Incorporating Carbon Reduction Into Your Business Strategy

Last year topped the charts as the planet’s warmest year since 1880, with 15 of the 16 hottest years on record occurring after 2001. The fight against global warming may appear to be left up to the government, but companies will most certainly face challenges if they do not embed long-term carbon reduction into their business strategy. With the vast amount of information and the increasing pressure on businesses to reduce their carbon footprint, it can be overwhelming — but it’s not as complicated as you might think.  First, let’s start by defining the term “carbon footprint.” The United States Environmental Protection Agency (EPA) defines carbon footprint as “the total amount of greenhouse gases that are emitted into the atmosphere each year by a person, family, building, organization or company.” Greenhouse gases (GHGs) are gases that trap heat in the atmosphere. The GHGs that humans emit directly in substantial quantities are carbon dioxide (CO₂), methane (CH₄), nitrous oxide (N₂O) and fluorinated gases (“F gases”).  CO₂ is the primary GHG emitted and accounted for approximately 82 percent of all US greenhouse gas emissions from human activity in 2013, according to the EPA. The main human activity that releases CO₂ is the combustion of fossil fuels (coal, natural gas and oil) for energy and transportation. In addition, deforestation is a major factor. It is estimated that more than 1.5 billion tons of CO₂ are released into the atmosphere each year due to the cutting and burning of trees. In December of 2015, a historic breakthrough was made as representatives from 195 nations finalized the wording for the Paris Agreement to combat climate change. Nearly every country of the United Nations Framework Convention on Climate Change (UNFCCC) unanimously agreed to try to keep global warming "well below 2 degrees Celsius" and to pursue efforts "to limit the increase in temperatures to 1.5 degrees Celsius." Despite that goal, the Paris agreement still allows the GHG emissions to continue rising. Each country has been tasked to provide a detailed, structured plan to reduce CO₂ emissions every year. The agreement will officially open for signature in April 2016 to all 197 parties of the UNFCCC. The United States has set an ambitious goal to reduce its greenhouse gas emissions by 26–28 percent below its 2005 level by 2025. To support this effort, the first-ever national carbon pollution standards, known as the Clean Energy Act, were developed for power plants. The Action Plan Strategy to Reduce Methane Emissions was created and is currently in the implementation process to remove methane emissions for the oil and gas sector. In addition, the White House has announced the American Business Act on Climate Pledge for companies to demonstrate their support for action on climate change. As of December 1, 2015, over 150 companies, including Ricoh USA*, HP* and Xerox*, have signed the pledge. Each company announced momentous pledges to reduce their carbon emissions by as much as 50 percent.  There is often a misconception that incorporating sustainability into your operation requires a large investment. In practice, however, integrating a long-term carbon emissions reduction strategy can lower operational costs, improve employee morale, provide transparency to clients and improve your bottom line. A report published by the World Wildlife Fund (WWF) and CDP states, “If US businesses act now to reduce emissions 3 percent annually through 2020, they can collectively capture present value cost savings up to $190 billion in 2020 alone, and put us on the pathway to curbing climate change.” So, what can you do to act on climate? Begin by conducting an energy audit that integrates the three emission scopes provided by the Greenhouse Gas Protocol Corporate Standard (www.ghgprotocol.org). This standard is a globally adopted tool used by governments, businesses and NGOs to manage and report their GHGs. The protocol, designed in three separate emissions scopes, allows organizations to manage their direct and indirect GHGs and improve transparency. The three scopes are: Scope 1: Direct GHG emissions Direct GHG emissions occur from sources that are owned or controlled by the company. For example, emissions from combustion in owned or controlled boilers, furnaces, vehicles, etc.; emissions from chemical production in owned or controlled process equipment. Scope 2: Electricity indirect GHG emissions Scope 2 accounts for GHG emissions from the generation of purchased electricity consumed by the company. Purchased electricity is defined as electricity that is purchased or otherwise brought into the organizational boundary of the company. Scope 2 emissions physically occur at the facility where electricity is generated. Scope 3: Other indirect GHG emissions Scope 3 is an optional reporting category that allows for the treatment of all other indirect emissions. Scope 3 emissions are a consequence of the activities of the company, but occur from sources not owned or controlled by the company. Some examples of scope 3 activities are extraction and production of purchased materials; transportation of purchased fuels; and use of sold products and services. SGIA’s member-exclusive energy audit consists of three sections, each with a series of questions related to your facility’s energy use for lighting, heating and cooling, and motors and office equipment. At the end of each section are suggestions designed to help reduce your facility’s energy consumption and CO₂  emissions. The audit helps identify steps you can take to reduce your energy consumption — which leads to a reduced carbon footprint — not to mention a better bottom line.   With Earth Day right around the corner, SGIA encourages its members to take the pledge to establish a project in 2016 that reduces your carbon footprint and help the planet.