Introduction
Starting your journey in carbon accounting can be a daunting task, especially if you're new to the field. This article serves as an introductory guide to help you identify your company's carbon sources and sinks. Understanding where your carbon emissions come from and where carbon is being absorbed is a crucial first step before using the KEY ESG portal for comprehensive carbon accounting. By identifying these sources and sinks, you can better manage and reduce your carbon footprint, aligning your business with environmental sustainability goals.
Identifying Your Company's Carbon Sources and Sinks
What is a carbon source?
Processes that release more carbon into the atmosphere than they absorb, such as a car releasing CO2 during transit.
What is a carbon sink?
Processes that absorb more carbon than they release, such as a forest absorbing CO2 through photosynthesis.
Answer these questions to identify your company’s sources and sinks of carbon:
Basic Information
Company Name:
Year for which you're reporting emissions:
Location of Your Company's Main Office:
What type of business do you run?
Who is the key point of contact for managing environmental impact? (Name and Contact Information)
These basic details help categorize the size, location, and nature of your company, which influences the overall carbon accounting process.
Direct Emissions from Your Activities (Scope 1)
Energy Sources
What types of energy do you use (like gas, oil, or coal)? For each type, please tell us how much you used last year and what you used it for.
Top Tip: Each type of energy used represents a direct source of carbon emissions under Scope 1, as they involve burning fossil fuels for operations you control.
KEY ESG Carbon Calculator: Scope 1 Natural Gas, Manufacturing Fuels
Company Cars & Commercial Vehicles
How many vehicles does your company own? Please break them down by type (e.g., cars, trucks). A commercial vehicle are motor vehicles or trailers with a Gross Vehicle Mass (GVM) greater than 3.5 tonnes. The GVM of a vehicle is the maximum it can weigh when fully loaded. Company cars used by employees to commute and/or perform work activities. These are fuelled either by petrol or by diesel.
How much fuel did these vehicles use last year? Please list how much petrol, diesel, or other fuels were used.
Top Tip: Emissions from company cars and commercial vehicles fall under Scope 1. The amount and type of fuel used indicate the carbon footprint of your company’s transport operations.
KEY ESG Carbon Calculator: Scope 1 Company Cars and Commercial Vehicles
Equipment Leaks
Do you use equipment that leaks gases, like fridges or air conditioners? If yes, what types and how much gas do they use?
Can you estimate how much gas leaks out or is released from these systems each year?
Top Tip: Leaks from equipment are another component of Scope 1 emissions. Gases like refrigerants can be potent greenhouse gases, significantly impacting your carbon footprint.
KEY ESG Carbon Calculator: Scope 1.3 Fugitive Emissions
Indirect Emissions from Energy You Buy (Scope 2)
How much electricity does your company use in a year?
What portion of your electricity comes from renewable sources (like wind or solar)?
How much heat and steam do you buy to use in your company? Please specify the amount in energy units (like joules or kWh).
Top Tip: These are Scope 2 emissions, which result from the generation of purchased electricity, heat, and steam. The reliance on non-renewable sources versus renewable ones affects the overall carbon intensity of your energy consumption.
KEY ESG Carbon Calculator: Scope 2 Purchased Electricity, Heat, and Steam
Other Indirect Emissions (Scope 3)
Purchased Goods and Services
How much does your company spend on buying goods and services each year?
What are the main things you buy? Please estimate how much these purchases contribute to your emissions.
Top Tip: These questions relate to Scope 3 emissions, which include the carbon footprint of goods and services your company purchases. The nature and volume of these purchases influence your overall indirect emissions.
KEY ESG Carbon Calculator: Scope 3.1 Purchased Goods & Services
Capital Goods
What types of capital goods does your company purchase, such as machinery, buildings, or infrastructure? Please list all the costs associated with the purchase of capital goods for your company.
Top Tip: Capital goods are significant long-term investments that have embedded emissions from their production.
KEY ESG Carbon Calculator: Scope 3.2 Capital Goods
Fuel- and Energy-Related Activities Not Included in Scope 1 or Scope 2
Does your company use any other fuel or energy that’s not included in Scope 1 or Scope 2 emissions? Please specify the type and amount.
Top Tip: These emissions can include the extraction, production, and transportation of fuels consumed by the company, and they are calculated automatically in the KEY ESG app. You opt in to this metric to ensure that it calculates your Scope 3.3 emissions automatically.
KEY ESG Carbon Calculator: Scope 3.3 Fuel- and Energy-Related Activities
Upstream Transportation and Distribution
How do your goods get transported before they reach you? Include details about the modes of transportation and distances involved.
Top Tip: Emissions from upstream transportation include those from vehicles, ships, and airplanes used to bring goods to your company.
KEY ESG Carbon Calculator: Scope 3.4 Upstream Transportation and Distribution
Waste Generated in Operations
What types of waste does your company produce during its operations? Common types include paper, plastic, metal, organic waste, and hazardous materials. How is this waste managed (e.g., landfill, combustion, composting, open-loop vs. closed-loop recycling, anaerobic digestion)? You can find this information in your waste management logs or by consulting with your waste disposal service providers.
