1. Introduction

Global warming and climate change have become international threats making economic and living conditions increasingly difficult. These issues stem from human economic activities and consumption, which have continuously emitted greenhouse gases (GHGs) into the atmosphere. To mitigate these problems, global communities have reached an agreement through the United Nations Framework Convention on Climate Change (UNFCCC) to reduce GHG emissions, aiming to prevent the global temperature from rising more than 2°C compared to pre-industrial levels in the 18th century or limit atmospheric carbon dioxide concentration to no more than 450 parts per million.

The goal led to national-level targets for reducing or limiting GHG emissions starting in 2021, and organizations worldwide are now under an increasing pressure to mitigate their environmental impact, with carbon footprint evaluation emerging as a vital tool for such organizations in this effort. Carbon footprint assessments enable organizations to quantify GHG emissions generated by their activities, which helps them understand their contribution to climate change and develop strategies for reducing it.

In Thailand, the government has recognized the importance of these evaluations, particularly as the country strives to meet its international climate commitments. Thailand is a signatory to the Paris Agreement, where it has pledged to reduce its carbon emissions through various national strategies, such as the Thailand Nationally Determined Contribution (NDC) and the 20-Year National Strategy for achieving low-carbon growth. One of the key pillars in achieving these goals is encouraging organizations to measure, report, and reduce their carbon footprints.

The Thailand Greenhouse Gas Management Organization (TGO), a public organization functioning under the Ministry of Natural Resources and Environment (MONRE), plays a crucial role in this effort. TGO has developed standardized guidelines and tools to assist Thai organizations in accurately assessing their Carbon Footprint of Organization: CFO. These guidelines provide a clear and practical framework that aligns with international standards, ISO 14064-1 (2018), GHG Protocol (2001, 2004), and ISO/TR 14069 (2013), offering businesses a pathway to measure their emissions and contribute to Thailand’s national climate goals.

By adopting these carbon footprint evaluation methods, organizations in Thailand can not only align with global and national sustainability agendas but also benefit from operational efficiencies, cost savings, and enhanced corporate reputation. Additionally, it enhances the competitiveness of Thai businesses on the global trade stage and allows them to prepare for potential government regulations requiring GHG reporting from organizations. This reporting can be used as a framework for managing and reducing Thailand’s GHG emissions. Understanding the steps involved in this process is the first step toward making a measurable impact.

 

2. Overview of Carbon Footprint Evaluation

What is a Carbon Footprint?

A carbon footprint refers to the total amount of GHGs emitted directly or indirectly by an organization, expressed in carbon dioxide equivalent (CO2e) amount. These emissions result from everyday activities such as energy consumption, transportation, and manufacturing processes. By evaluating their carbon footprint, organizations can identify the main sources of their emissions and develop strategies to minimize them.

Types of Emissions (Scope 1, 2 and 3)

When assessing an organization’s carbon footprint, it’s essential to categorize emissions into three types: Scope 1, Scope 2, and Scope 3. Each scope covers a different aspect of an organization’s operations, enabling a comprehensive evaluation of its environmental impact.


Overview of GHG Protocol scopes and emissions across the value chain
(Source: Corporate Value Chain (Scope 3) Accounting  and Reporting Standard)

Scope 1 (Direct Emissions):

This type refers to emissions from sources that are directly owned or controlled by the concerned organization. They include fuel combustion in company-owned vehicles, boilers, and machinery, as well as fugitive emissions from refrigerants or chemical processing. For example, a manufacturing plant’s emissions from its industrial furnaces would fall under Scope 1.

Scope 2 (Indirect Emissions from Energy Consumption):

Scope 2 covers indirect emissions resulting from the generation of purchased electricity, heating, or cooling consumed by the organization. Although the concerned organization doesn’t produce these emissions directly, they are responsible for the emissions associated with the energy they use. For instance, the emissions from the electricity a company purchases from a power plant would be included here.

Scope 3 (Other Indirect Emissions):

Scope 3 emissions are the most extensive and can include emissions from various sources along the organization’s value chain. These emissions come from activities such as the transportation of goods, waste disposal, employee commuting, and the production of raw materials used by the company. For example, the emissions generated during the production of materials sourced from suppliers or the fuel used by third-party logistics providers would be classified under Scope 3. 

 

Why Measuring Footprints?

