Why your business needs a Carbon Baseline
For your business, the assessment of a Carbon Baseline is the first step to set goals and build a business Carbon Reduction Plan.
A Carbon Baseline is a comprehensive measurement of emissions produced by current operations and activities in a business. It’s like a one-year snapshot of greenhouse gases (GHGs) that your business is responsible for and could be a useful starting point for strategies to lower emissions.
The Carbon Baseline is also known as a carbon inventory or carbon footprint assessment and can provide your business with a better understanding of current GHG emissions while setting the mark to measure successes in moving towards net zero.
Working with SaveMoneyCutCarbon would enable you to accurately gather a historical record of GHG emissions, usually over a period a one year, before initiating carbon reduction plans. It would be an essential benchmark against which future emissions levels are compared and might play a crucial role in setting goals, monitoring performance, and developing effective strategies.
Setting a Carbon Baseline
SaveMoneyCutCarbon’s working model for setting a Carbon Baseline is start with collection of emissions data. This includes direct emissions from owned or controlled sources (Scope 1), indirect emissions from the generation of purchased electricity (Scope 2), and (where necessary) all other indirect emissions that occur in the value chain of the company (Scope 3).
Businesses can benefit from an initial call with one of SaveMoneyCutCarbon’s AIEMA-qualified Carbon Mentors through to detailed collection and analysis of emissions data, and detailed report with Carbon Reduction Plan. Frameworks and standards utilised within the baseline-setting process could include ISO 14064, the Greenhouse Gas Protocol, Intergovernmental Panel on Climate Change, and Science-Based Targets initiative (SBTi).
7 reasons why a business needs a Carbon Baseline
1 Savings:
Identification of high emissions can indicate that energy is being consumed at a higher rate than necessary – and these additional costs could be saved, and spent to boost the business. A Carbon Baseline can allow the company to reduce carbon emissions in the most impactful and cost-effective way, often leading to significant cost savings.
2 Targets:
A Carbon Baseline is a “stake in the ground” on the path to meeting net-zero targets. A fuller understanding should help businesses set realistic and achievable carbon reduction targets. These are, in SaveMoneyCutCarbon’s view, crucial in in guiding sustainability initiatives and tracking progress.
3 Compliance:
Streamlined Energy and Carbon Reporting (SECR) regulations is compulsory for large UK businesses that meet at least two of the three criteria: turnover of £36 million or more, a balance sheet total of £18 million or more, and at least 250 employees. Reporting includes information on energy use and associated carbon emissions, along with any energy efficiency measures taken.1
In SaveMoneyCutCarbon’s view, it is likely that the SECR will be extended to cover smaller companies, as pressure mounts on the government to strengthen strategies for reaching net zero emissions by 2050. A Carbon Baseline should help all companies prepare for regulatory changes, being similar to the SECR, typically including a comprehensive set of information related to an organisation’s initial or historical carbon emissions.
4 Competitive advantage:
Companies that focus on carbon emissions reduction can gain an advantage in their markets, differentiating themselves with eco-conscious branding, with the potential to reduce operating costs at the same time.
5 Reputation:
Many consumers are prioritising sustainability, with some advising that they are willing to spend 9.7% more, on average, for sustainably produced or sourced goods. Almost 9 in 10 (85%) say they are experiencing the disruptive impacts of climate change in their lives, and 46% say they are buying more sustainable products as a way to reduce their impact on the environment.2
6 Attracting investment:
The number of companies making net zero targets in line with the Science Based Targets Initiative is growing significantly every year. Investors and partners are increasingly considering a company’s environmental commitment when deciding whether to invest or partner with them.3
Chancellor Rachel Reeves has announced plans to secure UK investment and the new National Wealth Fund will catalyse tens of billions of pounds of private investment into in the UK’s clean energy and growth industries, including green hydrogen, carbon capture and gigafactories.4 Sustainability-focussed companies with detailed carbon reduction plans could benefit from the changing investment environment.
7 Adaptation & resilience:
Changes in climate mean that companies need to mitigate the physical risks of extreme weather events, as well as supply chain disruptions, with changing availability of raw materials. There will also be rising energy costs from increased demand, higher insurance costs and regulatory changes. A Carbon Baseline provides a structure for development of effective and adaptive strategies that should help companies be more resilient in the face of new environmental challenges.
Conclusion
A clear starting point would enable your company to track and show progress towards environmental goals. The Carbon Baseline process follows similar methodology to the SECR, but is less demanding, so can allow smaller companies particularly to gain similar benefits to larger businesses and support progress to national net zero targets.
A Carbon Baseline report can help your business prioritise efficiency investments, together with adoption of renewable technologies and power sources while engaging with investors and clients seeking commitments to stronger Environmental Social and Governance (ESG) strategies. Carbon Baselines provide this measurement and insight for all businesses, particularly SMEs, to take effective steps toward resilience and sustainability.
In SaveMoneyCutCarbon’s experience, Carbon Baselines can also play an important role in addressing challenges of climate change. The baselines quantify emissions reduction achievements, give transparency to sustainability reporting, and can help stakeholders make informed decisions.