BEGES: everything you need to know about greenhouse gas emissions reporting
The greenhouse gas emissions balance (BEGES) or carbon balance is a tool for quantifying the greenhouse gas emissions of companies, local authorities and institutions. It provides an understanding of the carbon footprint and serves as a starting point for implementing reduction strategies.
Stimulating and protecting Europe’s net zero emissions industry
The BEGES accounts for and assesses the quantity of greenhouse gases emitted by an organization in the course of its activities. It records direct and indirect emissions of gases responsible for global warming, such as carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O) and fluorinated gases (HFCs, PFCs, SF6).
The carbon footprint covers emissions from the following three areas:
- Direct emissions (scope 1). These are emissions produced directly by the company’s activities. These include, for example, fuel consumption for vehicles, fossil fuel consumption for boilers and generators, and greenhouse gas emissions from industrial processes.
- Indirect emissions (scope 2). These emissions are linked to the consumption of energy purchased by the company (electricity, heat/cold). They occur outside the company’s direct perimeter.
- Other indirect emissions (scope 3). This scope covers all other indirect emissions linked to the company’s value chain, outside its direct control. They include supply chain emissions and product life cycle emissions. Accounting for scope 3 emissions was introduced in 2023, whereas previously only emissions from scopes 1 and 2 had to be taken into account in a carbon balance.
Which organizations are required to produce a BEGES?
The French Environment Code requires the following organizations to produce a BEGES:
- Companies with over 500 employees in mainland France.
- Companies with more than 250 employees in overseas France.
- State services.
- Local authorities with more than 50,000 inhabitants.
- Public establishments and other legal entities under public law with more than 250 employees (e.g. hospitals).
50 000€
The maximum fine for failing to produce or submit a carbon footprint report.
The fine for a repeat offence can be as high as €100,000.
A decree published at the end of 2021 also provides for the establishment of a simplified greenhouse gas emissions report limited to direct emissions for companies with more than 50 employees benefiting from the Plan France Relance.
There’s nothing to stop companies not subject to the obligation from carrying out a BEGES in order to improve their carbon footprint.
The BEGES must be produced every three years for all public entities concerned and companies benefiting from the Recovery Plan, and every four years for other companies subject to the obligation.
The CSRD (Corporate Sustainability Reporting Directive), which came into force on January 1, 2024, also introduces new annual obligations for the publication of sustainability information. This includes the production of a BEGES.
How to produce a BEGES?
The French Environment and Energy Management Agency (ADEME) has drawn up a six-stage methodology for producing a BEGES :
- Framing. This stage consists, among other things, of defining the project, appointing a project manager, defining the organizational perimeter (entities, establishments, etc.), deciding on the operating mode (assessment carried out internally or entrusted to a service provider) and raising the awareness of the employees involved.
- Identification of emission sources. ADEME identifies six categories of emission sources.
The six emission source categories
The French Environment and Energy Management Agency (ADEME) has drawn up a six-stage methodology for producing a BEGES :
- Data collection. This operation is based on the collection of internal company data. It is also necessary to collect data from stakeholders (suppliers, customers, etc.). Several types of data can be used, depending on their availability: primary data directly from the company, secondary data from published sources representative of the company’s activity, data extrapolated from activities comparable to those of the company, and approximate data (data not specifically adapted to the company’s activity).
- Balance sheet calculation and analysis. This is a technical stage that depends on the quality of the data collected. ADEME provides guides and a database for companies wishing to carry out this task themselves. Once completed, the carbon footprint must then be presented to the company’s management.
- Planning transition actions. The definition of measures aimed at reducing the company’s carbon footprint is generally based on a process of co-construction with its partners, in particular its suppliers.
- Publication. This final stage is compulsory for the companies concerned. All BEGES are published on the ADEME platform, bilans-ges.ademe.fr.
39
The average number of carbon audits published each week on the ADEME platform
Source: Ademe
The benefits of a BEGES
In addition to complying with the regulatory obligation, producing a BEGES offers several advantages, in particular:
- Measure and understand your carbon footprint. The BEGES enables a company to quantify its GHG emissions and become aware of the extent of its impact on the climate. This awareness is an essential step in initiating an energy and ecological transition.
- Identify levers for reducing greenhouse gas emissions. Once emissions have been identified and quantified, it becomes easier to pinpoint the major sources of emissions and implement concrete actions to reduce them. This may involve improvingenergy efficiency, switching to renewable energies, or optimizing business travel.
- Improve environmental and economic performance. Implementing GHG reduction strategies can also have a positive economic impact. By
reducing energy consumption , a company can save money. What’s more, companies that adopt sustainable practices are often viewed more positively by consumers and investors. - Enhancing brand image and competitiveness. Today, a company’s image is influenced in particular by its environmental commitments. Companies that take concrete steps to reduce their GHG emissions can benefit from an enhanced reputation, which can translate into greater customer loyalty and additional attractiveness to talent.
The BEGES is an obligation for the companies concerned. It is also an opportunity to optimize processes with a view to both economic efficiency and improving the environmental footprint.
Reduce your carbon footprint with an EMS
EMS (Energy Management Software) is used to optimize energy consumption. This sensor-linked tool measures energy consumption at different levels of the facility, and correlates this data with various indicators, including carbon impact.
Energy Management Software, for example, enables you to detect energy losses and overconsumption. Its installation provides you with important data for drawing up your BEGES. It also guides you in the actions you can take to reduce energy consumption and carbon emissions:
- Changing a plant to modernize the production line.
- Changing one process for another to improve efficiency.
- Change of storage or packaging method.
- Change of energy supplier.
- Optimizing the operating times of electrical installations.
- Training employees in best practices on the production line.
- Etc.
Dametis offers a complete solution for optimizing your environmental performance.
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