With a few rare exceptions, everyone is now aligned on the fact that decarbonizing the economy is a priority issue, whether in the economic or political spheres. Which is great news!
So it's time for companies to commit to decarbonization!
And the first step to reducing emissions is, of course, to measure your carbon impact 📏
But you still have to measure it correctly.
Before talking about the Bilan Carbone® method, a few reminders
Differentiating a "carbon footprint" from the "Bilan Carbone® method
Although the term "carbon footprint" has now entered common parlance to express any process for measuring an organization's carbon footprint, the "Bilan Carbone® method" remains a registered trademark that applies to the approach developed by ADEME and now supported by the Association pour la Transition Bas Carbone. This method goes further than simply measuring an organization's carbon footprint. It is more than simply taking stock of GHG emissions; it also involves implementing a transition plan.
It is therefore essential to differentiate between a simple "carbon footprint" and the "Bilan Carbone® method".
To simplify the reading of this article, we will identify what relates to the method with a ® and will not add it when referring to a carbon footprint in the generic sense of the term.
Carbon footprinting, the key step in decarbonization 🍃
Before building a decarbonization trajectory, you need to take the essential step of carrying out a complete assessment of your carbon footprint. This will enable you to take stock of your greenhouse gas emissions, identify the main sources of these emissions and measure the effectiveness of the measures you take in your climate action plan.
Several methods are available for this purpose. Most of them are highly standardized and recognized by the main international organizations and non-financial reporting standards to which companies are subject, whether by regulatory obligation or to meet the demands of their stakeholders. You will find in this list :
- the standard ISO 14064 STANDARD
- GHG Protocol
- the regulatory BEGES or GHG balance sheet
- the Bilan Carbone® method
It's the latter that we'll be focusing on later in this article. Developed by ADEME (the French Environment and Energy Management Agency), it is now considered a benchmark in the field of carbon accounting, and has been widely deployed by European companies.
What are greenhouse gases?
Greenhouse gases(GHGs) are naturally occurring. By trapping the sun's rays, they maintain the temperature necessary for life, and thus contribute to our planet's climatic equilibrium.
Unfortunately, human activity is excessively increasing the concentration of some of these gases. This overproduction of GHGs is the main cause of global warming.
There are many greenhouse gases. Most standards for measuring greenhouse gas emissions are based on those covered by the Kyoto Protocol:
- carbon dioxide (CO2)
- methane (CH4)
- nitrous oxide (N2O)
- hydrofluorocarbons (HFCs)
- perfluorocarbons (PFCs)
- sulfur hexafluoride (SF6)
- nitrogen trifluoride (NF3)
The Bilan Carbone® method also takes into account chlorofluorocarbons (CFCs) and water vapor condensation trails from aircraft engines.
Carbon footprint: definition 📖
The carbon footprint is an awareness-raising and diagnostic tool that enables companies to collect, analyze and account for their GHG emissions. This tool enables organizations to assess their greenhouse gas emissions.
This enables them to prioritize their consumption in order to guide companies in their climate-energy transition process.
Who is the carbon footprint intended for? Is it mandatory?
Any organization (company, association, local authority, etc.) wishing to measure its environmental impact can carry out a carbon audit. The various existing methodologies are not mandatory, but can be used to meet certain regulatory obligations.
Under France's Grenelle 2 Act, all organizations employing more than 500 people (250 in overseas territories), local authorities with more than 50,000 inhabitants and public-sector entities with more than 250 employees are required to produce a greenhouse gas emissions report (BEGES) every three years.
The CSRD requires European companies that meet at least two of the following three criteria to measure their carbon footprint annually:
- Employ 250 people or more.
- Generate sales of 50 million euros or more.
- Have a balance sheet of €25 million or more.
Also concerned are SMEs listed on European markets that meet at least two of the following three criteria:
- 10 or more employees,
- Generate sales of 900,000 euros or more.
