Doing our homework on working from home – is it really better for the planet?

This year, Earth Day falls exactly 770 days after my workday moved into my home. And, two years in, I wonder if the net climate impact is overall positive or negative. In a study published in 2021, Statistics Canada suggested that a complete transition to telework could lead to a reduction of 8.6 megatonnes of greenhouse gas (GHG) emissions. But, this estimate comes with some big caveats and ignores changes in human behaviour and personal choices that have arisen under the “New Normal”. Let’s take a closer look at some of those pesky details.

According to a report by McKinsey & Co., the switch to remote work is here to stay for many office workers. “The number of computer-based workers who can foreseeably work from home two-to-three days a week is now between 20 and 25 percent. That’s almost five times the number of workers who were doing remote work before the pandemic.” This major and sustained shift in how we work carries big impacts on the GHG emissions of our work, too.

On average, the shift to remote work results in lower carbon emissions than our pre-pandemic model. The exact carbon savings depends on many variables. According to a 2021 study by Carbon Trust and Vodafone Institute, the main carbon savings come from a reduction in commuting and office-related emissions by working from home. But, working from our homes causes additional domestic energy consumption among other impacts.

Ecommerce leaders Shopify and Square wanted to dig into this further as they considered digital-by-default work policies. Their consultants found that carbon emissions from energy and food shift from the office to employees’ homes – where they may be better or worse than in the office depending on the employee’s home circumstances.

Now that many of us work from home all day, domestic electricity use has increased significantly. Hydro Ottawa participated in an energy research study published by ScienceDirect in 2021 which found that of 500 Ottawa homes measured, the average daily household electricity consumption increased by about 12 percent in 2020 compared to 2019 and 2018. Another study from the International Energy Agency (IEA) estimates the average weekday home electricity consumption to have risen more than 20%. It further suggests that workers who live close to their office or who commute exclusively on public transport could increase their total emissions by working from home.

Things get even more complicated when you look at the specific situations of remote workers. According to Carbon Trust, in cold climates, the emissions from heating homes all day can offset any carbon savings from not commuting. Shopify’s Sustainability Fund Director, Stacy Kauk, points out that "Remote work is especially complicated because when there is no office, employee behaviour changes in terms of where to live, whether to buy a car, etc.” And these choices all have ripple effects.

Not having to be in the office every day got many people to consider moving further out of downtown cores, finally buying that house in the country with a big yard. But, research shows that suburban households – with the big houses and increased driving - emit 25% more carbon than urban homes.

Our Hybrid future

As many employers are now looking to move to a hybrid model, we need to carefully consider the impacts. Carbon Trust warns that hybrid work could be the worst of both worlds: “This split could result in consuming more energy and emitting more emissions as both homes and offices are fully operating to enable teleworkers and office workers to do their jobs.”

Remote work and hybrid work have shifted GHG emissions from the workplace into people’s homes. While we have made considerable progress in improving transparency around GHG emissions for major corporations, there’s limited guidance on how to report on the GHG emissions for remote workers. The GHG Protocol only suggests that “companies may include emissions from teleworking” in their Scope 3 emissions disclosures with no additional guidance provided.

As we enter day 771 of this strange new normal, we need to continue to think holistically about the GHG emissions that our new way of working creates. Our new normal will need to include improved transparency on the GHG emissions of remote work. As work increasingly moves into employees’ homes, we need to ensure that GHG emissions are actually declining and not simply moving from an office tower in the city centre to a bungalow in the burbs.

At Cardinalis, we help you understand the environmental and social issues that matter most to those who have the greatest influence on your business success. We equip you with clear reportable metrics that you can use to authentically and accurately tell your brand story. And, we help you continue to have a positive impact on people and the planet as you grow your business. Contact us today to see how we can help.