How to reduce a company's carbon footprint?

10.1.2023
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Aiming for carbon neutrality, a situation in which a company removes the same amount of greenhouse gases from the atmosphere as it emits during operations, is becoming increasingly popular among major players in global markets.

This popularity is driven by both regulation and social pressure. Research in the UK has shown that 67% of consumers are more likely opt for a product with a low carbon footprint when given the choice.

The search for low-cost markets and increasing consumption has meant that the carbon footprint of products has increased considerably in the last half century, adding a significant contribution to global warming. The trend towards zero-carbon in recent years offers a spark of hope for a reversal of the unfavourable balance.

What is a carbon footprint and what is its significance?

A carbon footprint is the amount of greenhouse gases produced by a person, business, or emitted in the manufacture of a product, including the energy consumption of buildings and transport.

The importance of our collective carbon footprint lies primarily in knowing how fast we are approaching environmental catastrophe. It is an important factor correlated with the setting of Ecological Debt Day and an invaluable indication of the preventive measures that humanity should take to avoid this disaster.

Ecological Debt Day marks the point at which the Earth's natural resources are depleted and can be rebuilt within 365 days. In 2022, it fell a day earlier than in the previous year, on 28 July.  If nothing changes, by 2050 we will need the resources of three planets to satisfy the consumption that has been growing since the 1970s.

Poland's carbon footprint

Unfortunately, years of turning a blind eye to climate change have meant that we are one of the countries contributing significantly to the amount of carbon dioxide in the atmosphere. In 2022, as a country of 36.8 million, we will deplete the planet's resources almost three months earlier than humanity as a whole, as of early May.

The main contributor to this process is coal-based energy production. It is responsible for 94 per cent of the carbon dioxide emissions generated by the production of electricity and heat in Poland. In 2021, this was almost 140 million tonnes of CO2. This means that our power and heating industry emits more carbon dioxide into the atmosphere than Nigeria, a country with a population of 220 million.

This makes us the second highest emitter (after Estonia) of greenhouse gases per unit of electricity in the EU. According to the Energy Forum, the production of 1 MWh in Polish power plants is 0.7 kg of carbon dioxide. Much of this is due to Europe's largest emitter, the Bełchatów power plant, which is second only to Kozienice and Opole in the top ten biggest polluters. To complete the picture, the entire infamous top ten consists solely of power plants fired by hard coal or lignite.

What leaves the largest carbon footprint?

We already know the biggest emitter of CO2: the energy industry using fossil fuels. Other industries that should drastically reduce their carbon footprint are:

  • extractive industries
  • industry
  • transport
  • construction

At the same time, let us remember that we all leave a carbon footprint - every human being and every activity. It is interesting to note that the oceans are responsible for the largest carbon dioxide emissions into the atmosphere. However, unlike human activities, oceans simultaneously absorb much more CO2 than they emit and therefore have a negative balance in generating their carbon footprint.

If we look at the activities of a single workplace, the following aspects are responsible for the largest emissions:

  • the production process, which requires large amounts of energy
  • the electricity required to operate a company
  • the fleet of company cars - for sales representatives or transporting goods, for example
  • product packaging that is not recycled
  • buildings with low energy efficiency

carbon-footprint-en.png (102 KB)

Who must calculate the carbon footprint?

The law in Poland, unlike in a large number of European countries, does not require organisations to calculate their carbon footprint. However, in order to operate successfully in more environmentally mature markets, transparency of information an organisation’s emissions becomes a key issue. It is also worth measuring a company’s carbon footprint, as legal standards for decarbonisation will soon be introduced in our country.

First on the agenda will be the construction industry, which has traditionally been among the top industries in terms of emissions. As of 2027, carbon footprint calculations will be mandatory for designed buildings with an area of more than 2,000 m², and from 2030 for all buildings, regardless of area.

How to calculate the carbon footprint?

