Managing your carbon footprint

There’s no denying that managing carbon has become big stakes in today’s business world. Organizations of all shapes and sizes need to manage their carbon footprint, and they know it, however, what some don’t know is: where to begin?

For instance, the transport sector is one case. It generates 13 per cent of global greenhouse gas emissions, but a new study suggests the industry is in the slow lane when it comes to disclosing their carbon footprints and setting plans to shrink them.

A recent Carbon Disclosure Project showed nearly 300 of the world’s largest transport companies in a bid to assess how prepared the sector is to operate in a carbon-constrained world. Global business, especially the mining sector, is dependent upon the sector to move goods and services.

Yet, while there are some leading companies clearly taking steps to manage carbon, overall the transport sector lags in reporting its emissions, devising emissions reduction plans, and identifying the risks and opportunities associated with climate change regulations. A scant nine per cent is invested in low carbon technologies, such as electric vehicles or renewable energy. Of the 291 transport companies sent questionnaires, only 53 per cent responded, compared to the 2009 Global 500 response rate of 82 per cent, and S&P 500 response rate of 66 per cent. Transportation companies in Europe (52 per cent) and South America (60 per cent) are more likely to develop emissions reduction plans compared to their Asian (18 per cent), U.S. and Canadian (47 per cent) counterparts.

Slightly more than a third of transportation companies responding to the CDP (36 per cent) have set emissions reduction targets, compared to 51 per cent of companies on the Global 500. Transportation companies also lag behind other sectors in identifying regulatory risks and opportunities, even though the industry is exposed to a variety of regulatory regimes around the world. For example, 60 per cent of global companies cite regulatory risks in their CDP questionnaires, while another 60 per cent discuss related opportunities. In comparison, 53 per cent of transport companies identified regulatory risks, while another 59 per cent cited opportunities. But there are definitely leaders that are taking advantage of the opportunities, such as United Parcel Service and Toyota. While only 9 per cent invested in low carbon technologies, the price tag was $31.93 billion put toward low carbon fuels, electric or hybrid vehicles, and renewable energy systems. EasyJet, Union Pacific Corp. and Air France-KLM are making the largest investments.

Through my work with international organizations, I’ve learned that successful carbon management programs most often embrace some basic guiding principles, such as:

• Know Your Inventory. Determining your carbon inventory is the fundamental first step in any carbon management program. Engage operational colleagues across facilities to gain a comprehensive understanding of energy use associated with the product or service you provide.

• Invest in Efficient Effort. Never underestimate the “power of people” and behavioral change. More often than not, the most impactful and cost-effective “efficiency projects” simply require improving workplace practices and processes.

• Consider Verification. Validating and registering your carbon inventory with a third party can substantiate the rigor, transparency and validity of your data. Consider the value of registering your emissions with reporting programs such as The Carbon Disclosure Project (CDP), Dow Jones Sustainability Index (DJSI), Global Reporting Initiative (GRI), UK Carbon Reduction Commitment (CRC) or the Environmental Protection Agency (EPA) to keep yourself free from watchdogs claiming “greenwashing.”

Finally, talk about it. I am always surprised by the number of companies afraid to talk about their sustainability efforts. I often hear comments like, “My numbers aren’t impressive enough”, or, “Our competition might be doing better than us.”

However, it’s key to remember that if you’re not saying anything, the assumption is that you’re not doing anything. Avoid giving that impression and get credit for your efforts by communicating in an honest and transparent way.