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Enterprise Carbon Accounting

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Many CEOs and environmental managers probably exhaled a sigh of relief last December when Dell was lambasted for its carbon neutral claims, and thought, “Thank goodness that wasn’t us!” While Dell’s goals were laudable (they are, at least, moving in the right direction), their methodology needs some work.

Public-facing claims about carbon and other greenhouse gas emissions should meet two basic requirements: the company understands its carbon footprint, and communicates it clearly and transparently. Dell is half way there on the transparency front. It did state exactly which activities were covered by the “carbon neutral” claim and which were not, although making such a claim at all could be seen as misleading to consumers who don’t have time to read the fine print.

Where Dell needs the most help is in understanding its footprint in the first place. Dell’s with battery like Hp Pavilion ze1200 Battery , Hp Pavilion ze1202 Battery , Hp Pavilion ze1210 Battery , Hp Pavilion ZT1000 Battery , Hp Pavilion ZT1100 Battery , Hp Pavilion ZT1230 Battery , Hp Pavilion ZT1250 Battery , Hp Pavilion ZT1260 Battery , Hp Pavilion ZT1261 Battery Director of Environment, Health and Safety told the Wall Street Journal that their efforts were hampered by the fact that many of its suppliers have not yet calculated their own carbon inventories. A tool called Enterprise Carbon Accounting can help managers to calculate a company’s carbon footprint even if their suppliers have no idea what a carbon footprint is.

How does one quantify something as large and octopus-like as a company’s carbon footprint, which may have tentacles in far more than eight factories or even countries? Most people who aim to quantify a carbon footprint do so using traditional Life Cycle Assessment (LCA) tools, and start by using educated guesswork. Let’s use a computer manufacturer as an example. Managers might suspect that producing the silicon chips accounts for a large portion of energy use (and thus carbon emissions), as well as making the battery and screen. Managers would contact the manufacturers of those products and attempt to get data on the amount of energy and raw materials used to make each item. This approach yields relatively accurate data, but it is extremely expensive, time-consuming and labor intensive. It also is limited in scope and expensive to repeat in the future.

The biggest problem with this approach is the guesswork, even if it is educated. For most companies, it is simply not practical to contact the hundreds of manufacturers who make the thousands of parts in a computer, and get data from each one of them.

Managers must thus prioritize, and may elect to study chips, batteries and screens while ignoring the plastic housing, wires, and fans. But what if the manufacturing process for the wire actually produces a lot of greenhouse gases? Managers would never know, and might spend millions of dollars changing the way batteries are made when the money could have a far bigger impact spent elsewhere. It’s sort of like the old poem about the blind men and the elephant, where each man must touch the elephant and guess what it is: a snake (the man who touched the trunk); a wall (the massive body); a spear (the tusk). Traditional LCA can give a detailed picture of a trunk or a tusk, but is not well suited to seeing the whole elephant.