How to Reduce Carbon Emissions in Your Company: 7 Practical Tips

Reducing carbon emissions is crucial for businesses to mitigate climate change, boost profits, and enhance their public image.

According to a report by the Carbon Disclosure Project, a group of the world’s largest companies has estimated that climate risks could cost their businesses nearly $1 trillion by 2026.

At the same time, these companies also foresee $2.1 trillion in potential gains from opportunities related to climate change. These opportunities increased revenue from low-emission products and services, a shift in consumer preferences toward sustainable choices, and greater capital availability as financial institutions increasingly favor low-emission producers.

While large corporations are making significant investments to address climate change-related challenges, now is the optimal time for SMEs to act as well. Smaller companies have the advantage of agility, allowing them to implement changes more quickly and efficiently.

By adopting sustainable practices, SMEs can not only mitigate risks but also attract environmentally conscious customers, access new markets, and secure funding from investors who prioritize sustainability.

In this article, we will share seven practical tips to help you understand how to reduce carbon emissions in your company.

1. Improve Energy Efficiency

Start by reviewing your current energy usage and identifying areas for improvement. Focus on cost-effective actions that can quickly reduce energy consumption and costs without significant upfront investment. Small and medium-sized businesses can make several budget-friendly adjustments to enhance their energy efficiency.

Practical Steps:

Review Energy Supplies and Switch to Renewable Sources: Evaluate your current energy supplier and consider switching to one that offers renewable energy options. This will reduce your carbon footprint and will likely result in cost savings.
Implement Energy Efficiency Measures: Upgrade to energy-efficient appliances, install programmable thermostats, and use energy-efficient lighting. These improvements can significantly reduce energy consumption.
Use Energy Management Software: Implement software tools to monitor and analyze energy consumption in real-time. These tools can provide insights into energy use patterns and help identify specific areas for improvement.
Simple Behavioral Changes: Encourage employees to turn off lights, computers, and other equipment when not in use. Adjust thermostat settings to conserve energy during non-business hours.

2. Implement a Zero-Waste Policy

Adopting a zero-waste policy at your company involves minimizing waste production through reducing, reusing, and recycling materials. This approach can significantly cut down carbon emissions associated with waste and resource extraction.

Practical Steps:

Reduce Single-Use Plastics: Replace single-use items like plastic bottles and utensils with reusable alternatives. Provide your employees with reusable water bottles and coffee cups.
Set Up Recycling Stations: Provide clearly labeled bins for recycling different materials such as paper, plastics, glass, and metals. Ensure these stations are easily accessible and educate employees on proper recycling practices.
Implement a Digital Documentation System: Minimize paper use by transitioning to digital documents. Use electronic signatures and store files digitally to reduce the need for printing.
Promote Reuse and Upcycling: Encourage employees to find ways to reuse materials and equipment. For example, use scrap paper for notes or repurpose old office furniture instead of buying new items.

3. Promote Sustainable Transportation

Transportation is the largest source of greenhouse gas emissions in the U.S., accounting for 29% of total emissions. This is why it is crucial to promote sustainable transportation at your company. Encourage the use of public transport, carpooling, biking, or walking to work. Providing incentives for employees who use sustainable transport methods and investing in electric company vehicles can reduce emissions from commuting.

Practical Steps:

Biking Incentives: Offer bike-to-work schemes with secure bike storage and shower facilities.
Carpool Programs: Set up carpooling initiatives with preferred parking spots for carpoolers.
Electric Vehicles: Transition your company fleet to electric vehicles and install EV charging stations.

4. Enhance Digital Collaboration Tools

Reducing the need for business travel by utilizing digital communication tools can also cut down travel-related emissions. Implementing various digital collaboration tools can lower carbon emissions, and they can potentially increase employee productivity by offering more flexibility at work when needed.

Practical Steps:

Adopt Video Conferencing Tools: Use platforms like Zoom, Microsoft Teams, or Google Meet to replace some of the “routine but not high-stake” in-person meetings.
Implement Project Management Software: Tools like Trello, Asana, or Monday.com can help teams collaborate on projects remotely, avoiding the need for frequent travel.
Set Clear Remote Working Policies: Formalize these policies so employees feel supported to work from home. These could be 4 days in the office + 1 day work from home, an annual rewinding week that allows all employees to work from home at the same time etc.
Invest in Secure Cloud Services: Use cloud-based services for file storage and collaboration. This enables employees to access necessary documents from anywhere, reducing the need for physical copies and office space.
Conduct Virtual Training and Workshops: Move training sessions and workshops online to avoid the emissions associated with travel and physical events.

