Retail

The SME Climate Hub Business Carbon Calculator is a free tool allowing SMEs to calculate their emissions and access recommendations about next steps to being cutting carbon.

The calculator covers Scope 1, 2 and some scope 3 emissions, as listed below:

Scope 1: Direct emissions from the combustion of fuel in assets that a company operates, such as fuel emissions from company-owned cars, diesel generators, gas boilers and air-conditioning leaks.

Scope 2: Indirect emissions from the generation of energy purchased from a utility provider, such as heating, cooling, steam, and electricity.

Scope 3: Upstream emissions from purchased goods and services, capital goods, upstream transport and distribution, and business travel, all of which can be calculated from accounting expenses.

Source: https://smeclimatehub.org/start-measuring/

The 1.5°C Business Playbook was developed by the UN Race to Zero campaign to help organisations halve their emissions by 2030. It provides guidance on embedding a strategy for climate action across your organisation through a four pillar approach:

1. Pillar 1: reducing your own emissions
2. Pillar 2: reducing value chain emissions
3. Pillar 3: integrate climate in business strategy
4. Pillar 4: influence climate action in society

Source: The 1.5C Business Playbook

The Greenhouse Gas Protocol (GHG Protocol) is the international standard framework for emissions reporting. Within the GHG Protocol, a full carbon footprint is made up of three levels of emissions sources called ‘scopes’, which are outlined below. The scopes are split out in this way to demonstrate the level of control that an organisation has over the emissions being released.

Scope 1 – direct emissions from gas and other fuels

Includes emissions from activities owned or controlled by your organisation that release emissions into the atmosphere. Examples of scope 1 emissions include emissions from combustion in gas boilers and vehicle emissions from company owned cars.

Scope 2 – indirect emissions from electricity

Includes emissions released into the atmosphere associated with your consumption of purchased electricity, heat, steam and cooling. These are indirect emissions that are a consequence of your organisation’s activities under your operational control, but which occur at sources you do not own or control. The most common example of scope 2 emissions is the electricity purchased from a supplier.

Scope 3 – other indirect emissions

While many companies report on emissions from their direct operations, emissions from a company’s value chain – its scope 3 emissions – often have the biggest GHG impacts. In some cases, scope 3 emissions can account for up to 90% of a business’ total carbon footprint. There are 15 GHG Protocol categories for Scope 3, covering purchased goods and services, waste, transport, as well as investments and energy use throughout the supply chain.

Source: GHG protocol

The Science Based Targets Initiative (SBTi) provides resources and guidance for organisations to set meaningful emission reductions targets that support the aims of the Paris Agreement. The SBTi Net Zero Corporate standard acts as the industry best practice definition of ‘Net Zero’, asking organisations to commit to a 90% overall reduction in total (Scope 1, 2 and 3) emissions before 2050.

For a fee, organisations can have their targets validated by the SBTi.

Source: Science based targets

The UK Business Climate Hub providing practical, step-by-step guides to support SMEs to take practical steps to cut carbon.

Source: Business climate hub

The Mayor’s Business Climate Challenge (BCC) is a programme to support organisations to reduce energy consumption in their buildings, cut energy costs and lower their emissions. This years’ BCC, launched in July, will provide bespoke technical support for up to 250 London businesses as well as indirect support to a wider London business audience through open access resources and knowledge sharing networks. A headline commitment is to own or occupy net zero office space by 2030, as defined by the UK Green Building Council (UKGBC) definition of net zero office space.

Source: Mayors business climate challenge

FSB, or the National Federation of Self Employed & Small Businesses, is a member organisation which provides knowledge, advice and training to help small businesses to reach their ambitions. FSB has developed a variety of resources designed to support small business owners to take their first steps in sustainability. The resources include explainer articles on topics such as ESG and carbon footprints, as well as practical advice and signposts to training.

Source: FSB

PAS 2060 is an internationally recognised standard for Carbon Neutrality which involves a four step process of measurement, reduction, offsetting and documentation. This means that any emissions created by an organisation across a given year are offset for an equivalent amount. However, only scope 1 and 2 emissions are mandatory under PAS 2060, with scope 3 inclusions encouraged. As scope 3 emissions are commonly the majority of an organisation’s emissions, organisations should pursue carbon neutral certification in line with wider emissions reductions targets that encompass scope 3 emissions.

