In order to set a Net Zero goal, you must first understand where your emissions come from. Site energy use, refrigerant gases and transport fuel are the first things people think about (often referred to as Scope 1 & 2 emissions) but your sources of indirect carbon emissions (scope 3 emissions) also need to be identified. These can include: 3rd party transport; energy ‘embodied’ in your raw materials, components and packaging; staff commuting & homeworking emissions; emissions associated with waste management.

To quote an old adage – if you don’t measure it, you can’t manage it. Once you’ve identified your scope 1, 2 and then scope 3 sources of carbon emissions, you will need to calculate the annual tonnage of CO2e emitted as a result of these. This involves gathering data on, for example, the quantity of electricity consumed each year, the number of distribution miles travelled, then converting this into CO2e (carbon dioxide equivalents) using Government and other conversion factors.

A beginner’s guide to carbon footprinting

A journey to Net Zero requires short, medium and longer term goals and targets. A single statement of We Will Be Net Zero by 2050, is not enough to help you manage the challenge on an ongoing basis and increasingly, people know that. Think about how you are going to monitor and report on your progress and which stakeholders you will share this with.

• Three quarters of the world’s biggest companies expect to deselect suppliers based on environmental performance.
• Staff morale and productivity is boosted when working for employers that match their own values.

Having identified and quantified your carbon emissions, use this information to determine where your 'hot spots' are. 

It is widely agreed that an absolute reduction in carbon emissions should be the priority action for all businesses. Anything else could be seen as ‘greenwashing’ (making unsubstantiated environmental claims). Resource efficiency has the added advantage of increasing profitability and, often, productive throughput.

Initially, you should focus on actions within your direct control that will have the greatest impacts e.g. improving your building, upgrading old equipment and reducing waste and over-consumption.

Longer term investments such as electrification of your fleet could help future proof against future price rises, market changes and Government policy developments.

Scope 3 emissions, such as carbon ‘embodied’ in your raw materials, packaging and components may require bolder action and more innovative thinking – but engaging with your suppliers early is important.

Make your own savings

An easy action is to negotiate an energy contract that specifies a supply from renewable sources.  This will help support the growing renewable energy generation network in the UK and reduce our reliance on traditional power stations that use fossil fuels.

Many companies are looking to their rooftops and other areas of their site to house solar panels, for instance, in order to generate their own electricity on site. Other options include renewable heating technologies such as Ground Source Heat Pumps (GSHP) and Air Source Heat Pumps (ASHP).

NB – solar panels generate significantly more electricity in the late spring and summer than they do in the winter; and, although excess electricity can be sold to the grid, solar arrays should be designed to maximise the proportion of power that is used on-site.

SMEs are responsible for nearly half the UK’s business-related emissions. Large buyers are increasingly asking their suppliers to demonstrate lower carbon footprints. Your scope 3 (upstream and downstream) carbon emissions could far exceed those within your direct control.  What influence could you bring to, for instance:

• Encourage suppliers to specify raw materials and products with higher recycled content?
• Encourage 3rd party hauliers to invest in more fuel efficient fleet?
• Help innovate alternative business models that embrace a circular rather than a linear economy?

Many companies jump too quickly into carbon offsetting and making 'Carbon Neutrality' claims.  Carbon offsetting is not the answer to your Journey to Net Zero but, arguably it does have its place in the conversation. Once emissions have been reduced as far as possible, there may be residual emissions that cannot be avoided (yet). Approach carbon offsetting with caution though – do your research: Are the carbon credits robust and third party certified? Is the project making a positive impact on carbon emissions globally? (and not merely limiting damage or moving the damage elsewhere).

A beginner’s guide to carbon offsetting

It's important to recognise that no-one has all the answers right now. In order to achieve global net zero carbon emissions by 2050 (or sooner), we will have to work together locally and globally, across sectors and supply chains in order to massively innovate the way we live and work and the technologies we develop and adopt. How can you engage with that process?

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