As the UK transitions to a Net Zero economy, many businesses will be forced to follow suit and create their own carbon reduction plan.
Indeed, the government has introduced several pieces of legislation that require businesses supplying products and services to the public sector to measure their carbon footprint and display a reduction strategy.
By taking proactive steps to minimize your carbon footprint, you not only contribute to a greener planet but keep in line with government legislation, keeping you ahead of your competitors.
Let’s delve into the essential steps to help you craft a comprehensive carbon reduction plan for your UK-based business.
Step 1: Measure your carbon footprint
The journey towards sustainability starts with understanding your starting point. Conduct a thorough assessment of your business operations to identify the key sources of greenhouse gas emissions.
This includes energy consumption, transportation, waste generation, and supply chain activities. Numerous online carbon footprint calculators are available to help you quantify your emissions.
To reach carbon neutrality you will be required to measure your scope 1 and scope 2 emissions (definitions here). Scope 1 emissions are essentially direct emissions that are owned or controlled by you (e.g. gas from boilers) Scope 2 are mainly emissions generated from electricity bought from the grid.
There are many online calculators available to help you get started. If you want to delve deeper into measurements you can contact our team.
Step 2: Set ambitious and achievable goals
Armed with knowledge of your carbon footprint, set clear and realistic reduction targets for your business.
These goals should be SMART – Specific, Measurable, Achievable, Relevant, and Time oriented. They should also be aligned with the UK government’s requirements for a carbon reduction plan.
Aim for net-zero emissions in the long term (ideally before 2025), and establish shorter-term milestones to track your progress effectively.
You can reach carbon neutrality by measuring your scope 1 and 2 emissions and then offsetting these emissions by donating to a carbon credit project. These are projects that use the donated money to invest in renewable energy or protect forests around the world.
You can read more about carbon offsetting for your business here.
Step 3: Improve your energy efficiency
Invest in energy-efficient technologies and practices to reduce your business’s energy consumption.
Look for easy wins. Consider upgrading to LED lighting, installing smart thermostats, and optimizing your heating, ventilation, and cooling systems.
If you are measuring your energy consumption, you may need to retrofit an office or a building. You can use the UK government’s website to see exactly how energy efficient your business is and the cost of making improvements to reduce your carbon footprint.
For more information on how to reduce your company’s carbon footprint, read our blog.
Step 4: Embrace renewable energy
Transition to renewable energy sources to power your business operations. This will dramatically reduce your carbon footprint and save you money.
There are plenty of ways to switch to 100% renewable energy with providers like Octopus and EDF.
You can also take advantage of government subsidies and tax breaks by investing in renewable energy sources like on-site through solar panels or wind turbines.
By making this shift, you’ll not only reduce emissions but also insulate your business from rising fossil fuel costs.
Step 5: Turn to greener transport
One of the best ways to help your carbon reduction plan may be to change the way your company uses transport.
If you have a fleet of business transport you can look to switch to hybrid or fully electric vehicles to reduce your carbon footprint.
Otherwise, promote carpooling, public transport usage, or cycling to work. You will also find your employees buy into this eco-friendly switch and become happier as a result.
Step 6: Implement sustainable supply chain practices
In order to create a Net Zero economy the UK government realized that supply chains everywhere need to be decarbonized.
You should start too. Work closely with your suppliers to align your sustainability goals. Choose partners who share your commitment to reducing carbon emissions and environmentally friendly practices.
And remember, if you are keen to create a low-carbon supply chain, your other stakeholders may be doing the same. If you want to keep working with banks, insurance companies and many other stakeholders you will need to show a commitment to a carbon reduction strategy.
Step 7: Engage & educate employees
Empower your employees to be active participants in your carbon reduction journey.
Conduct training sessions to raise awareness about sustainability practices and provide guidance on how individuals can contribute to the overall efforts.
Studies have shown that employees are demanding that their employer become more climate conscious and engaging them in your carbon reduction plan will help this.
Step 8: Monitor, track, & report
Once you have created your carbon reduction plan, you will need to track this each year. With every carbon footprint inventory you will need a base year from which you can measure your company’s progress.
You will also need to measure your carbon reductions against the SMART goals you set and readjust them if necessary.
Each year you should transparently report your achievements to stakeholders, showcasing your commitment to sustainability.
What next…
As a UK company, it has never been as necessary (or as easy) to create a carbon reduction plan.
In doing so you will protect your business against future government legislation, take advantage of tax breaks, save money on energy consumption, improve employee morale and much more.
If all this seems a bit daunting, you can always get in touch with one of our experts at KGM to start your journey to Net Zero.
