Global warming and climate change have become one of the most urgent problems of our time. This situation requires proactive steps from all segments of society, from individuals to governments, from non-governmental organizations to the business world. Businesses in particular play a critical role in reducing carbon emissions.
However, this applies not only to large-scale companies but also to SMEs. While SMEs form the lifeblood of the global economy, they can also be responsible for a significant portion of carbon emissions. Therefore, businesses of all sizes need to understand and implement decarbonization processes.
This guide provides step-by-step recommendations on how businesses can begin the decarbonization process, manage this process effectively, and ultimately transition to sustainable practices that will benefit both the environment and businesses. Additionally, Carbon Gate's services and contributions in this field are examined in detail. This guide has been prepared to show how businesses can contribute to a sustainable future.
The Importance of Decarbonization
Decarbonization is extremely important not only for the environment but also for businesses. Today, sustainability and environmental protection are receiving increasing attention from consumers, investors and regulators. The attitudes of businesses on this issue can be decisive in many areas, from brand image to financial performance. Additionally, the overall economic and social benefits of decarbonization should not be ignored.
Contribution to Global Sustainability Goals
International commitments such as the Paris Agreement aims to limit global temperature rise to below 2°C relative to pre-industrial levels and, if possible, to 1.5°C. To achieve these goals, global carbon emissions need to be significantly reduced. Businesses have a vital role in achieving these goals. In fact, according to to a study by McKinsey, 90% of companies' environmental impacts come from their supply chains, not their direct operations. This shows that SMEs also need to contribute to this process actively.
Potential Benefits for Businesses
Decarbonization is not only a responsibility but also an opportunity for businesses. Reducing businesses' carbon footprint can save energy, reduce operational costs and help them achieve sustainability goals. Additionally, consumers now prefer environmentally friendly businesses. This means that decarbonization efforts can give businesses a competitive advantage in the market. Additionally, companies that integrate sustainability into their business model can achieve a 20% greater return on their investment.
As a result, decarbonisation is both a strategic necessity and an economic opportunity for businesses. Businesses should invest in this process, considering not only its environmental benefits but also its financial and operational advantages.
Measuring and Monitoring Carbon Footprint
Measuring carbon footprint is a critical step in the sustainability journey for businesses. This allows businesses to identify emissions sources, develop emissions reduction strategies and monitor the effectiveness of these strategies. Additionally, this process enables businesses to transparently report their carbon footprint and verify whether they are acting in line with their sustainability commitments.
Determining the Base Year as a Start
The first step for carbon footprint measurement is to determine a base year. The base year represents the year the business started tracking its emissions and forms the basis for comparison with measurements made in subsequent years. In this way, it can determine how much progress the business has made over time and in which areas it needs to put more effort. For example, a business that chooses 2020 as a base year evaluates its target of reducing its emissions by 20% in 2023 based on this year.
The Role of Carbon Accounting Software
Carbon accounting software is of great importance for effectively measuring and monitoring the carbon footprint. This software automatically collects, analyze and reports emissions data, helping businesses make informed decisions about carbon emissions. Particularly leading carbon accounting software providers such as Carbon Gate enable businesses in Turkey and Europe to easily measure their corporate carbon footprint. The software allows businesses to monitor their emissions not only from their direct operations but also from their supply chains.
As a result, measuring and monitoring the carbon footprint accurately and effectively is of critical importance for businesses to achieve their sustainability goals. This process enables businesses to verify whether they are acting in line with their sustainability commitments and to continually improve their strategies to reduce carbon emissions.
Optimizing Internal Processes
Guiding businesses towards a sustainable future depends not only on external factors but also on their internal processes. Optimizing internal processes allows the business to reduce energy consumption, waste generation and increase overall operational efficiency. This is a critical step to both achieve financial savings and reduce carbon footprint.
Energy Management and Efficiency
Energy is a fundamental resource for business operations. However, effectively managing energy consumption and adopting energy efficiency practices can help businesses significantly reduce energy costs and carbon emissions. Modern technologies such as LED lighting, energy-efficient devices and automation systems play a major role in reducing energy consumption. Additionally, energy audits and energy management systems are critical to constantly monitor energy consumption and make improvements.
Waste Minimization and Process Efficiency
Waste management can be both costly and environmentally problematic for businesses. Reducing, reusing and recycling waste offers both financial savings and emissions reduction opportunities. Businesses can minimize waste production by reviewing their processes and adopting more effective waste management strategies. For example, strategies such as paperless office practices or adopting more sustainable packaging materials can reduce waste production while contributing to the overall sustainability profile of the business.
Remote Working and Digitalization
In recent years, the trend of remote working and digitalization has led to radical changes in the operations of many businesses. Remote working can reduce emissions during employee commutes, while digitalization reduces paper use and makes processes more efficient. Adopting remote working and using digital tools effectively has an important role in reducing the carbon footprint of businesses.
In summary, optimizing internal processes is a critical step for businesses to achieve their sustainability commitments. This contributes not only to environmental benefits but also to financial savings and operational efficiency.
