What is environmental impact management and carbon reporting?

The 2015 Paris Agreement saw commitments from 195 nations to prevent dangerous climate change by limiting global heating under 2°C by 2100 compared with pre-industrial levels. Since then scientific reports released by the Intergovernmental Panel on Climate Change (IPCC) have stated that to prevent catastrophic impacts we need to limit this to 1.5°C. Analysis of current policies show that we are on track to exceed this and that temperatures will rise by 3°C, resulting in devastating global system changes that will change how we live. There are significant differences between these three scenarios impacting including sea level rise, severity of heatwaves and exposure to drought.

To stay within the 1.5C threshold, we need to achieve global net-zero greenhouse gas (GHG) emissions by 2050. This means reducing GHG emissions as close to nil as possible, with any remaining emissions sequestered during that year.

Environmental impact management is the understanding of an organisation’s operational footprint, the contribution this has in the context of climate change and the actions taken to reduce the impact. One of the most popular ways of doing this is through generating a carbon footprint. This is a measure of the impacts of an activity on global warming by calculating the greenhouse gas emissions of these activities, usually stated as a ‘CO2e’, or carbon dioxide equivalent. Limiting global heating will require the fastest structural, economic and societal transition in history – but presents significant opportunities to organisations at the forefront of this. The good news is that the technologies and methods exist, but will require a shift towards new ways of working.

The carbon footprint process is done to express all key greenhouse gases (carbon dioxide, methane, and nitrous oxide) as a common unit, allowing easy comparison across organisations, industries and countries. You can’t manage what you don’t measure. Beyond greenhouse gas emissions, there are several other environmental impacts that should be controlled including waste generation, effects on biodiversity and contribution to air pollution.

After measurement comes the most important step: implementing strategies to manage and reduce your impact on the environment. [SP(E1] Based on what has been measured, key areas can be prioritised according to their social, environmental and economic benefits. The Guardian has undertaken a full review of their emissions, the result driving decisions on what measures to take within their print process, packaging, air travel and suppliers.

 The process of undertaking this can be broken down into four main steps

1. Engagement: work with those within your organisation and supply chain to gather information
2. Measurement: use approved guidance to calculate the footprint
3. Strategy: decide which areas are most important and impactful to act upon
4. Review: check your progress, celebrate success or realign your targets

There are several main benefits of investigating and taking action to reduce your impacts:

• Show that you are serious about putting purpose before profit, acting now is a means of addressing and reducing risks associated with climate change – think all B Corps!
• Innovate your product or service offerings or even transform your business model by really catalysing on the movement and transition towards a low carbon economy – think ?rsted shifting from fossil fuels to renewables
• The momentum for sustainability is only on the rise, by demonstrating a commitment towards improving your organisation’s impact it can raise credibility in the eyes of the public, customers, team member and other stakeholders – think Patagonia’s reputation for work with their supply chain
• There will undoubtedly be an increasing amount of environmental regulation and mandatory reporting requirements that will arise in the future – think climate change levies and emissions trading schemes. Consequently, you will be future-proofing your business.

Organisations, alongside Governments, need to set targets in line with global goals to limit temperature rise to below 1.5°C This means that global greenhouse gas emissions must stop increasing in 2020 and we must halve emissions every decade to approach net-zero by 2050, while at the same time removing some of the carbon already emitted into the atmosphere.

3 actions should be taken:

1. Sign up to the Business Ambition for 1.5°C, a campaign between Science Based Target initiative (SBTi), the We Mean Business Coalition and UN Global Compact
2. Set Science-Based Targets
3. Halve their gross greenhouse gas emissions every 10 years.

Where does offsetting fit into this? Organisations can and should[SP(E2] invest in carbon removals programmes on a voluntary basis but should be wary of declaring themselves net-zero or carbon neutral as a result of these. SBTi advises the following:

“The use of offsets is not counted as reductions toward the progress of companies’ science-based targets. The SBTi requires that companies set targets based on emission reductions through direct action within their own boundaries or their value chains.”

According to data disclosed to the global online environmental reporting platform CDP, the number of companies referring to strategies to neutralise their impact on the climate has been growing in the past few years. Yet the terms carbon neutrality, climate neutrality and increasingly, net- zero, have often been used interchangeably and sometimes inconsistently.

It’s important therefore to clarify the definitions of when these terms should be used:

Carbon neutrality = Only carbon dioxide emissions are considered.

Net zero carbon dioxide (CO2) emissions are achieved when anthropogenic CO2 emissions are matched globally by anthropogenic CO2 removals over a specified period.

Net-zero emissions = All greenhouse gases are considered.

Net zero emissions are achieved when anthropogenic emissions of all the key greenhouse gases into the atmosphere are matched globally by anthropogenic removals of the same amount over a specified period.

Throughout the process, the most common pain point we consistently see during environmental impact measurement and carbon reporting is deciding the scope of what to include. There are several factors that determine what should be included when measuring your carbon footprint, the most important being the quantity of emissions[SP(E3] , level of control you have over this activity [SP(E4] and the risk associated. Understanding direct emissions produced from company premises or vehicles can be straightforward but looking into the supply chain can create problems due to lack of data and reduced influence. Through experience we have developed a way to overcome this issue which involves working through a strategic process to determine what will be included in your carbon footprint. In addition, we have a wide network and are accustomed to liaising with suppliers efficiently, understanding their reports and operations.

With 2020 on track to be the largest annual decrease of absolute emissions since the 1940s, we have a unique chance to build back better. By working to improve your organisation’s environmental impact, you are contributing to a new future, one that puts people and the planet at the centre.