Accounting

The 5 most common mistakes in CO₂ balancing and how you can avoid them

8/28/24Reading time:

Creating a carbon footprint is a complex task that requires a lot of data and precise methodology. Companies often make mistakes that affect the accuracy and informative value of the balance sheet. We asked our carbon footprinting expert Franziska Niesch what the five most common mistakes in carbon footprinting are and how you can avoid them.

1. unclear responsibilities

Mistakes:
A common mistake is to delegate the task of CO₂ accounting to the wrong person. In the already stressful day-to-day business, this task is often handed over to working students, trainees or interns. They are then faced with a closed door when gathering the various pieces of information, as the information is either too sensitive or the person assigned does not have the necessary authority to issue instructions.

Solution:
Accurate CO₂ accounting requires the cooperation of almost all departments. The task should therefore be delegated from the top down (top-down approach). The management must be behind the project and appoint a person in the company with sufficient authority to issue instructions and provide the necessary support. This ensures that all relevant information is collected and processed correctly.

2. underestimating the effort

Mistake:
Many companies underestimate the effort involved in preparing a CO₂ balance sheet. Recording and analyzing all relevant data, such as employee routes, energy consumption, waste and purchases, is time-consuming and complex, especially if the data is not available digitally.

Solution:
Although the first balance sheet is often particularly time-consuming, once all the data is available, it only needs to be updated for future balance sheets. It is therefore worth making this effort and setting up a central point for data collection and management from the outset.

3. perfectionism

Mistakes:
Companies tend to fall into perfectionism during data collection, which unnecessarily prolongs and complicates the process. While the data should be accurate, it doesn't have to be perfect from the start.

Solution:
Document weaknesses in your data and improve them step by step. For example, you can start with average values (standards) and encourage your suppliers to create their own CO₂ footprints. This will create a basis that you can continuously improve.

4. unclear target setting

Mistake:
Creating a CO₂ footprint simply because it is expected by a customer or partner is not a sustainable motivation. Such an approach often leads to a superficial and uninformative balance sheet.

Solution:
Set your own clear goals. Your carbon footprint should be a tool to make your environmental impact measurable and identify necessary measures for improvement. Understand and interpret the figures so that you can make sustainable decisions that can also bring many economic benefits for your company.

5 Methodological errors

Errors:
Methodological errors are common and can significantly affect the accuracy of the CO₂ balance sheet. A common error, for example, is the incorrect allocation of emissions to the categories of the GHG Protocol.

Solution:
Make sure that you assign emissions correctly to the appropriate categories. For example, emissions from delivery can fall into both the "upstream" and "downstream" categories, depending on whether you pay for the service yourself or invoice your customer. Other methodological errors can include the incorrect inclusion of offsetting services in the balance sheet or the incorrect reporting of greenhouse gases.

If you need support with your carbon footprint, the experts at natureOffice will be happy to help. We will help you avoid methodological errors and create a precise and meaningful carbon footprint.