What Next? Target setting, carbon reduction plans, and more

Congratulations on completing your carbon footprint assessment! This is a significant achievement and an essential step towards a more sustainable future for your business.

Now that you have a clear picture of your carbon emissions, it’s time to take the next steps to continue your journey towards sustainability.

1. Continue measuring your footprint year-on-year

Ensure you measure your carbon footprint annually (or more regularly depending on your reporting requirements) to track progress over time. This will help you identify trends, assess the effectiveness of your reduction strategies, and demonstrate your commitment to sustainability.

Embed carbon footprinting in your organisation’s reporting processes just like financial reporting – this is known as carbon accounting. Regular measurement allows you to maintain an accurate and comprehensive view of your emissions, making it easier to manage and reduce them. 

As your data quality improves, you might notice an initial increase in your reported emissions. Don’t panic! This is a sign that you are gaining a more accurate and complete understanding of your organisation’s impact. With this view, you can take the necessary steps to address and reduce these emissions effectively. 

2. Expanding the scope of your carbon footprint 

Many organisations begin their carbon footprint journey by measuring Scope 1 and 2 emissions. These are often the most straightforward to measure because they involve direct emissions from sources you control (Scope 1) and indirect emissions from the energy you purchase (Scope 2). 

Regulatory and reporting requirements frequently mandate that organisations report on Scope 1 and 2 emissions, making them a logical starting point.

Understanding your Scope 1 and 2 emissions lays the groundwork for addressing Scope 3 emissions, which are more complex and involve indirect emissions from your entire value chain. These often represent the largest portion of an organisation’s carbon footprint.

To deepen your understanding of Scope 3 emissions, you can conduct a Scope 3 screening process.

Steps to Conduct a Scope 3 Screening Process

Here’s how to get started: 

1. Estimate Greenhouse Gas emissions across the 15 Scope 3 categories 

Begin with a broad assessment using easily accessible, less specific data to estimate your Scope 3 emissions. This might include industry averages, secondary data, or existing reports.

2. Conduct a Business Brainstorm 

Create a comprehensive list of everything your organisation does, uses, and buys. This list should encompass all activities, services, and products involved in your operations. Involve various departments like procurement, operations, logistics, and finance to help identify all potential emission sources using financial documents and other relevant data.

3. Refine Emission Estimates

Based on your initial assessment and the data gathered, refine your emission estimates for each category and activity. Use more specific data where possible, such as direct measurements, supplier data, or life cycle assessments.

Once you have completed this screening process, the next step is to use the data to develop a detailed Scope 3 inventory. This inventory will guide your strategic decision-making and help you address the most significant sources of emissions across your value chain. 

The following goals explain how a well-developed Scope 3 inventory can drive your sustainability efforts: 

Identifying Risks and Opportunities 

By understanding your Scope 3 emissions, you can identify potential risks, such as new regulations, or supply chain vulnerabilities. At the same time, you can uncover opportunities to enhance efficiency, reduce costs, and innovate in ways that lower your company’s emissions. 

Set and Track Reduction Targets 

A detailed Scope 3 inventory allows you to set specific, measurable goals for reducing your greenhouse gas emissions. With accurate data, you can track your progress over time, ensuring that you are meeting your reduction targets and adjusting your strategies as necessary to stay on track.

Engage Value Chain Partners

Since Scope 3 emissions often stem from activities outside your direct control, collaboration with suppliers, customers, and other value chain partners is essential. A comprehensive Scope 3 inventory enables you to engage these stakeholders effectively, share data, set joint targets, and collaborate on initiatives that reduce emissions across the entire value chain. This not only helps in reducing emissions but also strengthens your relationships and improves overall sustainability performance.

 3. Comply with regulations

Now that you have calculated your carbon footprint, you can report this in the necessary compliance and regulation documents. 

Conducting carbon accounting in your company is a great start to meet various environmental reporting standards such as the Streamlined Energy and Carbon Reporting (SECR) in the UK, the Corporate Sustainability Reporting Directive (CSRD) in the EU, and the Task Force on Climate-related Financial Disclosures (TCFD) globally. 

For a comprehensive view of global reporting requirements, read our Regulatory Compliance article.

By complying with these regulations, you not only fulfill legal requirements but also demonstrate transparency and accountability to your stakeholders. This can enhance your organisation’s reputation, build trust with customers and investors, and potentially open new business opportunities. 

