Tuesday, March 31, 2009

What does it mean to be carbon neutral?

Organisations across the world, ranging from small local businesses to large-scale international enterprises, are increasingly announcing their intention to become ‘carbon neutral’. But despite the term being used frequently, there is still a common misunderstanding about what it means. So what exactly is a carbon neutral business?

Carbon neutral refers to an individual, an organisation or even an event or meeting that has had its full climate change impact calculated and negated, usually through a combination of reduction measures and carbon offsetting.

For an organisation, this typically includes calculating all greenhouse gases related to running the business, such as electricity and gas usage, waste; staff and other business related travel, and embodied emissions in products and services sold and used. The sum of greenhouse gases emitted by a business is called its carbon footprint.

Given the complexity of these calculations and also the diversity of operations differing from business to business, a customised carbon audit should always be the first step in becoming carbon neutral. There are different organisations offering to for this for you and it’s worth shopping around for the most comprehensive one to avoid being questioned about the integrity of your claims.

Once an organisation has determined its carbon footprint, it can start investigating in measures to reduce that footprint. Depending on the nature of a business, there are usually easy-to-implement measures, the low hanging fruits of climate change; that will immediately save greenhouse gases and also money.

A good example for this is energy efficiency. A business that consumes a large amount of electricity can lower its usage and the money spent on power simply by installing energy saving lighting and by making sure all lights are turned off at night when the office is unoccupied. The same goes for all other office appliances such as printers, scanners and even the air conditioner.

In any business, there will always be emissions that cannot be reduced, such as the emissions from transporting goods to a store, or the electricity used to power computers throughout the day. Luckily, these emissions can be offset through the purchase of carbon credits.

Carbon credits are a mechanism that allows organisations to help reduce greenhouse gases in a project somewhere around the globe equivalent to the emissions it puts out. Carbon credits can be thought of as trading certificates representing one tonne of CO2-equivalent gas each.

For example, a business may have had its carbon footprint calculated and determined that it emits 90 tonnes or CO2-e annually through its operations. That business can then choose to purchase 90 carbon credits from a project of its choice, such as a wind farm, or an energy efficiency project, or a methane abatement project, to offset those 90 tonnes. That would make the business carbon neutral.

However, there is much more to being carbon neutral than simply installing energy efficient light bulbs and buying carbon credits. On one hand, with becoming carbon neutral comes along a great responsibility to educate staff, implement sustainable practices into ones personal life, and spread the message about the need to reduce global greenhouse gas emissions.

On the other hand, becoming carbon neutral brings along great competitive advantages and opens up new markets as consumers and businesses alike increasingly demand carbon neutral products and services. A lot of businesses find that becoming carbon neutral not only improves their public image but also grows their customer base, helps them sell more products and increases profit!

In essence, becoming carbon neutral means taking effective action on climate change while growing your business and winning new customers. So what are you waiting for?

Businesses Greenhouse Gas Reduction Tips
  • Use energy efficiently: For an office based business, electricity usage is often the largest carbon footprint component. Make sure lights are only on if they are really needed, turn computers off at night, and install timer switches for office appliances. This will not only save energy but also money!
  • Recycle waste: By recycling paper, plastics, metals, food scraps and electronic waste, you make sure those don’t end up in landfill where they decompose slowly and produce dangerous greenhouse gases. You will also help save resources. Contact your local council if you’re unsure about what can be recycled in your area.
  • Become carbon neutral: By having your carbon footprint assessed and becoming carbon neutral certified, you can make sure that your operations have a zero impact on climate change. Please visit www.noco2.com.au* if you’re interested to find out more.
*The Carbon Reduction Institute is Australia’s leading carbon management consultancy. Please visit www.noco2.com.au for more information.

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