Avoid These Common Carbon Footprint Calculation Pitfalls to Ensure Accurate Reporting and Drive Meaningful Change
As a business, ensuring accuracy in carbon footprint calculations is crucial for sustainability targets and climate reporting. However, mistakes are common. Here are the top five errors we see on a daily basis and how to avoid them:
1. Mis-categorising Emissions Companies often misclassify emissions, particularly between Scopes 1, 2, and 3. For instance, emissions from third-party logistics should fall under Scope 3, yet they’re often reported in Scope 1 or 2. It’s also easy to put emissions in the wrong scope 3 category. Did you know that hotel stays actually come under category 6: Business Travel, and working from home emissions are part of category 7: Employee Commuting? Ensuring emissions are properly categorised is essential. Incorrect classification can lead to underreporting or double-counting. To avoid this, carefully review the GHG Protocol guidelines for Scope classifications and consult experts if in doubt.
2. Focusing on Only One Methodology There are several ways to calculate emissions, such as spend-based and activity-based analyses. Relying solely on spend-based calculations, for example, can be too simplistic. While easy to implement, it often lacks accuracy, as spend doesn’t always correlate directly with emissions. Focusing on activity based emissions often requires too much work and time wasted on the measurement and can lead to large proportions of the calculation being excluded due to lack of data. A hybrid approach, incorporating both spend and activity-based methods, is the only way to ensure completeness and get results where reduction actions can be realised.
3. Missing Large Proportions of Emissions Completeness is key, but companies frequently omit major sources of emissions. For example, supply chain emissions or end-of-life disposal can account for a significant portion of Scope 3 emissions but are often neglected. To avoid missing such vital components, businesses should follow the principle of completeness: consider the entire lifecycle of products and services, and include all relevant emissions sources.
4. Poor Boundary Setting Boundary setting determines which parts of your business are included in carbon footprint calculations. Where the supply chain can be complex, poorly defined boundaries often lead to incomplete reporting. Ensure you set clear, consistent organisational and operational boundaries that align with your sustainability goals and sector standards, including indirect emissions.
5. Using Incorrect or Outdated Emissions Factors Emissions factors (EFs) are critical for translating activity data into carbon emissions. However, it’s important to regularly update your EFs to reflect changes in your energy mix or processes. Using outdated or incorrect factors is a common mistake that can lead to inaccurate carbon reporting. To avoid this, always rely on the latest data from trusted sources like DESNZ. Additionally, certain frameworks, such as the NHS’s procurement guidelines, require the use of specific emissions factors from mandated databases. It’s essential to ensure your calculations meet these framework-specific requirements to maintain compliance.
Conclusion
Accurate carbon footprint calculations are vital for achieving sustainability goals. Avoid these five common mistakes by ensuring proper categorisation, a comprehensive approach, complete boundary setting, and up-to-date data. Taking these steps will put your business on a more sustainable path.
If you are struggling with any of this feel free to get in touch. C Free works with businesses to ensure they meet their reporting requirements and achieve their sustainability goals!