The first country to calculate the carbon footprint was the UK. To calculate it, use the guidelines in the GHG Protocol or the ISO 14064 (for organisations) and ISO 14067 (for products) standards. It is given in three ranges:

  • all direct emissions of the company (e.g. caused by transport, production line, heating of company buildings)
  • indirect emissions that result from the use of electricity, heat, etc., purchased from an external party (CO2 emissions outside the company under study)
  • other indirect emissions, covering the entire value chain relating to the company and the life cycle of the product - from the emissions associated with the extraction of raw materials and the production of intermediate products, through transport, use of the product and its disposal or storage after use

Calculators are easy to find online and are very helpful in calculating carbon footprints. They count both the traditional and digital carbon footprint of a company. Measuring the carbon footprint, apart from the awareness aspect, has several other important benefits:

  • gaining knowledge of the organisation's actual greenhouse gas emissions
  • identifying the areas with the greatest potential for carbon footprint reduction
  • being able to manage emissions and ESG reporting
  • consciously building your competitive advantage and image
  • meeting the requirements and expectations of customers, counterparties, shareholders, investors, the public and funding institutions

How do you reduce your carbon footprint?

According to environmental experts from Eco-Project: "You can easily reduce the value of your carbon footprint by optimising your brand's operations in a way that is consistent with the objectives of this parameter. Contrary to popular belief, these measures do not necessarily have to involve worsening working conditions, increasing the price of finished products or producing them more slowly. In fact, modern technology means that reducing one's carbon footprint is only a matter of commitment on the part of the entrepreneur, rather than a large financial outlay and high investment that may undermine a company's financial health."

Check out intelligent energy management, which helps to reduce the carbon footprint and saves up to 41% of energy.

The specific changes an orgaznisation may undertake will be determined by what the company does and it’s overall operations. Different measures will be necessary for a manufacturing company, as opposed to commercial offices, service offices or the digital industry.

Even if a company does not have many opportunities to drastically reduce emissions, it is always possible to take measures to offset emissions by reducing greenhouse gases elsewhere in the world. Offsetting programmes that 'take away' negative contributions from the environment, such as by supporting the planting of trees or the development of renewable energy, serve this purpose. An example of this might be mining companies, which are among those with the highest environmental burden.

How to reduce the carbon footprint of a company with moderate C CO2 emissions?

There are a number of actions that all businesses can undertake, regardless of their industry or the nature of their business activities. These actions are particularly useful for companies with low and moderate greenhouse gas emissions and usually don’t require any significant reengineering of internal processes or costly investments. However, strategic decisions will be required to implement the following processes and actions.

To reduce your carbon footprint you can:

- reduce your consumption of non-environmental energy. For example, by installing photovoltaic panels, or buying energy with a guarantee of origin. The latter can be done  through PPAs with green energy producers or through virtual power plants that can issue a certificate of origin for renewable energy. One such green energy operator is Photon Energy, which aggregates only RES generators in its virtual power plant

  • carry out process optimisation for energy efficiency. For example, by introducing systematic energy management based on intelligent energy management systems. Such a system, depending on the company's current energy efficiency, makes it possible to reduce energy consumption by as much as 40%, significantly affecting the company's carbon footprint
  • improve the energy efficiency of the buildings used by the company
  • ensure optimal transport management and deliver as much product as possible in a single instalment
  • work with partners who have a low carbon footprint
  • increase the proportion of waste recycled (it is worth betting on packaging from this source[MH1] )
  • calculate the organisation’s carbon footprint as often as possible, so as to be able to react quickly to unfavourable changes resulting, for example, from the introduction of new, energy-intensive equipment into the company
  • improve the quality of products so that they last longer (this should, of course, be factored into their price)
  • replace the company car fleet with an electric one
  • compensate the environment for its carbon footprint (as mentioned earlier)

Reducing the carbon footprint can also be achieved by implementing good practices in the organisation’s culture. Examples of such measures could be:

  • supplying the office with water dispensers instead of PET bottle packs
  • subsidies for employees commuting by environmentally friendly means of transport (bicycles, public transport, etc)
  • replacing single-use plastic bags with bags made of biodegradable materials
  • formalising business trips to avoid empty mileage
  • introduce mandatory waste separation
  • establishing a clear print policy and eventually moving to an electronic workflow and a cloud-based office
  • switching off electronic devices and unplugging chargers at the end of the working day
  • conscious use of IT - the less data we upload and download in the virtual space, the less damage to the environment there is
  • conscious use of e-mails - the average e-mail traffic [MH2] is equivalent to driving a small petrol car between 16 and 206 km. The amount of CO2 increases from 4g to 50 per email if a photo is attached.

