Greener Dawn’s Business Case for Carbon Footprinting

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SOLANA BEACH, Calif. – (Business Wire) A carbon footprint is an aggregate of all carbon dioxide and other greenhouse gases (GHG) a business emits through their services, operations, and products. Compiling a comprehensive GHG inventory improves the understanding of a company’s emissions profile and exposes any potential environmental risks and costs.

Wal-Mart, the world’s largest retailer, understands that environmental responsibility, cost efficiency, and brand equity are not mutually exclusive. In efforts to transform itself into a more environmentally friendly company, Wal-Mart recently launched a worldwide Sustainable Product Index asking suppliers to answer a 15 question survey to establish a uniform sustainability rating for its products. Emphasizing the importance of carbon footprint management, the first four questions of the survey pertain to “Energy and Climate: Reducing Energy Costs and Greenhouse Gas Emissions.”

Whether Wal-Mart’s actions become game changing remains to be seen. However, the momentum for carbon reduction is increasing in the form of national policies, emissions trading programs, voluntary reporting, and regulations and standards on energy efficiency and emissions. Governments worldwide have committed to reducing GHG emissions; leading companies are including carbon into their corporate social responsibility reports; and consumers want to know if the products and services they buy are produced in a sustainable manner. Understanding and managing GHG risks are not only important for the environment, but necessary to stay competitive.

Quantifying Carbon Risks

The first step to mitigating carbon risk is to identify your carbon footprint by setting measurement boundaries and consolidating its corresponding emissions sources (also referred to as “scopes”). The three scopes as defined by the WRI GHG Protocol are:

Scope 1: Direct Emissions represent emissions from onsite sources that are owned or controlled by the company, such as fuel combustion from boilers and manufacturing processes.

Scope 2: Indirect Emissions represent emissions from the consumption of purchased electricity or steam for use onsite.

Scope 3: Other Indirect Emissions represent emissions from sources not owned or controlled by the company, such as product use, waste disposal, commuting, and business travel.

*WRI GHG Protocol

Accurate and transparent measurement is key to understanding a company’s emissions, helping to identify carbon risks and the most effective reduction strategies.

National environmental policies, regulations, and standards are constantly shifting, but we know one thing for sure. With the Waxman-Markey energy bill, Copenhagen Accords, development of regional and international carbon markets, and Carbon and Sustainability indexes, climate change will directly or indirectly affect the way businesses operate moving forward. Companies with substantial GHG emissions will face increased costs and/or reduced sales, negatively affecting their perception among investors and shareholders.

Assessing your carbon footprint is the first step to managing GHG risks, identifying opportunities to increase efficiency, and establishing long-term goals for success in a competitive business environment. Wal-Mart believes this – it may be time for you as well.

Michael Chang

Energy and Carbon Consultant, LEED GA

Greener Dawn, Inc.

Michael Chang, 858-345-1672

[email protected]

www.greenerdawn.com

Tagged as: Carbon Footprint, Carbon Reduction, ghg