Decarbonization of the Supply Chain
To fully understand and reduce its carbon footprint, a business needs to look at its supply chain from a broad perspective. Often, the highest emissions throughout the production, transportation and consumption of a product or service occur in the supply chain, especially in the initial stages. Therefore, striving to create a sustainable supply chain is central to businesses achieving their sustainability commitments.
Supplier Audits and Sustainable Sourcing
Supplier audits are an opportunity for businesses to evaluate their suppliers' sustainability practices. These audits are critical to learn about suppliers' environmental performance and sustainability commitments.
Including compliance with sustainability standards in contracts with suppliers can help businesses make their supply chains greener and more sustainable. At the same time, sustainable resource supply is of vital importance for the preservation and prevention of depletion of natural resources. For example, using sustainably sourced materials such as FSC certified wood or certified organic cotton both reduces the impact of the supply chain and strengthens the sustainability profile of the business.
Local Supplier Selection and Reduction of Transportation Emissions
Working with local suppliers allows businesses to significantly reduce their transport emissions. The emissions of long-distance transport can be reduced by shortening transport distances by working with local suppliers. This has the potential to both reduce carbon emissions and support the local economy. Working with local suppliers can also increase supply chain continuity and reduce the risk of supply disruptions.
As a result, supply chain decarbonization is a critical step in businesses' sustainability journeys, as it accounts for a large portion of businesses' total carbon footprint. Supplier audits, sustainable sourcing and local supplier selection are effective strategies to achieve this goal.
Raising Employee Training and Awareness
Sustainability and decarbonization efforts in businesses cannot be achieved with a top-down managerial approach alone. To be fully effective, the entire organization must be part of this effort and each employee must actively participate in the process. This becomes possible by training and raising awareness of employees.
Sustainability Seminars and Workshops
Sustainability seminars and workshops are excellent platforms for employees to increase their knowledge of sustainability and decarbonization. Such training may cover topics such as how the business can reduce its carbon footprint, energy-saving methods and waste management.
These types of events enable employees to approach sustainability practices more holistically and help them understand how they can use this information in their work. It also provides an opportunity for discussion and exchange of ideas among employees on these issues.
Green Teams and Initiatives
Green teams are special groups within a business that are active in sustainability and environmental protection and carry out projects on these issues. These teams enable employees to use their sustainability knowledge and skills to make real changes in the workplace. For example, a green team might manage an office recycling program, make recommendations for energy savings, or offer sustainability-related training to employees. Such initiatives make sustainability efforts more visible and encourage employees to actively participate in the process.
As a result, employee education and awareness of sustainability play a critical role in achieving a business's decarbonization goals. Through training, seminars and green teams, businesses can spread their sustainability efforts throughout the organization and make this process a collective effort.
Adopting Circular Economy Principles
Today's linear economy model – "produce, use, throw away" – leads to rapid depletion of resources and the generation of increasing amounts of waste. This approach could lead not only to an environmental crisis but also to an economic crisis. This is where the circular economy comes into play. The circular economy is a system that aims to use resources efficiently, use products for longer periods and minimize waste. This provides both economic benefits for businesses and reduces environmental impacts.
Long-Lasting Product Design
Long-lasting product design is one of the cornerstones of circular economy principles. This approach is a strategy where products are designed to last longer and produce less waste. By extending the life of products, more value is offered to consumers and the amount of waste is reduced. This both saves resources and reduces waste management costs. Long-lasting products can also increase brand loyalty and increase customer satisfaction.
Reuse and Renewal
Reuse and regeneration are two other important elements in the circular economy. Reuse refers to the reuse of products or components for their original purpose or a different purpose. This extends the life cycle of products and reduces the use of resources required to produce new products. Renewal means repairing, modernizing and reintroducing used products to the market. This preserves the value of the products and prevents them from turning into waste.
By adopting circular economy principles, businesses not only fulfil their environmental responsibilities but also achieve economic benefits in the long term. Less waste, less resource consumption and increased customer satisfaction help businesses achieve both their financial and sustainability goals.
Transition to Renewable Energy
Considering the limited nature of fossil fuels and their contribution to global warming, the importance of renewable energy becomes more understandable. Renewable energy is becoming increasingly popular not only for its environmental advantages but also for its economic benefits. For companies, switching to renewable energy is a way to both reduce their carbon footprint and reduce energy costs.
On-Site Renewable Energy Installations
Companies can install renewable energy in their facilities to meet their energy needs. Technologies such as solar panels, wind turbines and biogas plants can help businesses reduce energy costs and have independent energy sources. Such installations can provide a significant return on investment, especially in regions where energy costs are high or energy supply is uncertain. Additionally, such installations offer companies the opportunity to demonstrate their commitment to sustainability and build a green brand image.
Community Energy Projects and Energy Storage Solutions
For some companies, it may not be practical to undertake large-scale renewable energy installations on their premises. In this case, supporting local renewable energy production by participating in community energy projects may be an ideal option. Such projects encourage the implementation of large-scale renewable energy production projects through collaboration between neighbouring businesses, governments and non-governmental organizations.
