CO₂e emissions & Earth Overshoot Day: What to know
CO₂e emissions & Earth Overshoot Day: What to know
Why CO₂e calculations are essential for companies: A step toward a more sustainable future
In a world where sustainability is no longer a choice but a necessity, companies are increasingly confronted with their responsibility to understand and reduce their environmental impact. Calculating a company’s CO₂e footprint is a crucial first step toward measurable sustainability. It enables companies to identify where their largest emissions lie and provides actionable insights to effectively reduce them.In this context, Earth Overshoot Day is a critical performance indicator to take into account globally. Earth Overshoot Day is the date each year when humanity's demand for ecological resources and services exceeds what the Earth can regenerate in that year. In other words, it marks the point at which we start consuming more resources than the planet can sustainably provide. This includes activities like deforestation, overfishing, and carbon emissions beyond the Earth's ability to absorb them.
The calculation is made annually and it measures the balance between ecological resource consumption (our environmental footprint) and the Earth's biocapacity. The earlier in the year Earth Overshoot Day falls, the greater the ecological deficit we're creating.
But why is it so important for companies to take this step now? The recent results of Earth Overshoot Day, calculated by the Global Footprint Network, highlight this urgency. For the Netherlands, this day in 2025 has shifted to May 5, one month later than last year. While this initially seems like a positive development, the reality is more nuanced. The shift results from a refined methodology that better accounts for CO₂e emissions embedded in international trade. For the Netherlands, a prominent trading nation, this has led to a revision of its environmental footprint. The country is now considered a net exporter of CO₂e instead of a net importer. This underscores the complex interplay between international trade and environmental impact.
What does this mean for companies?
The changes in the methodology of the Global Footprint Network demonstrate the importance of mapping CO₂e emissions in a detailed and accurate manner. Companies play a crucial role in this, as they significantly contribute to both national and global emissions through their supply chains and business activities. By starting with CO₂e calculations, companies can not only comply with regulations and stakeholder expectations but also future-proof their operations. It opens avenues to reduce operational costs, stimulate innovation, and enhance corporate sustainability performance.Additionally, the new data for the Netherlands shows that there is room for improvement and that earlier estimates may have been overly conservative. This provides hope and encourages companies to take even more steps toward sustainability. It is important to recognize that every small step contributes to a larger collective result.
How BDO can help
For companies looking to start with CO₂e calculations or improve their processes, the BDO GHG (Greenhouse Gas) team offers the necessary expertise and support. From compiling an emissions inventory to implementing reduction strategies, we are ready to guide your organization toward a more sustainable future. Would you like to learn more about how BDO can support your company? Contact us and discover what we can do for you. Together, we can build a world where Earth Overshoot Day falls later and later in the year.For more information on Earth Overshoot Day, you can visit their website: Earth Overshoot Day home - #MoveTheDate
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