Top Tip: Waste management emissions are associated with the disposal, treatment, and recycling of waste generated by your company.
KEY ESG Carbon Calculator: Scope 3.5 Waste Generated in Operations
Travel and Employee Commuting
Do you consider the emissions from your employees traveling to work? If yes, how do you calculate this and what's the total emission from commuting?
What about emissions from business trips? Please include the types of transportation used and their total emissions.
Top Tip: Employee commuting and business travel fall under Scope 3 emissions. Understanding the modes of transport and frequency helps in calculating these indirect emissions.
KEY ESG Carbon Calculator: Scope 3.6 Business Travel & Scope 3.7 Employee Commuting
Upstream Leased Assets
Does your company lease any assets like buildings or equipment? If yes, what are the emissions associated with these assets?
Top Tip: Leased assets can contribute to your emissions, depending on their energy use and efficiency.
KEY ESG Carbon Calculator: Scope 3.8 Upstream Leased Assets
Downstream Transportation and Distribution
How are your finished products transported after they leave your facility and reach the end consumer? Include details about the modes of transportation (e.g., trucks, ships, airplanes) and distances involved.
Distribution refers to the movement and storage of these finished products.
Top Tip: Emissions from downstream transportation include those from vehicles, ships, and airplanes used to deliver products to customers. Distribution encompasses the storage and handling of these goods.
KEY ESG Carbon Calculator: Scope 3.9 Downstream Transportation and Distribution
Processing of Sold Products
Do your products undergo further processing after being sold? If yes, what are the emissions associated with this processing?
Top Tip: Emissions from further processing of sold products can be significant, depending on the energy and methods used.
KEY ESG Carbon Calculator: Scope 3.10 Processing of Sold Products
Products You Sell
Do any of the products you sell use energy during their lifetime (like appliances)? If yes, please estimate the emissions they produce while they are being used.
How do you manage the waste from your products or operations? Please include the types of waste and how they are disposed of or recycled.
Are there any projects you're involved in to help reduce emissions (like planting trees or capturing carbon)? If yes, please give details about these projects and how they help.
Top Tip: Emissions from the use of sold products and waste management are part of Scope 3. Mitigation projects can help offset these emissions, contributing positively to your carbon balance.
KEY ESG Carbon Calculator: Scope 3.11 Use of Sold Products & Scope 3.12 End-of-Life Treatment of Sold Products
Downstream Leased Assets
Does your company lease any assets like buildings or equipment to others? If yes, what are the emissions associated with these assets?
Top Tip: Emissions from downstream leased assets can impact your overall carbon footprint based on their energy use and efficiency.
KEY ESG Carbon Calculator: Scope 3.13 Downstream Leased Assets
Franchises
Franchises are businesses that operate under your brand but are owned by others. Does your company operate franchises? If yes, what are the emissions associated with these franchise operations?
Top Tip: Franchise operations can contribute significantly to your carbon footprint depending on their scale and operational practices.
KEY ESG Carbon Calculator: Scope 3.14 Franchises
Investments
Calculating emissions for investments requires information about the companies you invest in, such as their carbon footprint and the amount of investment. Does your company have any investments in other businesses? If yes, what are the emissions associated with these investments?
Top Tip: Emissions from investments can be part of your carbon footprint, especially if invested companies have significant emissions.
KEY ESG Carbon Calculator: Scope 3.15 Investments
How You Calculate Your Emissions
What guides or factors do you use to figure out your emissions for each activity?
Can you describe the steps you take to calculate your emissions?
Has anyone outside your company checked these calculations? If so, who?
Top Tip: Accurate calculation and verification of emissions are crucial for reliable carbon accounting. External verification adds credibility to your reported data.
KEY ESG Carbon Calculator: Verification and Methodology
Your Environmental Goals
Do you have goals for reducing your emissions next year? If yes, what are they?
How often do you share information about your emissions with others? Who do you report to?
What are the biggest challenges you face in tracking and reducing your emissions?
Top Tip: Setting and tracking emission reduction goals are essential for continuous improvement. Transparency and regular reporting enhance accountability and stakeholder trust.
KEY ESG Carbon Calculator: Emission Reduction Goals and Reporting
Additional Information
Is there anything else about your company's emissions or environmental efforts that you think we should know?
Top Tip: This open-ended question allows you to provide additional context or highlight unique efforts that may not be covered by the structured questions.
KEY ESG Carbon Calculator: Additional Information
Conclusion
Understanding and identifying your company's carbon sources and sinks is a critical foundational step in the carbon accounting process. This questionnaire helps you gather essential information that will support your use of the KEY ESG portal and facilitate effective carbon management strategies. By addressing these points, you can create a clearer picture of your environmental impact, set realistic reduction goals, and contribute positively to global sustainability efforts.