Part 1: Climate, Carbon and Costs
Contents
Climate, Carbon and Costs
1.1 What does ‘Going Green’ mean?
‘Going Green’ is a common term to describe the process of reducing carbon emissions caused directly or indirectly by your business.
‘Going Green’ means taking intentional action to reduce the carbon emissions of your business, mainly by managing energy, waste, water and transport more responsibly and more efficiently.
‘Going Green’ means being proactive and:
a) taking control of your use of energy and water, and setting targets to reduce the amounts you use
b) taking responsibility for waste and setting targets to reduce the amount of waste generated in your business
c) taking the actions that will make sure you reach those targets
d) monitoring and measuring performance and impacts
‘Going Green’ is a legislative requirement. In June 2019, the UK became the first major economy to commit to a 100 per cent reduction in greenhouse gas emissions by 2050. The Climate Change Act (Northern Ireland) 2022 has re-affirmed Northern Ireland’s commitment to this target. To meet it, every business sector will have to massively reduce its carbon footprint. See Part 3 of this guide for more information on carbon footprint and carbon emissions.
Energy Management Actions that reduce carbon emissions contribute to the following UN Sustainable Development Goals:
1.2 Leaner & Greener Energy Management
Managing Energy is now also a key business priority. Costs of energy are high. Energy supply is uncertain. Emissions from energy account for a significant part of the carbon footprint of your business.
Systematically managing energy will reduce the running costs of your business (making you leaner) and will also reduce carbon emissions from your business (making you greener). It is a win-win situation – it is good for business and it is good for the environment.
It’s a simple equation: the less energy you consume, the less money you pay, the less carbon you emit.
1.3 Understanding Carbon Emissions
What is a Business Carbon Footprint?
A Carbon Footprint measures the total Greenhouse Gas (GHG) emissions caused directly and indirectly by your business.
Carbon Trust
A Carbon Footprint measures the total Greenhouse Gas (GHG) emissions caused directly and indirectly by your business.
Carbon Trust
Carbon Footprint Calculators will require you to know how many kilowatt hours (kWh) of energy you use in your business in order to calculate your carbon footprint.
Why is it good to know your Business Carbon Footprint?
It will help you understand what your key emission sources are and what opportunities you have to reduce them. It gives you an initial benchmark against which you can measure progress.
Carbon Trust
It will help you understand what your key emission sources are and what opportunities you have to reduce them. It gives you an initial benchmark against which you can measure progress.
Carbon Trust
Know your Scopes
Internationally, greenhouse gas emissions are categorised as either Scope 1, Scope 2 or Scope 3.
The following table explains what is included in each of these categories and also summarises the key actions you can take to reduce each one. You will note that Scopes 1 and 2 relate specifically to energy management.
What are Scope 1 Emissions? |
Emissions your business produces directly e.g., through burning fossil fuels such as gas and oil to run your heating system. How can you reduce them in your business?
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What are Scope 2 Emissions? |
Emissions your business produces indirectly e.g., when you buy electricity which is produced by burning fossil fuel. How can you reduce them in your business?
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What are Scope 3 Emissions? |
Emissions not directly owned or controlled by your business, but that your business is indirectly responsible for e.g., through the products you buy from suppliers or through the transport of staff and visitors to your premises. How can you reduce them in your business?
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