What It Is

A carbon footprint measures the impact of various daily activities on the environment. The calculation measures the amount of greenhouse gases produced day to day from the burning of fossil fuels for electricity, heating, and transportation. 

A normal carbon footprint can be divided into two portions, the primary footprint and the secondary footprint. The primary footprint measures the direct emissions of carbon dioxide (CO₂) from the burning of fossil fuels (coal, oil, natural gas) for domestic energy consumption and transportation.  The secondary footprint measures indirect emissions of CO₂ from the lifecycle products. [1] A number of websites provide free calculation tools to estimate the carbon footprints for both businesses and individuals/households. A simple Internet search of “carbon footprint calculators” will help you find these sites.  The EPA also provides a Household Emissions Calculator for use in individuals homes.  Carbon footprint software is also available to purchase.

Why It Matters

While a carbon footprint calculation measures CO₂ emissions to help track an individual’s or organization’s impact on the environment, it can also be a useful tool to help a company track areas where it can reduce its wasteful outputs and as a result, its expenditures.   A carbon calculation will help a company better understand where its emissions are coming from and where in its operations it is most advantageous to cut.

Carbon footprint calculations are an inexpensive easily completed tool that can result in large savings for an organization.  Despite some higher upfront costs required to make the transition to lower emission practices, the long term savings that would result could be substantial.  Simple steps, such as decreasing travel, utilizing energy efficient products, and increasing building insulation, can all be strategies to diminish primary CO₂ emissions.

Customers and employees value organizations that put an emphasis on environmental sustainability.  The knowledge that they are contributing to a company that is socially and environmentally conscious has innumerable influences on individual preferences.  According to a study conducted by McKinsey, large corporations’ recognition of this preference has actually driven their initial steps toward improved sustainability.[2]  Determining ones carbon footprint is a solid step in the right direction toward becoming more environmentally responsible.

Getting Started

To better understand where outputs are being wasted and where costs can be reduced, an organization:

1. Identify a reliable Carbon Footprint Calculator Tool
2. Audit areas within the organization to determine information to fill in the calculator
3. Complete the tool and evaluate the results
4. Develop criteria for primary areas to reduce emissions
5. Reduce emissions

1. Identify Carbon Footprint Calculator Tool

There are a number of free Carbon Footprint Calculator tools online that require a number of inputs to determine annual CO₂ emissions. Investigate some of the tools to determine what inputs each tool requires for the calculation to see whether the information is attainable. Choose the tool that fits your requirements and is able to be populated with reasonable information. Here are just a few calculators you can try: 

• Carbon Footprint
• EPA Emissions Calculator
• Carbon Fund
• The Nature Conservancy

2. Audit departments within the organization to gather data for calculator

Gather information from around the organization to fill in to the calculator. This can range from the cost of utility bills to the number of people who work at the organization.  The more accurate the information the better an estimate of emissions the calculator tool can make.

3. Complete Tool and Evaluate Results

Utilize the information gathered to populate the tool and calculate the organizations CO₂ emissions.  After running the tool, perform a preliminary interpretation of the results and look at the split of emissions between the primary and secondary footprint fields. 

4. Develop criteria to determine initial areas/sectors to reduce emissions within organization 

It is important to identify which priority areas should be addressed right away to produce the least emissions and most cost savings.  It could be helpful to create a transition map to guide what should be replaced when. Once your organization has created a plan, follow it closely to implement change to both internal and external CO₂ emissions.

5. Reduce Emissions 

Once key areas for reduction are identified begin to take steps to make those reductions.  Long term these reductions will help to not only cut company costs, but also reduce its overall CO₂ emissions.

Going Further

To further utilize a carbon footprint, your business can:

• Inform suppliers of change: Make sure to inform your suppliers that you are making a concerted effort to purchase environmentally friendly products and request updates when new environmentally products are available.
• Promote annual carbon footprint assessment: Continuously evaluate carbon emissions to guarantee that organization is continuing of a solid path, while promoting innovation.

Case Study

Timberland

Timberland athletic and shoe wear company recently conducted a corporate-wide sustainability overhaul, including an emissions inventory, upgrading energy efficiency measures in its facilities, incorporating LEED-certified building techniques, implementing new transportation management, and investing in renewable energy. Through these techniques Timberland was able to reduce CO₂ emissions by 10,000 tons annually.  The development of environmental performance programs that evaluated every level of the business allowed Timberland to save hundreds of thousands of dollars by trimming energy consumption and reducing their CO₂ emissions worldwide. [3]

HomeStreet Bank

HomeStreet Bank recently utilized a carbon footprint calculation to determine that a majority of its carbon emissions was coming from energy use and commute travel. Through its carbon footprint calculation they were able to determine the organizational boundary, establish a baseline, identify scope of impacts, and collect data. They selected carbon reduction strategies to maximize opportunities and minimize business impacts. Additionally, HomeStreet Bank was able to further reduce its electricity consumption by cutting computer servers and runtime hours on desktop computers.[4]

Resources for More Information

Books:

• How to Reduce Your Carbon Footprint: 365 Simple Ways to Save Energy, Resources, and Money by Joanna Yarrow.  Chapter topics range from techniques in reducing carbon footprint through heating and cooling to cooking and cleaning to working and child rearing
• The Complete Idiot’s Guide to: Greening Your Business by Trish Riley and Heather Gadonniex.  Chapter 6, “Calculating and Reducing Your Carbon Footprint” specifically focuses on business reasons for carbon footprinting, calculating a footprint, identifying key carbon accounting tools and organization, and the role of carbon offsets.

 Links:

• Carbon Footprint provides solid information about carbon footprints along with a free carbon calculator and tips to reduce your footprint.