Find out more about SECR in our guide on the Compare Your Footprint website: A guide to Streamlined Energy & Carbon Reporting (SECR)

Our sister company Green Element can help your organisation comply with CSRD and TCFD. Find out more below and book a discovery call to discuss your organisation’s requirements:

CSRD: A Guide to Corporate Sustainability Reporting Directive (CSRD)

TCFD: A Guide to Task Force on Climate-Related Financial Disclosures (TCFD)

4. Reaching Net-Zero: carbon removals vs offsetting

You will have noticed that countries, governments, and organisations are announcing net-zero targets. We explain below what net-zero means and how a carbon footprint relates to it. 

Achieving global net-zero requires balancing the amount of greenhouse gas emissions we add to the atmosphere and the amount removed.

Net-zero is achieved when the amount of greenhouse gas emissions removed from the atmosphere is equal to or greater than the amount emitted. To reach this balance, emissions from transport, agriculture, industry, and buildings must be radically reduced by a minimum of 90%.

The target year for reaching global net-zero is 2050 at the latest; climate scientists estimate that hitting this target would result in a 60% chance of limiting global warming to the 1.5°C threshold.

This in turn would reduce the most catastrophic impacts of the climate crisis across the world.

When we measure the amount of greenhouse gas emissions (carbon footprint) we are generating as an organisation we can then create reduction targets that are aligned with climate science and our target year for reaching global net-zero by 2050. These are called science-based targets (SBTs) and are explained in detail in the next step. 

5. Set science-based targets 

To make effective reductions, you need to set achievable and ambitious targets. Created by the Science Based Targets initiative (SBTi), science-based targets provide companies with a clearly defined pathway to set targets and reduce emissions in line with the global target of limiting global warming below 1.5°C. These targets are robust, meaningful, and aligned with climate science.

Science-based targets are split into near-term and longer-term targets:

Near-term targets: These outline what companies will do now and over the next 5-10 years to reduce emissions in line with the 1.5°C limit. Near-term targets must include at least 95% of Scope 1 and 2 emissions and at least 67% of Scope 3 emissions (if Scope 3 is greater than 40% of total emissions).

An example of a near-term target can be showcased by Green Element Group client, The Guardian. Their target reads as follows: 

Guardian News and Media commits to reduce absolute Scope 1, 2, and 3 greenhouse gas emissions by 2030, from a 2020 base year. Guardian News and Media also commit to reducing absolute Scope 2 greenhouse gas emissions beyond the minimum boundary from the use of sold products 42% within the same timeframe. 

Long-term targets (net-zero targets): These targets outline how much companies need to reduce their carbon emissions to achieve science-based net-zero. Companies are expected to make emissions reductions of at least 90-95% to reach net-zero. 

Long-term targets must include at least 95% of Scope 1 and 2 emissions and at least 90% of Scope 3 emissions. This requires a Scope 3 screening assessment to understand an organisation’s potential sources of greenhouse gas emissions and ensure that 90% of total Scope 3 emissions are included within the target boundary.

As part of Green Element Group, we have set our own near-term and long-term science-based targets. 

Source: Green Element Group 2023 Impact Report

In partnership with our sister company Green Element, we have helped many businesses set near and long-term science-based targets, guiding them through the entire process. 

Check out Green Element’s case studies to discover the likes of Abel & Cole and Poole Alcock’s journey to setting science-based targets: Green Element Case Studies

Learn more about science-based targets and how to set them in our free comprehensive guide for businesses: Science-Based Targets Guide

6. Identify hotspots and develop a decarbonisation plan

Use your carbon footprint data to identify emission hotspots – areas where your emissions are particularly high - and develop targeted strategies to reduce emissions in these areas. 

Each category across Scopes 1, 2, and 3 has common hotspots that typically contribute significantly to emissions. However, hotspot recommendations are tailored to each company and will be revealed with your carbon footprint assessment.

You can view identified hotspots from some of our clients in our case studies across different industries and sizes of business. Here’s an example of carbon hotspots identified for Web Design Agency, Solve:

Source: Solve x Compare Your Footprint case study 

Here are some general recommendations for addressing carbon hotspots: 

Scope 1

Fuel Combustion (Vehicles and Equipment) 

Transition to electric or hybrid vehicles, optimise routes to reduce fuel use, and invest in fuel-efficient machinery and equipment. 

On-Site Energy Production (Heating, Cooling, and Power)

Upgrade to high-efficiency boilers with heating, ventilation, and air conditioning (HVAC) systems, implement regular maintenance schedules to ensure optimal performance, and consider on-site renewable energy solutions like solar panels or wind turbines. 

