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Carbon footprinting Introductory guide The next step to reducing your emissions Contents Introduction to carbon footprinting 2 Organisational carbon footprints 4 Why calculate your organisational carbon footprint? 6 The Carbon Trust footprinting services 8 The Carbon Trust Standard 9 How to calculate an organisational carbon footprint 11 Scope 2 reporting guidance 13 Setting a science-based carbon reduction target 14 Communicating your organisational carbon footprint 15 67% Product carbon footprint 16 of consumers across the UK, Why calculate your product carbon footprint? 18 France and Germany would like How to assess your product carbon footprint 19 to see a recognisable carbon Communicating your product carbon footprint 21 footprint label on products. Carbon footprinting 1 About this guide This guide introduces two types of carbon Ultimately, carbon reporting will help your footprinting that affect businesses – one that business to understand its carbon emissions and measures an organisation’s overall activities, and identify opportunities to reduce costs, improve one that looks at the life cycle of a particular your reputation and manage long term business product or service. risks. In this guide we explain what is included in Calculating either or both of these footprints is an both types of footprint, how you can measure and essential starting point for any wider work to communicate them, and the benefits of doing so. reduce your organisation’s carbon emissions, and We also set out the specific steps you need to take will give you an initial benchmark against which to to calculate your footprint(s), and some of the key measure your progress. things to consider if you do. For some organisations, reporting their carbon Finally, we explain how the Carbon Trust can help footprint is a mandatory requirement. This you calculate your carbon emissions, and work includes quoted companies – those that are UK with you to develop a full carbon management incorporated and whose equity share capital is strategy for your organisation. officially listed on the main market of the London Stock Exchange; those which are officially listed in a European Economic Area; and those dealing on either the New York Stock Exchange or NASDAQ. Many other companies choose to report their carbon footprint as part of their Corporate Social Responsibility strategy. Carbon footprinting 2 Introduction As a first step towards managing and reducing your organisation’s greenhouse gas emissions, you need to understand what emissions are caused by its activities or products. All businesses have the opportunity to reduce Companies increasingly receive requests for their carbon emissions, and the business case carbon emissions data from businesses, for doing so is growing ever stronger. customers and investors Higher and more volatile energy costs are A baseline carbon footprint is a requirement increasing the value of energy savings for setting a science-based target – a Companies report their carbon footprints to greenhouse gas emission reduction target in meet the mandatory reporting requirements line with latest climate science to limit global of climate change legislation such as the warming to 2°C Carbon Reduction Commitment (CRC) or EU A carbon footprint is the total greenhouse gas Emissions Trading Scheme (EU ETS) (GHG) emissions caused directly and indirectly Carbon dioxide equivalent Carbon footprint reporting is a key part of by an individual, organisation, event or product, Carbon dioxide equivalent (CO e) is and is expressed as a carbon dioxide equivalent 2 many companies’ Corporate Social (CO e). A carbon footprint accounts for all six the unit of measurement which allows Responsibility (CSR) programmes 2 different greenhouse gases to be Kyoto GHG emissions: compared on a like for like basis Companies that manage their carbon carbon dioxide (CO ) relative to one unit of CO . CO e emissions responsibly can enhance their 2 2 2 brand value, and make themselves more methane (CH ) emissions are calculated by multiplying 4 the emissions of each of the six attractive to potential customers and nitrous oxide (N O) greenhouse gases by its 100-year investors 2 hydrofluorocarbons (HFCs) global warming potential (GWP). It enables companies to participate in carbon reporting initiatives such as the Carbon perfluorocarbons (PFCs) Disclosure Project (CDP) sulphur hexafluoride (SF ) 6
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