The carbon footprint is ecological, economic and strategic, says Alexandre Magnette. (Photo: Romain Gamba/Maison Moderne)

The carbon footprint is ecological, economic and strategic, says Alexandre Magnette. (Photo: Romain Gamba/Maison Moderne)

The “carbon footprint” method sheds light on companies' environmental impact and paves the way for a collaborative strategy to reduce it, explains Alexandre Magnette, partner at CO2 Strategy.

The “carbon footprint” is often used to measure the environmental footprint of companies. But what is a carbon footprint in practice?

Alexandre Magnette. - The carbon footprint is a method and a registered trademark from France and applies to all types of companies in all sectors. It is a diagnostic tool, a sort of matrix that allows us to measure C02 emissions at all levels of the company. It is a photo taken over a year. A carbon footprint is therefore never static in nature, it is the starting point for reflection and, ideally, a strategy consisting of concrete actions.

How does a balance sheet work?

The company wishing to carry out the assessment simply has to complete an Excel file with a set of data. This is an important step, and its duration depends on the prior organisation of the company's data and its internal documentation. After listing and identifying the greenhouse gas emission factors, we reduce them to the single unit of CO2. The tonnes of CO2 emitted by the company are divided, schematically in a pie chart, between the different categories of direct emissions (on the company's site) and indirect emissions (outside the site). The carbon footprint will therefore make it possible to reduce all the flows of a company (purchases, energy, travel, transport, etc.) to a single unit, namely CO2. This approach makes it possible to compare different activities that were previously incomparable. How can you compare the impact of paper purchases with electricity consumption without using the CO2 approach? It is also easier to identify priority areas for action by classifying activity flows according to their degree of emission.

What do you measure in concrete terms?

We look at all the products and services offered by a company, but also a public sector player. We use carbon footprint categories to carry out this analysis, including energy consumed on site, purchases and their delivery, waste, fixed assets, energy consumed in the manufacture of products and the end of life of these products. We then convert all these flows into kilos of CO2.

Some emission are tangible and others less so.

The challenge is to direct actions towards invisible energy by taking into account a maximum number of the company's own flows. Each carbon assessment is unique.

How are your measurement techniques evolving?

The technique is relatively simple and does not really evolve over time. On the other hand, the enrichment of the database of emission factors that we collect--anonymously--as we carry out our assignments is interesting and brings added value in the treatment of new cases.

How far can the scope of your intervention go?

We want to go as far as possible to be as efficient as possible. The carbon balance method includes three areas, three scopes. Scopes 1 and 2 concern the electricity and gas bills and the consumption of vehicles owned by the company. Scope 3 covers the direct and indirect emissions of the company's entire activity. It is the most interesting, as it allows real action to be taken on all the parameters that concern the company.

To go as far as possible, it is all a question of initial determination.

The method is relatively simple, and the balance sheet itself is very readable and understandable by all. But the starting point must indeed come from the head of the company, who must be prepared--with the exception of salaries, which are none of our business--to play the game of ‘open books’ to measure the environmental impact of the company, its suppliers and its subcontractors. We ultimately measure a set of flows, i.e. everything that requires energy in one way or another. Even e-mails sent, which are not so insignificant.

Is the report a catalogue of solutions?

No. We don't come up with solutions, but with findings. We are generalists, we point out the flows with high emissions. The ideas must, however, come from the team, from the heart of the company. Imposing solutions would be counterproductive, as the main people concerned would not take ownership of them. However, when good practices are discussed, shared and implemented by the teams, we find that the results are truly remarkable. However, many companies have already carried out notable actions without necessarily measuring them, such as the use of recycled plastic which can have a significant impact depending on the type of activity. Change is conceived on a daily basis, through small successive gestures, which allow us to take the path to carbon neutrality. We absolutely must not wait until 2050.

Can we take three cases of companies and review the main pillars on which we should intervene? Let's start with the country's main economic sector, the financial centre. What are the main points of attention?

The financial centre is home to a large number of service companies for which electricity and heating will be very important, as will manufacturing and building design. Employee travel and data centres will also have to be taken into account, not to mention activities at any ancillary sites. Goodies also remain factors that seem incidental, but which in reality are levers for rapid progress if you take the time to think about them and find alternatives that make sense.

What practical advice do you have for controlling and reducing energy consumption?