For example, Compare Your Footprint client, Abel & Cole, made the switch to Air Source Heat Pumps to warm offices sustainably. They also introduced new technology to help drivers plan more efficient delivery routes. 

Scope 2

Electricity Use

Switch to renewable energy sources by purchasing green energy tariffs or investing in on-site renewable energy projects. Implement energy efficiency measures such as LED lighting, smart thermostats, and energy management systems to reduce overall consumption. 

Compare Your Footprint client Bowmark Capital made the switch to 100% renewable energy for their office spaces.

Purchased Steam, Heating, and Cooling 

Enhance building insulation, adopt energy-efficient heating and cooling systems, and employ energy recovery solutions. Regularly audit energy usage to identify and address inefficiencies. 

Scope 3

Purchased goods and services 

Engage with suppliers to improve their sustainability practices. Prioritise procurement from vendors with lower carbon footprints and sustainable credentials. Create a Sustainable Procurement Policy

Capital goods 

Opt for energy-efficient equipment and machinery with a lower environmental impact over their lifecycle. For example, when purchasing new machinery, choose models with high energy efficiency ratings and low lifecycle emissions. 

Fuel and Entry-Related activities not included in Scope 1 or Scope 2

Improve energy efficiency in your operations to reduce fuel consumption and associated emissions. 

Upstream transportation and distribution 

Optimise logistics by improving load management and route planning. Switch to low-emission vehicles for transportation. 

Waste generated in operations 

Implement comprehensive recycling programs and reduce waste at the source through improved inventory management. To learn more about managing your organisation’s waste, read our guide: How to Manage your Organisation's Waste. 

Compare Your Footprint client, Abel & Cole, is committed to responsible waste management that supports a circular economy. Their packaging policy is to remove packaging wherever they can and replace it with more refillable solutions.

They also operate a zero-to-landfill promise, and regularly measure and report on their waste streams, to better understand where their waste comes from. 

In their recent impact report, they calculated exactly how much waste they produced in 2022, and measured how much of it was recycled. 

Source: Abel & Cole 2023 Impact Report

Business travel

Minimise air travel by using virtual meeting tools. Encourage the use of public transport and implement travel policies that promote more sustainable options. 

Compare Your Footprint client, Bowmark Capital, and Green Element client, Poole Alcock both implemented a sustainable travel policy, promoting rail travel where possible and air travel only when necessary. 

Employee commuting 

Promote remote working, incentivise carpooling, and provide facilities for cycling to work. For example, offer a cycle-to-work scheme and subsidies for public transport passes. 

Compare Your Footprint client, Solve, identified employee commuting as one of their carbon hotspots. To tackle this, they implemented an occasional Working from home policy to reduce their commuting footprint and offer E-Bikes and traditional bikes to employees to reduce in-town driving. 

Upstream leased assets 

Choose energy-efficient buildings and encourage landlords to implement sustainable practices. For example, negotiate green lease agreements that include energy efficiency clauses and renewable energy commitments. 

After creating an emissions reduction roadmap, Green Element client, Poole Alcock, , began encouraging their office owners to improve their energy efficiency (heating and lighting) and switch all offices to a 100% renewable tariff. 

Downstream transportation and distribution 

Collaborate with logistics partners to enhance their sustainability practices and optimise shipping methods. 

Processing of sold products

Work with downstream processors to ensure they use sustainable practices and technologies. Provide guidelines and support for processors to implement energy-efficient technologies and reduce waste. 

Use of products 

Design products for energy efficiency and durability. Provide clear guidelines on efficient use and disposal. 

End-of-life treatment of sold products

Implement take-back or recycling programs to ensure proper disposal and recycling of products. 

Green Element client, KMI Brands, has partnered with First Mile to offer new recycling scheme for their products that are not currently curb-side recyclable. The scheme promotes the return of certain parts of their products to ensure they are recycled appropriately. They have clearly designed instructions for customers to follow – see below. 

Source: KMI Brands launch new recycling initiative with First Mile

Downstream leased assets

Ensure leased assets are managed sustainably and include energy-efficiency in lease agreements. 

Franchises

Encourage franchises to adopt sustainable practices and provide them with the necessary tools and training. 

Investments

Incorporate environmental, social, and governance (ESG) criteria into investment decisions. Prioritise investments in companies and projects that have strong sustainability performance and contribute to environmental conservation. For help with general considerations when making investments contact our partners, One Stone Advisors. 

