Sustainability is becoming an increasingly important part of running a business. But if you’ve started looking into ways to make your business more sustainable, you may have come across a whole range of unfamiliar terms.
From carbon footprints and carbon emissions to carbon offsetting and carbon credits, there’s a lot of terminology to get your head around. And as a busy business owner, you probably don’t have the time to sit down and work through all the sustainability jargon.
That’s why we’ve put together this simple guide to some of the most common carbon and sustainability terms, explaining what they mean and how they relate to your business.
The good news is that understanding sustainability doesn’t have to be complicated.
1. What is a carbon footprint?
A carbon footprint is the total amount of greenhouse gases produced by an individual, organisation, product or activity.
For a business, this could include emissions from:
- Electricity and gas used in your premises.
- Business travel and employee commuting.
- Deliveries and transportation.
- Manufacturing and the production of materials.
- Waste disposal and other day-to-day activities.
A business’s carbon footprint is usually measured in tonnes of carbon dioxide equivalent (CO2e). This allows different greenhouse gases to be measured using a common unit.
Understanding your carbon footprint is an important first step towards identifying where your business produces emissions and where you could make reductions.
2. What are carbon emissions?
Carbon emissions are the greenhouse gases released into the atmosphere through activities such as burning fossil fuels, manufacturing products and transporting goods.
Although the term ‘carbon emissions’ is commonly used, it often refers to several different greenhouse gases, including carbon dioxide (CO2), methane and nitrous oxide.
These gases contribute to climate change by trapping heat in the atmosphere.
For businesses, carbon emissions can come from both direct activities, such as heating a building, and indirect activities, such as purchasing electricity or using suppliers.
3. What is carbon reduction?
Carbon reduction means taking steps to decrease the amount of greenhouse gases your business produces.
This is often the first priority when developing a sustainability strategy, as reducing emissions helps limit your business’s contribution to climate change.
Some simple ways businesses can reduce their carbon emissions include:
- Switching to renewable energy where possible.
- Improving energy efficiency across your premises.
- Reducing unnecessary business travel.
- Choosing more sustainable suppliers.
- Reducing waste and improving recycling.
Even relatively small changes can contribute towards reducing your overall carbon footprint.
4. What is carbon offsetting?
Carbon offsetting is the process of compensating for greenhouse gas emissions by supporting projects that reduce, avoid or remove emissions elsewhere.
These projects can include renewable energy, forest conservation and tree planting initiatives.
For example, some projects support the planting and protection of trees, which absorb carbon dioxide as they grow.
Carbon offsetting allows businesses to take responsibility for emissions they have produced, particularly those that are currently difficult to eliminate.
However, carbon offsetting should complement carbon reduction rather than replace it. Businesses should always look for opportunities to reduce their emissions first.
5. What are carbon credits?
A carbon credit is a unit representing a quantified amount of greenhouse gas emissions that has been reduced, avoided or removed through a carbon project.
In many carbon crediting systems, one credit represents one tonne of carbon dioxide equivalent (CO2e).
Businesses and individuals can purchase carbon credits to support these projects and compensate for some of their own emissions.
The type of project, how emissions reductions are measured and the standards used to verify them are all important considerations when choosing carbon credits.
6. What is carbon neutrality?
Carbon neutrality generally means balancing the amount of carbon dioxide released into the atmosphere with an equivalent amount removed or offset.
For a business, this involves calculating its carbon emissions and taking action to balance those emissions through reductions and appropriate offsetting.
It’s important to understand that carbon neutrality is not the same as producing zero emissions. A carbon-neutral business may still produce emissions but aims to balance them through recognised carbon reduction or removal activities.
7. What is net zero?
Net zero is a commitment to reduce greenhouse gas emissions as much as possible and balance any remaining emissions through removals.
Unlike simply offsetting a business’s existing emissions, reaching net zero requires substantial reductions across its operations and value chain.
For businesses following recognised net zero approaches, this involves setting reduction targets, monitoring progress and addressing residual emissions through carbon removals.
Net zero is a longer-term goal that requires ongoing commitment rather than a one-off purchase of carbon credits.
How can your business get started with sustainability?
Understanding these terms is a good starting point, but what do they actually mean for your business?
You don’t need to make every change overnight. Developing a more sustainable business is an ongoing process, and there are several ways to start making progress.
1. Understand your carbon footprint
Start by looking at the activities that generate emissions within your business. Identifying where your biggest impacts come from will help you decide where to focus your efforts.
2. Look for opportunities to reduce emissions
Consider the changes you could realistically make, from improving energy efficiency to reviewing your suppliers and business travel.
3. Consider carbon offsetting
Once you’ve identified opportunities to reduce your emissions, carbon offsetting can help you take further action by supporting projects that reduce or remove greenhouse gases.
At eTrees, we make carbon offsetting simple and accessible for small and medium-sized businesses.
Our carbon credits allow businesses to support tree planting projects without contracts, monthly fees or minimum purchases. You can purchase what you need, when you need it, and receive a certificate to recognise your contribution.
4. Keep track of your progress
Sustainability isn’t a one-time activity. Regularly reviewing your efforts and looking for further opportunities to improve can help make environmental responsibility part of your everyday business operations.
Making sustainability easier to understand
Sustainability terminology can seem complicated at first, but understanding the basics makes it much easier to explore the options available to your business.
Whether you’re starting by reducing your energy consumption, calculating your carbon footprint or exploring carbon offsetting, every step towards understanding your environmental impact is a useful place to begin.
At eTrees, we believe carbon offsetting should be simple, accessible and straightforward for businesses of all sizes.
Want to find out how your business can get involved?
Explore our carbon offsetting credits at eTrees.co.uk and discover how easy it can be to support tree planting projects as part of your sustainability journey.
