Background Information
Within greenhouse gas (GHG) emissions reporting and carbon accounting, there are two categories associated with a business’s energy generation and/or consumption: Stationary combustion and Purchased electricity, steam, heating, and cooling. Stationary combustion refers to emissions from devices that combust solid, liquid or gas fuel for the purpose of producing electricity, generating steam or heat.
What can my business do to reduce carbon emissions from this category?
Almost all emitting activities in this category can be replaced with lower carbon alternatives. However, before you do that, you should look into how much you can reduce your emissions by reducing consumption.
Reducing emissions from electricity consumption can be complicated. The most effective ways to reduce emissions from this activity are to (a) buy green energy and (b) reduce consumption as much as possible, particularly at times of high grid carbon intensity. Grid carbon intensity is a measure of the emissions caused by the generation of each unit of electricity drawn from the electrical grid. It varies all the time depending on demand and the mixture of generation sources.
Due to the structure of the electricity market, it’s currently not possible for renewable electricity generated in one place to be used at a specific separate location, e.g. a business’s premises. However, change is coming, and it will soon be possible to track and match (in real time) green electricity. On a positive note, grid carbon intensity is plummeting around the world, as more renewable generation sources are added. This is one area where the UK is a leader, with a reduction of 71.4% from 1990 to 2020.
Action | Detail |
Choose a quality green energy tariff | At present, choosing a quality green tariff is the most effective way to reduce scope 2 emissions for most businesses. |
Reduce energy consumption | Reduce consumption as much as possible, particularly at times of high grid carbon intensity. |
Generate renewable energy on-site | Where infrastructure allows (and you can match renewable energy generation with your business’s electricity usage). Gas or oil-powered heating can be replaced with heat pumps or solar panels (for example). |
Switch to electric vehicles | Petrol and diesel vehicles can be replaced with electric alternatives. |
Useful Resources
Source: The Carbon Trust
Sage Earth view: This guide addresses challenges facing SMEs when procuring green energy supply contracts and considers low-carbon and renewable energy supply options.
Source: The Federation of Small Businesses (FSB)
Sage Earth view: A short guide on what to consider when choosing a green tariff and how they can help to reduce your energy consumption.
Source: Which?
Sage Earth view: A guide to finding the best green tariff. Gives a detailed explanation of why simply buying a green tariff does not ensure you are receiving 100% green electricity.
Source: Electricity Maps
Sage Earth view: One of the best examples of how grid carbon intensity is measured, provides a live visualisation of where your electricity comes from and how much CO2 was emitted to produce it.
Source: National Grid
Sage Earth view: These resources allow you to predict grid carbon intensity, and (where possible) adjust usage accordingly to ensure lower emissions.
Area of GHG Protocol
Scope 1.1. Stationary emissions
Scope 2.0. Purchased electricity, steam, heating & cooling for own use
🌍 Not every action suggested in this article will fit every business. Some can be implemented with relative ease, while others will require more time and investment. It's important to note that it may take some time to see a visible reduction in your reported emissions as a result of taking these actions (and that some will have a greater impact than others).
All additional resources suggested within this article are created and maintained by independent third parties. Sage Earth is not responsible for the content of any third party resources.