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Deciding on a Measurement Process: Calculating Your Company’s Carbon Footprint

The SSC Team July 28, 2015 Tags: , , , , , , , , , , , , , Strategic Sustainability Consulting No comments
9pcmmdc4crw-dominik-schroder.jpg Enjoy this blog post from the SSC archives: You can't manage what you don't measure -- but deciding what to measure, how to measure it, when to measure it, and where to capture and store the data can be one of the most challenging pieces of a carbon management strategy. If you're stuck at this stage (or getting ready to tackle it), here are some questions to guide your decision:

Which carbon calculation standard do you want to use?

There are several carbon calculation standards out there, but 99% of companies will end up choosing the GHG Protocol. Why?
The Greenhouse Gas Protocol (GHG Protocol) is the most widely used international accounting tool for government and business leaders to understand, quantify, and manage greenhouse gas emissions. The GHG Protocol, a decade-long partnership between the World Resources Institute and the World Business Council for Sustainable Development, is working with businesses, governments, and environmental groups around the world to build a new generation of credible and effective programs for tackling climate change. It provides the accounting framework for nearly every GHG standard and program in the world - from the International Standards Organization to The Climate Registry - as well as hundreds of GHG inventories prepared by individual companies.
Our advice: whatever standard you choose (e.g. an industry specific standard), make sure that it's built on (and in compliance with) the GHG Protocol. It makes life so much simpler.

Which emissions categories are most relevant to your organization?

In sustainability jargon, this is a question about materiality -- which activities within your operations and value chain generate material emissions? The GHG protocol outlines more than a dozen different categories (like "purchased electricity" and "employee commuting") to choose from. In most cases, you want to calculate emissions from Scope 1 (direct emissions) and Scope 2 (indirect emissions), along with a handful of Scope 3 (indirect emissions) categories that make the most sense given your size and industry.

Which carbon footprint tool makes the most sense?

There are a wide variety of options to measure your company's carbon emissions. There are excel spreadsheet models, and dozens of software programs -- both SaaS and enterprise-level options. Some companies even choose to develop their own internal calculators that integrate directly with their internal systems (like ERP, timesheets, business travel reimbursement, etc.). To dive deeper into this process, check out our free white paper on Choosing Sustainability Management Software. It's a vendor-neutral look at how companies can choose the most effective software option, including the pros and cons of some of the most popular software features.

How will we manage the process?

How many facilities are we going to include? Where is the raw data now, and how will we get it into our carbon calculator? Where are we missing data, and how can we best fill in the blanks? What is our timeline? All of these questions should be answered -- at least tentatively -- at this stage of the process. Are simple mistakes holding back your sustainability? Find out how to correct those mistakes here!

Tracking Progress with Your Sustainability Software

The SSC Team July 16, 2015 Tags: , , , , , , , , , , , Strategic Sustainability Consulting No comments
This article was written as an expansion of our white paper “Choosing Sustainability Management Software for your Business” published in July 2011.  Enjoy: We started with the axiom “if you want to manage it, you have to measure it”.  So now that you’ve given some thought to the software solution that you want to purchase, it’s critical for you to come up with your specific measurements.  We’re not just talking about your carbon footprint or how many gallons of water you’re using.  We’re talking about the primary way that you’ll keep score for yourself and your employees so that everyone can tell if you’re actually doing better.  We’re talking about picking your Key Performance Indicators. Type “Key Performance Indicators” into your Google search and you’ll get 6.4 million results (and counting).  With so much written elsewhere on them, we thought it would be useful to give you some suggestions on what you might want to consider implementing as your key sustainability performance indicator.  These “measurements of performance” are not a one-size-fits-all measurement – you have to figure out what makes sense for your business. The most commonly used measures reflect your company’s Green House Gas (GHG) emissions.  These may be represented as an absolute measure of your firm’s emissions (usually in tons) or in relative intensity, such as emissions per employee, emissions per retail area, or emissions per unit of production.  These GHG totals will frequently be provided as “CO2e,” or “Carbon Dioxide Equivalent,” given that CO2 is the most commonly known green house gas ahead of others such as methane, Volatile Organic Compounds (VOCs), and a host of other emissions. A second form of sustainability KPI revolves around the use of energy, water, and other inputs to a company’s business process.  This might include data on total energy or water usage or may again break down the metric on a relative intensity level.  Due to the wide variety of potential inputs and outputs for a firm’s processes, there isn’t really a standard emission measure. A third major form of sustainability KPI is focused around packaging and waste.  This may take the form of the amount or weight of packaging involved in business operations.  Or it may manifest itself as part of a “Zero Waste” pledge taken by a firm that is seeking to reduce, reuse, and/or recycle the byproducts of their business operations. A fourth and (for now) final form of sustainability KPI is that which is customized and specific to your individual business.  You know how you measure success financially, for employee performance, for sales performance, for safety performance.  Maybe these measurements are part of an intensity ratio based on a per-revenue-dollar basis, a per-billable-hour basis, or maybe they are simply expressed in absolute values (total hours of lost productivity due to accidents).  Maybe you can re-use those same measures for sustainability KPIs, or maybe you need to identify new ones. To assist with getting you started on identifying your own KPI’s, here are some quick examples that fit each of the four types mentioned above.  You could find many more from reviewing the Corporate Social Responsibility reports of the companies mentioned below as well as by reviewing your competitors, your partners, your suppliers and your customers own statements.  No matter what approach you decide to take, figure out the measures that will be the right ones for YOU.

