![]() While businesses can calculate these on their own, it can be incredibly complicated. Ī greenhouse gas emission factor represents the rate at which a source (e.g., a building) emits a specific gas per unit of activity (e.g., grams of CO2 per kilowatt hour). Using MT CO2e, you can quantify your business’s actions across any number of areas-vehicle emissions, purchased electricity, business travel, employee commutes, and more using emissions factors. ![]() For example, one metric ton of methane has a warming effect at least 25 times that of CO2 and would therefore amount to 25 metric tons of CO2 equivalent. It allows for universal measurement and captures all GHG like methane, nitrous oxide, and fluorinated gases. However, there’s an equal conversion for these activities: carbon emissions equivalent (CO2e or CO2-eq). ![]() It’s not the only metric that matters, though-water consumption, waste management, and other factors are also important. CO2eĬarbon-measured in metrics tons of carbon dioxide (MT CO2)-has become the standardized unit of measure for climate change-centric sustainability goals and targets. Unless you own significant real estate, your indirect emissions, which are the most complex to identify and calculate, typically comprise the bulk of your emissions profile. Indirect emissions include all upstream and downstream activities-everything from employee commutes and the software you use to the emissions associated with your supply chain and getting a product to your customers. Direct emissions include things like energy and fuel used in your buildings. What to consider when calculating your carbon footprint DIRECT AND INDIRECT EMISSIONSĪt the highest level, you can break down your emissions into two things: the activities your business controls (direct emissions) and activities that support your business operation but are outside your control (indirect emissions). And if your stakeholders-including employees, shareholders, and customers-expect you to make a commitment to the environment and take action, you need to measure your carbon footprint to show progress. You’ll also be able to identify strategies and interim goals to support those big ambitions. When it comes to sustainability, measurement and tracking help break grandiose sustainability goals into smaller, manageable steps. “People don’t expect brands to become perfect stewards overnight, but they want to learn about what you’re doing to improve sustainability now.” You can exercise and eat better-which feel great-but getting an initial benchmark, then tracking give you a better sense of what’s working. It’s like saying you want to lose weight without stepping on a scale first. Why? Because before you mitigate and reduce, you need to measure. The adage, “what gets measured gets managed,” rings especially true when it comes to carbon and other greenhouse gas emissions. But before you make unattainable promises and inadvertently start greenwashing, you have to take an important first step that all these companies have in common: measure your emissions. Alongside those commitments, you’ve probably heard the terms carbon neutral, net-zero, and climate positive a lot, and your company might be tempted to jump on the climate commitment bandwagon. We’ve entered an era where companies big and small are making public environmental commitments. Why should you calculate your carbon footprint?
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