The industrial building sector, characterized by its large buildings and heavy process energy and water loads, faces increasing regulatory and client pressures to track and reduce carbon emissions. To help mitigate this shift, we at MA Design have established a roadmap for companies to track their emissions and goals.

There are many terms you may hear when people discuss carbon emissions, and it can sometimes be confusing to understand what they all mean. When people use the term “carbon” they are often referring to carbon dioxide (CO2), which is the primary greenhouse gas emitted by humans. Buildings alone represent approximately 35% of all CO2 emitted globally.

These emissions can be further broken down into embodied vs. operational carbon.

Embodied carbon encompasses everything from the extraction of raw materials used, through construction, transportation, up until it reaches the end of its life when it’s either taken to a landfill or recycled.

Operational carbon occurs from the use of a building and accounts for approximately 27% of global carbon emissions. This is when you’ll hear solution oriented terms like “Net-Zero Energy”, and “Electrification”.

WHY THIS PUSH IS HAPPENING

With so many Fortune 500 companies now tracking their emissions for ESG reporting, companies are requiring manufacturers down the value chain to begin tracking and reporting their carbon emissions. Some are even going as far as to change who they work with to align with companies that better support their sustainability goals. For more information on ESG, we recommend you read this article where we dive into the business case for it, and how it relates to the Triple Bottom Line principle.

Another driver of change is an increase in government regulations and policies. In Europe, reporting climate-related risks and social impacts has become commonplace for companies, even recently making its way to the US through the Security Exchange Commission or SEC. Regulations provided by the SEC will require companies to disclose climate-related risks that affect operations including material impacts, financial expenses, and provide strategies to mitigate them. Depending on the size of the company, Scope 1 (all direct emissions from any owned or controlled resources) and/or Scope 2 (indirect emissions from the generation of purchased energy) emission metrics may be required to be disclosed. Scope 3 (all other indirect emissions not included in scope 2, i.e. business travel, employee commute, waste, purchased goods & services) is the least reported as it requires the most extensive information needed not just from your company, but companies up and down the value chain. Providing this information to the public helps to raise awareness of carbon impacts, and helps individuals determine who they will patronize as a consumer, invest in as a shareholder, or align with as an employer.

WHERE TO BEGIN?

Tracking emissions can initially seem daunting for companies, especially with the amount of information needed and the required tools to track—particularly if you are doing this for the first time. MA Design, partnered with knowledgeable MEP consultants, has begun helping industrial clients through this process.

Step 1: Compile all documentation and begin staff surveys.

A company should start to compile energy bills, water bills, summaries of other purchased gas, vehicles and their mileage, number of staff and modes of transportation, and quantities of goods purchased to name a few. We have found that during the initial kickoff, a walkthrough of facilities is also critical as it helps us to better understand the processes and workflow of a company, and assists in the identification of all necessary information for carbon tracking. We are also able to start thinking ahead about potential improvements if the company’s goal is to reduce emissions and/or improve operational processes.

Step 2: Meet with your project team, consultants, and all stakeholders to develop the goals and metric for success.

This process, and what success looks like in the end, is going to look different for every company. Making sure everyone involved understands this company’s goals will help guide them throughout and ensure the company’s interests are being represented through the process. For some, this will be about understanding a company’s impact on the environment, for others it’s an end goal of net zero carbon emissions.

Step 3: Input data into carbon tracking resources and establish a baseline.

Tools such as the EPA’s GHG Calculator can be used to help estimate annual emissions. This can then be used as a baseline. More in depth analysis will be done over time as continued tracking is done.

Step 4: Create a Sustainability Action Plan

If the company’s desire is to continue tracking and reduce their emissions, the next step is to formulate a Sustainability Action Plan. This plan should include the organizations ‘why,’ goals, milestones, and strategies. This document can be used internally to track goals as well as act as an external document to promote sustainability initiatives. As a living document, this can, and should be updated annually to reflect progress.

We are quickly approaching a time where carbon tracking is commonplace, and not doing it could mean less opportunities for your company. Not only is tracking and reducing carbon emissions good for the environment, it’s also a smart financial decision in a lot of cases. If your company would like to begin the process or wants more information, please reach out to Jessica Glorius-Dangelo (jessicagd@designwithma.com) or Ally Balmer (allyb@designwithma.com).

Citations:

https://www.aia.org/design-excellence/climate-action/zero-carbon/2030-commitment
https://www.epa.gov/ghgemissions/sources-greenhouse-gas-emissions