Carbon footprint basics start with one idea: your footprint is the greenhouse gas your business causes, counted in tonnes of carbon dioxide equivalent (CO2e). You count it so you can see where it comes from and cut what you can. Small firms across Asia now get this question from bigger customers, so it helps to know the answer before it is asked.
The three scopes in plain words
The most used method is the Greenhouse Gas Protocol Corporate Standard. It sorts emissions into three groups, called scopes. The standard asks companies to report scopes 1 and 2 at a minimum. Scope 3 is optional under that standard.
Scope 1 is direct emissions. These come from sources your business owns or controls. Think of a delivery van, a gas boiler or a generator on your premises.
Scope 2 is emissions from the electricity you buy. The power plant makes them, but you cause them when you switch on the lights, the air conditioning and the machines.
Scope 3 is everything else in your chain. It covers the materials you buy, the transport you pay for and the use of the products you sell. For many small firms, scope 3 can be the largest part, and it is also the hardest to measure.
Start with what you already have
You do not need special software to begin. Most of the data is already in your files. Pick one 12-month period and gather three sets of records.
- Electricity bills, in kilowatt hours, for every site you rent or own.
- Fuel receipts for vehicles and generators, in litres.
- Records of business flights and long taxi or rail trips, if you have them.
These cover scopes 1 and 2 and some of scope 3. A simple spreadsheet is enough. Write the activity, the amount and the date in each row.
Turn activity into tonnes
To get from litres or kilowatt hours to tonnes, you multiply by an emission factor. An emission factor is a number that says how much CO2e one unit of activity gives off. Use factors published by your national government or your power grid where they exist, and write down which table you used and its year.
The basic formula is simple. Activity amount times emission factor equals emissions. Add up the rows for each scope, and you have a first footprint. It will not be perfect, and that is fine. The Corporate Standard also asks you to name the gases you count. It covers seven: carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons, sulphur hexafluoride and nitrogen trifluoride.
Why a price on carbon matters
Some governments now charge for emissions. Singapore started a carbon tax in 2019. From 1 January 2024, the rate rose to S$25 per tonne of CO2e. The tax applies to industrial facilities that emit at least 25,000 tonnes of CO2e a year. A small shop or office is far below that line, so it does not pay the tax directly.
The price still matters to you. A large facility that pays per tonne has a reason to ask suppliers about their emissions. It may also pass part of the cost down the chain. If you sell to large firms in Singapore, expect more questions about energy use and fuel.
What customers may ask for
Large buyers often count their suppliers inside their own scope 3. So they may send you a short form. Be ready for questions like these.
- Do you measure your emissions? For which year?
- What are your scope 1 and scope 2 totals?
- Which emission factors did you use?
- Do you have a plan to cut energy use or fuel use?
Answer honestly. If you have not measured yet, say so and share your start date. A clear, small answer is better than a large guess. Keep your spreadsheet and your bills, because a buyer may ask to see them.
Simple ways to cut your footprint
Once you can see the numbers, the biggest items are easy to spot. For many small firms, that is electricity for cooling and lighting. Raise the thermostat setting by a degree or two, switch to LED lights and turn off equipment at night. Plan delivery routes so vans drive fewer kilometres. Ask your main suppliers whether they track their own emissions.
Measure again in 12 months with the same method. Compare the two totals. If the method is the same, the change is real.
Sources
- GHG Protocol, Corporate Standard: https://ghgprotocol.org/corporate-standard
- National Environment Agency, Singapore, Carbon Tax: https://www.nea.gov.sg/our-services/climate-change-energy-efficiency/climate-change/carbon-tax