Carbon Footprint
This criteria is very important to ensure transparency from the Contributing Entities who want to claim Climate Dividends. It's a way to ensure that no one is communicating on its positive impact if they haven't even measured and communicated transparently their negative impact.
Official requirements in the Protocol
No matter the size, the company acting as a Contributing Entity shall measure, report and publicly disclose its own carbon footprint (Scope 1, 2 and 3 in the GHG Protocol or Category 1 to 6 in ISO 14064-1) on an annual basis.
These criteria are included to ensure that the Contributing Entity doesn't communicate about its Climate Dividends, which show its positive climate impact, without disclosing its carbon footprint, which shows its negative climate impact. This minimises the risk of greenwashing.
The main methodological frameworks and norms (ISO 14064-1 and GHG Protocol). However, it's a disclosure criteria, which means that you can conduct your own analysis, as long as it respects the overall methodology.
This means that, especially for small entities, it's possible to present a carbon footprint assessment at corporate level that is not 100% compliant with ISO 14 064-1 or the GHG Protocol as long as:
it's clearly stated, and the approach is well documented
it's as comprehensive as possible and any exclusion/approximation is transparently disclosed
The most common approach is to use either the GHG Protocol (more international) or the Bilan Carbone methodologies. See more in the dedicated box below.
If you're unsure about how to conduct the carbon footprint of your company, you can either:
Contract with a service provider (software, consulting firm)
If you are looking for a service provider to conduct the carbon footprint to validate your eligibility at Contributing Entity level, don't hesitate to use the dedicated form in the Other Frequently Asked Questions section.
For the following questions, if you have already detailed those answers in the supporting documentation (e.g. impact report), feel free to refer to the appropriate section of the latter. However, you must be specific (e.g. "cf our impact report" will not be accepted). You can also directly copy and paste some justifications.
Which framework/methodology did you use for the carbon footprint assessment at company level? *
In the Protocol, 2 approaches are officially recognized - the GHG Protocol and the ISO 14064-1 standard. In practice, you can also use the French "Bilan Carbone" methodology, which is globally compliant with ISO 14064-1.
GHG Protocol
The GHG Protocol was launched by the World Business Council for Sustainable Development (WBCSD) and the World Resources Institute (WRI) in 2001. It is a method for calculating and reporting greenhouse gas (GHG) emissions. It is the most widely used international tool!
The GHG Protocol is known for breaking down the inventory emissions in 3 scopes. The approach is similar to the one presented in the ISO 14064:
Defining the scope of the study - reference year, setting organizational and operational boundaries...
Identifying and calculating GHG emissions: identify emissions sources, select a calculation approach, collect activity data and choose emission factors, complete the calculations, consolidate GHG emissions data to corporate level → the calculations must be consistent with IPCC's guidelines, especially regarding the Global Warming Potential (GWP) of each greenhouse gas.
Controlling the quality and reliability of the results: calculation of uncertainties, audit of the results (optional)...
Interpreting and leveraging the results
Sources:
GHG Protocol - Corporate Standard
What about the Bilan Carbone methodology?
The "Bilan Carbone" is considered to be the French equivalent of the GHG Protocol. It's a methodology that has been developed by ADEME in the early 2000's.
It's a very similar approach, but it has some notable difference in the approach:
The emissions categorized by "type" rather than scopes
It's less precise on Scope 3 accounting rules
It's more restrictive on the possible exclusions and is therefore considered more comprehensive (but also more complex)
The implementation of a reduction plan is mandatory (vs in the GHG Protocol)
It makes it possible to include a risk analysis in the report
It's also worth noting some very specific accounting/calculation differences like:
Scope 2 accounting - there are 2 main ways to assess Scope 2 emissions:
the market-based approach: the emissions taken into account are linked to the generation of electricity, the supplier's production methods or the electricity contract, or to the residual mix if the origin of the electricity cannot be traced. For example, in the case of a contract with electricity from wind energy, the associated FE will be 0 gCO2e/kWh.
the location-based approach: the emissions taken into account are linked to the generation of electricity from the average electricity mix in the country of consumption. The mode of production of the supplier or the contract is not taken into account.
The GHG Protocol and ISO methodologies accept both approaches, but the Bilan Carbone only accepts the location-based approach.
Fixed assets accounting
GHG Protocol: the fixed assets acquired during the year under study are the only ones to be taken into account, without depreciation. Thus, a company that has purchased a machine (10 years of life) the reporting year will have to count all the emissions associated with the manufacture of the machine. But not those of another machine (8 years of life) purchased two years ago for example.