Reducing the carbon footprint of a carbon-intensive business

For those organisations that significantly burden the environment with their carbon footprint, the methods described above may not be enough. Profound changes will be required, both in terms of the technologies used and the methods of operation or process control. However, by implementing innovative carbon reduction methods and updating their processes, companies can not only reduce their carbon footprint but also  increase their overall competitiveness and economic growth. In fact, this is the main objective of the improvements! Eco-efficiency, process innovation and increased competitiveness can all work hand in hand.

Technologies to combat a carbon footprint include:

  • IoT (Internet of Things),
  • RFID (Radio Frequency Identification), RFID (Radio Frequency Identification), RFID (Radio Frequency Identification) and RFID (Radio Frequency Identification)
  • ERP (Enterprise Resource Planning or enterprise resource planning systems)
  • SCM (Supply Chain Management)
  • MRP (Material Requirements Planning)
  • MRP II (Manufacturing Resource Planning)
  • WMS (Warehouse Management System)
  • ITS (Intelligent Transportation System)

In order to successfully reduce its carbon footprint, a company should combine technology with business management methods, and this should be done at every stage of the business. The most efficient methods here will prove to be methods such as:

  • Kanban method, which encompasses all processes in the company, controlling the flow of materials;
  • EOQ (Economic Order Quantity) can work in conjunction with JIT (Just in Time), making the delivery of raw materials more efficient
  • OEE (Overall Equipment Effectiveness) reduces potential downtime and enables equipment to be used for longer
  • production in line with the 3Rs (Reduce, Reuse, Recycle), sometimes referred to in Poland as the 3U principle (avoid, reuse, recycle), reduces the amount of waste generated
  • eco-driving - allows driving that reduces the production of exhaust fumes

The use of the Internet of Things enables the other systems to better communicate with each other and, when combined with RFID technology, maximises business efficiency. A prerequisite for SCM is the prior implementation of an ERP system into the organisation, which facilitates the smooth flow of materials within the supply chain. The introduction of MRP and MRP II technology allows the planning of raw materials to be used in procurement and then in production. The WMS streamlines the warehousing process, providing information on the distribution of products and also allowing the status of goods to be monitored. The whole is tied together by the ITS system, which is not used directly within the company but, with its help, material transport can generate lower costs while reducing greenhouse gas emissions in the form of exhaust fumes.

Benefits to the company from reducing its carbon footprint

Historically, the benefits of reducing a company’s carbon footprint were essentially only image-based. Pro-environmental measures built an image of a company that had the world's best interests at heart and was combating global warming not only in declaration, but also in reality, by aiming for zero carbon. At the same time, if these actions were not in fact a sham, this image became increasingly important in the marketplace. An organization could meet the expectations of customers, who increasingly declared that they preferred goods from producers reducing their carbon footprint while avoiding being labeled as greenwashers.

Over time, in addition to social pressure, legislative pressure has also started to increase, especially in western Europe. Now, the most important benefits, in addition to those of image, can be divided into three groups:

  • met market requirements- companies deciding to cooperate internationally are obliged in some countries to calculate the carbon footprint of their products or activities. In order to participate in a tender, a Polish company must calculate its carbon footprint for a given product
  • the need to report to the Carbon Disclosure Project - this is an international not-for-profit institution creating a global system for cities and companies to calculate, manage and disclose their comprehensive activities for environmental protection. The organisation works in every sector, while motivating businesses to take action to reduce their carbon footprint
  • documented Corporate Social Responsibility (CSR) activities - it is intended that such responsibility does not only mean that business institutions comply with all legal and formal requirements, but also that they invest more in environmental protection, human resources and stakeholder relations, which can have a real impact on the efficiency of these organisations' activities and their innovation.

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