Conducting a Carbon Footprint® Assessment in the Service Sector

Whether it is the “regulatory” definition, the “Bilan Carbone©” trademark registered by ADEME, or the practical reality of the process, the goal is to quantify all of a company’s emissions.

A comprehensive regulatory emissions inventory, used to produce the regulatory GHG inventory and the Bilan Carbone©, consists of three scopes.

These include, respectively, so-called direct emissions (which originate from fixed or mobile facilities within the organizational scope), indirect emissions related to energy (electricity and heat generation, etc.), and, finally, other indirect emissions (transportation, waste, materials from suppliers, etc.).

Integrating these three scopes enables a comprehensive review of an organization’s emissions. The goal is not only to quantify emissions but also to identify key emission sources so that they can be prioritized for reduction.

A regulatory GHG inventory can be conducted in all sectors of activity. It enables each sector, at its own level, to meet reduction targets and also to contribute to achieving the goal of carbon neutrality by 2050.

That is why, even though it is not yet mandatory for all businesses and local governments, it is recommended that they conduct one now in order to have the necessary information to implement an emissions reduction plan without delay.

The service sector accounts for the majority of organizations capable of conducting a comprehensive assessment. It represents a significant source of energy savings and greenhouse gas reductions that should not be overlooked—with the added bonus of a guaranteed positive economic impact for the company and its ecosystem! In fact, reducing emissions generally leads to lower associated costs!

📃 GHG Emissions in the Tertiary Sector: Challenges and Prospects

The service sector encompasses a wide range of activities. It ranges from retail to public administration, including transportation, finance, real estate, business and consumer services, education, health care, and social services.

It breaks down as follows:

• Primarily market-oriented tertiary sector (retail, transportation, financial services, business services, personal services, lodging and food services, real estate, information and communication);
• Primarily the non-market sector (public administration, education, health care, social services).

Given its diverse range of business sectors, there are many and varied opportunities to reduce emissions. Some of these measures are already in place.

In 2017, emissions from residential buildings and commercial and institutional buildings (offices, retail spaces, educational facilities, healthcare facilities, cultural and sports facilities, restaurants, and hotels) totaled 58 Mt CO₂e and 34 Mt CO₂e, respectively.

The main sources of emissions were energy consumption, particularly the use of fossil fuels. Improving energy efficiency and shifting to lower-carbon energy sources ( using electricity instead of fuel oil) are the two immediate approaches that can reduce emissions. The electricity used must then be generated from carbon-free energy sources such as nuclear power or renewable energy.

These common areas for reduction are always taken into account when constructing new buildings. As a result, despite the continued increase in built-up area, emissions from the sector are decreasing by 2% each year.

Nevertheless, this decline is offset by the increase in emissions from building cooling. Air conditioning systems in buildings and refrigeration equipment in stores and restaurants emit HFCs, which are far more potent greenhouse gases than CO2. HFCs, which are counted as GHGs, account for 24% of GHG emissions in the tertiary sector and 11% in the residential tertiary sector. Reducing these emissions is essential for lowering the sector’s overall GHG emissions.

The transportation sector accounts for the largest share of GHG emissions in France. Measures to reduce emissions have also consistently been implemented in this sector, including changes in energy sources, modal shift, and improvements to the supply chain (distances, load factors, empty runs, etc.). Significant efforts are being made by some. Everyone’s involvement is needed.

Conducting a GHG assessment allows each company to rationally assess its impact on the environment, and the benefits are numerous:

• Reducing emissions to limit their impact on the environment
• Improved economic performance, 
• Improving the company's image, 
• Raising Awareness of Sustainable Development Among Employees and Stakeholders

Analyzing and reducing emissions from the service sector is essential to combating environmental disruption.

📃 Industry Requirements

Since June 2011, French regulations—under the Grenelle II Act of July 12, 2010—have required the regular publication of a GHG emissions report that includes the quantification of Scope 1 and 2 emissions; Scope 3 emissions are currently recommended (and are expected to become mandatory in 2022).

Companies with more than 500 employees (250 in the overseas departments), local governments with more than 50,000 residents, and other public-law entities with more than 250 employees are required to prepare and publish a GHG inventory every 3 or 4 years.

In addition, effective December 24, 2021, under Article 244 of Decree No. 2021-1784, companies with more than 50 employees that are currently receiving or have previously received funding under the “COVID” recovery plan are required to submit a simplified greenhouse gas inventory—that is, one limited to Scope 1 emissions.

By voluntarily extending this calculation to Scopes 2 and 3, we ensure that this constraint is turned into benefits (immediate savings on energy and supplier costs, positive publicity, etc.). This also prepares us for a near future when all three scopes will be mandatory and the carbon tax will be firmly in place: it will have been very helpful to start reducing our carbon footprint early on through a reduction plan, which always takes some time to implement. A fine of €10,000—with a maximum of €20,000 for repeat offenses—should motivate companies not to overlook this requirement!

Furthermore, there is nothing to prevent a local government or a company that is not required to do so from voluntarily conducting a regulatory GHG assessment to ensure a consistent approach, and from requiring all its suppliers to do the same in its calls for bids.

Finally, theTertiary Sector Decreeestablishes new energy performance requirements for existing buildings with a floor area dedicated to tertiary sector activities exceeding 1,000 square meters.

It mandates a reduction in final energy consumption of at least 40% by 2030 and up to 60% by 2050, compared to a reference year for consumption that cannot be earlier than 2010. The service sector is therefore required to act quickly; this service sector decree requires information and calculations that are the same as those used in part of the GHG inventory.

It is therefore advisable to pursue both approaches simultaneously. Reducing energy consumption can be achieved, for example, by changing habits, but also—where possible—by combining the use of renewable energy sources with the fossil fuels currently in use. A GHG assessment can help identify a variety of viable solutions.

Since 2012, Decarbo’Solution® (Decarbo’Solution®) has been providing private and public companies, organizations, and local governments of all types and sizes with online tools and services that enable them to identify, calculate, and reduce their carbon footprint, and to prepare their GHG inventories in full compliance with relevant laws, guidelines, standards, and international norms. 

This online platform is accessible at any time and enables users to conduct a comprehensive GHG assessment— in a seamless and optimized manner—tailored to local governments, primary sector businesses, secondary sector businesses, and tertiary sector businesses. Using a 100% customizable questionnaire and approximately twenty data entry templates specific to each activity, it adapts to the unique characteristics of any company’s business and organizational structure.

The Decarbo’Solution® calculator guides each user through the process of creating their emissions inventory. Divided into seven emissions categories, it maps out the entity’s activities, providing an intuitive and engaging approach, before intelligently grouping emissions according to the three scopes and 23 regulatory categories.

As a result, a local government, a hotel, an office building, a factory, or an event organizer can easily assess its emissions and generate a carbon report. Analyzing emission sources will enable the development of targeted reduction action plans, thereby reducing the organization’s environmental impact.

Emissions are already on the decline. Further improvements will be developed incrementally over time as progress is made.