The priority is to collect information. I would therefore recommend putting meters on the electrical, heating and air conditioning circuits, and decoupling the different spheres of activity in the company in order to clearly identify the energy-consuming sectors. Simple actions, ranging from installing sensors to ensuring that windows in storage halls are properly closed or adapting lights with energy-saving bulbs, must become the norm and be taken for granted. But there is still a lot to do. As far as travel is concerned, shared mobility policies must be put in place and public transport and soft mobility must be encouraged as much as possible. Finally, we must list our purchases and implement a more environmentally friendly purchasing policy.

What about industry?

If we take the example of a concrete manufacturer that we supported, the carbon assessment showed that more than 80% of the emissions came from the raw materials purchased, about 10% from logistics and only 2% from all its energy (electricity and heating). The company therefore contacted its suppliers to ask them what they were doing to reduce the impact of the products they sold. If a supplier reduces its emissions, this reduction will be included in its customer's carbon footprint. Without tangible action on the part of its suppliers, the customer may also look for others, which proves, once again, that this criterion will be taken into account in the positioning of each company. I would add that, in the case of this company, the drivers who got together suggested, for example, that they turn off the engine while waiting on the worksite, that they check the trucks regularly or that they optimise the number of trips in a day. These actions combined have made it possible to reduce emissions from concrete deliveries by 15 to 20%.

What about a company active in transport?

Obviously, the type of fuel will have a major impact on the balance sheet. The electrification of the car fleet will undoubtedly have a considerable impact. However, the origin of the electricity consumed is also a key factor. Fossil fuels still dominate the current energy mix. Fortunately, there are clean energy suppliers that offer simple and immediate solutions. Optimising journeys also remains a key action.

Change is conceived on a daily basis, through small gestures.

Alexandre Magnette

After the carbon assessment comes the stage of the carbon strategy. What is the difference?

The balance sheet is important because it gives a picture, but it does not allow you to buy a good conscience by offsetting the CO2 emitted without having taken the trouble to reduce it. We strongly recommend that, after the balance sheet, a strategy be defined that involves all staff and makes it possible to give meaning to new daily actions. It is not just the boss's job, but it is his or her responsibility to convey the importance of reducing the CO2 balance to all levels of the company.

Can we say that offsetting should be the ultimate gesture?

Offsetting is complementary and essential to the overall reduction strategy. Knowing that deforestation is responsible for 20% of greenhouse gas emissions, without offsetting we would only be tackling 80% of the problem. On the other hand, offsetting without taking action is a good thing, but it will not solve the issues at hand. This is why we always include the notion of compensation, in our case via the Luxembourg NGO Graine de vie.

How can you tell the difference with greenwashing?

The definition of greenwashing by Ademe (the French Agency for Ecological Transition) is as follows: 'Greenwashing consists of a company orienting its marketing and communication towards an ecological positioning. This is often done by large multinationals whose activities cause excessive pollution of nature and the environment.’ So, to improve their brand image, these companies spend money on communication to 'whiten' their image, which is why it is called 'green washing'. However, the carbon footprint is precisely the opposite. It is a tool that will help companies make the right decisions to reduce their emissions. It is an extremely concrete approach based on figures that are specific to the company.

Are some sectors or types of company further ahead than others?

Not to our knowledge. On the other hand, we have several family businesses among our clients in Belgium and Luxembourg. Perhaps the reason is that this type of company often has a much more long-term vision than others.

Should companies be required to have a carbon footprint?

Experience shows that if carbon footprints are imposed, as they are in France or Wallonia, for some companies, they will do the minimum to meet the obligations. Whereas if the decision is voluntary, the company is ready to go very far in the process. I therefore recommend a voluntary approach, but with State aid to subsidise part of the cost of the study.

If you had to convince a company director to carry out a carbon assessment, what would you say?

The carbon footprint is, by nature, good from an ecological point of view, but also economic. CO2 reductions are often accompanied by a reduction in costs, and this is true for all the emission categories under review. We observe that it is not uncommon for a company to reduce its operating costs by 10 to 15%. Finally, there is a strategic aspect to this approach. The head of the company will see things in a different light via the overall picture provided by the carbon balance, which may encourage them to take concrete action on the existing situation before, for example, installing solar panels. A CO2 control strategy is also a source of positive internal communication, useful for retaining talent and attracting new talent. It is also a source of external communication, not for the purpose of greenwashing, but to have a societal impact and make employees, customers, suppliers and, why not, competitors want to act!

This article was written for published on 25 November 2021.

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This story was first published in French on . It has been translated and edited for Delano.