Carbon accounting and Transformation Planning are both known activities essential for addressing climate change for organisations. Organisations are increasingly starting their journey of measuring and disclosing their emissions on a voluntary basis as mandates continue to emerge in some markets. By accurately measuring greenhouse gas emissions and developing strategic plans for reducing them, organisations can make significant contributions to mitigating climate change and achieving long-term sustainability. After all, you can’t manage what you can’t measure. Taking accountability for what you emit and being responsible for carbon reflects the ‘polluter pays principle’ (PPP): getting those who engage in emission-generating activities to internalise the social cost of carbon.
Carbon accounting provides transparency, identifies emission sources, and informs decision-making. Accurate data collection and reporting support compliance with regulations and stakeholder expectations. By implementing robust carbon accounting practices, organisations gain insights into their carbon footprint, enabling targeted emission reduction efforts. Like financial accounting, carbon accounting quantifies the impact of an organisation's activities – though instead of financial impact, it tracks climate impact. For example, when your customers buy products or services from you - your company might engage in manufacturing, shipping, and much more. Likewise, your company buys from other companies who in turn buy from other companies. The economic ripple is what your company is responsible for - and the emissions specifically from that ripple are your carbon footprint.
The first step on the journey is establishing Scope 1 and 2 which are mostly within an organisation's control. Companies will normally have the source data needed to convert direct purchases of gas and electricity into a value in tonnes of GHGs. This information may sit with procurement, finance, estate management, or in a sustainability function. Scope 3 is largely Supply chain emissions and requires management of data, cooperation and transparency. Scope 3 tends to be more tricky as it involves understanding the supplier and purchasing emissions. These indirect emissions result from the organisation's activities but originate from sources not owned or controlled by the organisation (e.g., supply chain emissions).
Building resilience is an integral part of making a commitment to carbon accountability. Companies have traditionally thought about climate change and environmental sustainability as reputational risks best managed through corporate social responsibility programs. In recent years, however, many companies have been caught unprepared as they begin to feel the effects of a changing climate and the transition to a lower-carbon economy. Legislation, prices and resource scarcity - highlight- the need to futureproof.
Once you have 4 figures (Total, Scope 1, 2 and 3 emissions) related to understanding your business impact. So what happens after that is Transformation Planning. A strategic approach can help organisations transition to a low-carbon future. It involves setting clear goals, developing actionable strategies, and establishing robust monitoring mechanisms. By integrating sustainability considerations into business strategies, organisations can reduce carbon emissions, improve operational efficiency, and enhance brand reputation.
The objectives of implementing carbon accounting and transformation planning are to reduce carbon emissions, achieve sustainability targets, and enhance organisational resilience. Strategies include setting ambitious emission reduction targets, adopting renewable energy sources, implementing energy-efficient practices, and engaging stakeholders. By aligning objectives with comprehensive strategies, organisations can drive impactful change and demonstrate environmental leadership.
A climate Transition Plan is a time-bound action plan that clearly outlines how an organisation will transition its existing assets, operations, and entire business model towards the latest and most ambitious climate science recommendations.
Elements of an effective Transition Plan:
1. Ambitious – A strong transition plan should contribute to and prepare for a rapid and orderly economy-wide net zero transition.
2. Actionable – A good transition plan will explain the specific, actionable measures your business intends to implement on its net zero journey.
3. Accountable – an accountable plan means enabling “delivery of the plan through clear governance mechanisms along with consistent, comparable and decision-useful reporting and verification.”
Why should I pick G17Eco?
If you're beginning this journey and thinking about where to start, G17Eco has been on a journey to make navigating carbon accounting simplified as users and potential users of our platform. We went to the market and found some of the best solutions to help you get to that baseline quickly and simply.
We now host the best in class Emission Calculators on the marketplace from Microsoft Greenly, Unravel Carbon and Green Project. These are each specialised for different industries and sizes since we understand that not all carbon calculators are the same - but each can help to establish emissions as the first step.
Our marketplace solutions follow the GHG Protocol , which is closely aligned with ISO 14064/PAS 2060 standards and specialises in different industries and locations. The G17Eco platform has mapped the inputs from these tools onto other sustainability standards, such as GRI.