- Have a balance sheet of 450,000 euros or more.
Application will be phased in between 2025 and 2029, depending on the size and sales of the companies concerned.
Who can carry out carbon audits?
Any company or organization can carry out a carbon footprint. Some simulators even allow you to do one for yourself.
It can be carried out for regulatory reasons, as mentioned in the previous point, but can also be done on a voluntary basis by any organization wishing to measure the impact of its activity on the climate and take action.
In fact, carbon footprinting is also regularly required by certain stakeholders, not least investors. Beyond the regulatory framework, measuring one's carbon footprint can therefore rapidly become a prerequisite for companies seeking to develop their business.
How do you calculate a carbon footprint?
Every purchase, electricity consumption, business trip, etc. results in a quantity of GHG emissions. To carry out a carbon footprint, it is necessary to collect data on the company's activities. This data is then combined with a corresponding emission factor to calculate its carbon equivalent.
Lists of emission factors are made available to companies by ADEME and other sector organizations, to help them measure their GHG emissions in the most accurate way possible.
There are 2 main types of emission factor: physical and monetary.
Physical emission factors measure emissions in terms of a physical unit of activity (e.g. kg CO₂e per liter of fuel consumed, ton of product, kWh of electricity). It is used when activity data is expressed in physical units.
Monetary emission factors measure emissions per monetary unit spent (e.g. kg CO₂e per euro spent). It is used when only financial data (expenditure) is available, for example to estimate the emissions of a supply chain without detailed data.
- The first solution - the preferred one - is therefore based on the product unit (kg, liter, m2).
It specifies the amount of CO2 per unit of product.
GHG Quantity = Quantity Consumed x Physical Emission Factor
Ex: 2 kg of beef (quantity consumed) x 38 Kg of CO2 (specific emission factor) = 76 kg CO2
- The second calculation method takes into account the monetary factor.
GHG Quantity = Price x Monetary Emission Factor
Ex: 35 euros (price of 2kg of beef) x 21.78 (Monetary Emission Factor) = 43.5 g/CO2
It should be noted that ADEME and the Association pour la Transition Bas Carbone advise against the use of monetary factors today, as they are influenced by price variations and do not always directly reflect related emissions. Nor do they allow us to identify levers for reducing emissions (other than buying for less, which can sometimes even lead to an increase in emissions).
What is the Bilan Carbone® method?
The creation and development of the Bilan Carbone® method
The Bilan Carbone® method was developed at the instigation of ADEME, and was initially championed by Jean-Marc Jancovici. Officially launched in 2004, it is a standardized method for measuring companies' direct and indirect greenhouse gas emissions, harmonizing carbon accounting practices. It is a registered trademark.
In 2011, management of the method was transferred to the Association Bilan Carbone, which has now become theAssociation pour la Transition Bas Carbone (ABC). Today, Bilan Carbone is in its 9ᵉ version.
It gained in importance with Article 75 of Grenelle II, which made it compulsory for certain companies and local authorities to carry out a GHG assessment, the regulatory BEGES, for which the Bilan Carbone® method can be used.
The Bilan Carbone® method is also compatible with the requirements of the CSRD'sESRS E1.
The objectives of the Bilan Carbone® method
The Bilan Carbone® method has three main objectives:
- Mobilize internal and external stakeholders by raising their awareness, empowering them and involving them in the co-construction and monitoring of transformations linked to the transition plan.
- Rigorously and exhaustively account for all direct and indirect greenhouse gas (GHG) emissions, taking into account the organization's scope of responsibility and dependence.
- Draw up an ambitious, operational transition plan to reduce GHG emissions and vulnerabilities, ensuring effective management and consistency with the emissions balance sheet.
The 7 main stages of the Bilan Carbone® method
The 9th version of the Bilan Carbone® method is structured around 7 main stages, which we will describe in detail below.
