How do you choose the best carbon footprint standard for your industry?

Types of Standards and Frameworks Carbon footprint standards and frameworks are guidelines that help you calculate and communicate your greenhouse gas emissions from your activities, products, or services. These can be voluntary or mandatory, sector-specific or general, and global or regional. The most widely used ones include the Greenhouse Gas Protocol (GHG Protocol), ISO 14064 series, PAS 2050 series, and Carbon Disclosure Project (CDP). GHG Protocol provides a comprehensive and flexible approach for different levels of reporting, such as corporate, project, or product. ISO 14064 series specifies principles, requirements, and best practices for quantifying, monitoring, reporting, and verifying greenhouse gas emissions and reductions.

To choose the best carbon footprint standard for your industry, consider factors such as regulatory requirements, industry norms, stakeholder expectations, and the scope of your operations. Evaluate standards such as ISO 14064, GHG Protocol, or sector-specific guidelines like the PAS 2050 for agriculture. Assess each standard's comprehensiveness, credibility, and alignment with your organization's goals and values. Engage with industry peers, sustainability experts, and relevant stakeholders to gather insights and identify best practices. Ultimately, select a standard that provides robust methodologies, clear guidelines, and compatibility with your reporting objectives and industry context.

The type of reporting mechanisms to select will depend on the sector and locations of the organization undertaking the footprint exercise. The most important aspect of carbon reporting is to be completely transparent on what you are reporting on, material topics, and also the carbon factors used.

ISO 14067 will also be a good addition when determining the carbon footprint of an organization's products, along with ISO 14040 and ISO 14044 for life cycle assessment.

Relevance: Select a standard that aligns with your industry's specific environmental impact and operational practices. Credibility: Opt for standards that are widely recognized and endorsed by industry leaders and environmental experts. Compliance: Ensure the standard meets current regulatory requirements and anticipated future legislation. Stakeholder Expectations: Consider what your customers, investors, and partners expect or require in terms of sustainability reporting. Certification and Verification: Choose a standard that allows for third-party certification and verification to enhance the credibility of your reporting.

When comparing standards, consider the scope (emission boundaries), method (measurement and reporting steps), and benefits (reputation, cost reduction, compliance, market access). These factors ensure the standard aligns with your needs and adds value.

Comparison Criteria When comparing different standards and frameworks, consider these criteria: Scope: Determine which emissions are included, such as direct emissions (Scope 1), indirect emissions from purchased energy (Scope 2), and other indirect emissions from the value chain (Scope 3). Method: Assess the steps and tools for measuring, estimating, and reporting emissions. Consider the comprehensiveness, accuracy, and suitability of the methodology for your industry and activities. Benefit: Evaluate the value and impact on stakeholders, such as improving reputation, reducing costs, ensuring regulatory compliance, and accessing new markets. Consider how the standard enhances transparency, accountability, and stakeholder engagement.

In my experience, comparison criteria are based on the following key considerations: 1. Scope: Determine the scope of your carbon emissions (Scope 1, 2, and 3) to select the appropriate standard. 2. Industry: Consider industry-specific standards that align with your organization's sector. 3. Stakeholder expectations: Identify the expectations of your stakeholders, such as investors, customers, and regulators. 4. Credibility: Choose standards that are widely recognized and accepted by industry-specific experts.

When comparing carbon footprint standards, scope, method, and benefits are crucial. In Finland, Fortum uses the Greenhouse Gas Protocol for a comprehensive approach, including all scopes (1, 2, and 3) to ensure transparency and cover the entire value chain. Meanwhile, Neste follows ISO 14064 for more specific methods, helping them accurately quantify and report emissions. These frameworks not only help companies comply with EU regulations but also enhance their market reputation and attract sustainability-focused investors, showcasing the tangible benefits of choosing the right standard.

To select the best carbon footprint standard, identify your objectives, assess your capabilities, evaluate options, and weigh costs and benefits. Choose a framework that aligns with your goals, data availability, and industry needs, demonstrating your commitment to sustainability.

Selection Process To choose the best carbon footprint standard or framework for your industry, follow these steps: Identify Objectives and Expectations: Determine why you want to measure and report your carbon footprint and what you aim to achieve. Assess Current Situation and Capabilities: Review the data, resources, and expertise you have available. Evaluate Options and Trade-offs: Compare standards based on scope, method, and benefits, considering how each meets your criteria and the costs involved. Make a Decision and Take Action: Select the standard that best fits your needs and goals, demonstrating your commitment to sustainability.