How can companies minimize the impact of Greenhouse Gases (GHG) emissions and reduce their carbon footprint to minimise the effects of climate change and achieve the 2050 carbon neutral goal?
Leaving lights on in factories may have little impact on an individual company’s emissions but, all these individual actions add up to 13% of global energy consumption by SMEs alone, according to the International Energy Agency (IEA), which believes that demand could be reduced by 30% if every company applied energy efficiency measures.
The carbon footprint is the amount of greenhouse gases that each company and each individual person releases into the atmosphere, directly or indirectly, measured in tons of CO2.
In our everyday lives, nearly every action that we carry out is already consuming energy, which means that we are all contributing to the effects of climate change and the resulting, pollution, loss of biodiversity and extreme weather events.
Each of us should check the carbon footprint of our energy consuming actions. Not just, for example, in product manufacture and service provision but also for the entire lifecycle. In the case of a product, from the moment raw material is purchased right up to end of life recycling.
Once this evaluation is complete, the CO2 is calculated. The most common method within an organization is (Green House Gas) GHG Protocol, which was developed by the World Resource Institute (WRI) and the World Business Council for Sustainable Development (WBCSD) and has subsequently been used to implement other methodologies. Although, for some time now, the use of ISO 14064 has become more widespread due to its verification system.
To measure the carbon footprint of products or services, the most commonly used standards are: PAS 2050: 2011 and ISO/TS 14067: 2013.
There are three calculation levels or scope, as it is technically known.
Scope 1: direct emissions from generating electricity, heat or steam from combustion processes.
Scope 2: indirect missions from the purchase of energy.
Scope 3: this is the most complicated one because it doesn’t depend directly on ourselves, but on our suppliers. In other words, it covers the indirect emissions emitted from obtaining the raw material right up until the product is recycled. In fact, in terms of CO2 consumption, scope 3 far exceeds the other two levels put together. That’s why it’s important for us to know our suppliers’ GHG emissions.
Once the carbon footprint has been identified and calculated, it must be officially registered. This is voluntary but, doing so undoubtedly encourages the application of measures to reduce polluting gases. For Spanish companies, registration is carried out at the Spanish Office for Climate Change. In return, the company is certified as having calculated its carbon footprint.
We can take a few simple steps, such as purchasing renewable electricity, installing solar panels and purchasing approved carbon offsets to balance the excess.
Other actions include business travel arrangements and transport of goods.
In the sheet metal and metal sector, we can optimise our machine’s workload for each phase of the production cycle and minimize the creation of scrap.
As part of this process, Lantek is making significant progress in evaluating its carbon footprint, and it will soon make this function available to its customers.
We have also set up initiatives aimed at reducing the environmental impact of our daily business. We have adopted an innovative approach to environmental protection, that goes beyond our normal areas of expertise. For example, with Artificial Intelligence software connected to CAD/CAM programs in the Cloud environment, we can even measure the carbon consumption of a component from the moment the sheet metal is purchased to when the order is delivered. Data that is calculated even before the part has been manufactured.
The benefits for companies when this information is available is not only just in the reduction of carbon emissions, but also in intangible benefits, such as improving the brand image for the consumer. Across all generations, public awareness of climate issues is increasing and, when purchasing products or hiring services, people are looking at brand sustainability. This translates to an increase in reputational value which will undoubtedly be reflected in increased business.
Unfortunately, emissions reduction is an issue yet to be addressed by many European SMEs, as shown by the Energy Efficiency Solutions for Small and Medium-Sized Enterprises whitepaper, which states that two out of every three SMEs have yet to implement measures to reduce their carbon footprint and highlights barriers such as lack of knowledge, funding or time.
But there is light at the end of the tunnel. The document also indicates that 72% of the small and medium-sized companies that carried out an energy audit kept efficiency measures in place.
There is much to be done, but small daily actions by every company and individual all contribute to carbon emission reduction in working towards the 2050 carbon neutral goal.
