The Bilan Carbone method, created in 2011 by the French Environment and Energy Management Agency (ADEME), helps companies measure their greenhouse gas emissions and formulate an action plan to reduce them. The method is endorsed and promoted by the Association Bilan Carbone (ABC). The emissions report for companies is compulsory under Article 26 of the Grenelle II law. The Bilan Carbone allows businesses to conduct a detailed evaluation of their carbon footprint, which includes both the direct and indirect emissions from their operations. This assessment can help in the development and execution of strategies to reduce these emissions, using comparable data.
What is a carbon footprint?
According to the UN Framework Convention on Climate Change, a carbon footprint is an environmental measure of the greenhouse gases, like CO2, CH4, and N2O, discharged through human activities that alter the atmosphere's composition.
How is a carbon footprint calculated?
A carbon footprint is calculated by multiplying activity data, which quantifies CO2 emissions from activities like natural gas usage, by emissions that measure the greenhouse gases emitted per unit of activity. This requires detailed knowledge of electricity and fossil fuel consumption.
While various methods exist for calculating corporate carbon footprints, such as the Greenhouse Gas Protocol and EU standard ISO 14064-1, the Task Force for Climate-related Financial Disclosures (TCFD) is leading the way.
What are scope 1, 2 and 3 carbon emissions?
On the journey to net zero, companies measure and assess their greenhouse gas emissions using three 'scopes'. These scopes categorise emissions generated directly by a company and those linked to its broader 'value chain', including suppliers and customers. This categorisation is based on the Greenhouse Gas Protocol, the most used standard for greenhouse gas accounting globally.
- Scope 1 - Direct emissions: Emissions from sources directly controlled by the organisation, such as those from burning fuel in its vehicle fleet (if they are not powered electrically).
- Scope 2 - Indirect emissions from energy use: Emissions are indirectly caused by a company and originate from the production of the energy it purchases and consumes.
- Scope 3 - Other indirect emissions: These emissions are neither produced by the company itself nor result from assets it controls, and are linked to its indirect impact throughout its value chain.
Why is understanding a carbon footprint important?
Many businesses are keen on understanding their impact on climate change, and calculating a carbon footprint is a critical first step. By measuring their carbon footprint, companies establish the essential baseline needed to develop and execute an effective sustainability and carbon reduction strategy, which is necessary for climate action.
What are the benefits of reducing a carbon footprint?
As consumers become increasingly conscious and vocal about environmental protection, they expect the same level of commitment from the brands they use. Hence, there are substantial incentives for brands to lower emissions, not only to comply with regulations but also to meet consumer expectations.
- Regulatory environment: Given the pressing global need to cut emissions, governments and regulators are enforcing strict carbon control standards. Non-compliance can lead to fines, penalties, and reputational damage.
- Impact on reputation and brand: Companies that actively reduce their greenhouse gas (GHG) emissions are more likely to earn the trust of consumers, employees, and investors. Those who neglect to address their carbon impact risk damaging their brand.
- Financial implications: Though it can be expensive, reducing carbon emissions can improve a company's long-term financial health. Being recognised as a sustainable business can attract more investment, lead to lower insurance premiums, and improve credit ratings.
- Risk management: By developing sustainable products and services, companies can tap into the increasing demand for eco-friendly alternatives, aligning their operations with future market trends.
What is the objective of carbon footprint analysis?
Corporate environmental responsibility: Corporate environmental responsibility involves businesses achieving 'Net Zero' or 'carbon neutrality' by balancing emissions with removals, responding to heightened consumer expectations for sustainability and reduced climate impact.
Product life cycle assessment: The carbon footprint analysis of a product evaluates the total climate-relevant greenhouse gases emitted throughout a product's lifecycle, from production to disposal, assessing its overall ecological impact.
Supply chain management: By evaluating the environmental impact of their supply chains, companies can pinpoint significant sources of emissions, set focused targets, and establish supply chain and procurement strategies aimed at reducing carbon emissions.
Other terms of note
ISO 14064: The standard is a tool for quantifying, monitoring, reporting, and verifying GHG emissions, helping organisations participate in emissions programmes globally.
Equans' support for decarbonisation
Equans is actively assisting energy transition and digital transformation across various sectors by providing a suite of comprehensive services and solutions aimed at boosting business performance sustainably. This includes improving energy efficiency in buildings, advancing digitalisation, and pushing forward the electrification of transport. It has crafted an actionable roadmap to elevate energy efficiency in buildings, an important step towards decarbonisation.
Central to its strategy is decarbonisation, where techniques like heat recovery and process optimisation have slashed energy bills by up to 30%. The company customises solutions to fit specific business needs, assisting in designing renovations that adhere to economic and technical constraints and offering energy performance contracts to refine infrastructure operations.
In tackling the energy consumption in France's building sector, Equans is driving towards making buildings energy-independent through solutions such as design and maintenance. It uses AI and big data to improve energy efficiency in buildings and transport systems, incorporating predictive maintenance and sophisticated data analysis to streamline operations and cut emissions.
The company is also spearheading the electrification of transport and the development of smart airports, embedding advanced technologies to create environmentally friendly travel hubs. Its broad decarbonisation strategy includes setting precise, achievable targets and tailoring solutions to industry-specific needs, promoting renewable energy growth and providing sustainability consulting to optimise energy use and lower costs.
The company's commitment to technology and international collaboration aligns with broader climate goals, aiming to reduce its carbon emissions by 30-40% by 2030 and supporting clients through their decarbonisation processes.