The future is green all over the globe. In Canada, the federal government is committed to achieving net-zero emissions by 2050. However, considering a shorter timeline, the 2030 Emissions Reduction Plan outlines a sector-by-sector path for Canada to reach an emissions reduction target of 40% below 2005 levels by 2030. For most households and businesses, the change is already happening.
According to Harvard Business Review, consumer behaviour is approaching the tipping point where sustainability will be considered a baseline requirement for purchase, which means companies should be aware of growing their business sustainably to boost how they are seeing on the market.
A well-planned sustainable business strategy aims to solve environmental concerns, such as pollution (air, water), biodiversity loss, deforestation, and ocean acidification, and, at the same time, boosts employee and customer satisfaction. We may know the benefits at this point; however, how can companies get there?
At EnergyRates.ca we can guide companies through the process of creating a corporate sustainability plan, including calculating emissions, purchasing RECs and Carbon Offsets, or reducing scope 2 emissions via virtual power purchase agreements. You can understand how we can support your business’ sustainable targets in more detail below:
Step 1: Knowing the current scenario
Before setting up any internal projects or taking any sustainable initiatives, organizations need to know the current scenarios and their possibilities. Some questions can help businesses understand where to start:
- How often does the company discuss environmental matters?
- How much waste does the organization generate? (This would include recyclable item as well, such as paper and plastic.)
- Does the company save on energy?
- Does the business know about energy efficiency?
- Are there water-saving practices or policies?
- Does the business understand what customers want environmentally speaking?
- Does the business calculate its emissions? If not, investing in Carbon Accounting could be a starting point to evaluating GHG emissions and starting an emissions reduction strategy.
- Is the company powered by renewable energy at any level?
- Does the company know about Renewable Energy Certificates and their corporate benefits?
- Are you familiar with carbon offsets and other similar sustainability initiatives?
It is much easier to act after defining concrete objectives and tracing effective strategies.
Step 2: Applying simple practices to reduce energy costs and carbon footprint
Some updates require time, investments, and consequentially more time to be planned and applied. However, there are plenty of sustainable practices that can be started in the short term, and that can both help the environment and reduce costs:
- Cutting down on single-use plastic items, such as cups, plates, and utensils.
- Decreasing paper use or going paperless.
- Have a remote or hybrid work system, when possible, to reduce commute-related carbon emissions.
- Choosing laptops over computers to decrease energy consumption.
- Turning off the lights after work and maximizing natural lights.
- Setting the thermostat at the ideal temperature for each season to save on energy.
- Providing reusable cutlery and kitchen items in general.
Step 3: Evaluate your corporate energy strategies
- Install EV Charging Stations to incentivize employees to reduce their carbon emissions.
- Choose an energy advisor to have enough resources and knowledge to collect data on renewable energy possibilities on Renewable Energy Certificates, Carbon Offsets, Virtual Power Purchase Agreements (VPPA), and certifications in general.
- Plan and apply renewable energy changes (ex: switching from conventional to solar panels.)
- Choose the best renewable energy plan for your business.
- Look for Renewable Energy Certificates (RECs.)
- Find sustainability-related certifications within your industry.
These updates above require a larger budget and an execution plan to be done, and as renewable energy initiatives are still a new and lengthy topic these days, we can help you get started and grow your knowledge, such as renewable energy plans and certification:
Carbon Accounting and How Scope 1, 2, and 3 Emissions Work
Carbon Accounting will be the first topic since it is an effective first strategy to better understand the company’s carbon emissions, and the potential ways to decrease it. The technique analyses the business’s direct and indirect emissions to sequentially offer insights into an organization’s environmental performance.
The scopes 1, 2 and 3 are related to the emissions levels, such as:
- Scope 1 direct emissions from owned sources such as company vehicles and internal production.
- Scope 2 indirect emissions from the generation of purchased electricity, heating, and cooling.
- Scope 3 more general, includes all indirect emissions like travel in the company “levels” of emissions.
After consulting with us, our energy experts will help you define what is needed to reach net-zero targets according to the company’s budget and plans.
Renewable Energy Certificates (RECs) and Carbon Offsets
RECs are a renewable energy procurement option for companies to track the energy flowing into the power grid. The business can look for RECs to offset their carbon emissions by declaring that one megawatt-hour (MWh) of electricity was generated from a renewable source and, achieving, consequently, the “clean energy” label.
As RECs work as a financial instrument, they can be bought or sold. Large companies can buy multiple RECs while smaller businesses or individual customers can buy a fraction of a Renewable Energy Certificate.
Regarding Carbon Offsets (or Greenhouse Gas Offsets), it is an option for businesses to “cancel out” their carbon emissions that have been spewed into the atmosphere. Its main goal is to let emitters fund and take credit for greenhouse gas reductions. The commodity the company can purchase as a counterweight to its emissions can be considered green energy resources, such as wind, reforestation, avoided deforestation, landfill methane, biomass, and others.
The major certifications that we can source offsets for include:
REDD+ – Reducing emissions from deforestation and forest degradation. This program aims to promote forest conservation and sustainable forest management. The goal is to neutralize the emissions through a carbon footprint calculator (planting trees, for example) by protecting forests that absorb carbon from the atmosphere.
VCS – Verified Carbon Standard. The VCS ensures the accuracy of the greenhouse gas emission reduction in the business through rigorous rules and requirements. Once a project is certified, the project can earn Verified Carbon Units or VCU – a tradable GHG credit.
GS – Gold Standard. It was designed to ensure that carbon credits are real and verifiable and that projects contribute to the environment by considering sustainable goals. It has some of the most rigorous standards among other non-governmental initiatives and can work with projects to ensure their carbon offsets are effective or can sell their own offsets.
Virtual Power Purchase Agreements
VPPA – There are financial agreements, and this option doesn’t require a direct physical electrical interconnection. The energy, in VPPAs, is sold on the wholesale electricity market at a defined settlement location and is generally contracted in deregulated markets such as Alberta. Whether Physical or Virtual, in both cases the company would receive the Renewable Energy Certificate (REC) for each MWh of energy produced.
Main Certifications in Canada
There are plenty of certifications in Canada to better fit each company’s renewable energy measures which vary depending on the organization’s operational and internal practices. In this article, we have all the details that corporate sustainability managers should know regarding each one, including BOMA Best® Certification, LEED® Certification, Green-e®, andEcologo®.
