How much does a Bilan Carbone® cost?
To achieve the Paris Agreement’s goal of limiting global warming to 2°C by 2100—and thereby limit our impact on the climate—we must achieve carbon neutrality by 2050. This goal is part of the necessary energy, environmental, and social transition that countries and companies must undertake to combat climate change and its consequences, reduce our impact and our environmental footprint, and thereby ensure a livable planet for all.
France has committed to achieving carbon neutrality by 2050. This is also a goal that many private-sector actors have set for themselves, either by 2030 or 2050. Carbon neutrality means that emissions are fully absorbed by natural carbon sinks. In other words, there is no imbalance between emissions and absorption, and the absorption capacity of natural carbon sinks is respected. Examples of these sinks include the oceans, the atmosphere, forests, and peatlands.
To achieve this goal, successfully carry out the energy and ecological transition, and reduce one’s impact and carbon footprint, it is necessary to reduce greenhouse gas (GHG) emissions. The first step is to quantify these emissions and their main sources through a greenhouse gas emissions inventory, or carbon footprint®. This process is intended for businesses, governments, and individuals alike. A common question is how much it costs, particularly for businesses. In this article, we’ll explore the various costs, budgets, and options for conducting a GHG emissions inventory.
1. Overview of the GHG emissions inventory and its methodologies
1.1. An Assessment of Emissions
1.2. Scopes According to the Methods
1.3. GHG Emissions Inventory and Bilan Carbone®
2. The cost of the assessment depends on various factors
2.1. The Areas Under Consideration
2.2. The time and attention devoted to the assessment
2.3. Selecting a Service Provider
3. How can you lower the cost of a physical exam?
Overview of the GHG emissions inventory and its methodologies
☁️An assessment of emissions
A GHG emissions inventory is a systematic assessment of the greenhouse gas emissions generated by a company’s operations over the course of a year. These emissions are generated, in particular, by the energy consumption required to ensure the smooth operation of the company’s business.
📏Scopes by Method
Before examining the various methods available for conducting a GHG emissions inventory and their impact on the scope of the inventory, it is necessary to revisit the concept of scope. There are two types of scope relevant to this article:
- Organizational scope: all sites, facilities, and activities included in an organization’s carbon accounting exercise.
- The operational scope: all emission sources taken into account during an organization’s carbon accounting exercise.
Depending on what is included within these scopes when conducting the assessment, the results vary, as do the actions to be taken. The operational scope, in particular, differs depending on the various existing methods for conducting a greenhouse gas emissions assessment.
The initial operational scopes are defined by the GHG Protocol; these are the well-known scopes:
- Scope 1: The company's direct emissions
- Scope 2: The company's indirect emissions (particularly those related to electricity consumption).
- Scope 3: Indirect emissions that are beyond the company’s control (particularly those related to the development and use of the product or service).
Until July 2022, only Scope 1 and 2 emissions were required to be included in a regulatory emissions report, even though Scope 3 emissions account for the majority of a company’s emissions. An emissions report prepared before July 2022 is therefore less representative of a company’s emissions than one prepared after July 2022.
These scopes were broken down into several categories by the methodologies that followed, including ISO 14064-1, the regulatory method, and the Bilan Carbone® method. The categories in ISO 14064-1 include, for example:
- Direct Emissions
- Indirect energy-related emissions (electricity consumption).
- Indirect emissions from transportation
- Indirect emissions associated with purchased products
- Indirect emissions associated with products sold
- Other Indirect GHG Emissions
⚖️GHG Emissions Assessmentand Bilan Carbone®
A greenhouse gas emissions inventory differs from a Bilan Carbone® in terms of the operational scope considered— that is, the categories of emissions included in the carbon accounting.
Unlike the Bilan Carbone® , a greenhouse gas emissions inventory is also mandatory for companies with more than 500 employees and must be conducted every four years. The inventory, along with the transition strategy, must be published on the ADEME website.
All of these methods (Bilan Carbone®, GHG Protocol, ISO 14061-1, etc.) are designed toassess emissions in order to develop actions to reduce them, thereby reducing the company’s carbon footprint and its environmental impact . A GHG emissions assessment fits particularly well within the framework of a more cross-functional CSR approach.