Measuring an organization’s carbon footprint provides numerous benefits, from both environment- and business-related perspectives. Key benefits include:

1. Regulatory Compliance:

As Thailand and many other countries introduce stricter environmental regulations, organizations are increasingly required to monitor and report their GHG emissions. This is particularly relevant as carbon pricing mechanisms, such as carbon taxes or cap-and-trade systems, are being explored in Thailand.

2. Cost Savings:

By identifying key emission sources, organizations can implement energy-efficient practices that reduce operational costs. For instance, switching to renewable energy sources or optimizing logistics can lower energy bills and transportation costs while reducing emissions.

3. Corporate Social Responsibility (CSR):

More consumers and investors are demanding that businesses operate sustainably. Demonstrating efforts to reduce carbon emissions can enhance a company’s reputation, attract more customers, and improve stakeholder relationships.

4. Risk Management:

Climate change poses significant financial risks to businesses, whether through disruptions in supply chains, fluctuating energy prices, or regulatory changes. Carbon footprint evaluation helps organizations anticipate and mitigate these risks by adopting more sustainable practices.

5. Contributing to National and Global Goals:

Carbon footprint assessments are vital for contributing to Thailand’s national emissions reduction targets and global climate goals. By measuring and reducing emissions, organizations align with Thailand’s commitment to achieving carbon neutrality by 2065.

 

By understanding the various types of emissions and the importance of evaluating them, organizations can take proactive steps to minimize their environmental impact and improve long-term sustainability.

 

3. TGO Guidelines for Carbon Footprint Assessment

The Thailand Greenhouse Gas Management Organization (TGO) has developed a comprehensive framework to guide organizations in evaluating their carbon footprint. This framework is designed to align with international best practices, such as the Greenhouse Gas Protocol and ISO 14064 standards, while being tailored to the specific needs and conditions of Thai organizations. By following these guidelines, organizations can conduct a thorough and accurate assessment of their GHG emissions.

The TGO Framework

TGO’s carbon footprint guidelines provide a clear, step-by-step approach for organizations to quantify, report, and manage their GHG emissions. This structured methodology helps ensure that carbon footprint evaluations are consistent, transparent, and verifiable, allowing organizations to track their emissions over time and implement targeted reductions.

TGO Guideline for Calculation and Report of Organizations’ Carbon Footprint

 

The Guidelines outlines several key steps for conducting a carbon footprint assessment as follows.

 

Steps in the TGO Carbon Footprint Assessment

1.Defining Organizational Boundaries

The first step in any carbon footprint evaluation is to define the organizational boundaries, determining which parts of the company or operations will be included in the assessment. TGO recommends organizations apply either the “operational control” or “equity share” approach:

    • Operational Control Approach:
      This includes all GHG emissions from operations over which the organization has full control.
    • Equity Share Approach:
      This allocates emissions based on the organization’s ownership share in the operation or facility.

Clearly defining these boundaries is essential for ensuring that all relevant emission sources are captured in the assessment.

 

2. Identifying Relevant Emission Sources

Once the organizational boundaries are set, the next step is to identify all significant emission sources within those boundaries. This includes:

    • Direct emissions from activities such as on-site fuel combustion, vehicle fleets, and industrial processes (Scope 1).
    • Indirect emissions from purchased electricity and heat (Scope 2).
    • Additional indirect emissions from sources such as the supply chain, employee travel, and product distribution (Scope 3).

Organizations should prioritize emission sources based on their contribution to total emissions, focusing on high-impact areas.

 

3. Data Collection

Accurate and reliable data collection is critical for a successful carbon footprint evaluation. Organizations must gather activity data related to each identified emission source. This could include fuel consumption records, electricity bills, waste disposal logs, and travel distance data. TGO provides specific recommendations for data collection methods, ensuring consistency and accuracy.

For instance, data on energy use may be sourced from utility bills or metering systems, while travel-related emissions might be calculated using distance records from logistics providers. TGO emphasizes the importance of using reliable data sources and suggests organizations conduct periodic data reviews.

 

4. Emission Calculation

After collecting the necessary data, organizations must calculate their emissions using appropriate emission factors. TGO provides a database of emission factors tailored to Thailand’s industrial sectors, which cover a wide range of activities such as electricity use, transportation, fuel combustion, and waste management. These factors convert activity-related raw data (e.g., liters of fuel consumed or kilowatt-hours of electricity used) into CO2e.

