Why there’s no typical business carbon footprint

There’s no business out there like yours. You have a unique proposition, a unique team, and a unique perspective.

Like many businesses, you’re probably facing increasing pressure from customers, investors and regulators to decarbonise and cement your commitment to sustainability. But if you want to start offsetting and reducing your carbon footprint, where do you start?

We know what factors are included in a business’s carbon footprint, but every business will have a different mix and proportion of those factors. Like any recipe, the ratios change depending on the chef. Your business’s carbon footprint will depend on your size, sector, methods, locations, and the practices of their supply chains.

Every business’s carbon footprint is different.

Generally speaking, the two most important elements in a business’s carbon footprint are size and sector, however it’s crucial to understand that even if you have a small business in a relatively low-emission sector, there are still actions you can take to address how those factors impact your business’s carbon footprint.

Let’s explore both in more detail.

Business Size

Your business size will impact operations, staff, infrastructure, and travel among other things.

1. Scale of Operations
   Larger businesses tend to have larger-scale operations, in this instance meaning all activities and processes needed to run the company and deliver products or services to customers. Larger operations mean higher energy consumption and emissions. For instance, a company with multiple offices, manufacturing plants, or retail outlets will typically consume more energy compared to a smaller business with fewer locations.
2. Supply Chains
   A business’s supply chain (the network of organisations, activities, resources, and information involved in producing and delivering to your customers) is often overlooked when calculating the company’s carbon footprint, but it’s actually hugely important. Suppliers may be in different geographical regions, and transportation over longer distances increases carbon emissions. Additionally, the wider your range of products and/or services, the more extensive your supply chain network has to be, which once again increases emissions.
3. Infrastructure and Facilities
   This includes office buildings, manufacturing plants, warehouses, data centres, and transportation fleets. Larger businesses tend to require more extensive infrastructure/ facilities to support their operations, but the energy consumption of any sized business’s facilities contributes to the carbon footprint. However, larger facilities may have additional challenges in terms of optimising energy efficiency compared to smaller, more nimble operations.
4. Employee Commuting and Travel
   A larger business probably employs more people, leading to a larger workforce commuting to and from work. However, if your small business requires a handful of employees to travel around the country going to trade shows, for example, that needs to be accounted for. If employees commuting rely on individual vehicles rather than public transportation or carpooling, that also needs to be accounted for, as does any long distance business travel. Aeroplane journeys have significantly higher emissions than train journeys.

Sectors

Different business sectors have different requirements (resources, production, delivery) which impact their supply chains.

Here are some examples of how different sectors’ activities and supply chains impact their carbon footprints:

1. Manufacturing
   Manufacturing processes typically involve energy-intensive operations, such as the use of heavy machinery, heating, and cooling systems. If fossil fuels are used versus renewable energy, it can significantly impact the carbon emissions of the business. Additionally, the extraction and transportation of raw materials, as well as waste management practices, will also contribute to the carbon footprint.
2. Transportation
   Transportation of goods and services is a major contributor to carbon emissions, so businesses that rely on transportation (shipping, trucking, air freight) are increasing their carbon footprint through fuel consumption and exhaust emissions. The type of vehicles used (conventional or electric), fuel efficiency, and distance travelled all play a role too.
3. Energy
   Businesses in the power generation, mining, or heavy industries depend on intensive energy consumption. Their emissions arise from the burning of fossil fuels, such as coal, oil, and natural gas to power their work.
4. Agriculture and Food
   Agriculture is one of the leading contributors to worldwide carbon emissions. Livestock itself emits methane, while practices such as deforestation release carbon into the atmosphere and destroy natural carbon sinks, and the use of synthetic fertilisers is destroying biodiversity and ecosystems. Meanwhile, the food supply chain it enters includes industrial processing, packaging, transportation, and refrigeration, all of which also contribute to emissions through energy consumption, fuel combustion, and material waste.
5. Retail and Consumer Goods
   The retail sector has multiple stages in its supply chain, including everything that contributes to the production, transportation, and delivery of items. From factory to store (and even to consumer), the sourcing of products, packaging materials, energy consumption, and waste management all play a role
6. Service
   Broadly speaking, the service sector generally has a lower carbon footprint compared to sectors directly involved in manufacturing or transportation, but it still has a carbon footprint. This is primarily from the energy consumption in office buildings, data centres, or other facilities, but as mentioned in the “size” section, the number of employees, travel patterns, and operational infrastructure can all impact a service company’s carbon footprint.

What can your business do?

Whatever your size, whatever your sector, we’ve compiled a list of quick and easy ways to start reducing your carbon footprint today.

Here are some more integrative options too:

1. Influence your sector

Larger businesses often have more influence and leverage over their suppliers (and competitors), but regardless of size, you can still take steps to implement sustainability requirements or collaborate with suppliers and others in your sector to reduce emissions throughout the supply chain. Promoting eco-friendly practices makes good business sense as well as environmental sense.

2. Resource Efficiency and Innovation

Invest in sustainable practices and technological innovations. This can include switching to renewable energy, introducing energy-efficient technologies, optimising production processes, or investing in research and development for cleaner technologies.

3. Leverage your Commitment

Make sure people know what you’re doing and lead by example. By taking your commitment, actions and progress public, you can influence other businesses and individuals to do the same.