Bilan Carbone: emissions related to fixed assets are amortized over the life of the goods. In our example, the company will thus have to account for 1/10th of the emissions of the machine purchased in the reporting year and 1/8th of the other machine purchased two years earlier.
The ISO methodology accepts both methods.
What about the BEGES (Bilan GES)?
The BEGES is a reporting obligation that is in place in France for certain types of organizations:
legal entities under private law with more than 500 employees,
local authorities ("collectivités") with more than 50k inhabitants,
public services/agencies with more than 250 agents
government departments
Originally, in the BEGES, the Scope 3 analysis was only recommended but was not compulsory (as in the Bilan Carbone methodology). Since 2022, the scope of the mandatory analysis has been extended to Scope 3 emissions.
In practice, most entities that have the obligation to publish a BEGES use the Bilan Carbone methodology, but the GHG Protocol and the ISO 14064 are also accepted.
ISO 14064
The ISO 14064 is the international "general" norm to improve the management of greenhouse gas (GHG) emissions. It is based directly on the GHG Protocol.
It also requires third-party verification - an optional element in ADEME's Bilan Carbone and the international protocol.
From quantification to reporting, from initial inventory to final verification: this norm brings together a set of specifications, principles and guidelines.
More specifically, the ISO 14064-1 focuses on GHG inventories and reporting at organization level (vs ISO 14064-2 for instance, which is focused on "projects").
Sources:
Who completed the carbon footprint assessment? *
Was the analysis completed internally, using a dedicated software tool, by a service provide (e.g. consulting firm)?
This is for disclosure/transparency purpose only - it helps provide context on how the analysis was completed and the precision/quality level that can be expected of the result.
What is the organizational and operational scopes covered by the carbon footprint? *
Regardless of the methodology used, the first step in the carbon footprint analysis (and the first required disclosure point) is the scope of the analysis.
What's required in this question is to disclose:
what's included in the analysis:
on the organizational aspect (daughter companies, franchises, different facilities...etc)
on the operational aspect (different products and services, direct and indirect emissions linked with the company's operations)
why it was included in the analysis - a proper justification is needed, especially if some elements have been excluded
More precisions on how to define the organizational and operational scopes (using BEGES, Bilan Carbone and GHG Protocol specifications).
Organizational Scope
👉 Depending on the complexity of their structure, legal entities may comprise one or more establishments, which in turn may control different equipment and facilities. All of these facilities and installations constitute the organizational scope.
👉 ISO 14064-1 describes two approaches for determining the organizational perimeter:
The ‘share of capital’ approach: facilities and equipment are included in the organizational perimeter to the extent of its equity stake in them.
The ‘control’ approach (recommended approach):
Financial control: 100% of the equipment and facilities over which it exercises financial control are included in the organisational perimeter.
Operational control: 100% of the equipment and facilities over which it exercises operational control, i.e. that it operates, are included in the organisational perimeter.
E.g. of the organizational Scope (from the GHG Protocol standard)
Sources:
GHG Protocol - Corporate Standard
Operational Scope
👉 Once the organizational perimeter has been determined, the Legal Entity establishes its operational perimeter. This is made up of all the GHG emissions linked to its operations, broken down by category and by emission item.
👉 The operational perimeter includes:
direct GHG emissions that physically come from the company's organisational perimeter
indirect emissions resulting from the operations and activities of the company and, where appropriate use of the goods and services it produces.
Sources:
GHG Protocol - Corporate Standard
What about the Greenhouse Gases scope?
By default, it's considered that all 6 main GHG are taken into account - CO2, CH4, HFC, N2O, PFC, SF6 and that all emissions are converted in CO2e.
In practice
A useful step is to begin by mapping all "flows" related to the company's activity (materials, energy, waste...).
Also worth noting that the latest version of the BEGES requirements is very useful for these steps (but it's in French!).
What is the timeframe covered by the carbon footprint analysis? *
The timeframe of your carbon footprint analysis should be of 1 full year (either a calendar year or your fiscal year).
There must be an overlap of at least a 2 months between the timeframe of your Climate Dividends claim and the timeframe of your carbon footprint analysis.
Example:
Start date: 01/01/2024 - End date: 31/12/2024
If you've excluded some emissions sources from your analysis, please list them below and explain why you excluded them.
As much as possible, you should try to find ways to include all emissions sources in your carbon footprint analysis.
However, if you are not able to collect data (emission factors / activity data) on all emissions sources, you may have to exclude some of them from you carbon footprint analysis.
