Understanding a Company's Ecological Footprint
When we talk about an ecological footprint, we often think of the carbon footprint—that is, the amount of greenhouse gases (GHGs) emitted annually by an organization or an individual.
However, while they are related, they are two distinct footprints. The ecological footprint encompasses not only GHG emissions but also the impact on ecosystems.
Companies have an ecological footprint, and their activities influence the ecological footprints of individuals and nations. In this article, we will take a detailed look at the ecological footprint of companies and the issues surrounding it.
1. What is an ecological footprint?
1.1. A measure of human pressure on nature.
2. The contribution of businesses to the global ecological footprint.
2.3. Greenhouse Gas (GHG) Emissions
3. How can a company's ecological footprint be assessed?
3.1. Conduct an environmental analysis
3.2. Conduct a carbon assessment
4. How can a company reduce its environmental footprint?
What is an ecological footprint?
🌍A measure of human pressure on nature
The ecological footprint is an indicator of human pressure on natural resources and ecosystem services. More specifically, it is a measure of the land area required to meet human needs— that is, the production and consumption of resources, energy, food, services, and infrastructure, as well as the absorption of waste. It also takes into account available technologies and therefore varies by country.
The OECD defines this footprint as “the measure, in hectares, of the biologically productive area required to meet the needs of a human population of a given size.”
It is measured in global hectares (hag), that is, hectares with a productivity level equal to the average productivity. For example, in France, it was 4.3 hag per person in 2022 (estimate, according to the Global Footprint Network).
Another metric used is the number of planets needed to meet the current needs of the world’s population. In 2023, the Global Footprint Network estimated that it would take 1.7 planets to produce what the world’s population consumes today. In France, that number is 2.86 planets (in 2022, according to the Global Footprint Network).
🔥Ecological Overshoot
In 2023, Earth Overshoot Day occurred on August 2, 2023. On August 2, humanity consumed everything the Earth could regenerate in one year. It was on this occasion that the Global Footprint Network estimated that 1.7 planets would be needed to meet the current needs of the world’s population.
While ecological overshoot is related to the ecological footprint, it is different: it is calculated as the difference between the global ecological footprint and biocapacity—that is, what the planet can provide in one year. The result is either an ecological surplus or an ecological deficit.
Earth Overshoot Day comes earlier each year, reflecting production and consumption needs that are growing to the point where they can no longer be met by a single planet. This concept calls for frugality, moderation, and a reduction in our consumption of resources, services, and goods. It also calls for the sustainable development of businesses and society.
The Contribution of Businesses to the Global Ecological Footprint.
📈Resource consumption
To operate, an organization needs various natural resources such as water, minerals, wood, and other materials. These resources must be extracted, then processed, manufactured, and transformed into the product or service sold by the company. The consequences of this resource consumption are directly linked to ecological overshoot.
🚯Waste generation
A company will generate waste during the production and use of its product—plastic or electronic waste, for example. This waste has a direct impact on biodiversity and raises the question of how it should be handled: recycled, incinerated, or landfilled?
☁️Greenhouse gas (GHG) emissions
To produce a good, service, or process, a company emits GHGs at every stage of its life cycle. For example, for a product, GHGs are emitted during the extraction of raw materials, their processing, the production of the product, its transportation, delivery, use (if applicable), and end-of-life. These GHG emissions are directly responsible for climate change and contribute to a company’s carbon and ecological footprints.
⛰️Space Utilization
A business needsspace to operate. This includes office space, production facilities, warehouses, and other types of facilities. This need leads to the adaptation and conversion of land for industrial purposes (deforestation, land development, construction, etc.), which has a direct impact on biodiversity. Land-use change is the leading cause of biodiversity loss.
How can a company's ecological footprint be assessed?
Assessing a company’s ecological footprint helps raise awareness of the pressure it exerts on the environment, the impact it leaves behind, and the damage it causes. It’s an essential step in identifying the key areas for action to reduce it!
🌱Conductan environmental analysis
An analysis will assess the environmental impact of a product, process, or service throughout its entire life cycle using a multi-criteria analysis.
This analysis is often conducted as part of the process to obtain ISO 14001 certification. This certification attests that an environmental management system compliant with the ISO 14001 standard has been implemented, and that the organization’s objectives are aligned with environmental sustainability.
✅Conduct a carbon assessment
As noted above, the carbon footprint is part of the ecological footprint. After assessing the environmental impact of its activities, an organization can conduct a carbon assessment to quantify its greenhouse gas emissions by year and emission source.
How can a company reduce its ecological footprint?
📉Reduce the carbon footprint
Once a carbon assessment has been conducted and greenhouse gas emissions have been quantified, a low-carbon strategy is an excellent way to reduce your carbon and ecological footprint!
♻️Rethinking Your Business: Eco-Design
Redesigning a product, service, or good so that it has less impact on the environment and nature—and is aligned with environmental goals—helps reduce its ecological footprint. This is an ecodesign approach thatis “multi-criteria”and“multi-stage,”according to ADEME.
- Multi-criteria, because it takes into account all the environmental criteria on which the product, process, or service may have an impact (water, climate change, biodiversity, energy, etc.).
- Multi-stage, because it takes into account the entire life cycle of the product, process, or service.
Adopting an eco-design approach allows companies to contribute to the environmental transition and society’s sustainable development. This approach also offers several benefits for businesses:
- To enhance the organization's image and competitiveness by meeting new consumer expectations and setting itself apart from its competitors.
- Anticipate future regulations.
- Innovate and create new market opportunities.
- Build resilience and adapt business operations to address environmental challenges.
Reducing your ecological footprint also involves adopting eco-friendly practices in the workplace! Learn more about waste management project options.
Now that you know all about a company’s environmental footprint, it’s time to take action!