Source: PAS 2060 Carbon neutrality

Sustainable development is action we can take to meet the needs of the present day without stopping future generations from meeting theirs. In 2015, the UN agreed 17 interlinked ‘Sustainable Development Goals’ (SDGs) with the aims of ending poverty, protecting the planet, and ensuring that by 2030 all people enjoy peace and prosperity. Many organisations align their sustainability strategies in support of the SDGs.

Source: Sustainable development goals

‘It’s Now for Nature’ has produced a strategy handbook for the business community to help them act on nature and contribute towards a nature-positive world by 2030.

The Nature Strategy Handbook serves as a practical tool for businesses aiming to create a comprehensive nature strategy. The handbook builds on the ACT-D principles – Assess, Commit, Transform and Disclose – which were developed by global organisations supporting the ‘It’s Now for Nature’ campaign, including WWF and the Science Based Targets Initiative.

The handbook offers a series of essential questions, recommendations, and resources to aid in developing a nature strategy, whether as a separate document or integrated within existing business, climate, or sustainability strategies.

Source: https://nowfornature.org/read-the-handbook/

While the Taskforce for Climate Related Disclosures has been widely adopted, it is limited in scope in its focus on greenhouse gas emissions only. The Task Force on Nature-Related Financial Disclosures (TNFD) provides an opportunity for organisations to monitor their exposure to nature-related risks such as biodiversity loss and other impacts to natural capital. Disclosures via TNFD are voluntary, but this was also the case initially for TCFD, which later became mandatory for large public companies. The Taskforce published its final recommendations in September 2023.

Source: https://framework.tnfd.global/

Edie has released a new report that provides insights into how businesses can take action on the Sustainable Development Goals (SDGs). With less than seven years left to deliver on the SBGs, the report offers guidance and strategies for companies to align their operations and practices with the goals, helping them contribute to global sustainability objectives.

Source: https://www.edie.net/edie-launches-new-report-on-how-businesses-can-take-action-on-the-sdgs/

The UK Government and a conglomerate of business groups have launched a new UK Business Climate Hub. The Hub is particularly aimed at SMEs and is based on a framework of seven steps to sustainability, endorsed by the Net Zero Council.

The Hub includes various resources including a funding list, case studies and advice articles to assist businesses in measuring, reporting, and reducing emissions. Businesses can browse the site by theme (such as waste and recycling) and by sector. There is also an events listing page for relevant webinars and in-person events.

Source: https://businessclimatehub.uk/

The Net Zero Guidelines created by the International Organization for Standardization (ISO) are designed to establish a consistent methodology for organisations to work towards in their transition to net zero. The guidelines aim to set out a common definition of “net zero” and its associated concepts, thereby standardising net zero claims and enabling greater transparency and comparability between organisations. Access to these guidelines is available free of charge on the ISO website.

Expanding on this effort, the ISO has unveiled a standard, ISO 14068, dedicated to carbon neutrality. This standard offers a structured framework for measuring and attaining carbon neutrality.

Source: https://www.iso.org/netzero

The Voluntary Carbon Markets Integrity Initiative (VCMI) has updated its Claims Code of Practice, which acts as a rulebook for companies making climate-based claims backed by carbon credits. The update to the Code of Practice includes additional guidance for corporates seeking to purchase high-integrity carbon credits that deliver climate change mitigation. The VCMI has devised a Monitoring, Reporting and Assurance Framework as the basis for any integrity claim to demonstrate adherence to their requirements and provide third-party assurance.

In releasing the guidance, the VCMI has emphasised that carbon credits must account for real and verified reductions or removals in emissions while adhering to strict environmental and social safeguards. The guidance also reiterates that carbon credits should be used in addition to, rather than instead of, active decarbonisation measures.

Source: https://vcmintegrity.org/wp-content/uploads/2023/11/VCMI-Claims-Code-of-Practice-November-2023.pdf

For most companies, the majority of their scope 3 (indirect) emissions will arise from their value chain. The Science Based Targets Initiative (SBTi) offers the option for businesses to set supplier-engagement targets instead of absolute reduction targets for their scope 3 emissions, but achieving these targets can feel daunting. SBTi has released a new guidance document to support businesses in addressing supply chain emissions, outlining how larger companies can encourage their suppliers to set their own science-based targets. The guidance includes how to identify and prioritise suppliers for reduction targets, securing buy-in, training and engagement tools and methods, and monitoring progress.