Now that you’ve read this article, tell us what you think!  And be sure to check out the full white paper.

4 of the Best Ways to Share Your Carbon Footprint Results

The SSC Team June 11, 2015 Tags: , , , , , , , , , , , , , , Strategic Sustainability Consulting No comments
Enjoy this article from the SSC blog archives: Once you've gone through the trouble of gathering all of your data and crunching the numbers, many companies get stuck on how to most effectively communicate their carbon footprint results. Should you do a press release? Put it on the company website? Participate in the Carbon Disclosure Project (CDP) Report process? There are lots of ways to share the results of your carbon footprint. But before you jump into particular communication channels, it's essential to decide what aspects of the data you want to highlight. Here's our take on the four most critical elements to share:

1. Your absolute greenhouse gas (GHG) emissions.

This is the total metric tons of CO2-e that your company is responsible for over a given time period (usually a year). Be sure to divide it up between Scope 1 (direct emissions -- like natural gas), Scope 2 (indirect emissions – like electricity), and Scope 3 (indirect emissions -- value chain activities such as employee commuting, business travel, and waste).

2. Your adjusted GHG emissions.

Absolute emissions are important, but they lack context. You should also choose a relevant way to adjust for your company's specific operations. This might mean looking at carbon-per-employee, carbon-per-revenue, carbon-per-sales, or carbon-per-production-unit.

3. Emissions over time.

For both absolute and adjusted emissions, it's helpful to show a track record -- three years is considered the minimum, while five years or more is considered the “best practice.” (Of course, if you've just started calculating your annual carbon footprint, you won't have a 3-year track record yet!). By showing how your carbon profile changes over time, you'll give stakeholders an idea of your future trajectory.

4. Your carbon footprint story.

Don't just put up the numbers…explain them. What boundary did you draw around your footprint (e.g. what operations and activities were included)? Why are your numbers going up (or down)? How have changes to your business operations (like acquisitions, mergers, divestments, layoffs, expansions, etc.) affected your emissions profile? What are you expecting to see in the future? A few paragraphs of explanation will make a world of difference in your communications. Once you have the pieces in place, what are the best vehicles for sharing your carbon footprint information? We've listed our favorite options below -- and we'd love to hear your opinions in the comments section!
  • Website -- great as an all-purpose communications vehicle, for internal and external stakeholders. Example: Nestle
  • Visual infographic -- more interesting than a simple chart (when done correctly). Example: Microsoft
  • Press release -- a traditional way to announce timely news and to drive readers to your website, your sustainability report, and other communications. Example: Green Century Funds
  • Employee all-hands meeting -- a personal touch can go a long way in generating enthusiasm and buy-in among all levels of staff. Example: Megamas Training Company
  • Sustainability report -- the standard “best-practice” way to share not just your carbon footprint, but also other social and environmental performance. Example: Coca Cola (and note their disclosure about carbon recalculation at the bottom!)
  • Social media – by making the dialogue related to carbon calculations more social, companies can take their disclosure to the next level. Example: SAP
Find out how you can become a better sustainability leader in one of our latest blogs.