A greener business starts by reviewing its carbon footprint

It is difficult to reduce something when you do not know where it is coming from.

For many businesses, carbon emissions are spread across company vehicles, electricity use, suppliers, business travel, waste and everyday operations. Without reviewing the full picture, it can be hard to know which changes will make the biggest difference.

The carbon footprint of businesses and consumers remains high on the agenda as global temperatures rise and weather conditions become more extreme. According to the State of the UK Climate report, 2020 was the third warmest, fifth wettest and eighth sunniest year on record in the UK.

Reviewing your business carbon footprint can help you understand your current impact, identify areas for improvement and build a more practical carbon reduction plan.

A carbon footprint is the total amount of greenhouse gases generated through operating a business and delivering its products or services.

The main greenhouse gases include carbon dioxide, methane and nitrous oxide. Carbon dioxide is the most common, and carbon dioxide equivalent, written as CO2e, is often used to measure different greenhouse gases using one shared unit.

Many greenhouse gases occur naturally, but their concentration in the atmosphere can be increased by human activity. This includes burning fossil fuels, air travel, generating electricity from non-renewable sources and producing waste that cannot be reused or recycled. Greenhouse gases trap heat in the atmosphere. This is known as the greenhouse effect and contributes to climate change, including rising temperatures, higher sea levels, air pollution and more extreme weather.

A business carbon footprint can include emissions generated directly by the company as well as emissions linked to purchased energy, suppliers and the wider supply chain.

A carbon footprint assessment helps you calculate how many metric tonnes of CO2e your business generates. Once you have that information, you can use it to reduce emissions, consider suitable offsetting activity and report on your environmental impact.

Offset your carbon footprint

Carbon offsetting involves supporting projects that aim to compensate for emissions generated elsewhere. This might include funding tree planting, renewable energy or other verified environmental projects.

Offsetting can form part of a wider environmental plan, but it should not replace practical work to reduce avoidable emissions.

Reduce your carbon footprint

The data from your review can show which activities generate the most greenhouse gas emissions.

This gives your business a clearer starting point for reducing energy use, changing transport arrangements, improving waste processes or working with suppliers that have suitable environmental policies.

Reducing emissions at the source is generally more helpful than relying on offsets alone because it prevents those emissions from entering the atmosphere in the first place.

Report your carbon footprint

Some businesses choose to report their carbon footprint voluntarily as part of their sustainability work.

From 1 April 2019, quoted companies were required to report on global energy use, while certain large businesses became subject to requirements covering annual UK energy use and greenhouse gas emissions.

Reporting duties vary depending on the type and size of an organisation, so businesses should check the current requirements that apply to them.

A carbon footprint can be reviewed using a carbon footprint calculator. Many calculators are available online and can provide a useful starting point for smaller businesses. The Department for Environment, Food and Rural Affairs, known as DEFRA, also publishes conversion factors to support greenhouse gas reporting by UK organisations.

Businesses with more complex operations may also choose to work with an environmental consultant. They can help identify which activities generate emissions and advise on suitable sustainability measures.

A basic carbon footprint assessment usually considers two main areas.

Direct emissions

These are emissions generated by sources your business owns or controls. An example would be fuel used by company vehicles or equipment.

Indirect emissions

These include emissions linked to the electricity, heating or cooling purchased by your business.

A wider review may also consider emissions generated outside your direct operations, such as those connected to suppliers, purchased materials, deliveries, employee travel and waste disposal. The more complete the information is, the easier it becomes to see where your business can make practical changes.

Once your review is complete, focus on the areas where your business can make realistic changes.

This could include switching company vehicles to electric models, reducing unnecessary travel, improving energy efficiency, cutting waste or moving to recyclable materials.

It may also mean reviewing suppliers and outsourced services to understand how they manage their own environmental impact.

For businesses that send a lot of physical mail, the review could include the energy used by office printers, journeys to the post office, paper supplies, machinery and waste.

Using an outsourced print and post service can move those separate tasks into one managed process, making it easier to understand how business post is produced and handled.

Some changes will be quick. Others will need planning, investment or changes across the supply chain.

Whether your business takes small steps or makes larger changes, measuring progress regularly will help keep your carbon reduction plan useful rather than leaving it to gather dust in a folder.

This guest post was written by Jon Munnery, insolvency and restructuring expert at UK Liquidators, a provider of company liquidation services for businesses that cannot pay company debt.

To find out what Postworks is doing to reduce its carbon footprint, read our Carbon Reduction Plan and learn more about how we are reviewing emissions across our operations.