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10 things a company can do to decarbonize in a year

Written by
Frederica Crouch
July 22, 2024
ā€¢
7
min read

1. Conduct a carbon audit

Conduct a thorough carbon audit to identify the main sources of your company's greenhouse gas emissions. The audit involves collecting data on energy usage, transportation, waste and other factors contributing to carbon emissions, and will provide a baseline for measuring progress and identifying priority areas for emission reduction. Regular audits enable companies to track their progress over time and adjust their strategies accordingly. Carbon management software can streamline this process, efficiently measuring Scope 1, 2 and 3 emissions from financial data.

Example: The Greenhouse Gas (GHG) Protocol offers comprehensive tools and standards for measuring and managing emissions, making it a valuable resource for companies undertaking carbon audits. Widely regarded as the most authoritative reporting standard in the world, the GHG Protocol provides a standardized framework that allows for meaningful comparisons between companies, industries, and countries.

2. Switch to renewable energy

Transition your electricity supply to renewable energy sources such as wind, solar, or hydro power. Coolsetā€™s sustainable alternatives offering helps businesses identify and transition to renewable energy sources, significantly reducing their carbon footprint. This switch not only lowers emissions but also can result in cost savings over time due to decreasing costs of renewable energy technologies. Renewable energy can be sourced through direct purchase agreements with green energy providers or by investing in on-site renewable energy projects, such as installing solar panels.

Example: In 2018, Anheuser-Busch, one of the largest beer producers in the world, committed to purchasing 100% of its electricity from renewable sources by 2025. The company partnered with Enel Green Power to purchase energy from a wind farm in Oklahoma, which supplies power equivalent to the annual energy needs of 50,000 U.S. homes. This initiative has significantly reduced their carbon footprint and set an example in the beverage industry for adopting renewable energy solutions.

3. Improve energy efficiency

Implement energy-saving measures such as LED lighting, energy-efficient HVAC systems, and smart building technologies to reduce energy consumption. Upgrading to more efficient systems and technologies can significantly cut energy use and lower operating costs. Simple changes, such as installing motion sensors for lighting and using programmable thermostats, can result in substantial energy savings. Additionally, educating employees about energy conservation practices can further enhance efficiency efforts.

Example: Greggs, the popular UK bakery chain, improved energy efficiency by keeping shop doors closed to retain heat during winter months. This simple yet effective measure has significantly reduced heating costs and energy consumption. Additionally, they have installed energy-efficient LED lighting and modernized their HVAC systems, further contributing to reduced energy use and operational costs.

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4. Optimize supply chain

Work with suppliers to ensure they follow sustainable practices. Consider sourcing materials locally to reduce transportation emissions. Engaging with suppliers on sustainability can lead to mutual benefits and stronger partnerships. Companies can set sustainability criteria for their suppliers, conduct regular assessments, and collaborate on projects to reduce emissions throughout the supply chain. Sourcing materials locally not only reduces transportation emissions but also supports local economies and can shorten lead times.

Example: Heineken has made substantial efforts to optimize its supply chain, increasing its environmental sustainability, but also contributing to cost savings and improved operational efficiency. By sourcing a significant proportion of its ingredients, such as barley and hops, from local Dutch farmers, Heineken has reduced the distance the raw materials need to travel therefore minimizing transport emissions. Furthermore, utilizing inland waterways and rail, Heineken has optimized transport logistics, significantly cutting down on carbon emissions.

5. Reduce business travel

Minimize air travel by promoting virtual meetings, conferencing tools and flexible working arrangements. For necessary travel, encourage the use of train services over flights, where feasible, and encourage offsetting travel emissions through programs such as Coolsetā€™s carbon management solutions.

Reference: Salesforce reduced its business travel emissions by leveraging video conferencing and collaborative tools, leading to a significant reduction in their carbon footprint and demonstrating the effectiveness of remote communication solutions. This initiative underscores the potential of remote communication solutions in achieving sustainability goals while maintaining productivity and connectivity across global teams.

6. Promote sustainable commuting

Offer incentives for employees to use public transport, cycle, or carpool. Employers can implement programs such as subsidized public transportation passes, bike-to-work schemes, and carpool matching services; bike storage and showers also help to support these choices. Encouraging sustainable commuting options can reduce the environmental impact of employee travel and promote a healthier lifestyle. Additionally, offering flexible working hours and remote work options can reduce peak-time commuting and associated emissions.

Example: The Cycle to Work Scheme is an UK government initiative designed to promote healthy journeys to work, and reduce environmental impact by encouraging employees to cycle. The scheme allows employers to loan bicycles and cycling equipment to employees as a tax-free benefit. Employees typically save between 25-39% on the cost of a new bike, at the same time reducing their carbon footprint.

7. Implement waste reduction strategies

Adopt a zero-waste policy by reducing, reusing, and recycling materials. A zero-waste policy involves analyzing the types and quantities of waste produced and identifying opportunities for reduction. This can include reducing packaging, reusing materials, and ensuring proper recycling practices are in place. Encourage employees to minimize waste and segregate recyclables through education and the provision of clear guidelines for waste segregation.

Example: Googleā€™s offices aim to divert at least 90% of their waste from landfills through comprehensive recycling and composting programs, highlighting the potential impact of robust waste management practices.

8. Offset carbon emissions

Whilst carbon offsetting is generally seen as a last resort strategy to decarbonising as it fails to promote mitigating climate change, it provides a way to compensate for emissions that cannot be eliminated through direct actions. If all other measures to decarbonise are not feasible, investing in carbon offsetting projects can help to balance out unavoidable emissions. These projects can include reforestation, renewable energy initiatives, and methane capture programs. Selecting high-quality, verified offset projects ensures that investments contribute to genuine environmental benefits.

Example: Microsoft has implemented a robust carbon offsetting stategy as part of its commitment to achieving carbon neutrality and advancing environmental sustainability. The diverse portfolio of carbon offset projects include renewable energy projects, methane capture from landfills and sustainable agriculture practices all undergo rigorous third-party verification to ensure they meet internationally recognized standards.

9. Educate and engage employees

Provide training and resources to employees on sustainability practices, engaging them in initiatives such as energy conservation, recycling programs, and sustainability challenges. Empowering employees with knowledge and tools to contribute to sustainability goals can drive significant change within the organization. Regular training sessions, workshops, and sustainability-themed events can raise awareness and inspire action, fostering a corporate culture of environmental sustainability.

Example: Unilever has implemented comprehensive initiatives to educate and engage its employees in environmental sustainability practices. Online learning platforms, a sustainable living ambassadors program, recognition rewards and green teams are a few components of the proactive program which works to align employee actions with the businessesā€™ sustainability goals.

10. Adopt sustainable product design

Redesign products with sustainability in mind. Incorporating principles of circular economy, such as designing for durability, reparability, and recyclability, can extend product life and reduce waste. Sourcing sustainable materials and minimizing packaging not only lowers environmental impact but can also enhance brand reputation and customer loyalty.

Example: IKEA has established a robust sustainability strategy that integrates environmental considerations into every stage of their product lifestyle. By designing products for longevity and using recycled materials, IKEA reduces the environmental impact of the resources that go into their products. The IKEA second life program encourages circular consumption and thus a reduced environmental footprint.

Conclusion

Embarking on a decarbonization journey requires commitment and strategic action, but the rewards are significant. By implementing these ten strategies, your company can make substantial progress towards reducing its carbon footprint within a year. Sustainable practices not only protect our planet but also pave the way for innovation and long-term success.

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