Energy storage solutions also play a critical role in optimizing the use of renewable energy. Renewable energy sources such as solar and wind energy can be intermittent. Energy storage systems enable this energy to be used during evening hours or when the wind is not blowing, thus ensuring the continuity of the energy supply.
As a result, switching to renewable energy provides both environmental and economic benefits for businesses. Adopting renewable energy technologies not only reduces carbon emissions but can also help gain a competitive advantage by reducing energy costs.
Promoting a Culture of Innovation
Decarbonization is not limited to optimizing existing processes; It should also be supported by innovative approaches and solutions. Innovation plays a major role in helping companies achieve their sustainability goals. Innovative ideas can help businesses quickly reduce their carbon footprint and at the same time create new market opportunities.
Brainstorming Sessions for Green Solutions
Brainstorming sessions are meetings where employees come together and freely share their ideas about sustainability. These meetings can help companies find innovative and sustainable solutions. Employees may come up with innovative ideas for business processes, products or services that can reduce the carbon footprint. For example, ideas on how to make packaging materials more sustainable or how to make energy consumption more efficient may emerge in such sessions.
Investing in Green Technology Start-ups
Green technology start-ups are pioneers in environmental sustainability and offer innovative solutions to reduce carbon footprint. By partnering with or investing in these start-ups, companies can reach their decarbonization goals more quickly. Additionally, such investments offer companies the opportunity to enter new markets and create new revenue streams. Start-ups, especially in sectors such as clean energy, waste management and sustainable agriculture, can make valuable contributions to companies' sustainability vision.
As a result, encouraging innovation in the decarbonization process can help companies not only achieve environmental goals but also move their businesses into the future. Innovation is a catalyst that has the potential to reduce carbon footprint as well as create new market opportunities.
Continuous Review and Adaptation of Strategies
Decarbonization is a dynamic process and companies need to constantly evaluate their progress, review their strategies and adapt where necessary. Many factors, such as market conditions, technological developments, customer demands and regulatory requirements, can affect companies' decarbonization strategies. Therefore, it is critical to adopt a continuous adaptation and learning approach for effective decarbonization management.
Carbon Accounting and Data Tracking
In order to effectively manage the carbon footprint, it must first be known how much carbon emissions are produced. Carbon accounting is a critical tool for companies to measure and track their greenhouse gas emissions. Modern carbon accounting software simplifies this process by offering features such as automatic data collection, emissions calculations and reporting. Especially considering the changing operations and growth rates of companies, this data needs to be constantly updated and analyzed. Thus, it can be determined how close the goals are to the goals and in which areas more efforts need to be made.
Feedback Loops and Continuous Learning
Establishing feedback loops is essential for the successful implementation of strategic plans. Feedback from employees, suppliers and other stakeholders is valuable to evaluate how effective strategies are. Additionally, this feedback provides the necessary information to develop and adapt strategies. A continuous learning approach enables companies to quickly adapt to changing conditions and achieve decarbonization targets more effectively.
Ultimately, the decarbonization process is a journey that requires constant review and adaptation. To adapt to this dynamic process, companies must strictly follow carbon accounting and adopt a continuous learning approach.
Carbon Gate's Decarbonization Contribution
While many companies around the world are taking important steps in promoting a sustainable future, there are some organizations that are leading and guiding this journey. Carbon Gate is one of these pioneering organizations. With its team specialized in sustainability and carbon neutrality, this company has become one of the solution partners of companies in their decarbonization journey by providing comprehensive support to the processes of measuring, managing and reducing the carbon footprint of businesses.
Carbon Emission Calculation and ISO-14064 Standards
Carbon Gate provides companies with comprehensive greenhouse gas emissions measurements in accordance with ISO-14064 standards. Obtaining accurate and reliable emission data is indispensable for businesses to develop real decarbonization strategies. This service enables businesses to consciously measure their carbon footprint and more effectively support the goal of keeping the global temperature increase within 1.5°C. It also facilitates the process of compliance with regulations such as the EU’s Carbon Border Adjustment Mechanism.
Carbon Offsetting and Emission Management
Carbon Gate's technological platform allows carrying out the carbon management process in a transparent, intuitive and efficient way. This platform helps companies identify areas where their emissions are highest, thereby streamlining the process of identifying the most effective reduction methods.
Sustainability Consultancy and Educational Resources
Carbon Gate's experienced experts guide companies on their sustainability journeys. With this consultancy service, sustainability awareness spreads to all areas of the organization through training resources. With this awareness, companies can develop environmentally protective practices more effectively and achieve their sustainability goals faster.
Green Label and Sustainability Reporting
Carbon Gate documents and publicly announces the sustainability commitments of businesses. With “Green Label” and sustainability reports, businesses can clearly demonstrate their sustainability steps to consumers, investors and other stakeholders. In this way, companies can both achieve their sustainability goals faster and reinforce their leadership in the sector by sharing these goals with their stakeholders.
In summary, with the comprehensive services it offers in the field of decarbonization and sustainability, Carbon Gate effectively supports businesses in their efforts to reduce carbon emissions, increase their sustainability efforts and document their success in this field.
If you want to bring your business closer to Net Zero targets, Contact Carbon Gate now!
