rethink sustainability
How to reduce a company’s carbon footprint in the race to net zero
We must all make efforts to achieve the Paris Agreement target to reduce global greenhouse gas emissions and reach a net-zero economy. The sense of urgency has spread to investors, who are increasingly putting pressure on companies to define clear climate transition strategies.
Measuring the impact of a company’s carbon footprint
The first step is to calculate a company’s carbon footprint. By measuring total emissions of greenhouse gases, usually over a year, a company can assess its baseline environmental impact. The analysis covers three types of emissions.
Scope 1 are direct emissions that occur from sources controlled or owned by a company, such as fuel combustion in boilers, furnaces and company transportation vehicles. Scope 2 are from the purchase of electricity, steam, heat or cooling, while Scope 3 are from other indirect activities in a company’s upstream and downstream operations, such as supply chain, business travel, commuting and waste. Scope 3 also includes, for a wealth and asset manager like Lombard Odier, investments made on behalf of our clients.
Scope 4 emissions, or avoided emissions, have attracted attention recently, in part due to trends in working from home. While these emission reductions occur outside a company’s value chain, Scope 4 facilitates decarbonisation for other parts of the economy.
Once a company has a carbon footprint analysis, it is easier to identify areas where reductions are possible. At Lombard Odier, our 2019 carbon footprint sets the baseline for our own emissions reduction goals.
Read also: Calculating a company’s carbon footprint: debunking 7 misconceptions on scope 3 emissions
Watch how you travel
Business travel is a significant source of emissions. For a non-manufacturing company, it is common to see 50% of total emissions attributed to business travel. Even though the past year has taught us alternatives to physical meetings do exist, not many in the business world believe virtual calls can fully replicate the value of in-person meetings. Hybrid solutions, where virtual meetings are encouraged and meetings in person continue, may be the future.
The choice of transport is also key – train instead of plane when there is a choice can cut emissions by 70% on a Paris-Geneva trip, and over 80% on a Zurich-Brussels trip.
Companies should look at how employees commute to the office. Using a bike instead of a car for short trips reduces travel emissions by 75%. Lombard Odier has included green mobility solutions in our new global headquarters, including chargers for e-bikes and electrical cars, in an effort to encourage the positive environmental impact of our employees.
Energy efficiency
At Lombard Odier, we ensure our offices run on renewable energy, when available, and we will install solar panels in our new headquarters. We also take everyday measures to reduce energy use. Our computers turn off automatically instead of remaining in sleep mode. We encourage a reduction of emails. On average, an office worker receives 120 emails per day, equivalent to driving 13.4 kilometres in a traditional combustion engine vehicle.
We reduce our hardware footprint, energy consumption and cooling requirements by running several servers on the same hardware, and we partially heat our buildings with the energy generated by our servers.
Embracing circularity
Circularity is an essential component in a Circular, Lean, Inclusive and Clean (CLIC®) operational model, which we aim for at Lombard Odier. This means the natural resources used for the manufacture of products are fully recovered and re-injected into the economy without having to be extracted again. The world is far from being circular, with only 8.6% of total materials extracted globally being reused. Each action counts and a company can begin to address the issue of circularity through its waste management.
While waste generated by its own operations is generally one of the smaller emissions contributors of a company, its handling is a tangible action that brings engagement from employees, whether it is the source of coffee pods used in coffee machines, or the importance of getting rid of single-use plastics.
An interesting part of the waste management chain is e-waste plans, which ensures a company’s used electronics add value either as recovered parts, or as donations to other communities where they can get a second life. This is exactly how we treat e-waste at Lombard Odier.
Watch our video, below, to discover the strategies to limit e-waste with circularity and how we reduce our technology’s impact on the environment, with our experts Geoffroy de Ridder, Head of Technology & Operations and Richard Denglos, Head of IT Infrastructure.
Supply chains
A company’s supply chain has a significant impact on the environment. It is estimated that over 1 billion tonnes of emissions could be saved if suppliers to 125 multinationals increased their renewable electricity by 20%.
To achieve a net-zero economy we need big and small actions, on a global scale and within our local communities. Every action counts, and each employee and each company can contribute to a more positive impact on the environment. And since the sustainable choices often result in leaner and more efficient operations, the positive impact extends to a company's bottom line.
Important information
This document is issued by Bank Lombard Odier & Co Ltd or an entity of the Group (hereinafter “Lombard Odier”). It is not intended for distribution, publication, or use in any jurisdiction where such distribution, publication, or use would be unlawful, nor is it aimed at any person or entity to whom it would be unlawful to address such a document. This document was not prepared by the Financial Research Department of Lombard Odier.
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