- The Business Carbon Calculator helps small to medium sized enterprises (SMEs) to track and reduce emissions, for free through the UN-backed SME Climate Hub.
- Large corporations’ value chains consist of up to 90% of their total emissions. Small business suppliers have a crucial role in meeting shared global climate targets.
- With changing customer expectations and regulations as well as rising production costs, small businesses will need to prioritize climate action to maintain a competitive advantage.
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.”
Normative is the world’s first carbon accounting engine, helping businesses calculate their entire climate footprint and reduce their greenhouse gas emissions. Co-founded in 2014 by Kristian Rönn to accelerate the transition to Net Zero, Normative sets a new standard in scientific accuracy for emissions accounting, powered by its market-leading emissions database. Normative is also the foundational software provider for the UN-backed SME Climate Hub through which thousands of small businesses have committed to net zero.
About the SME Climate Hub
The SME Climate Hub is an initiative of the We Mean Business Coalition, the Exponential Roadmap Initiative, the United Nations Race to Zero campaign and the International Chamber of Commerce. In collaboration with Normative and the Net Zero team at Oxford University, the SME Climate Hub provides tools and resources to enable SMEs to make a climate commitment, take action and measure their progress towards emissions reductions. This partnership allows SMEs to join the United Nations Race to Zero campaign — an international campaign that brings together an unprecedented coalition of real economy actors and 120 governments committed to achieve net-zero emissions by no later than 2050.
Google.org, Google’s philanthropy, supports nonprofits that address humanitarian issues and apply scalable, data-driven innovation to solving the world’s biggest challenges. We accelerate their progress by connecting them with a unique blend of support that includes funding, products, and technical expertise from Google volunteers. We engage with these believers-turned-doers who make a significant impact on the communities they represent, and whose work has the potential to produce meaningful change. We want a world that works for everyone—and we believe technology and innovation can move the needle.