For many small and medium-sized businesses, the first request to measure carbon emissions may not come from government—it may come from one of your largest customers.
Larger companies are increasingly looking beyond their own operations when assessing their environmental footprint. Emissions generated throughout their supply chain can form part of their Scope 3 emissions, which means suppliers may be asked to provide information about their own energy use and carbon footprint.
So, what should you do when that questionnaire or information request arrives?
First, understand exactly what is being requested. There is an important difference between a customer asking for your company’s Scope 1 and Scope 2 emissions, your reduction targets, or the carbon footprint associated with a particular product.
Second, determine what information you already have. For many SMEs, a reasonable starting point is surprisingly manageable. Utility bills can provide electricity and natural gas consumption, while fuel records can identify emissions from company-owned vehicles and equipment. These records can form the foundation of a basic corporate carbon footprint.
Third, don’t overstate what you know. If you haven’t yet developed a complete carbon inventory, be transparent about what you currently measure and what you are doing to improve your information. A well-defined plan can be more credible than an unsupported estimate.
Most importantly, consider the request as more than another compliance exercise.
As larger companies work to understand and reduce emissions throughout their supply chains, suppliers that can provide credible carbon information may be better positioned to respond to RFPs, customer sustainability requirements and future procurement standards.
For many SMEs, therefore, the business case for measuring carbon may be quite simple:
Your largest customer may eventually ask you for it.
Preparing before that request arrives can turn carbon measurement from a last-minute exercise into a competitive advantage.