As climate awareness grows, more consumers and investors expect companies to take responsibility for their environmental impact. However, tracking a carbon footprint can feel overwhelming for many small businesses.

This guide will help you understand what a carbon footprint is, why it matters, and the most innovative ways small businesses can start measuring and reducing their emissions today.

What Is a Carbon Footprint for a Small Business?

A carbon footprint refers to the total greenhouse gas (GHG) emissions your business operations generate. These emissions can include:

• Electricity usage

• Employee commutes

• Product shipping

• Supply chain activities

Understanding your small business's carbon emissions is the first step toward building a more sustainable operation and achieving net zero targets.

Why Should Small Businesses Track Emissions?

Tracking your carbon footprint for business isn't just good for the environment — it's smart business strategy:

• Meet customer expectations: Eco-conscious consumers prefer transparent brands about their environmental impact.

• Attract investors: Sustainability is now a core pillar of Environmental, Social, and Governance (ESG) investing.

• Save money: Cutting emissions often leads to lower energy bills and improved operational efficiency.

• Prepare for regulations: Emerging climate policies may soon mandate emissions reporting for businesses.

External Resource: Learn more about ESG and carbon emissions from the EPA's Carbon Footprint Guidelines.

7 Tips for Small Businesses to Track Their Carbon Footprint

1. Understand Emissions Categories

Measuring your carbon footprint begins with identifying primary sources of emissions. These typically fall into three categories:

Scope 1 (Direct Emissions): Emissions directly generated by your operations, such as on-site fuel combustion.

Scope 2 (Indirect Emissions from Energy Use): Emissions from purchased electricity, heating, and cooling.

Scope 3 (Other Indirect Emissions): Emissions from activities not owned or controlled by your business, including supply chain activities, business travel, and product use.

2. Monitor Your Utility Bills

Start by tracking electricity, water, and heating usage through monthly utility statements. Recognizing usage patterns can highlight opportunities to reduce consumption.

3. Track Company Travel and Fuel Usage

Document business trips, commuting methods, and vehicle fuel consumption. This will help calculate emissions from transportation activities.

4. Survey Your Suppliers About Their Emissions

Engage your suppliers to understand the carbon footprint associated with their products and services. Choosing greener suppliers can reduce your overall emissions.

5. Log Product Shipments and Delivery Distances

Record all product shipments and related transportation distances. Consolidating shipments and choosing efficient routes can significantly lower logistics emissions.

6. Track Office Waste and Recycling Efforts

Measure the amount of waste your business generates and the effectiveness of recycling programs. Reducing landfill waste contributes to lower carbon emissions.

7. Monitor Water Usage Across Facilities

Track water consumption across your business locations. Efficient water usage reduces the carbon footprint related to water supply and treatment.

Bonus Tip: Simplify Your Tracking with GHG Metric

Manually tracking emissions can be time-consuming. That’s why we’re building GHG Metric, an easy-to-use carbon footprint tracking platform for small businesses.

With GHG Metric, you’ll soon be able to:

• Collect data automatically

• Generate accurate reports

• Analyze emissions trends easily

Final Thoughts

Tracking your carbon footprint as a small business is more accessible than ever. With the right tools, patience, and passion for the planet, you can begin your journey toward sustainability.

Whether you’re a beginner learning about sustainability for small businesses or an SME ready to make meaningful changes, the most critical step is to start today.