1. Framing the Bilan Carbone® approach
To begin with, the organization will need to establish its level of maturity in terms of carbon accounting and its transition path. Is this the first time it has measured its emissions? What resources does it mobilize? What are its expectations and objectives? The Bilan Carbone® method is divided into three main levels: Initial, Standard and Advanced. These allow you to define a level of requirement adapted to your company.
The first step is to appoint a pilot to lead the Bilan Carbone® project within the organization. He or she will be at the heart of the process. His role is that of an orchestra conductor. It is not his or her role to take sole responsibility for measuring the company's carbon footprint and implementing the action plan. This is a joint effort. The pilot will have to raise awareness and mobilize management and operational teams, define collection processes, centralize data and carry out initial analyses in concert with operational teams to identify with them concrete ways of implementing the company's climate action plan.
This first stage also involves defining objectives. They must be formally committed to in writing by the company's management. A prerequisite for any Bilan Carbone®, these objectives will enable us to better define the scope of the study, as well as the process for collecting and processing the data at the heart of the Bilan Carbone® approach.
2. Define the scope of the approach
The second stage of your company's carbon footprint involves defining the perimeters that will be taken into account when accounting for greenhouse gas emissions.
Defining emission perimeters requires the upstream creation of a flow map. As the name implies, this is a map listing the flows of energy, raw materials, waste and products into and out of an organization. This tool, both strategic and operational, helps to identify the main sources of emissions, the interactions between activities, and the opportunities for reducing the carbon footprint.
Based on this flow mapping, we can distinguish 3 emission perimeters within a company, which will be taken into account for GHG emissions accounting purposes.
- The organizational scope covers all your sites and facilities.
- The operational perimeter accounts for direct and/or indirect emissions due to your company's activities and is divided into three distinct families, known as scopes 1, 2 & 3.
- The temporal scope over an observed period - generally 1 year - enables you to collect the GHG emissions data/figures on which your Bilan Carbone is based.
To make it easier to calculate GHG emissions (the operational scope), these are broken down into 3 scopes.
Direct emissions
- Scope 1 (company assets) comes from fixed and mobile sources.
It calculates direct emissions linked to energy combustion: oil, gas, coal (examples: heating buildings, running vehicles, etc)
Ex: in the case of a logistics company, emissions from company-owned delivery vehicles.
Indirect emissions
- Scope 2 covers CO2 emissions linked to electrical energy, the price of which depends on the country's energy mix (building electricity, electric vehicles, etc.).
E.g.: in the case of a restaurant, refrigerant within the refrigerators needed to preserve the products.
- Scope 3 (the most extensive) includes all other emissions not associated with the direct manufacture of your products or services. It is itself divided into two categories.
Upstream:
It corresponds to the purchase of supplies and services: manufacturing, transport, packaging, etc. It takes into account the direct emissions of subcontractors and suppliers. It also takes into account business travel by plane, train, car and emissions, as well as commuting by company employees.
Downstream:
It takes into account downstream freight transport as well as all emissions linked to waste and the life cycle of products and services sold.
3. Schedule mobilization steps
This step, recently integrated into the 9th version of the Bilan Carbone® method, aims to mobilize the various players who will be involved in the measurement phase of your GHG emissions, as well as in the definition and deployment phase of your sustainable transition plan.
The mobilization process must cover all stages of your Bilan Carbone® initiative, and involve all your internal and external stakeholders. Preparing for this mobilization is therefore essential to ensure that the various phases of your Bilan Carbone® process run smoothly.
This mobilization is made up of the following elements:
- Awareness-raising and popularization: at the time of framing and definition of objectives (step 1), this should simplify understanding of the approach and its necessity
- Empowerment: this phase should simplify the identification of emission sources and the data to be collected, while involving the stakeholders contributing to the exercise (stages 2 and 4).
- Co-construction: the aim is to empower the various players involved in the construction of a sustainable transition plan, and subsequently facilitate its implementation (step 5).
