9 Ways to Decrease Your Business's Carbon Footprint

Did you know that companies with fewer than 500 employees in the United States would likely be the fourth largest climate polluters on the planet?

Reducing your business's carbon footprint is crucial for combating climate change and is increasingly required by regulation and customer demand. Making these reductions involves a combination of strategies, adjustments, and conscious choices across various operational aspects.

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What to Consider

There are a few big things you should consider in framing your thinking:

• Use data, not assumptions. Be guided to reduce your emissions by the data provided by your measurement system. Your company is unique, so the pathways for emission reduction may be similar to others but will be specific to you.
• Take the first step. Do not think that you have to do it all at once. Reducing your footprint is a big task, but it's done across many small steps. You only need to do a little bit every year to go a long way.
• Set a goal. Choose what makes sense for your business, but your default goal should be in line with the Paris Agreement. That is: 50% emissions reductions by 2030 and offset what you have not yet cut. There will be rewards for being more ambitious in cutting your footprint, but if you are setting something less ambitious, be ready to explain why.

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Lowering Emissions

Now we’ll cover 9 typical ways that businesses can work towards lowering their carbon emissions:

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1. Energy Audit & Efficiency Upgrades

• Conduct an energy audit to identify areas where energy is being wasted. Cheap to perform and will make you money.
• Implement energy-efficient technologies like LED lighting, smart thermostats, and energy-efficient appliances.
• Electrify everything. Whenever it comes time to replace equipment, make sure it is the most efficient electric version available. The electric grid is rapidly decarbonizing, so riding that wave will help you move further faster and will prevent you from locking in years’ worth of emissions.
• Consider renewable energy sources like solar panels or wind turbines to power operations when available or purchase market-based solutions like community solar or RECs when not.

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2. Remote Work and Telecommuting

• Encourage remote work to reduce commuting-related emissions.
• Utilize video conferencing and other remote collaboration tools to minimize travel.

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3. Supply Chain Optimization

• Work closely with suppliers to reduce transportation emissions and choose eco-friendly products and materials. You are doing this, in part, because you will need to report to your customers as part of their Scope 3 emissions reduction goals. A big part of that will be to control your supplier’s emissions.
• Encourage the use of local suppliers to reduce shipping distances.

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4. Waste Reduction and Recycling

• Implement waste reduction strategies like composting, recycling, and proper disposal of hazardous materials. For office work, this is a small change with a small impact, but for companies in manufacturing, this can be significant.
• Use biodegradable or recyclable packaging materials.

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5. Promote Sustainable Transportation

• Encourage the use of public transportation, cycling, or carpooling for commuting. Examine whether there are benefits from the local government to purchase transportation passes and your health insurance provider on lower premiums or other incentives for self-powered commuting options.
• Transition the company's vehicle fleet to electric or hybrid options. This can be a big capital outlay, so if you cannot do it all at once, make sure to do it as vehicles come up for replacement. Buying a new fossil-fueled vehicle can lock in a decade’s worth of higher footprint.

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6. Efficient Shipping and Delivery

• If you have a significant shipping footprint, there are often a few big decisions that can have outsized footprint impacts. Optimize shipping and delivery routes to minimize emissions.
• Use eco-friendly packaging materials and consider carbon offset programs for shipping emissions.

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7. Employee Awareness Programs 

• Educate employees about the importance of reducing carbon footprint.
• Encourage them to adopt eco-friendly practices both at work and in their personal lives.

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8. Incentives and Recognition

• Offer incentives or rewards for employees who actively contribute to reducing the company's carbon footprint. Your employees make thousands of decisions that affect your footprint, so help to motivate them to be climate-smart.
• Recognize and celebrate milestones in sustainability achievements. Your company will be a leader and will have employees that are leading the effort. Brag about both.

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9. Government Programs & Grants

• Research and take advantage of government programs and grants that support sustainability initiatives. This varies by location, but there have been many incentives created by federal, state, and local governments. It is a false assumption that politically conservative locations will not have incentives.
• Explore tax incentives and rebates for implementing eco-friendly practices.

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What to Remember

Smaller businesses play a crucial role in addressing climate change by implementing sustainable practices and reducing their carbon footprint. While each business's approach may vary based on industry, location, and resources, the collective impact of these efforts is significant. By integrating energy-efficient technologies, optimizing operations, promoting sustainable transportation, engaging employees, and measuring progress, businesses can make meaningful strides in reducing their environmental impact.

Remember, reducing your footprint not only increases profits and attracts customers, but it also positions your company as a leader in sustainability. But even more, you will enjoy being part of the solution and feel better about your work.

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