Today, sustainability has steadily become a major business priority, understanding and reducing carbon emissions is essential for companies of all sizes. Tracking emissions can be difficult and time-consuming, but it’s important for setting realistic environmental goals, managing sustainability initiatives, and achieving net-zero targets.

Why Measure Your Company’s Carbon Emissions?

Measuring your company’s carbon emissions helps identify areas of high energy consumption, waste production, and other environmental impacts. It enables you to make data-driven decisions to reduce emissions, improve operational efficiency, and fulfil corporate social responsibility. Accurate emissions tracking also boosts transparency and credibility, appealing to customers, investors, and stakeholders who value sustainable practices.

Key Types of Carbon Emissions: Scope 1, 2, and 3

Before calculating emissions, it’s essential to understand the three main categories defined by the Greenhouse Gas (GHG) Protocol:

1. Scope 1 Emissions: Direct emissions from company-owned sources, such as fuel combustion in vehicles and machinery.
2. Scope 2 Emissions: Indirect emissions from purchased electricity, heat, or steam used in business operations.
3. Scope 3 Emissions: Indirect emissions across the value chain, including supplier operations, employee commuting, and product end-of-life.

Focusing on Scope 1 and Scope 2 emissions provides a solid foundation, while Scope 3 emissions can be added gradually as data becomes more accessible.

Step 1: Collect Data Across Operations

Data collection is the first and most time-intensive step. Start by gathering information on energy consumption, transportation, and material use. Specific areas to consider include:

• Energy Use: Track electricity, natural gas, heating oil, and other fuels used in offices, facilities, and warehouses.
• Transportation: Collect data on company vehicles, employee commutes, and business travel (air, rail, etc.).
• Waste Management: Quantify waste generated and determine whether it is recycled, composted, or sent to landfill.

Once you have this data, organise it by type and frequency (monthly or annual), as this will aid in calculating accurate emission totals.

Step 2: Calculate Emissions Using Emission Factors

After collecting the necessary data, apply emission factors to convert your consumption into carbon emissions. Emission factors are standardised values that indicate the emissions produced per unit of activity (e.g., kg CO₂ per kWh of electricity). You can find relevant emission factors from sources like:

• The U.S. Environmental Protection Agency (EPA)
• The United Nations (UN)
• The Department for Business, Energy, and Industrial Strategy (BEIS) in the UK

Apply these emission factors to each data point to calculate the emissions from specific sources. For instance, to calculate electricity emissions, multiply the total kWh by the relevant emission factor for your region.

Step 3: Sum Up Emissions for Each Scope

Once you have emissions totals for individual sources, categorise them under Scope 1, Scope 2, or Scope 3. Adding them together will give you a comprehensive view of your company’s overall carbon footprint. For example:

• Scope 1: Emissions from company-owned vehicles and on-site fuel use.
• Scope 2: Emissions from purchased electricity.
• Scope 3: Emissions from suppliers, employee commutes, and other indirect sources.

Step 4: Use Carbon Management Software for Accuracy

Many businesses now rely on carbon management software to streamline data collection, apply emission factors automatically, and visualise emissions across scopes. Plana.earth is one such tool that offers emission measurement and reporting tools that simplify calculations and provide insights to guide reduction strategies.

Step 5: Set Goals and Track Progress

Once you know your emissions, you can set reduction targets and regularly track your progress. For example, you may aim to reduce Scope 2 emissions by switching to renewable energy or cut Scope 1 emissions by optimising fuel efficiency in your fleet.

Conclusion

Calculating your company’s carbon emissions is a powerful step toward sustainability and a greener future. By measuring emissions, you gain valuable insights into your environmental impact and can take actionable steps to minimise it. Start small with Scope 1 and Scope 2 emissions, and gradually expand to Scope 3 as you build more comprehensive data. Through consistent tracking, reduction initiatives, and the right tools, your company can contribute to a sustainable and low-carbon economy.