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Corporate Sustainability in the Era of Global Warming

Sustainable development requires the establishment of a corporate operational model that is compatible with the developmental trajectory of the biosphere without causing irreversible damage (Hajnal, 2006).

Amidst the current climate crisis, corporate responsibility is increasing: companies must not only follow sustainability principles but also actively contribute to restoring natural balance.

Definition of Sustainable Development (Hajnal 2006 (PDF)): Humanity is part of and an active participant in the evolution of the Universe and life on Earth. Therefore, its development is determined by the evolutionary trajectory and laws of the life-sustaining biosphere.

As a subsystem of the biosphere, humanity can develop safely only if it aligns with the evolutionary direction, organization, and operational model of the life-sustaining biosphere. This means it must integrate harmoniously with the biosphere, causing no irreversible damage while ensuring the long-term availability of resources necessary for justified human needs.

The realization of sustainable development requires regulatory and monitoring activities aimed at ensuring a dynamic balance and lasting harmony between the planet’s natural resources and human system demands.

Key Elements of Sustainable Corporate Operations

Carbon Neutrality and Emission Reduction Achieving carbon neutrality is crucial for all companies. This involves minimizing direct (Scope 1), indirect (Scope 2), and supply chain (Scope 3) emissions. Effective strategies include improving energy efficiency, utilizing renewable energy sources, and developing a low-carbon supply chain.

Carbon Credits and Offsetting Even the most sustainable companies cannot completely eliminate their emissions, so the remaining emissions must be offset by purchasing carbon credits. These credits finance projects that sequester carbon dioxide or prevent emissions, such as forest conservation, regenerative agriculture, or renewable technologies.

Circular Economy Instead of a linear economy (production-consumption-waste), companies should transition to a circular model that focuses on retaining raw materials for as long as possible and recycling them. This reduces the ecological footprint while offering economically efficient solutions. The circular economy is built on recycling and keeping materials in circulation. The blue economy further integrates natural logic, achieving zero waste by transforming all byproducts into valuable resources. The blue economy is thus a more radical and innovative version of the circular economy, not only aiming for efficiency but also mimicking natural systems.

ESG and CSRD Compliance Sustainability considerations are increasingly becoming part of regulations. The ESG (Environmental, Social, Governance) framework and the EU CSRD (Corporate Sustainability Reporting Directive) provide essential guidelines for companies to establish sustainable and transparent operations.

Respecting Planetary Boundaries The “planetary boundaries” concept, defined by the Stockholm Resilience Centre, highlights that human activity must not exceed the resilience of natural systems. Companies must adjust their raw material usage, production processes, and emissions accordingly.

According to Hajnal (2006), sustainable companies do not merely minimize their negative impacts but actively participate in the regeneration of the biosphere. Achieving carbon neutrality, integrating ESG principles, and adopting circular economy practices all contribute to ensuring that businesses align harmoniously with natural systems, securing long-term human well-being.

Carbon footprint can be defined as the cumulative effect of various (everyday, business, personal or community) human activities on the environment, or the extent to which we, people, have an impact on the condition of our planet in the course of our private and business lives.

A private individual’s carbon footprint can be said to be the total amount of GHGs emitted through their routine daily activities, whereas in the case of businesses it means the total amount of GHGs emitted through their business activities. Also, a carbon footprint can be calculated for individual products, services and even for various events.

The size or amount of carbon footprint is determined on an annual basis for individuals and businesses, while it is calculated on a case by case basis for products and events. For the last two, calculations are based on the amount of GHGs emitted while manufacturing and shipping a product, or organizing all the activities necessary to stage an event.

Greenhouse Gases (GHGs)

Greenhouse gases include carbon dioxide (CO₂), methane (CH₄), nitrous oxide (N₂O), sulfur hexafluoride (SF₆), hydroflourocarbons (HFCs) and perfluorocarbons (PFCs). When determining the size of one’s carbon footprint, one must examine the amount of GHGs emitted “as a side effect” of the activity or activities in question. Of the ones listed above, carbon dioxide has the biggest impact on our environment, even before methane.