7. Carbon Removals VS Offsetting 

Reaching net-zero for a company means reducing its greenhouse gas emissions to a level required to limit global warming to 1.5°C. To achieve net-zero, the company must reach its long-term science-based targets and cannot simply offset emissions with removals and claim to be net-zero before that.

Even if a company balances its emissions and removals temporarily on its path to net-zero, it must still reduce emissions to the required level before it can be officially considered net-zero. 

An investigation by the Guardian, Die Zeit, and SourceMaterial revealed that more than 90% of the rainforest carbon offsets verified by leading carbon standard Verra did not reduce deforestation. Instead, the investigation found that carbon offsets at best overestimate the carbon sequestered, and at worst have negative impacts on climate change.

Read more about the reality of carbon offsetting in Green Element’s blog: The Reality of Carbon Offsetting 

After cutting your organisation’s emissions by at least 90%, there will still be around 10% of residual emissions remaining. Residual emissions are any greenhouse gas emissions that remain after an organisation has implemented all reasonable and feasible efforts to reduce emissions in all scopes and from all sources.

Permanent physical carbon removal methods should be utilised to remove any residual emissions (up to 10% of baseline emissions). Examples of permanent physical removals include:

• Climeworks: Climeworks offers CO2 removal as a service via direct air capture (DAC) technology. At Orca, Climeworks’ DAC facility in Iceland, the carbon dioxide is permanently removed from the air by capturing and geologically storing it for thousands of years with Climeworks’ storage partner Carbfix.
• EcoTree: EcoTree’s portfolio of nature-based projects across Europe can help organisations tackle their residual emissions. They take a holistic approach, sequestering carbon while helping biodiversity thrive and enhancing the local environment.

8. Impact Report and B Impact Assessment 

Transparency and communication are vital. Share your progress with stakeholders through annual impact reports by highlighting your achievements, challenges, and targets. This not only demonstrates your commitment to sustainability but also engages your customers, investors, and employees in your journey.

Examples: Finisterre and The Guardian

Green Element Group client Finisterre publishes an annual impact report that includes their carbon footprint data, reduction strategies, and progress towards their sustainability goals. 

Read their 2023 impact report here: Finisterre 2023 Impact Report
 

Source: Finisterre 2023 Impact Report

Green Element Group client The Guardian publishes an annual impact report that includes a complete breakdown of their emissions across Scopes 1, 2, and 3, where the emissions are coming from, progress against their targets. 

Read their full report here: The Guardian Impact Report 2022-23

Source: The Guardian Impact Report 2022-23

If you are a B Corp, or aspiring to be one, you need to include your carbon footprint in your B Impact Assessment. B Corps are required to recertify every three years, and the B Impact Assessment evaluates a company's overall social and environmental performance. Sharing your carbon footprint and sustainability efforts can strengthen your B Corp certification.

As part of Green Element Group, we were the first B Corp to publicly share our entire B Impact Assessment online to help other organisations through the process. Read it in full here: Green Element Group's B Impact Assessment

9. Employer stakeholder engagement 

Involve your stakeholders in your sustainability efforts, including employees, suppliers, customers, and the community. Encourage them to participate in and support your initiatives. Collaboration can lead to innovative solutions and greater impact.

Employees: Engage employees through sustainability workshops, green teams, and incentive programs. Encourage them to contribute ideas and take part in sustainability initiatives. For example, the Compare Your Footprint team ran a lunch-and-learn with Oddbox to present the results of our carbon footprint report and the strategy going forward for Oddbox. This allowed the team to fully understand and become invested in the environmental efforts of the company. 

Suppliers: Work closely with suppliers to enhance their sustainability practices. Share your goals and collaborate on projects that reduce emissions and improve environmental performance. For example, Green Element Group client Oliver Bonas have implemented a Supplier Code of Conduct and an Ethical Sourcing Program. Find out more on their website. 

Customers: Communicate your sustainability efforts to customers and encourage them to support your initiatives. This could include eco-friendly product lines, sustainable packaging, and recycling programs. 

Community: Participate in community sustainability projects and collaborate with local organisations. This not only enhances your local reputation but also contributes to broader environmental goals. Green Element Group client Finisterre established the Finisterre Foundation to inspire a wider community of people to love and protect the sea, aligning with their purpose, vision, and mission. 

By following these steps, you can continue to make meaningful progress on your sustainability journey, reduce your carbon footprint, and contribute to a more sustainable future for all.