Source: https://sciencebasedtargets.org/resources/files/Supplier-Engagement-Guidance.pdf

The International Sustainability Standards Board (ISSB) is working to develop a comprehensive international baseline standard for sustainability disclosures, aiming to unify reporting standards and quality among different regions and nations. This ISSB has issued its first two finalised frameworks, with an expectation that the first corporate reports aligned with them will be published in 2025.

The first new standard, IFRS S1, has been described as the “core baseline” of sustainability reporting and is applicable to all large businesses. It covers company impact, including emissions across all scopes and waste management.

The second of the standards, IFRS S2, is more detailed in regards to climate mitigation and climate adaptation and builds on existing disclosure frameworks in this field, mainly the Taskforce on Climate-Related Financial Disclosures (TCFD).

Source: https://www.ifrs.org/issued-standards/ifrs-sustainability-standards-navigator/

FSB, or the National Federation of Self Employed & Small Businesses, is a member organisation which provides knowledge, advice and training to help small businesses to reach their ambitions. FSB has developed a variety of resources designed to support small business owners to take their first steps in sustainability. The resources include explainer articles on topics such as ESG and carbon footprints, as well as practical advice and signposts to training.

Source: https://www.fsb.org.uk/knowledge/knowledge/sustainability.html

Edie has partnered with the Woodland Trust to produce this explainer guide to the relationship between biodiversity and business. The guide discusses the impacts your operations may be having on biodiversity and outlines the business case for addressing this.  With nature and biodiversity becoming a more prominent topic in the sustainability discourse, the guide can help businesses understand the steps that can be taken to reverse nature loss and restore natural habitats.

Source: https://www.edie.net/edie-explains-biodiversity-and-business/

The Net Zero Toolkit is designed to help time- and resource-constrained SMEs to begin to take action on the climate. The resource is designed in eight steps, which invite businesses to address different elements of their operations. From understanding and mitigating the impact of extreme weather occurrences to recognising and working on creative ways to reduce scope three emissions. Each step provides question prompts, a bank of resources and the opportunity to align actions with targets.

Source: https://www.iso.org/netzero

The WWF has created a new screening tool to support businesses and investors to assess and respond to nature-related risk in their supply chains. There are two complimentary ‘risk filters’, on biodiversity and water, enabling companies to identify industry-specific impacts and dependencies, and assess physical and reputational risks. This can act as a valuable starting point for prioritising corporate action, and an upcoming ‘Respond’ section to the tool will provide support and guidance for this.

Source: https://riskfilter.org/

The Science Based Targets Network has released the first science-based targets for nature, enabling companies to assess their nature impacts and develop scientific pathways to addressing them.

Source: https://sciencebasedtargetsnetwork.org/take-action-now/take-action-as-a-company/what-you-can-do-now/

This report by the UN was launched at COP27 and is entitled Integrity Matters: Net Zero Commitments by Businesses, Financial Institutions, Cities and Regions. It was developed by a taskforce which aims to bring integrity, transparency and accountability to net zero by establishing clear standards and criteria, addressing concerns around greenwashing. The report lays out key criteria and recommendations for businesses setting net zero commitments, such as: “Non‑state actors cannot claim to be net zero while continuing to build or invest in new fossil fuel supply”.

Source: https://www.un.org/sites/un2.un.org/files/high-level_expert_group_n7b.pdf

The Government has pledged to support businesses in the transition to net zero. This tends to be through periodic grant-giving programmes, focused on specific topics. It is worth keeping an eye on the dedicated page for green funding programmes, as there may be future opportunities around energy efficiency and reducing carbon emissions in other sectors.

https://www.gov.uk/guidance/find-funding-to-help-your-business-become-greener

Some banks offer green loans to support small businesses with green projects and activities. Banks will often stipulate a list of qualifying projects, which may include renewable energy generation, electric vehicles and retrofit. The loans sometimes have more favourable terms, such as cash back or no arrangement fees. Some of the banks offering this service are:

Lloyds – https://www.lloydsbank.com/business/commercial-banking/clean-growth-financing-initiative.html

Natwest – https://www.natwest.com/business/loans-and-finance/sustainable-finance/green-loans.html

HSBC – https://www.business.hsbc.uk/en-gb/solutions/green-sme-fund

For new businesses seeking investment, the Clean Growth Fund offers funding for innovative, low-carbon start-ups that are developing sustainability solutions.

https://www.cleangrowthfund.com/

This guide from the Consumer Goods Forum is a set of practical solutions for Consumer Goods and Retail companies to address their most complex emissions challenges. The Playbook was launched at COP27 to highlight the fact that urgent action is needed in the sector, which contributes approximately one third of global emissions. The Playbook outlines how to get started on the decarbonisation journey and provides real case studies demonstrating how industry leaders are already taking action on sustainable agriculture, plastics & packaging, transport & logistics, consumer use, and supplier enablement.