For example, to calculate emissions from electricity consumption, the organization multiplies the total kilowatt-hours used by the emission factor for Thailand’s electricity grid. TGO’s calculator also integrates these factors for ease of use.

 

5. Reporting and Verification

TGO encourages organizations to report their carbon footprint results annually as part of their sustainability reporting. Reports should include a breakdown of emissions by Scope (1, 2, and 3), comparisons with previous years, and an analysis of emission trends. TGO’s reporting format aligns with global standards, making it easier for Thai organizations to participate in international sustainability programs.

Verification is another critical aspect. Organizations are encouraged to have their carbon footprint assessment verified by third-party auditors to ensure accuracy and credibility. TGO provides a list of accredited verification bodies that can assist organizations in this process.

 

Tools and Resources Provided by TGO

TGO offers several resources to assist organizations in conducting carbon footprint assessments, including:

Carbon Footprint Calculator:

A user-friendly online tool that helps organizations calculate their emissions based on activity data and emission factors.

Emission Factor Database:

A comprehensive database of emission factors specific to Thailand’s industries and energy sources, regularly updated by TGO.

Training and Workshops:

TGO regularly conducts training sessions and workshops to build capacity within organizations, helping them understand the carbon footprint assessment process with tools made available.

Consultation Services:

TGO also provides consultation services for organizations that require additional support or guidance in conducting their assessments.

 

By following TGO’s guidelines, organizations in Thailand can ensure that their carbon footprint assessments are both accurate and meaningful, enabling them to make informed decisions on how to reduce their emissions and contribute to Thailand’s national climate goals.

 

4. Key Considerations for Thai Organizations

While evaluating the carbon footprint of an organization can bring many benefits, there are specific challenges and opportunities unique to Thailand. By understanding these, organizations can more effectively implement carbon footprint assessments and contribute to Thailand’s broader environmental and economic goals.

Challenges Specific to Thailand

1. Data Availability and Quality:

One of the key challenges for organizations in Thailand is the availability and quality of data needed to conduct accurate carbon footprint assessments. Many organizations may struggle to collect detailed and reliable data on their energy consumption, waste management, and transportation activities, especially if systems for monitoring these activities are not yet in place. Smaller businesses, in particular, may lack the necessary resources and expertise for comprehensive data collection.

Solution:
Organizations can begin by focusing on the most significant emission sources (typically Scope 1 and Scope 2 emissions), gradually expanding the scope of their assessment as their data collection capabilities improve. Partnering with consultants or industry associations may also help streamline this process. TGO’s training programs and tools can help bridge these gaps.

 

2. Technical Expertise:

Carbon footprint assessments require a certain level of technical expertise in GHG accounting. Many organizations, particularly those outside major urban centers, may lack the skilled personnel or access to technical training needed to carry out these assessments effectively.

Solution:
Organizations can take advantage of the capacity-building programs provided by TGO and other local bodies. TGO offers workshops, online courses, and guidance documents to help build internal expertise. Collaborating with environmental consultants or industry groups can also help organizations develop the necessary skills.

 

3. Access to Technologies:

Implementing the best practices for carbon footprint reduction often requires access to cleaner technologies or energy sources. In Thailand, certain sectors may face limitations in adopting renewable energy due to the availability and cost of such technologies. Additionally, the industrial structure in some regions may rely heavily on fossil fuels, making it more challenging to transition to low-carbon alternatives.

Solution:
Despite these challenges, Thailand is making significant strides in expanding its renewable energy infrastructure. Organizations can explore opportunities to engage with local energy providers for green energy options or to participate in Thailand’s growing carbon markets. Government incentives and subsidies for energy efficiency and renewable energy investments may also help offset costs.

 

4. Cultural and Operational Differences:

Many Thai organizations, particularly those with traditional business models, may not view environmental sustainability as a core business priority. This cultural mindset can hinder the adoption of carbon footprint assessments and subsequent reduction strategies.

Solution:
A cultural shift is slowly taking place as consumers and stakeholders increasingly prioritize sustainability. Incorporating carbon footprint assessments into corporate social responsibility (CSR) initiatives can help bridge the gap between traditional operations and modern environmental standards. Public and consumer pressure for greener products and services will likely encourage more businesses to take these assessments seriously.