Carbon dioxide (CO₂)

Carbon dioxide, or CO₂ for short, is a colorless and odorless gas, which is virtually imperceptible to humans and it is partly because of these characteristics that makes it so difficult to fight it. Basically, CO₂ is produced by burning fossil fuel, such as natural gas and petroleum, however it is also emitted “indirectly” when using electricity; in the production of electricity the most common method is burning fossil fuel.

Approximately 30 billion tones of carbon dioxide is emitted into the atmosphere per year on planet Earth. This annual figure is very small compared to the emission resulting from natural phenomena, however, considering that carbon dioxide remains in the air for 100 to 200 years, when these excessive amounts accumulate, they can have a very significant impact on the environment, indeed.

Since the amount of CO₂ is the most important factor of all the other GHGs listed above from the standpoint of environmental changes or climate change, the size of carbon footprint is expressed as carbon dioxide equivalent (tCO₂e), equivalent to one tone of carbon dioxide. When calculating carbon footprints, for the sake of simplicity and uniformity, the amounts of less important GHGs are determined in tCO₂e, thus converting their masses into CO₂ mass based on an index of how much they contribute to the greenhouse effect. The tCO₂e values, converted from masses of various GHGs, are then simply added up to get total emission figures.

Your “Private” Carbon Footprint

Your private carbon footprint can be calculated quite easily based on your daily activities, like home consumption of energy, the number of miles you have driven, the distances you have traveled by air. However, GHG emissions produced during the course of manufacturing food and other commodities you buy must also be taken into account.

Your “private carbon footprint” can be reduced to a marked degree by introducing simple lifestyle changes into your daily routine.

Your “Business” Carbon Footprint

Calculating your total business carbon footprint is a more complex task than doing your private one. In this scenario, several factors are to be taken into consideration when determining GHG emissions. In order to see the full picture with regard to a company or business activity, it is appropriate to first identify all possible sources of emission and then group them on the basis of whether it is in our power to have any direct influence over them. Based on such an approach, we can make a distinction between so-called “direct” and “indirect” sources.

Direct emission sources include those business activities with GHG emissions that your enterprise can control since they are within your sphere of influence. An example would be your gas consumption in the office, another would be that of your production line.

Indirect emission sources include those activities with GHG emissions that your enterprise cannot control since they are not in your sphere of influence. An example would be GHG emissions relating to raw materials your company buys and/or uses. Another would be GHG emissions produced when generating the electricity you are using.

Knowing the elements and total size of your carbon footprint enables you to decide

– to reduce your emissions by introducing carbon-efficient processes and policy
– to buy carbon offset credits
– or use a combination of the two methods.

The latter is recommended in neutralization procedures because the amounts of CO₂ added together through your own emission reduction are a huge step forward and deliberate businesses may also find the sources of their energy that has been wasted.

Nowadays, the number of businesses that consciously seek to go green is growing fast. This is important not only from a “corporate social responsibility” aspect but also because it can be a very effective marketing tool in the hands of companies, giving them a competitive edge.

The carbon footprint of humankind is 54% of its total ecological footprint. Moreover, this is the fastest growing component. The carbon footprint of mankind has increased 11-fold since 1961. The reduction of this component is the most important step humans can do in order to avoid overshoot and create a livable planet. We need to move on to qualitative civilization from the quantitative one. This is only possible with paradigm shift.

BOCS Carbon Calc

Dear Visitor, I warmly invite you to become part of the most effective climate protection team! Calculate your carbon footprint, reduce it, and offset the remaining part with credits! This way, you can achieve climate neutrality. Moreover, you can even reduce your total ecological footprint to zero, allowing you to “float above the Earth like an eco-angel” without burdening it. Invite your friends to join the team as well! This way, you can earn credits. With this highly effective humanitarian action, a small elite group of humanity can bring a decisive turning point in the climate crisis!

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