Why Your Biggest Customers Expect You to Track Your Carbon Footprint

Many large businesses, in the UK and across the world, are now expected to closely monitor their carbon emissions. You…

Many large businesses, in the UK and across the world, are now expected to closely monitor their carbon emissions.

You may think you don’t have to get involved if you’re an SME. However, if you’re part of a larger company’s supply chain, you may also need to report your emissions too.

This guide will explain your obligations and what to do if you’re asked to get involved.

Why Some Businesses Have to Report Their Carbon Emissions

Some large UK-based businesses have to track and report on their carbon emissions as part of the Government’s Streamlined Energy and Carbon Reporting (SECR) policy. This is a key part of helping the UK get to net zero emissions by 2050.

These carbon emissions are split into three categories.

  • Scope 1: Emissions that come directly from the business
  • Scope 2: Emissions from the energy a business uses
  • Scope 3: Which covers all other emissions

At the moment, UK businesses only have to legally report on Scope 1 and Scope 2 emissions. They can voluntarily report their Scope 3 emissions if they wish.

However, it’s highly likely that Scope 3 emission reporting will become mandatory for these businesses over the next few years.

How This Affects Your Business

While Scope 1 and Scope 2 cover direct carbon emissions a business generates, Scope 3 covers all indirect emissions.

If you’re involved in manufacturing, transporting, or distributing a product on behalf of a company, it may ask you to track your emissions so it can submit a complete and accurate Scope 3 report.

Essentially, if you’re part of a larger company’s supply chain, you’ll need to fill in the gaps in their reporting.

Help! We’ve Been Asked to Track Our Carbon Emissions.

If you’re asked, the onus will be on the business you work with to clarify the scope of what they need. After all, they’ll be a large business with a team dedicated to sustainability, while you may only have a handful of staff.

They should specify what you have to report on, how to track it, and give you plenty of time to provide the data. Don’t be afraid to ask questions or ask for help if you’re not sure what you have to do.

One of the easiest ways to report on your carbon emissions is by using energy monitoring software. This allows you to track and download your data with just a click of a button, saving valuable time.

We also recommend keeping a detailed record of all data sources, calculations, and supporting documentation. That way, if the business has any questions about how you worked out your carbon footprint, you have all the information at hand.

Open Up a World of Benefits by Tracking Your Carbon Footprint

Scope 3 reporting may seem like a lot of extra work. But the reality is that monitoring your carbon footprint can help your business in the long term.

By identifying how much energy you generate and where you’re wasting it, you can improve business efficiency.

Whether you’ve been asked to assist with Scope 3 reporting or want to reduce your own greenhouse gas emissions, we can help.

We can get you set up with energy monitoring software, help you work out your carbon footprint, and provide valuable energy-saving guidance, customised to your business.

Contact us today and take the first step towards taking control of your data.