• EPA Household Emissions Calculator provides an estimate of greenhouse gas emissions and allows for people to play with inputs to see how various actions can reduce emissions 

Conclusion

Understanding an organization’s carbon footprint enables the organization to track its emissions and monitor its environmental impact.  Gaining a solid grasp of this information will allow an organization to identify key areas where emissions can be cut and money can be saved.  Conducting a carbon footprint calculation is an inexpensive and simple to complete way to simultaneously benefit the organization and the environment.

[1] Information retrieved from Carbon Footprint.

[2] Information retrieved from “McKinsey Global Survey Results: The business of sustainability” on October 8, 2011

[3] Information retrieved from Case Study: Timberland Reducing the Corporate Carbon Footprint One Step at a Time on December 3, 2011

[4] Information retrieved from HomeStreet Bank: A Carbon Footprint Measurement Case Study on December 3, 2011

Inc.com has a slideshow that gives tips – some easy, some more challenging – on cutting down your energy usage. More tips are also available in the Green Plus How-To Guide. Lastly, Microsoft has additional energy-saving advice in a broader column on cutting costs. And we can’t help but notice that other pieces of advice on Microsoft’s list – such as using web technology to limit business transportation costs or cross-training employees to increase efficacy – are all part of the triple-bottom-line sustainability strategy that Green Plus encourages.

The bottom line is that even the new-and-improved incandescents don’t pack nearly the efficiency of compact fluorescents. Moreover, the price point for the new incandescents is still higher than that of CFLs. So for now, stick with your CFLs and keep an eye on the emerging research.

But what’s interesting to see is the reason for the increased R&D. It stems partly from customer preference, yes – but at the same time, those customers probably would have continued buying incandescents regardless of their environmental impact. The real impetus behind the improved efficiency in incandescents is the legislation that demanded an efficiency level that threatened to doom the incandescent forever. It’s the same philosophy that underlies the Waxman-Markey bill currently in front of the Senate, or the Maine law mandating that manufacturers bear the cost of recycling their customers’ ewaste, or any other governmental intervention in the market in the name of environmental protection. While critics may argue that increased regulation hampers economic activity, it’s certainly evident that regulation does its job in terms of controlling environmental impact. And by increasing the need for R&D and encouraging manufacturers to seek out new markets or improved efficiencies, maybe such regulation can actually have a positive impact on economic activity in the long run.

Are incandescents out the door?

CFLs, LEDs, incadescents… there are so many options out there for lightbulbs these days, and each has its own advantages and drawbacks. Incandescent bulbs are the traditional lightbulbs that we all grew up with, and have been commercially popular since the days of Thomas Edison. However, incandescent bulbs emit not only light but also heat, making them extraordinarily energy-inefficient. In the United States, sales of these bulbs will be banned by 2012, given the number of handy alternatives.

Compact fluorescent lightbulbs, or CFLs, are becoming increasingly popular amongst consumers, especially as the quality of the light they give off is improved. According to the U.S. EPA Energy Star program, CFLs use about 75% less energy than incandescents, and last ten times as long. You can pick up a 6-pack for about $15, which is more than the initial price of incandescents – but CFLs pay for themselves within about six months. An environmental disadvantage of CFLs is their mercury content – many states require that CFLs be properly disposed of or recycled, and Maine even passed a law recently that requires CFL manufacturers to pay for CFL recycling. An aesthetic disadvantage of CFLs is their lack of compatibility with most dimming circuitry – however, this is sure to change in coming years.

LEDs, or light-emitting diodes, are electronic lights that have frequently used in cell phones and computers. Packing twice the efficiency of CFLs (and with fully dimmable capabilities), they are also considerably more expensive than CFLs or incandescents – as in, $120 per bulb. Nonetheless, they are increasingly being used in large-scale lighting such as streetlights (the stimulus package is helping cities with the up-front cost), and even in the overhead lights at Buckingham Palace.

And what of our old friend the inefficient incandescent? Well, it may be making something of a comeback – scientists at the University of Rochester are using lasers to make incandescents much more energy-efficient. They still aren’t as efficient as CFLs, but the new research is encouraging to those who miss the traditional feel of these much-maligned bulbs. Now that’s the type of innovation that would make Thomas Edison proud.

To read the full article on Intuit’s Green Snapshot Program, visit the link here on GreenBiz.com or see Liz Liedel’s June 9^th Post here.

To get started reducing your business’ carbon footprint, click here to download Green Snapshot.

To learn more about how Green Snapshot works, see a video demo here.

Small business owners know that assessing their financial situation is critical to running a successful and sustainable business. Increasingly, this philosophy is being extended beyond financial accounting, and businesses both large and small are finding ways to account for other things – beyond money – that matter to their performance. But what if your small business doesn’t have the time, money or human resources to do an exhaustive footprint assessment?

Enter Intuit, the maker of Quickbooks, which has just released software that makes this process a snap. Their new (and free!) Green Snapshot add-in evaluates your existing Quickbooks files, and uses them to calculate your business’ carbon footprint. Not only that, but it automatically generates an analysis that shows you where your largest impact is and what you can do to reduce it. Sure, it’s a quick-and-dirty version of what is usually a complex process of understanding carbon emissions, but Snapshot’s reliance on extensive lifecycle databases means that its output is usually pretty accurate. And best of all for small business owners, it’s both easy and free.

In some ways, this is just an extension of what the Global Reporting Initiative has been doing with larger corporations for years – finding a way to quantitatively analyze environmental impact using the same tools that we use to quantitatively analyze financial impact. And, as GRI founder Bob Massie pointed out in a talk earlier this year at Duke University’s Fuqua School of Business, it is probably easier to quantify things like water usage and carbon emissions than it is to quantify “goodwill,” “intangible assets,” or other accounting measures that the finance world assesses on a regular basis. So why not give it a shot?

Via GreenBiz.