Normative has launched a carbon calculator, developed with support from Google.org and available for free through the SME Climate Hub. The calculator helps SMEs measure their emissions and identify emission hot spots, establishing a baseline towards halving emissions before 2030 and reaching net-zero by 2050. The tool will enable SMEs to build more sustainable and competitive businesses that are resilient for the long term, and help meet global climate targets.
SMEs make up 90% of business globally. Many of these companies play inter-connected roles in the creation of the products and services of large corporations. Corporate value chain emissions - also referred to as Scope 3 emissions - can account for up to 90% of a business’ emissions, and these value chains often consist of SMEs.
However, many of these small businesses do not have the resources to measure and manage their emissions accurately. In a recent survey by the SME Climate Hub, 63% of respondents said they did not feel they have the right skills to take the most robust climate action.
The Business Carbon Calculator enables SMEs to measure their carbon footprints and identify emission hotspots. Businesses input easily accessible data – such as the size of their facilities or their spend on electricity, heating, and petrol – into a quick, simple-to-use form. The resulting footprint information establishes a baseline from which to take action through the suite of tools and incentives on the SME Climate Hub.
The Business Carbon Calculator was developed with support from a team of 12 Google.org Fellows, comprising software engineers, UX designers, and product managers, who supported Normative full-time pro bono for six months. The tool is an extension of the Industry CO² Insights tool launched by Normative and the SME Climate Hub in November at COP26. Normative is taking the next step in engaging value chains by enabling SMEs to calculate their carbon footprint and identify emission reduction areas.
Businesses and their value chains have a key role to play in achieving Paris-aligned climate targets. The latest climate science makes clear that to avoid the worst impacts of climate change, we must limit global temperature rise to 1.5°C. That means cutting global emissions in half before 2030 and reaching net zero emissions before 2050, which can only be achieved if we start measuring and reducing emissions in an accurate and systematic way.
“We need to act now. The climate will not wait for us to be ready,” said Kristian Rönn, CEO and co-founder of Normative, the world’s first carbon emission accounting engine and the data and software provider for the UN-backed SME Climate Hub. “We want to make measuring carbon emissions and joining the race to net zero accessible to everyone. This new tool is our second step towards engaging value chains across the world, and we will continue to develop and push our technology to help businesses take climate action,” Kristian Rönn concludes.
Small businesses that choose to invest in reducing their emissions can see numerous short and long term business advantages, including increased efficiency and reduced operating costs, branding benefits, reduced business risk, legislative compliance and improved access to capital.
“Businesses of all sizes are increasingly recognising that being kind to the planet is essential for business success. But for small and medium sized businesses, identifying where emissions come from - and how to reduce them - can come with unique challenges. Normative’s work to solve this with their new, free carbon calculator specifically designed for SMEs is exciting - and we’re proud to be working with them,” says Matt Brittin, President of Google EMEA operations.
Normative developed the Business Carbon Calculator after being selected for a Google.org Fellowship and a €1m grant to help achieve the companies’ joint objective of developing exponential technology to empower businesses to tackle climate change.
“Small businesses have a substantial opportunity to build more resilient business foundations through climate action,” said María Mendiluce, CEO of the We Mean Business Coalition, a founding partner of the SME Climate Hub. “It’s imperative businesses of all sizes are provided with the tools necessary to prioritize emissions reduction. We are proud the SME Climate Hub can help bridge this resource gap through tools like the Normative Business Carbon Calculator.”