5. Engage Employees in Sustainability Initiatives

Engaging employees in sustainability initiatives is crucial for fostering a culture of environmental responsibility within your organization. When employees are actively involved and committed to sustainability efforts, it leads to higher participation rates and more effective implementation of green practices.

Practical Steps:

Sustainability Workshops and Training: Organize workshops and training sessions to educate employees about the importance of sustainability and how they can contribute. Topics can include energy conservation, waste reduction, and sustainable transportation.
Create a Green Team: Form a dedicated team of employees who are passionate about sustainability. This team can lead initiatives, gather feedback, and keep the momentum going by organizing events and activities.
Employee Challenges and Competitions: Introduce friendly competitions, such as energy-saving or recycling challenges, to encourage participation and make sustainability fun. Reward the winning teams or individuals with eco-friendly prizes.

6. Improve Supply Chain Sustainability

Enhancing the sustainability of your supply chain involves working with suppliers to ensure they follow sustainable practices, which can significantly reduce your company's overall carbon footprint. By focusing on sustainable sourcing, reducing supply chain-related waste, and optimizing logistics, companies can make their supply chains more environmentally friendly.

Practical Steps:

Sustainable Sourcing: Choose suppliers that use eco-friendly materials and sustainable production methods. Prioritize suppliers with certifications such as Fair Trade, Rainforest Alliance, or those who follow ISO 14001 environmental management standards.
Collaborative Projects: Partner with suppliers on sustainability initiatives, such as joint efforts to reduce packaging waste or improve energy efficiency in production processes.
Supplier Audits and Assessments: Conduct regular sustainability audits of your suppliers to ensure they meet environmental standards. Use assessment tools to track and improve their sustainability performance.

7. Purchase Carbon Credits

After implementing all possible reduction strategies, it is important to offset remaining emissions by purchasing carbon credits. Carbon credits support projects that reduce or remove carbon from the atmosphere. This step is essential for achieving net-zero status, especially for emissions that are currently unavoidable at your company.

Practical Steps:

Calculate Residual Emissions: Determine the amount of emissions that remain after all reduction efforts. Use tools like the GHG Protocol or carbon footprint calculators.
Choose Reputable Carbon Credit Providers: Purchase credits from reputable verifiers such as Gold Standard, Verified Carbon Standard (VCS), or Climate Action Reserve.
Support Local Projects: Consider purchasing credits that fund local projects, which can also bring community and economic benefits.
Integrate with Sustainability Strategy: Ensure that purchasing carbon credits is part of a broader sustainability strategy that includes continuous efforts to reduce emissions.

Recommended Carbon Calculators for SMEs

For SMEs looking to reduce their carbon footprint, using a carbon calculator is an essential first step. These tools help businesses measure their greenhouse gas emissions, identify key areas for improvement, and track progress over time.

By providing a clear picture of their environmental impact, carbon calculators empower SMEs to implement effective sustainability strategies, comply with regulations, and meet stakeholder expectations. Here are three recommended carbon calculators tailored for SMEs to facilitate their journey towards carbon neutrality:

Carbon Trust SME Carbon Footprint Calculator:

The Carbon Trust SME Carbon Footprint Calculator is specifically designed for small to medium-sized enterprises to assess their carbon footprint and identify areas for improvement. It provides a detailed breakdown of emissions sources and offers suggestions for reduction.

Features: Easy-to-use interface, detailed reporting, and actionable insights.

Climate Impact Small Business Carbon Calculator:

The Climate Impact Small Business Carbon Calculator is a comprehensive calculator that allows SMEs to calculate their carbon footprint by entering data related to energy use, travel, waste, and more. It also offers options for purchasing carbon offsets.

Features: Detailed emissions tracking, offset purchasing options, and sustainability project suggestions.

Normative Business Carbon Calculator

Developed by Normative in partnership with the SME Climate Hub, this Business Carbon Calculator helps small businesses measure their carbon footprint and report reduction progress to value chain stakeholders, such as customers or investors.

Features: Ease of use, comprehensive coverage of direct and indirect emissions, and actionable insights for emission reduction.

Final Thoughts

Implementing strategies to reduce carbon emissions is vital for businesses to tackle climate change, enhance their financial standing, and safeguard their public image.

By following the practical tips outlined in this article, SMEs can not only reduce their environmental impact but also attract eco-conscious customers, access new markets, and secure investment from sustainability-focused stakeholders.