Reporting and communication: the aim here is to ensure that all the stakeholders concerned can take ownership of the results and identify the key issues linked to the organization's Bilan Carbone® approach (step 6).
4. Collect and process data
After these 2 preparatory stages, the third phase gets to the heart of measuring your carbon footprint. This involves identifying and then collect the data that will enable us to calculate the greenhouse gas emissions generated by your organization within the scope of analysis defined in the second stage of your Bilan Carbone.
This data, which comes from your entire value chain, is both internal and external to your company. Collecting it therefore requires a rigorous process.
- Take the time to identify all the data you need to obtain a reliable measure of your carbon footprint.
- Nominate referents at the main sites or emission points, who will be responsible for reporting and documenting information to the pilot.
- Make sure you have enough time to collect, then process and finally analyze this data, which can number in the thousands. Given the scale of the task, it needs to be spread out sufficiently over time to be able to collect quality data.
The data collected will then be associated with physical or monetary emission factors, enabling the data to be converted into tons of CO2 equivalent. For each emission factor, the organization must transparently indicate the degree of uncertainty associated with it.
At the end of the first exercise, the analysis of this data will enable you to identify the main emission sources. These are the ones on which you will need to take priority action to reduce your carbon footprint. This analysis will also enable you to determine how much leeway you have to act on the emission items you have identified. For example, it is often more complex to act on emissions generated within your company's Scope 3, as these depend on stakeholders outside your organization.
In subsequent years, the analysis phase should include a comparison with data from previous periods. Have emission levels been reduced? What actions have made this possible? Have exogenous factors or structural changes within my organization had an impact on this result?
The exercise will be repeated over periods corresponding to the time frame you defined in step 2.
5. Draw up a transition plan and define monitoring indicators
On the basis of the data collected and the analysis carried out during the third stage of the Bilan Carbone® method, the pilot will draw up a transition plan.
This plan must include emission reduction targets, a list of actions to be defined in collaboration with a technical committee responsible for implementation, and a decarbonization trajectory aligned with these targets and actions.
The short- and medium-term actions of this action plan will be divided into two categories:
- immediate actions: these are actions that can be activated quickly and easily, and which mobilize teams to implement the action plan.
- Priority actions: these are short- or medium-term actions that will have a strong impact on reducing GHG emissions.
Each action included in this transition plan must follow a precise protocol and have :
- one or more objectives
- indicators for monitoring results
- one or more project leaders
Finally, for each action, you'll need to specify its precise schedule, the stakeholders involved in its implementation, the budget mobilized, the provisional timetable and, finally, the potential obstacles and facilitators to its successful completion.
As the various GHG assessments are carried out, the implementation of each action and its results will be re-analyzed in the light of the objectives set, so as to be able to adjust all or part of the elements that will enable us to achieve the final expected results.
6. Summarizing and reporting on the Bilan Carbone® approach
The organization must summarize its Bilan Carbone® approach in a document intended for management, respecting the Bilan Carbone® principles. This report, drawn up by the pilot with the participation of internal stakeholders, may include the Bilan Carbone® logo if it follows the official recommendations of the Association pour la Transition Bas Carbone. It is intended to inform stakeholders and facilitate verification of the approach taken.
This report must include :
- A description of the organization
- A presentation of the person in charge of the Bilan Carbone® approach within the organization
- Flow mapping
- The chosen time frame
- A description of the chosen organizational perimeter and, if necessary, a justification of the choice.
- Description of the data collection process implemented
- The organization's GHG profile, listing its CO2 emissions.
- The chosen reference year and its GHG profile
- Justification for any change in the reference year
- Documentation of the emission factors used
- Uncertainties associated with the GHG profile
- Quantified mapping of the organization's energy and material flows
- Organizational GHG risks and opportunities
- The pilot's recommendations and the organization's action plan
- Follow-up indicators defined to monitor this action plan
- Assessment of action plans already underway
- The organization's transition vision
- Indicators for monitoring the organization's activity data
- A notice specifying whether the Bilan Carbone has been verified by a third party
An improvement report must also be drawn up. This document guarantees the continuity and improvement of the carbon accounting process. It includes :
- An assessment of compliance with the principles of the Bilan Carbone® method.