Source: https://www.theconsumergoodsforum.com/environmental-sustainability/carbon-solutions-hub/

This library of resources has been compiled by the Consumer Goods Forum to help companies in their journey to net zero, and includes case studies, tools, reports and initiatives. Topics covered include plastics and packaging, consumer use, transport and logistics, and supplier engagement.

Source: https://www.theconsumergoodsforum.com/environmental-sustainability/carbon-solutions-hub/knowledge-repository/

Online shopping has boomed since 2020 and 45% of consumers receive at least one parcel delivery per week compared to 36% pre-pandemic. Whilst convenient, e-commerce has an environmental impact due to the fuel burned by delivery vehicles, leading to carbon emissions and air pollution. The British Retail Consortium’s report, Cutting Carbon in the Final Mile, aims to provide best practice for retailers on reducing emissions from delivery. The report highlights key case studies across the industry of how companies are harnessing innovative low-carbon technology to reduce the impact of their deliveries.

Source: https://brc.org.uk/news/csr/cutting-carbon-in-the-final-mile/

More than 90% of retailers’ Greenhouse Gas (GHG) emissions are Scope 3 emissions, generated in the supply chain. Whilst these are the most difficult emissions to control, tackling the issue is vital to reaching the UK retail industry’s goal of net zero by 2040. The British Retail Consortium (BRC) has co-produced with IBM the guide, Monitor, Measure and Report Supply Chain Scope 3 Emissions. The guide provides strategies and frameworks for improving visibility and reporting of Scope 3 emissions and advises on how retailers can collaborate with supply chain partners to achieve the greatest reductions.

Source: https://brc.org.uk/climate-roadmap/section-7-pathway-4-sourcing-sustainably/76-monitor-measure-and-report-supply-chain-scope-3-emissions-guide-for-retailers/

The Carbon Disclosure Project (CDP) is a charity that runs the global disclosure system for investors and companies (as well as cities, regions and states) to manage their environmental impacts. CDP offers questionnaires on climate change, forests and water security. Completing these can be a valuable exercise in understanding an organisation’s environmental risks and opportunities, as well as sharing information with customers, investors and improving the understanding of the wider market.

CDP also provide guidance for SMEs who wish to disclose similar information to investors or customers, with a streamlined set of reporting criteria.

From April 2023, CDP is encouraging businesses to disclose their plastics production and use volumes, via the water security questionnaire. The question will be voluntary and requires users to split their plastics into packaging, polymers and durable plastics categories.

Source: CDP

Source: CDP for SMES

Source: https://www.cdp.net/en/plastics

Edie has just launched an enhanced edition of their guidebook on sustainability communications and disclosure. This handbook is designed to assist companies in their sustainability reporting endeavours, whether voluntary or obligatory. Its primary emphasis is to address issues like greenwashing, enhancing disclosures, and refining storytelling techniques. Through the integration of sustainability reporting, marketing strategies, and communication tactics, the handbook strives to enhance transparency and foster constructive shifts in behaviour.

Source: https://www.edie.net/sustainability-communications-and-disclosure-handbook-2024/

The Science Based Targets initiative (SBTi) has unveiled a duo of reports aimed at catalysing corporate action and facilitating the development and execution of beyond value chain mitigation (BVCM) strategies. BVCM, a cornerstone of the SBTi’s Corporate Net-Zero Standard, aims to prompt economic and social actions to avoid, reduce or remove greenhouse gas emissions outside of a company’s carbon footprint boundary. The reports, titled “Above and Beyond: An SBTi Report on BVCM Design and Implementation” and “Raising the Bar: An SBTi Report on Enhancing Corporate BVCM Adoption,” serve to provide comprehensive insights and guidance in advancing BVCM initiatives.

• Sectors: Built environment, retail, hospitality & leisure
• Source: https://www.edie.net/sustainability-communications-and-disclosure-handbook-2024/