone.
Note: BEGES is a tool for calculating the amount of GHG emissions generated by a company or organization’s activities in the production of a good or service.
This assessment makes it possible to evaluate the environmental impact of the organization’s operations, identify sources of GHG emissions, and develop a plan to reduce its carbon emissions. Publishing this assessment is the first step toward raising awareness among consumers, employees, and partners, and encouraging the organization to reduce its carbon footprint.
2. …to make it public
The creation of the “Carbon Score” is provided for in Article 1 of the Climate Bill adopted by members of the National Assembly. Modeled after the Nutri-Score, the “CO2-Score” is intended to clearly indicate the carbon footprint of each product sold.
Although ADEME had launched a similar pilot program that ended in June 2021, environmental labeling has been the subject of pilot programs since March 2021, for a maximum period of five years.
While awaiting the official implementation of the Carbon Score, it is in the best interest of both private and public companies to begin the process of preparing their comprehensive and detailed BEGES reports. Indeed, this reporting process is essential to prepare companies to minimize their future “carbon tax base.” This measure, which will begin to be implemented on February 13, 2023, will expand carbon quotas and impose a carbon tax on imports. It’s high time to understand and reduce your carbon footprint!
On this subject, see the difference between BEGES and Bilan Carbone;