Reducing carbon emissions

Need to know

The Government has passed legislation making climate-related disclosures mandatory for some organisations. The requirement will apply to large publicly listed companies, insurers, banks, non-bank deposit takers and investment managers.

Make sure your organisation is meeting relevant obligations. Use this Q&A to help your business take effective climate action and go above and beyond regulatory compliance.

How it works

Scroll down and answer the questions to review how sustainable your business is based on what you’re doing to measure, reduce and offset your carbon emissions.

This will help you identify the areas where you are doing well or need to improve. Plus there’s helpful advice on making changes and promoting your successes.

Keep a handy record of your answers by downloading and completing the checklist. Your answers are not saved in Docket.

Step 1: Measure

Do you measure carbon emissions across your organisation?

YES

Great! It’s likely businesses that buy your products and services will want to hear about this. Here’s an example of how you could communicate this when bidding for new work or reporting on your sustainability actions.

"We have been measuring our carbon emissions since [year] on an [annual] basis using [provider and/or tool e.g. EKOS]."

Want to learn more about best practice or how you could do more?
Click ‘No / Unsure’ below for more information and resources.
NO / UNSURE

Measuring your carbon emissions provides a foundation for effective climate action.

To get started, measure your carbon using a basic carbon calculator. It should include carbon emissions associated with goods and services supplied to your business. See the Measuring Emissions resource below for more information on the sources of emissions.

To meet best practice, calculate a comprehensive footprint based on international standards*, e.g. ISO 14064:1 and Greenhouse Gas Protocol.

Go one step further and measure the carbon of your products and/or services. Again, base these measurements on international standards*, e.g. ISO14067 or PAS2050

Best practice is typically associated with independent verification or certification. For more information on how you can do this, refer to the question ‘Are your measurements verified or certified?’

*International standards provide comprehensive guidance on the core principles and requirements for quantifying, monitoring, reporting and validating greenhouse gas emissions.

Learn more

Climate Action Toolbox, free online tool to measure and reduce carbon your emissions - business.govt.nz

Measuring Emissions: A detailed guide 2022 - Ministry for the Environment

Do you measure emissions associated with specific products or services you sell?

YES

Nice work! Here’s an example of how you could communicate this.

"We have calculated the average carbon emissions of each product and service we sell. [Provide details of the method used.] The amount of embodied carbon in [X product] over its life cycle is [X]."

Want to learn more about best practice or how you could do more?
Click ‘No / Unsure’ below for more information and resources.
NO / UNSURE

Measure the carbon associated with the main products and/or services produced by your business.

A Product Carbon Footprint can help you do this. It will allow you to understand the climate impact of your products and services. This will help you learn where you can reduce those impacts. To measure a product footprint, look at emissions from raw materials, supply freight, manufacturing, packaging, distribution and use through to end of life.

To meet best practice, base these product/service measurements on international standards, e.g. ISO14067, PAS2050, or equivalent*.

*International standards provide comprehensive guidance on the core principles and requirements for quantifying, monitoring, reporting and validating greenhouse gas emissions.

Learn more

Product carbon footprints and how to measure them - Toitū Envirocare

Are your measurements verified or certified?

YES

Great! Here’s an example of how you could communicate this.

"Our measurements are verified/certified by [insert verification or certification]. We report on these emissions in our [insert annual/impact report, board reports etc.] and are happy to share this reporting with you to inform your own greenhouse gas emissions inventory."

Want to learn more about best practice or how you could do more?
Click ‘No / Unsure’ below for more information and resources.
NO / UNSURE

Best practice is typically associated with independent verification or certification. This means paying or employing an external third party to verify or certify your emissions calculations. Use a reputable supplier so that others trust your calculations.

Learn more

Suppliers of emissions expertise and services - Ministry for the Environment

Step 2: Reduce

Are you planning or already taking action to reduce your emissions?

YES

Nice work. Here’s an example of how you could communicate this.

"We are undertaking these actions [insert actions] to reduce our carbon emissions. We have chosen to focus on these particular actions because [provide detail e.g. this was identified as a carbon hotspot, we wanted to include some low hanging fruit actions in our plan]."

"Last year we transitioned our [x]% of our fleet from petrol or diesel to electric vehicles. This has reduced our fleet emissions by [x]%."

Want to learn more about best practice or how you could do more?
Click ‘No / Unsure’ below for more information and resources.
NO / UNSURE

There are many ways you can take action to reduce the carbon emissions from your business. Identify priority areas for reductions. Create a plan, take action and monitor your progress.

Action can include reducing your energy consumption, avoiding coal and reducing gas use, flying less, using car share services or switching your fleet to electric vehicles.

Learn more

Climate Action Toolbox, free online tool to measure and reduce your carbon emissions - business.govt.nz

Do you have a written action plan to reduce your emissions?

