Measurement to action: Carbon management for net-zero success

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As the saying goes, “You can’t manage what you don’t measure.” This rings especially true when it comes to managing a company’s carbon footprint. In a world increasingly focused on combating climate change, understanding and reducing your carbon emissions isn’t just a nice to have, it’s essential.

A carbon footprint assessment, also known as a GHG (greenhouse gas) assessment, measures all the greenhouse gas emissions that an organization has generated over a year. This critical accounting process adheres to the GHG Protocol, developed by the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD).

As the Intergovernmental Panel on Climate Change (IPCC) has emphasised, global warming poses a serious threat to the planet. To limit the temperature increase to 1.5 degrees above pre-industrial levels, as outlined in the Paris Agreement, both individuals and businesses must take significant steps to reduce emissions and contribute to global carbon neutrality.

Climate change is no longer a distant threat but a pressing reality. The pressure isn’t just coming from global agreements like the Paris Accord — it’s coming from customers, employees, and even investors who want to see real action, not just promises. At the heart of this action is understanding and managing your carbon footprint.

Setting goals and gaining leadership buy-in

The journey towards meaningful carbon management starts at the top. For any company aiming to be serious about its environmental impact, leadership needs to be all in. This means setting clear, science-based targets that align with broader global efforts to achieve net-zero emissions. But it’s not just about setting targets – leaders need to make carbon management a core part of the business strategy. When leadership is committed, the whole organisation feels the push, driving collaborative and consistent efforts to reduce emissions.

Take, for example, a transportation company that decided to measure its carbon footprint each year. They found that beyond the obvious emissions from their fleet, their electricity and water usage were significant contributors.

By sourcing green electricity through Renewable Energy Certificates and installing water recycling systems at their service stations, they were able to make tangible progress toward reducing their carbon footprint. This shows that when leadership is committed, real change happens.

Getting a true picture of your carbon footprint

It’s all about the details; when you have a clear and accurate picture of your emissions, you can target the most impactful areas and start making real progress. This means understanding all sources of emissions – those directly from your operations (Direct – Scope 1), those from the energy you consume (Indirect – Scope 2), and those from your entire supply chain (Supply Chain – Scope 3).

Accurate measurement across these scopes is crucial, and it starts with reliable data collection. Leveraging technology like IoT and AI can help companies capture detailed, real-time data on their emissions across all aspects of their operations. But technology alone isn’t enough.

True accuracy in carbon management comes from ensuring that everyone in your supply chain is aligned. This means collaborating closely with your suppliers and partners to gather consistent, reliable data.

From measurement to action: Priortise and innovate

The journey of a thousand miles begins with a single step. When it comes to carbon management, the first step is measuring your emissions. But measurement alone isn’t enough — it’s what you do next that truly counts.

Prioritize your efforts strategically and start with the low-hanging fruit – quick wins like enhancing energy efficiency in your facilities or switching to LED lighting. These changes might seem small, but they add up and can create an immediate impact.

Of course, the most successful carbon management strategies are those that look beyond short-term fixes. Longer-term investments, like transitioning to renewable energy sources, are essential for driving substantial reductions in your carbon footprint. But achieving lasting success requires more than just a checklist approach; it calls for innovation.

Think about how you can embed the principles of the circular economy into your business model. This means rethinking how you use resources, minimizing waste, and finding ways to extend the lifecycle of your products. For example, consider exploring alternative materials that have a lower environmental impact or redesigning products to be more sustainable from the outset.

When you embed sustainability into your core operations, you’re not just complying with the rules; you’re staying ahead of the curve. This proactive approach can give your business a competitive edge, attracting customers, investors, and partners who prioritise environmental responsibility.

Keeping track and being transparent

Implementing a carbon management strategy is not a one-time effort – it’s an ongoing journey. It requires a combination of immediate actions, long-term investments, and a commitment to continuous innovation. By taking these steps, your company can not only reduce its carbon footprint but also turn sustainability into a strategic advantage.

Transparency is equally important. Regular reporting, especially when aligned with recognized standards like the GHG Protocol, builds trust with your stakeholders. It shows that you’re not just talking the talk but walking the walk. Being open about your carbon management efforts strengthens relationships and boosts your credibility.

The path forward

Managing your carbon footprint isn’t just about doing the right thing for the planet, it’s also good for business. It mitigates climate risks, prepares your company for future regulations, and can reduce costs through greater efficiency. Moreover, a strong commitment to sustainability enhances your brand’s reputation, making your company more appealing to customers, investors, and partners.

The bottom line? Companies that lead in carbon management will not only help protect the planet but also gain a competitive edge in the evolving low-carbon economy.

The writer is the co-founder and partner at elementsix.