Crack the Carbon Code

CO₂ accounting or greenhouse gas accounting establishes clarity regarding company emissions and is therefore the basis for measures in preparing and improving a climate strategy. It is the systematic accounting of greenhouse gas emissions. All greenhouse gases with such climatic effects are taken into account, these are noted as part of the Kyoto Protocol.

The following greenhouse gases are taken into account:

• Carbon dioxide (CO₂) (GWP=1)
• Methane (CH4) (GWP=25)
• Nitrous oxide/laughing gas (N2O) (GWP=298)
• Sulfur hexafluoride (SF6) (GWP=23.500)
• Fluorinated hydrocarbons (HFCs) (GWP between 140 and 7,000)
• Perfluorinated hydrocarbons (CnF2n+2 − PFCs) (GWP between 6,000 and 9,000)
• Nitrogen trifluoride (NF3) (since 2015) (GWP=17,200)

Although all greenhouse gases responsible for global warming are taken into account, the term CO₂ accounting is used as carbon dioxide is used as a reference for all greenhouse gases. The values in brackets (GWP) represent the global warming potential of the gas in question, where CO₂ is used with a reference value of 1, meaning that a GWP of 25 means that the gas has a global warming potential which is 25 times that of CO₂. Other greenhouse gases are calculated in terms of CO₂ equivalents (CO₂e) so that they can be compared.

The CO₂ footprint is the result of CO₂ accounting. This provides information on the quantity of greenhouse gases which are emitted by a company, a product, a process, a project, or an event. The CO₂ footprint is stated in what are known as CO₂ equivalents (CO₂e).

Janitza provides support in determining the KPIs for your CO₂ accounting.

Corporate Carbon Footprint (CCF)

In the Corporate Carbon Footprint all greenhouse gas emissions from a company over the course of a year are recorded and summarized as part of CO₂ accounting. The individual CO₂ footprint is an important, useful instrument for evaluating the company’s impact on climate. The CO₂ footprint means suitable reduction targets and measures can be derived, then shown in the sustainability report.

In addition, the CO₂ footprint means it is possible to quickly see which company areas release the most greenhouse gases and therefore where there is most potential for measures to reduce it. This is also of great importance in economic terms as the biggest drivers of emissions are also often the biggest cost drivers within a company.

The Corporate Carbon Footprint, which is recorded regularly, is therefore a key indicator in determining the progress and success of a company’s commitment to sustainability.

Product Carbon Footprint (PCF)

The Product Carbon Footprint (PCF), which is the CO₂ footprint of products covers the accounting of greenhouse gas emissions along the entire service life of a specific product.

The Product Carbon Footprint takes a holistic perspective that applies from procurement of raw materials to delivery (“cradle-to-gate) and may also even take the service life and disposal of the product (“cradle-to-grave”) into account.

The CO₂ footprint of your products can also be determined from your company’s CO₂ accounting. This makes it possible for CO₂ emissions to be quantified based on products or orders and also to itemize customer orders or services in terms of their CO₂ emissions. As a company, you then provide your customers with the capability to contribute to climate protection in a targeted manner.

Greenhouse gas accounting is the heart of corporate climate management, and it provides clarity regarding the key sources of emissions in a company as well as helping determine where potential reductions can be found. Around 75% of greenhouse gas emissions worldwide are the result of turning fuels such as coal, oil or natural gas into electricity, heat or fuels, meaning the biggest savings can also be found in this field.

Climate-based reporting for companies divides greenhouse gas emissions into 3 scopes:

• Scope 1: Emissions that arise directly from the company’s in-house activities (e.g. combustion of natural gas in stationary plants or the combustion of diesel in company vehicles)
• Scope 2: Emissions that are not directly generated by company activities but arise from the generation of energy consumed by the company (e.g. electricity and heating)
• Scope 3: Emissions that are caused by the company’s value-added chain such as those that arise due to the steel processed and manufactured within the company or from employees on their commute to work. Determining Scope 3 emissions is optional in some reporting standards.

Determining emissions is often a complex challenge requiring external support. However, the required KPIs can be determined with suitable measurement devices and software solutions. If energy management is well-established within the company then the additional work required for climate management is nominal, such as the parametrization of measurement devices in GridVis® software and extension of the CO₂ dashboard.

Accounting can take place either at a corporate level (Corporate Carbon Footprint, CCF) or at a product level (Product Carbon Footprint, PCF). The GHG Protocol acts as a basis for such standards, as do ISO 14001, ISO 14064 and ISO 14067.

The CSRD requires comprehensive KPIs regarding energy consumption and greenhouse gas accounting from all companies that are subject to it. Janitza supports companies in determining these KPIs.

Climate management focuses on matters such as resources, waste water, and waste and is part of environmental management, which in turn is also part of sustainability management. Unlike other sectors such as energy management, there are currently no explicit standards set out for a structured climate management system.

However, the contents of an environment management system as per ISO 14001 can be included here. There are several different standards for calculating the Corporate Carbon Footprint (CCF) and Product Carbon Footprint (PCF), such as the GHG Protocol, ISO 14067 and ISO 14064. They are used as the most common fundamentals for CO₂ accounting or for preparing a report or certificate.

The EMAS Directive (Eco-Management and Audit Scheme) is often the foundation of environmental management systems. It is a voluntary standard in environmental management and was developed by the European Union.

In addition, the Corporate Sustainability Reporting Directive (CSRD) from the EU monitors the publication of non-financial information, including climate data, for certain companies within the European Union.

Different standards within the fields of energy, climate and environmental management overlap in some areas. For example, the EMAS Directive also covers the basic contents of climate management. Requirements and standards can also vary depending on the region and industry in question.

Greenhouse gas emissions must be reduced dramatically and climate protection measures must be taken to mitigate the effects of climate change as far as possible. Although sustainability has many different facets, climate protection along with energy consumption and greenhouse gas accounting has come to the forefront of public perception as well as the future CSRD Directive. Reducing CO₂ emissions is one of the key factors in enhancing sustainability within the economy. Other benefits also become apparent:

• You gain clarity about emissions within the company
• You reduce energy costs and also lower consumption of resources - emission drivers are often cost drivers as well.
• You lower costs by reducing the proportion of emissions which ultimately have to be offset.
• You position yourself on the market as a sustainable company, increasing your appeal to customers, investors and the public at large. This safeguards your future viability.
• You safeguard a competitive advantage through long-term planning and integrating a climate strategy into your business model.
• Various funding models are linked to the sustainability of the company.

An existing energy management system is the foundation for developing a climate management system, as a major proportion of CO₂ emissions is generated by generating energy for the company so that Scope 1 and Scope 2 are almost always fully present or can be determined relatively easily.

The additional expense for adding climate management to the mix is minimal, such as through parametrization of the measurement devices in GridVis® software and adding the CO₂ dashboard.

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• Use of Janitza measurement devices means recording any emissions is much easier. GridVis® software helps record all relevant energy consumption, from electricity generated by steam, gas and oil to district heating.
• GridVis® software increasingly automates your work processes. That saves energy and money.
• You have a variety of functions for analysis, evaluation, creating KPIs as well as visualization of the data you have stored. Generate data and link it to a relevant concept.
• Reduce the workload needed to satisfy statutory requirements for providing evidence whilst increasing the sustainability of your company.
• You have complete flexibility: If you already use our software for energy management then you can also use it for climate-relevant tasks.