Have you calculated your company's footprint and are you wondering whether you should report this calculation? In this article we discuss some situations where reporting your business footprint can be relevant. Whether for government requirements or international guidelines, reporting your footprint can be an important step in demonstrating your commitment to sustainability and transparency.
REPORTING OBLIGATION OF BUSINESS KILOMETERS
If your company, based in the Netherlands, has more than 100 employees, you must report the CO2 emissions of all work-related kilometers of your employees to the Dutch government from 1 January 2024. This requirement aims to raise awareness of the impact of transport and encourages companies to take measures to reduce their emissions.
You only need to provide (the annual totals of) the number of kilometers, the means of transport used and the type of fuel. You do not have to provide figures on CO2 emissions. The Dutch “Rijksdienst voor ondernemend Nederland” (RVO) calculates the emissions for you based on the data you provide.
Do you have your company's footprint calculated? Then your administration is already ahead of this reporting obligation. With a footprint calculation at company level, the business kilometers are also requested. So, you are already one step ahead when it comes to collecting the right data.
CSRD OBLIGATIONS FOR LARGER BUSINESSES
From 2024, more and more companies will have to deal with the Corporate Sustainability Reporting Directive (CSRD). This EU directive obliges companies within the European Union to map ecological, social and government risks and to provide sustainability information to stakeholders. When will the CSRD apply?
- For companies that already have to deal with the European directive on sustainability reporting (the Non-Financial Reporting Directive, NFRD), the CSRD will apply from 1 January 2024.
- From 2025, the CSRD will also apply to large companies that are not yet covered by it. This concerns companies that meet at least 2 of the following requirements: more than 250 employees, an annual turnover of more than 40 million euros or a balance sheet total of more than 20 million euros.
- For listed companies, the CSRD will apply from 1 January 2026.
For the listed companies, the European Union is currently investigating a lighter version of the CSRD report. While the details are still being worked out, it is important as a public company to stay up to date of these developments and to prepare for any reporting obligations in the future.
More and more companies must therefore start including this data in their annual report and be audited by an independent external party. So that you pass the test and can report the correct data.
SETTING AND REPORTING SCIENCE BASED TARGETS
The Science Based Targets Initiative was founded in 2015 by the United Nations, the World Wildlife Fund and the World Resources Institute. With the aim of helping companies to set Science Based Targets. Those are science-based goals that you set for your organization. With Science Based Targets you bring your company's goals in line with the climate goals in the Paris Agreement. With the set goals you know exactly how much and how quickly you need to reduce greenhouse gas emissions. An annual business footprint is necessary for formulating and monitoring these goals. This shows that a footprint calculation at company level is becoming increasingly relevant.
WORK ACCORDING TO THE CO2 PERFORMANCE LADDER
Is your company involved in obtaining certification for the CO2 Performance Ladder? Then you must map out the footprint of your organization every six months and have it checked. The CO2 Performance Ladder is an instrument that helps companies reduce CO2 and costs.
The ladder consists of 5 levels (see image below). At levels 1, 2 and 3 you get to work with your company's emissions. At levels 4 and 5 you also get to work with the CO2 emissions in the chain.
To calculate the footprint of your company, we look at the three scopes that come from the Green House Gas Protocol. For the CO2 Performance Ladder levels 1, 2 and 3, only the emissions from scope 1 and scope 2 emissions are considered. Scope 3 also becomes relevant at levels 4 and 5 of the ladder.
PREPARE FOR THE FUTURE
So, reporting your business footprint can bring significant benefits, such as demonstrating your commitment to sustainability, meeting regulatory requirements, and building trust with your stakeholders. Whether it concerns reporting obligations based on the number of employees or compliance with international guidelines such as the CSRD, it is important to start preparing and collect the necessary data.
We are happy to tell you more about how you can implement a business footprint and strengthen the sustainability of your company. Because by proactively reporting your business footprint, you take a leading role in sustainability and contribute to a sustainable future.
Would you like to take the first step today? Calculate the footprint of your company yourself Footprint4All tool.