Carbon Footprinting for MSMEs: A Practical Starting Point
You don't need a large sustainability team to start measuring your carbon footprint. Here's a practical, jargon-free guide for Indian MSMEs.
Carbon footprinting — measuring the greenhouse gases your organisation emits — has shifted from a large-company concern to a supply chain requirement for businesses of all sizes. Enterprise clients, export markets (particularly EU under CBAM), and lenders are now requesting GHG data from their MSME suppliers. Here's how to start without being overwhelmed.
Scope 1, 2, and 3: What They Mean
Scope 1: Direct emissions from sources you own or control — fuel combustion in furnaces, boilers, vehicles, generators. Scope 2: Indirect emissions from purchased electricity. This is the largest and easiest-to-measure scope for most MSMEs. Scope 3: All other indirect emissions in your value chain — purchased materials, business travel, employee commuting, waste disposal, and use of your products. Scope 3 is complex and optional for most MSMEs initially.
Data You Need to Collect
For Scope 1: Monthly diesel/LPG/furnace oil/coal consumption records (from purchase invoices). For Scope 2: Monthly electricity bills (units consumed, not just amount paid). Emission factors: use the latest IPCC factors for fuels, and the CEA grid emission factor for your state (available from the Central Electricity Authority's annual report). This alone gives you a credible Scope 1+2 footprint.
Calculating Your Footprint
tCO₂e = Activity Data × Emission Factor. Example: 1,000 litres of diesel × 2.68 kgCO₂e/litre = 2.68 tCO₂e. For electricity: 50,000 kWh × 0.82 kgCO₂/kWh (Northeast India grid factor) = 41 tCO₂e. Sum all sources for your total annual footprint. Express as absolute (total tCO₂e/year) and intensity (tCO₂e per ₹ lakh turnover or per unit of product).
What to Do with Your Footprint Number
Set a baseline year. Identify your largest emission sources (typically electricity or process fuel). Set a reduction target (even 5% year-on-year is credible). Report it in your ESG or sustainability disclosure. For supply chain requirements, issue a self-declaration or get third-party verification from a NABET-accredited agency. GreenMind offers a Carbon Footprinting service for MSMEs that delivers a complete, verifiable GHG inventory within 3–4 weeks.
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