Dr. Lim Chooi Seng, Assistant Director, TÜV SÜD Group, a Singapore-based technical solution consulting firm, explained that Carbon Footprint was a simple solution that every organization could apply to save costs and add value.

Carbon Footprint is a tool for calculating the aggregate mass of carbon emission generated each day by various activities based on the principle of Cycle Assessment (LCA), and two international standards: ISO 14064 and PAS 2050.

ISO 14064 stipulates the correct method for collecting data on carbon dioxide emission while the UK standard, PAS 2050, spells out how gas emission can be measured at each stage of the production process.

Apart from being the latest environmental management tool, which indicates an organization’s commitment to Corporate Social Responsibility and enhances its image, Carbon Footprint also helps to improve operational efficiency, cut costs and add value to products or services.

“Before raw materials are purchased, suppliers have to verify the quantity of carbon emission. Producers must also quantify the quantity of energy used by each in-house transportation or distribution activity. Such data should be collected every six months for the purpose of calculating internal carbon emission,” said Dr. Lim Chooi Seng.

Having verified which activity/department uses the largest quantity of energy, it is easy to identify the problem and cause of carbon emissions and to formulate a solution that would cut costs and improve efficiency throughout the entire supply chain.

“Lower carbon emission generated by various production processes means that you have already conserved energy and cut costs,” added Siam-marl Matikornkul, Marketing Executive, Sales and Marketing, TÜV SÜD PSB (Thailand).

Having identified that the transportation department uses energy that emits the largest quantity of carbon due to empty truck runs, a transportation company considered alternative plans for minimizing empty truck runs. As a result, truck routing staff worked closely to plan distribution routes while the Sales Department secured new customers, thereby solving the problem of empty runs while adding value to cargo transported for each and every trip. Calculated total gas emissions divided by total cargo weight yielded lower results in Carbon Footprint calculations as well as higher value-added for the organization.

Carbon Footprint Label is good PR

Attaching the Carbon Footprint label on industrial products not only confirms the organization’s commitment to CSR but also appeals to consumers’ concerns about environmental protection.

“When choosing between two products or services selling at nearly the same price, consumers tend to select items that have Carbon Footprint label because they want to participate in the anti-Global Warming campaign,” Dr. Lim Chooi Seng said.

Most Carbon Footprint labels either show a Footprint or a CO₂ sign along with figures denoting the quantity of carbon emission for that product or product category. Lower figures denote higher capacity to reduce carbon emission. The PR benefit of attaching the Carbon Footprint label applies not only to consumer goods but also to every type of industry or service.