- Objectives and improvements needed to achieve them.
- Identification of errors or omissions in emissions accounting.
- Taking into account feedback on awareness-raising activities.
- Suggestions for improvement (e.g. automation of data collection or integration of specific emission factors).
- This report can be externally audited to reinforce its credibility.
Finally, the results of this report must be presented to the technical team and to management, with a focus on priority and immediate actions.
The organization can also deepen its GHG approach by drawing on best practices from other organizations, or sector-specific guides such as those made available by ADEME. It should then document and justify these complementary initiatives.
7. Assessing Bilan Carbone® quality
This last stage, although optional, encourages the organization to have the quality of its Bilan Carbone® approach assessed by independent assessors. This process must follow a strict reference framework which, following the audit, enables the Bilan Carbone® to be considered compliant with the ABC approach.
What are the advantages for a company of having a carbon footprint?
Improving the company's carbon footprint
A company's carbon footprint provides a clear picture of its carbon footprint.
In addition to a detailed look at your emissions-related activities, if you take certain steps, it will enable you to find concrete solutions for reducing the most emissions-intensive activities.
E.g.: Reduce journeys, reduce or change energy consumption, limit waste, opt for short distribution channels, replace certain purchases with others that emit less, etc.
Involve your employees and improve your employer brand
The involvement of employees and collaborators in a CSR approach allows the company to ensure the application of its reduction actions.
It should also be noted that employees are generally sensitive to their company's involvement in climate issues and its sustainable development approach.
Reduce your costs and improve your competitiveness
And yes, reducing your carbon footprint can also mean "saving money"!
The carbon footprint highlights certain expenses and enables you to act and/or invest to reduce them over the medium term.
How can you do this? For example, by reducing your energy consumption: by switching to low-energy lighting, by changing your work habits (turning off your computer and lights, etc.).
You can also gain in competitiveness, as the carbon footprint is becoming an increasingly important criterion for purchasing departments. In some cases, it is even a mandatory criterion in calls for tender.
Find financing more easily
The implementation of a carbon strategy attracts and reassures: it enables the defence of a relevant economic model when seeking financing from banks or investors.
Anticipate the sale or development of your business: An already orchestrated carbon accounting system favours exchanges and gives confidence to potential buyers.
Communicating with customers
The carbon footprint shows your customers, employees and investors that your company is committed to the environment.
For some years now, consumers have been favoring products and/or services with an eco-responsible manufacturing process. Communicating about your commitments and your CSR approach is an asset you can put to good use.
Don't hesitate to share it transparently with your customers, suppliers and partners via your various communication channels.
Which software for a Bilan Carbone®?
Depending on the size of your organization, drawing up a balance sheet of the greenhouse gases emitted by your business can quickly become a complex exercise.
Carbon footprint software, such as that offered by Tennaxia, can considerably simplify the task. They enable you to map your organization and then set up a system for collecting data from all internal and external resources contributing to the measurement of your carbon footprint.
The solution, backed by the expertise of our consultants, enables you to obtain a detailed measurement of your carbon footprint, based on high-quality data, always giving priority to physical emission factors and complying with the Bilan Carbone® methodology. Our carbon footprint platform then automatically associates this data with emission factors, giving you a clear picture of your sources of emissions, and therefore of your levers for action.
Finally, our reduce module enables you to build and manage a detailed carbon trajectory over several years to achieve your environmental objectives, with concrete implementation. A financial analysis of the action plan, directly integrated into the tool, also enables you to estimate the costs and benefits of your transition plan in terms of CAPEX and OPEX.
