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businesses include in their carbon KPIs or Impact on carbon footprint of different actions
corporate accounts. Most carbon
disclosure regulations also focus on these The following tables explore the likely consequences of three activities adopted by
two columns, which only represent a very the store managers in the scenario: (1) “Switching From Buying Internally to
small percentage of the carbon emissions Overseas Suppliers”; (2) “Encouraging Staff to Commute/Travel for Business
associated with a product, service, or Purposes Using Public Transport, Cycling, or Walking”; and (3) “Providing In-Store
overall business activities. Education to Reduce Food Waste by Customers”. Each table identifies the impact of
Research suggests that, on average, the the actions on the different sources of carbon emissions. The shaded cells
most common carbon KPIs capture only represent the emissions included in the SCEM.
around 20% of total emissions, but this
can vary considerably by sector. In some
sectors, such as IT, only 1% of total climate- 1. Switching from buying internally to overseas suppliers
related emissions are captured in publicly
disclosed carbon KPIs. A recent survey of After
UK businesses suggests that only a Travel Emissions sale but
minority included carbon emissions and Purchase from the before Use and
beyond those required for corporate Resources logistics of energy use of use disposal
disclosure (see the table “Carbon Increase Purchased Delivery of
Emissions Beyond Corporate carbon goods and goods and
Disclosures”). footprint services services to
business
In the supermarket scenario, the SCEM
is consistent with carbon disclosure Reduce Company
requirements. But rewarding managers for carbon facilities,
footprint
land, and
reducing their monthly SCEM could buildings
actually increase the supermarket’s total
carbon emissions. This is because the Company
SCEM allows store managers to leave out vehicles
carbon emissions related to procurement
and logistics.
The SCEM includes emissions related 2. Encouraging staff to commute/travel for business purposes
to in-house production and use of using public transport, cycling, or walking
company vehicles but excludes carbon
emissions related to purchased goods and After
services. This has the unintended Travel Emissions sale but
consequence of internally sourced and Purchase from the before Use and
products’ adding to the SCEM, whereas Resources logistics of energy use of use disposal
buying similar goods from external Increase
suppliers overseas could increase carbon carbon
emissions but not the SCEM. Because the footprint
SCEM does not adequately capture all the Reduce Employees’
carbon emissions, it incentivises carbon commuting
increasing carbon emissions. footprint Business
Actions can affect the life-cycle carbon travel
footprint in ways that are not adequately
captured by conventional carbon KPIs,
such as the SCEM (see the tables under the

heading “Impact on Carbon Footprint of 3. Providing in-store education to reduce food waste by customers
Different Actions”). The most commonly
After
used carbon KPIs provide misleading Travel Emissions sale but
accounts of the climate change and Purchase from the before Use and
consequences of different decisions. They Resources logistics of energy use of use disposal
do this by excluding increases in carbon Increase
emissions and not recognising reductions carbon
in carbon emissions from actions such as footprint
reducing consumer waste or encouraging Reduce Use of
lower carbon commuting. carbon product
The SCEM used by the supermarket is footprint
not without merit, but it does not apply to End-of-life
all business decisions. For example, it does disposal
capture the carbon consequences of
Source: Author.
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