What does it mean to be Carbon Neutral?
Simply put becoming carbon neutral implies having zero carbon impact on the environment due to an organisations' activities. For an organisation to become carbon neutral it must first establish its carbon footprint and then reduce its greenhouse gas emissions as far as possible. Any residual emissions are then neutralised by the acquisition of offsets.
Offsets are typically projects or activities carried out by other parties that reduce a corresponding amount of carbon in the atmosphere. To ensure credibility of the approach, it is critical for companies to first strive to reduce emissions rather than be seen to simply pay for the right to pollute.
Why become Carbon Neutral?
- Strengthen reputation and market positioning in terms of brand, products and services
- Provide an opportunity for companies to understand their current position in preparation for anticipated emissions trading and greenhouse emissions reporting requirements., e.g. Carbon Disclosure Project
- Manage stakeholder expectations (eg, meet expectations of customers, shareholders, financiers and insurers)
- Emission reductions often generate cost savings from improved operational efficiencies and reduced consumption
- Improve employee attraction and retention- become an employer of choice
- Identify investment or product development opportunities
- Manage climate change risks (eg, reduce exposure to anticipate ‘carbon price' signals)
- Increase level of understanding of where the opportunities are in your operations and value chain to reduce costs and increase revenue
Becoming Carbon Neutral - SBP Services
Sustainable Business Practices can help your organisation navigate the path to becoming Carbon Neutral or at any step along the way
| Seven Key Steps | SBP can assist you to: |
| 1. Build internal awareness and obtain commitment | - develop awareness and understanding of the significance of greenhouse gas emissions associated with your business operations and activities
- obtain senior management support and commitment
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| 2. Determine emissions footprint | - set appropriate footprint boundaries for your operations and along your value chain
- prepare an appropriate emissions inventory or identify and fill any gaps in existing inventories
- ensure consistency with other greenhouse gas reporting requirements
- consider verification of baseline data
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| 3. Establish business case | - clearly define your organisation's business case for becoming carbon neutral
- develop and integrate your carbon neutral strategy into core business strategy and objectives
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| 4. Reduce emissions footprint | - set reduction goals and targets based on the strategy
- develop action plans and programs for implementation
- identify opportunities to reduce emissions embedded in your operations, products and services, including your value chain
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| 5. Offset residual emissions | - navigate the offset market to obtain appropriate and quality offsets (ensure that credits are valid and actually exist)
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| 6. Communicate with stakeholders | - develop a communication strategy for key stakeholders
- meet greenhouse gas reporting requirements
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| 7. Continue to identify market opportunities | - Ongoing efforts to reduce the carbon profile of your value chain can lead to significant cost savings and identify new market opportunities
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