 

Policy and Legal Frameworks

1. Thailand’s Environmental Regulations:

Thailand’s government has been steadily introducing policies to encourage or require carbon footprint reporting and reduction. In 2019, the Energy Efficiency Development Plan (EEDP) and Power Development Plan (PDP) outlined national strategies for reducing energy consumption and emissions across key sectors.

In the future, Thailand is expected to introduce more stringent regulations on GHG reporting, potentially leading to mandatory carbon footprint assessments for certain industries. Organizations that proactively evaluate and reduce their emissions will be better positioned to comply with emerging regulations.

2. Carbon Pricing Mechanisms:

As Thailand explores the possibility of implementing carbon pricing mechanisms, such as a carbon tax or cap-and-trade system, organizations will need to assess their carbon footprint to avoid future financial penalties. The current ability to quantify emissions provides a competitive advantage, enabling businesses to plan and prepare for potential carbon costs or participate in carbon markets.

 

Support from TGO and Other Agencies

The TGO and other government bodies offer a range of support to help Thai organizations meet the challenges of carbon footprint evaluation. These include:

Financial Incentives:

Grants, subsidies, and tax deductions for investments in energy-efficient technologies or renewable energy systems.

Consultation Services:

Free or subsidized consultations on carbon footprint assessments, tailored to the needs of specific industries.

Recognition Programs:

TGO’s Carbon Footprint for Organization (CFO) recognition program rewards companies that successfully complete carbon footprint assessments and implement emission reduction strategies. This recognition enhances companies’ reputation and can serve as a competitive advantage in the market.

 

Possible specific support from TGO and other bodies include:

Capacity Building and Training

TGO and other agencies provide training programs to develop internal expertise on carbon footprint evaluations. These capacity-building initiatives cover various topics, such as GHG accounting, reporting standards, and the use of emission factor databases. This ensures that organizations, regardless of size or industry, have access to the knowledge and skills needed to implement carbon footprint assessments.

Collaboration with Industry Associations

Industry associations in Thailand, particularly those in energy-intensive sectors such as manufacturing, are increasingly working with TGO and the government to streamline carbon footprint assessments for their members. These associations often provide sector-specific guidance and tools to help organizations navigate the challenges of GHG reporting and reduction.

Incentives for Emission Reductions

Thailand’s government provides various financial incentives for organizations that demonstrate leadership in reducing their carbon footprint. These include tax breaks for energy-efficient technologies, subsidies for renewable energy investments, and recognition through programs like TGO’s Carbon Footprint for Organization (CFO) certification. Such incentives encourage businesses to prioritize carbon footprint assessments as part of their sustainability strategies.

 

5. Conclusion

Carbon footprint evaluation is becoming an essential part of sustainable business practices, especially as the global push to mitigate climate change intensifies. For Thai organizations, assessing their carbon footprint is not just about regulatory compliance or improving efficiency—it is a strategic move that aligns with both national goals and international trends toward carbon neutrality.

By following the TGO’s guidelines, businesses can systematically measure and manage their emissions, ensuring that they play an active role in reducing the country’s overall GHG emissions. With tools such as the TGO’s carbon footprint calculator and emission factor database, organizations have access to valuable resources that make this process more feasible, even for those with limited expertise.

Furthermore, as Thailand works toward its target of carbon neutrality by 2065, organizations that are currently taking proactive steps to assess and reduce their emissions will be better positioned to navigate future policy changes, such as the introduction of carbon pricing mechanisms or mandatory reporting requirements. Beyond regulatory compliance, the benefits of reducing a company’s carbon footprint include cost savings, improved reputation, risk management, and competitive advantage in an increasingly environmentally conscious marketplace.

Looking ahead, the trend of carbon footprint evaluations is likely to grow, driven by both market forces and policy developments. Consumers and investors are demanding more transparency and accountability from businesses regarding their environmental impact, while governments worldwide, including Thailand, are tightening regulations. Organizations that embrace carbon footprint evaluation today are not only contributing to the fight against climate change but are also future-proofing in their operations against upcoming challenges.

In conclusion, carbon footprint evaluation is more than a compliance exercise; it is a pathway to sustainability, resilience, and long-term success. Thai organizations that integrate these assessments into their operations will not only enhance their sustainability credentials but also position themselves as leaders in Thailand’s transition to a low-carbon economy. With the support of TGO and other governmental bodies, the tools and resources are in place to help organizations of all sizes make a meaningful impact.