The cost of the financial statement depends on various factors
📏Theareas under consideration
The first factor determining the cost of a carbon footprint assessment is the scope of the assessment.
Let’s start with the organizational scope : it will vary depending, in particular, on the size of the company and the sites to be considered. For example, a large enterprise will be more complex than an SME, with more locations to analyze and a larger volume of operational data to collect. This will therefore require more time for analysis, which will mobilize more resources—whether internal or external—if the company chooses to work with a service provider. In any case, the price increases with the size of the company.
It should be noted that companies with more than 500 employees are legally required to conduct a GHG emissions assessment every four years and to publish it, along with their transition strategy, on the ADEME website. Smaller companies (such as SMEs) are not yet subject to these requirements, but may be by 2026 under the CSRD, which calls for more comprehensive non-financial reporting, particularly on climate and CSR issues.
The scope of the assessment, meanwhile, varies depending on the method chosen and whether or not the assessment is mandatory. A company that is not required to conduct a GHG emissions assessment may, for example, assess Scopes 1 and 2 but not Scope 3.
In any case, the larger the organizational and operational scope, the higher the total cost of the assessment.
⏱️Thetime and attention devoted to the assessment
Costs vary depending on the time spent on the assessment and its level of detail.
A GHG emissions assessment can be completed in 15 minutes using free simulators. However, the results obtained will beapproximate at best and will not allow for a truly in-depth and accurate analysis of the company’s emissions or its main emission sources, nor will they enable the implementation of an effective and relevant emissions reduction strategy.
On the contrary, an assessment conducted over several person-days— with personalized support and thorough data collection — will allow for the time needed to analyze the collected data, draw the right conclusions, and develop a precise action plan.
The more time spent on the assessment (particularly in terms of man-days) and the greater its level of precision, the higher the price becomes.
👨💻In-houseor external
A company can choose to conduct its greenhouse gas emissions inventory in one of two ways: in-house, or by hiring a service provider.
Internally, the financial cost will be limited to training one or more people to carry out the assignment. However, the training takes a long time, and the person or persons will lack experience when conducting the first assessments.
Hiring a service provider is more expensive, but it has the advantage of being carried out by experienced and efficient professionals.
↔️Choosinga service provider
If the assessment is conducted by a service provider, the choice of provider will also affect the price.
In fact, prices vary depending on the firm's reputation, size, services offered, andexperience. A new firm will generally charge lower prices than a more established and experienced firm.
The price may also vary depending on the type of service provider: a firm or SaaS software.
Since all these criteria vary from one company to another, a quote will need to be prepared to determine the final price tailored to the specific situation of the company seeking to conduct its financial assessment. Typically, the cost starts at a few thousand euros and can go up to several tens of thousands of euros, depending on the companies and service providers involved.
How can you reduce the cost of a financial statement?
💰Grantsfor SMEs and Microbusinesses
Companies with fewer than 500 employees are eligible for carbon footprint assessment grants, including the Diag Décarbon’Action grant established by BPI France and ADEME, provided this is their first assessment.
This grant provides funding for 40 to 60 percent of a €10,000 balance sheet, depending on the number of employees at the company. Funding amounts to 40 percent for companies with 250 to 499 employees and 60 percent for companies with fewer than 250 employees.
This program includes conducting an assessment, jointly developing an emissions reduction strategy, and providing support for the implementation of the initial measures, over 12 person-days.
🖥️Choosesoftware
As we mentioned earlier, the choice of service provider affects the final price of the online carbon footprint assessment—particularly the choice between a consulting firm and SaaS software, such as Decarbo’Solution®.
Software allows users to choose exactly what they want to purchase and offers a more customized experience. For example, Decarbo’Solution® offers an annual subscription to the platform for €450. This subscription provides access to the platform and its support services, but does not include guidance from a carbon engineer. A company can therefore choose between basic access to the tool or more personalized support. Other services are available, depending on the specific needs of the company in question.
Choosing SaaS software—and then selecting exactly what you need—thereby helps reduce the cost of calculating your carbon footprint.