YES

Well done! Here’s an example of how you could communicate this.

"We have an action plan to [reduce our carbon / achieve our carbon targets]. In addition to the actions already underway, our plan sets additional actions e.g. [insert planned actions]."

If you have also set targets or made commitments make sure to reference them in your response (refer to the next question in this assessment).

Want to learn more about best practice or how you could do more?
Click ‘No / Unsure’ below for more information and resources.
NO / UNSURE

Having a formalised plan to reduce emissions will help you monitor progress and keep you on track. A plan should include actions to tackle your hot spot areas.

Go one step further and set clear commitments or targets. It is generally accepted that best practice targets align with global standards, like Science Based Targets.

Learn more

Climate Action Toolbox, free online tool to measure and reduce your carbon emissions - business.govt.nz

Science Based Targets

Have you made commitments or set targets to reduce emissions?

YES

Awesome work! Here’s an example of how you could communicate this.

"We have made [commitments / targets] to [reduce carbon by x% / reach net zero] by [year] in line with [standard e.g. the Science Based Targets Initiative]. This is a public commitment. Our business is also a signatory to the [pledge e.g. Climate Leaders Coalition; Race to Zero].

Want to learn more about best practice or how you could do more?
Click ‘No / Unsure’ below for more information and resources.
NO / UNSURE
Many purchasing organisations and governments have commitments in place and require suppliers to demonstrate alignment to those commitments. Examples include the Climate Leaders Coalition commitment and net zero commitments like the SME Climate Hub. Science-based targets initiative (SBTi) is the gold standard.

Meet best practice by having clear, publicly shared commitments or targets that align with global standards, like Science Based Targets.

Learn more

Guidance on how to set a science based target - Science Based Targets

Net Zero Standard - Science Based Targets

Other groups and commitments:

Step 3: Offset

Do you buy carbon offsets to cover some, or all, of your emissions?

YES

Great to hear. Avoiding and reducing emissions is the priority, then offsetting can be used to lessen the impact of any unavoidable carbon. Here’s an example of how you could communicate this.

"While we strive to reduce our carbon emissions as much as possible, there are some emissions that are currently unavoidable. We offset these emissions through [insert provider e.g. Toitū, EKOS].

Want to learn more about best practice or how you could do more?
Click ‘No / Unsure’ below for more information and resources.
NO / UNSURE
Best practice is to reduce your carbon emissions as much as possible.

For those emissions that are currently unavoidable, you can purchase standards-based carbon offsets. Standards-based credits are generated from certified projects that conform to certain standards e.g. gold standard, verified carbon standard, Plan Vivo.

Find standards-based credits through the following providers:
- Ekos
- Toitū
- CarbonClick
See the next assessment question to find out how to go one step further.

Learn more

Environmental Claims Guidelines, guidance on making claims about carbon and/or carbon neutral status - Commerce Commission

Have you attained carbon neutral or carbon positive status through carbon programme based on international standards?

YES

Great work! This is something to really promote. Here is an example of how you could communicate this.

"We offset 100% of our emissions meaning we have carbon neutral status [reference verification/certification provider]."

Or, even better, if you can say:

"We offset 120% of our emissions, meaning we have carbon positive status [reference verification/certification provider]."

Want to learn more about best practice or how you could do more?
Click ‘No / Unsure’ below for more information and resources.
NO / UNSURE
Best practice is to reduce your emissions as much as possible. Unavoidable emissions can be offset through a recognised carbon programme to achieve verified carbon neutral or climate positive status.

Organisations in Aotearoa New Zealand that offer certification include:
- Ekos
- Toitū
- CarbonClick
Learn more

Environmental Claims Guidelines, guidance on making claims about carbon and/or carbon neutral status - Commerce Commission

Step 4: Supply Chain

Do you buy products and services from suppliers and other businesses that are taking climate action?

YES

Awesome! Here’s an example of how you could communicate this.

"We're committed to buying from businesses that are also taking climate action seriously. We prioritise buying from businesses that verify and/or certify their carbon measurements against international standards and have targets in place to reduce their emissions [include carbon neutral/positive status if applicable]."

Want to learn more about best practice or how you could do more?
Click ‘No / Unsure’ below for more information and resources.
NO / UNSURE

The best way to reduce carbon emissions in your supply chain is to buy only products and services from businesses that can show evidence of climate action. Best practice is to prioritise buying from businesses that have verified and/or certified their carbon measurements and an action plan with reduction targets. In addition they should offset any unavoidable emissions with high quality carbon offsets.

Ask businesses about the climate action they are taking. Prioritise purchasing from those that are taking meaningful action.

Take action

Share Docket with your suppliers to get them started on their sustainability journey.

Learn more

Benefits of sustainability for your business and supply chains - Sustainable Business Network

Sustainable procurement training and resources - Sustainable Business Network