Everything you should know about carbon management

What is carbon management? 

Carbon management is the process of measuring and reporting a company’s carbon footprint. By reporting on the size of one's carbon emissions, it also enables a company to set concrete goals for reducing them. In other words, carbon management is a concrete tool that can be used to implement sustainable practices and limit a company’s carbon footprint. 

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Carbon management explained

Carbon management is centered around the tracking of carbon dioxide (CO₂). The process encompasses five steps that start with capturing CO₂ and end with storing it in either offshore or onshore facilities. These technologies enable the management of CO₂ emissions, with the goal of capturing and storing carbon for new purposes while also reducing the overall carbon footprint.

Capture

This is the process of separating carbon from emissions sources so it can be stored or reused. 

Removal

This involves removing CO₂ directly from the atmosphere. 

Transport

This is the process of transporting captured CO₂ to facilities where it is stored or reused. Transport via CO₂ pipelines is the most cost-effective method. Other modes of transport include ships, rails, and roads.

Reuse 

Captured CO₂ is reused to produce products such as low-emissions fuels or materials. 

Storage

CO₂ can be stored at offshore and onshore facilities, but it is typically stored underground regardless of method. 

We help you gather data in this process 

While we don’t help you with carbon storage or capture, we make sure that you have the necessary data insight into your carbon footprint. When we help you gather data on your carbon footprint, it enables you to set realistic targets and develop strategies for carbon management. By having insight into GHG emissions accounting as a reference throughout the process – which we deliver for you – you get a clear picture of your carbon footprint from start to finish. 

What is a carbon footprint?

A carbon footprint is the total amount of greenhouse gases released into the atmosphere. It is calculated by the amount of carbon dioxide (CO₂) emissions. Everything from people and cities to products and businesses emits CO₂ and leaves a carbon footprint. 

The GHG Protocol is a standard for measuring and managing greenhouse gas emissions. It is the most widely used international framework that organizations use to track and report their carbon footprint. 

Different types of greenhouse gas emissions 

Scope 1 

• What? Direct greenhouse gas emissions 
• Source: Emissions stem from sources that are owned or controlled by a company 
• Examples: From industrial processes, on-site fuel use, or company-owned vehicles 

Scope 2 

• What? Indirect emissions
• Source: Consumption of purchased electricity, steam, heating, and cooling  
• Examples: From daily operations in an office building, including heating and air conditioning 

Scope 3

• What? Indirect emissions 
• Source: All emissions that are not covered in Scope 1 or 2 that occur in the value chain 
• Examples: Employee commuting, waste generation and business travel

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Interested in learning more about indirect emissions? Explore the GHG Scope 3 further.

Calculating carbon footprint

There are several methods for calculating a carbon footprint that align with the GHG Protocol.  

Supplier-specific method 

• How it works: Emissions are calculated based on data provided by suppliers 
• Benefits: It accounts for Scope 3 emissions, providing a comprehensive view of all emissions 
• Challenges: The quality of supplier data can vary

Average-data method 

• How it works: Emissions are calculated using industry-average factors  
• Benefits: It is easier to implement if supplier-specific data is not available
• Challenges: It may not accurately reflect all suppliers since it relies on industry averages  

Spend-based method 

• How it works: Emissions are calculated based on the economic value of goods and services  
• Benefits: It is linked to financial spending, which streamlines the budget analysis process   
• Challenges: It is less precise and might not capture the full picture of emissions because it relies on average data  

Hybrid method 

• How it works: Emissions are calculated using a combination of supplier-specific data and secondary data 
• Benefits: It offers a well-rounded perspective on emissions and can be tailored to a specific organization 
• Challenges: It can be complex to implement as it requires expertise to manage effectively 

Benefit from carbon management software 

A sustainable and well-thought-out strategy for managing carbon emissions and calculating your carbon footprint is critical for success in today’s complex market landscape. We can help you implement carbon management strategies tailored to your specific needs, giving you access to our software and advisory services. 

Our team of experts has designed a model that is aligned with the GHG Protocol and incorporates a wide variety of emission factors. Scope 3 emissions are a significant part of most companies’ greenhouse gas emissions. By accurately measuring emissions across the entire value chain, companies can pinpoint emission hotspots, comprehensively understand their climate impact, and focus on reducing emissions for maximum effectiveness.

This approach also aids in recognizing supply chain risks, establishing goals, and developing a low-carbon strategy involving suppliers, ultimately reducing climate impact and risk. It is an empowering process that enables companies to make a substantial difference in the fight against climate change.