13.2.2.1. Types of emissions

Emissions from all the activities across the organization, including buildings’ energy use, industrial processes and company vehicles.

An organizational or business carbon footprint measures the direct and indirect greenhouse gas emissions arising from all of an organization’s activities.

The Organizational Carbon Footprint represents the total greenhouse gas emissions from an organization. It considers two types of emissions: direct emissions from activities that the organization controls, such as energy used in buildings and processes, as well as emissions from company vehicles. It also includes indirect emissions from activities that are not directly controlled but are still part of the organization’s operations.

Think of a company that runs a manufacturing plant. The energy consumed to power the machines, the heating for the building, and the emissions from trucks delivering materials and products all contribute to the organizational carbon footprint. It's like considering all contributions to a group project; every little bit from each member's tasks adds up to the final result.

The Greenhouse Gas Protocol standard is commonly used to categorize an organization’s emissions into 3 groups or ‘scopes’:

• Scope 1 - Direct emissions: Direct emissions resulting from activities within the organization’s control.
• Scope 2 - Indirect emissions: electricity and heat: Indirect emissions from electricity, heat or steam purchased and used by the organization.
• Scope 3 - Indirect emissions: other: Any other indirect emissions from sources not directly controlled by the organization.

The Greenhouse Gas Protocol helps organizations classify their emissions into three scopes. Scope 1 includes direct emissions from sources that the organization owns or controls, like on-site fuel combustion. Scope 2 accounts for indirect emissions from the electricity or heat that the organization purchases. Scope 3 includes all other indirect emissions, such as those from employee travel, waste disposal, and outsourced activities.

Imagine you run a restaurant. Scope 1 would include the fuel burned to cook food (like gas stoves), Scope 2 would involve the electricity you use to keep the lights on, and Scope 3 might cover the emissions from staff driving to work and waste disposed of at a landfill. Just as in a team project where work is divided into different tasks, emissions are categorized to shed light on different areas needing reduction.

The 2 main reasons for calculating an organizational carbon footprint are that it will help you to:

• Manage and reduce emissions
• Reporting
  • Mandatory reporting requirements
  • Corporate social responsibility (CSR)
  • Responding to requests

Calculating an organizational carbon footprint serves two critical purposes. First, it helps organizations manage and reduce their emissions effectively, which often results in cost savings. Second, many organizations face mandatory reporting requirements due to climate change legislation. They also strive to demonstrate corporate social responsibility, as stakeholders increasingly want to understand a company's environmental impact.

Imagine an office that tracks its energy consumption. By knowing their carbon footprint, they can identify areas to cut back, like reducing high energy-consuming equipment. Moreover, if they need to report their emissions to comply with laws for a greener future, they can demonstrate responsible practices to stakeholders. It's akin to a student keeping track of their grades to identify which subjects need more attention—they’re then prepared for both school assessments and conversations about their academic performance.

The basic 6 steps required to calculate a carbon footprint for an organization are as follows:

1. Establishment of the assessment boundaries.
2. Collection of data.
3. Calculation of emissions using appropriate emissions factors.
4. Convert usage into CO2 equivalent.
5. Verifying the results (optional).
6. Reporting the carbon footprint.

To calculate an organizational carbon footprint, follow a structured approach in six steps: First, define the assessment boundaries to clarify what part of the organization is included and which emissions are tracked. Next, collect data on energy use and emissions sources. Then, apply appropriate emissions factors to convert usage data into actual emissions figures. After calculating, verify results if possible to ensure accuracy, and finally, report the findings clearly.

Think of it as preparing a family budget. First, you identify what expenses to track (boundaries). Then, you gather receipts (data collection), calculate total spending in each budget category (emissions calculation), and check for any errors (verification). Finally, you share or discuss the budget with family members (reporting) to make financial decisions for better savings. Just as you would do this for money, organizations do it for their emissions.

You will need to define:

• Organizational boundaries: What parts of the organization are included?
• Operational boundaries: All scope 1 and scope 2 emissions should be included, but the organization can choose which scope 3 emissions to include.

Defining assessment boundaries is crucial for accurately measuring a carbon footprint. First, the organizational boundaries specify which parts of the organization (like subsidiaries or joint ventures) are included in the report. Second, operational boundaries emphasize that scope 1 and scope 2 emissions are mandatory in calculations, while organizations can selectively include some scope 3 emissions based on operational relevance.

Consider a university. The organizational boundaries might include its main campus and off-campus research centers, while operational boundaries ensure every emissions source on the campus is counted. Just like a student might decide which classes count toward their GPA, organizations decide which emissions to include based on their impact and control.

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