10 Steps to Becoming a Carbon Neutral Business

Page 22 STEP 07: SWITCH TO RENEWABLE ENERGY Switch to renewable energy STEP 07 Switching to renewable energy is one way to specifically reduce emissions resulting from electricity usage and is often considered a separate step in going carbon neutral. If you cannot reduce electricity consumption, there will still be emissions associated with switching to 100 percent renewable electricity. These emissions are for example associated with manufacturing the solar panels you install or the transmission and distribution of electricity from the generation point to your company’s sites. Depending on the boundary of your carbon neutrality pledge, these emissions may or may not be included in your carbon footprint. If you adopt the GHG Protocol category “Fuel- and Energy- Related Activities Not Included in Scope 1 or Scope 2” in your boundary, for example, you should still expect to have some measure of emissions associated with your electricity consumption, even if it is validated as 100 percent renewable. Most likely, you will have to offset these remaining emissions as they are virtually impossible to reduce internally. As with the internal reductions work stream, you ideally need to start with an overview of your current situation, which would be a location-wise inventory of your current electricity procurement. This is especially important if you have premises spread across different regions and countries, as renewable energy options are subject to significant local differences. You need to include information about your current consumption load, contracts and prices. You need to understand your total annual electricity consumption and how it may differ in the future according to your business strategy as well. Is the energy sourced renewable or not? Is there an energy contract in place and what is its duration? What is the price being paid? This analysis will give you an idea of your opportunities per country, from which you can determine the most appropriate options.