👉 The whole point is to be transparent about it and mention clearly, as well as why each specific emission source was excluded from the analysis.
Here is what the GHG Protocol's Scope 3 guidance says:
Companies should strive for completeness, but it is acknowledged that accounting for all scope 3 emissions may not be feasible.[...] In some situations, companies may have scope 3 activities, but be unable to estimate emissions due to a lack of data or other limiting factors.
For example, companies may find that based on initial estimates, some scope 3 activities are expected to be insignificant in size (compared to the company’s other sources of emissions) and that for these activities, the ability to collect data and influence GHG reductions is limited. In such cases, companies may exclude scope 3 activities from the report, provided that any exclusion is disclosed and justified.
Companies should follow the principles of relevance, completeness, accuracy, consistency, and transparency when deciding whether to exclude any activities from the scope 3 inventory. Companies should not exclude any activity that would compromise the relevance of the reported inventory. [...] In particular, companies should not exclude any activity that is expected to contribute significantly to the company’s total scope 3 emissions.[...]
Companies are required to disclose and justify any exclusions in the public report.
👉 Source - GHG Protocol's Scope 3 guidance 🔗
What are the main data sources that you have used to conduct your carbon footprint analysis? Please list them below. *
Here, we expect you to detail the main data and sources that you have used for the analysis.
For instance, you should provide some insights on the following questions:
For each emissions source, have you used financial data (monetary approach) or physical data (physical approach)?
For each emissions source, which Emissions Factors (EF) have you used?
For each emissions sources, have you used some statistical extrapolation and/or some structuring hypothesis?
E.g.
For all activity data related to commuting trips, we've used the results of a dedicated employees survey asking the travel distance, the number of days of commute (vs remote working) and the transportation mode.
For service purchases activity data, we've used accounting data (FEC)
For all emissions factors we used ADEME's Base Empreinte (both monetary and physical EFs).
Where to find Emissions Factors (EFs) ?
The most known emissions factors database are:
Scope 1 emissions / Scope 2 emissions / Scope 3 emissions (in tCO2e) *
The notion of "scope" has been defined to help companies identify, assess and report their inventory emission.
Scope 1, or "Direct GHG emissions", as defined by the GHG Protocol
Direct GHG emissions occur from sources that are owned or controlled by the company, for example, emissions from combustion in owned or controlled boilers, furnaces, vehicles, etc.; emissions from chemical production in owned or controlled process equipment.
Direct CO2 emissions from the combustion of biomass shall not be included in scope 1 but reported separately.
Scope 2, or "Electricity indirect GHG emissions" as defined by the GHG Protocol
Scope 2 accounts for GHG emissions from the generation of purchased electricity consumed by the company. Purchased electricity is defined as electricity that is purchased or otherwise brought into the organizational boundary of the company. Scope 2 emissions physically occur at the facility where electricity is generated.
Scope 3, or "Other indirect GHG emissions", as defined by the GHG Protocol
Scope 3 emissions are a consequence of the activities of the company, but occur from sources not owned or controlled by the company. Some examples of scope 3 activities are extraction and production of purchased materials; transportation of purchased fuels; and use of sold products and services.
Sources:
GHG Protocol - Corporate Standard
GHG Protocol - Scope 3 calculation guidance
Should the carbon footprint be updated annually? *
Each claim must be accompanied by a complete carbon footprint.
However, since version 3.1.1, the Protocol has allowed SMEs to simplify the process, recognizing that variations in carbon footprints mainly result from sales of products or services.
The carbon footprint disclosure imposes no framework although the exercise must be credible and adequately sourced. To simplify ongoing claims from SMEs, their carbon footprint may only be calculated in full every 2 years (maximum). For the interim year, an update via a proxy based on business volumes is tolerated.
Example (SME only): In year 1, a company sold 100 products and measured a carbon footprint of 200 tCO₂e.
In year 2, the company may either recalculate its full carbon footprint or use a proxy based on changes in sales volume.
If the company chooses the proxy approach and sales increase to 150 products (+50%), it may estimate and report a footprint of 300 tCO₂e for year 2.
However, a full recalculation of the carbon footprint must still be performed in year 3 to ensure accuracy.
Resources
🇫🇷 Resources in French 🇫🇷
🔗 Official BEGES methodological guidelines 🔗
🔗 Bilan Carbone official methodology 🔗
🔗 Plan Carbone Général's website 🔗
🔗 Open Source Excel template by consulting firm CarbonCutter 🔗
🇬🇧 Resources in English 🇬🇧
🔗 Our guide to conduct your own Carbon Footprint 🔗
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