A carbon footprint calculation is part of an environmental impact measurement
Carbon footprint of a company
A carbon footprint of a product includes GHG emissions generated during its life cycle, from raw material extraction to waste disposal. Data from the product’s entire life cycle is needed for this assessment.
Corporate carbon footprint
Corporate carbon footprint is a measure of the environmental impact of a company's operations. It is an indirect indicator of energy consumption, products and services, as it measures the amount of a carbon footprint that corresponds to a company's activities or products.
Improved perception by customers and stakeholders - Sustainability is becoming a tangible business advantage as companies can support their statements with accurate data and trends. Clear figures on emission reductions increase credibility in tenders and customer acquisition, making it easier to identify differences between products or services. Having a transparent carbon intensity of a service or product can also help achieve a price advantage in segments where customers make purchasing decisions based on sustainability.
A green commitment is becoming an integral part of corporate strategy for both small and large companies. Sustainability commitment is becoming a natural part of modern strategy, and a carbon footprint measurement allows evidence-based management. Setting a baseline, targets, and milestones unifies initiatives across the enterprise and gives them clear accountability and priorities. This strengthens culture, increases engagement, and facilitates internal and external communication. Businesses move from declarations to measurable results visible to all stakeholders.
Customers receiving services or products and suppliers may require carbon footprint information. Supply chain partners are demanding more data about emissions and companies that have such data gain an advantage. Systematic collection and standardization of emissions data accelerate collaboration and minimize barriers regarding purchasing. By creating uniform methodologies and support for suppliers, companies increase the resilience and quality of the entire chain. This results in more stable relationships and better access to important customers.
An increasing number of companies present data on their carbon footprint in the global Carbon Disclosure Project Database, which collects information for investors. Transparent emissions data reduces perceived risk and increases a company’s attractiveness in the eyes of investors and banks. Linking the carbon footprint to financial indicators and a clear reduction trajectory strengthen assessments under ESG frameworks. A better picture of a company's risk management and governance improves access to capital, including green loans and grants. This allows a company to obtain financing under more favourable conditions and gain long-term market trust.
Identification of company activities which consume the most energy and resources where the greatest costs savings can be made. Identifying energy and material consumption “hot spots” allows targeted cost reductions without compromising quality. Measures such as energy efficiency, process optimization, waste reduction, and smart logistics deliver a rapid return on investment. Measuring carbon footprint helps prioritize policies that deliver the greatest effect in relation to cost and time.
An increasing number of customers care about the impact of products on the climate and environment. Trusted communication based on verifiable data will strengthen your brand and build loyalty among climate-sensitive customers. Clear information about the carbon intensity of products or achieved emission reductions increases conversion rates and trust. Transparency minimizes the greenwashing risk, as statements are supported by metrics and methodology.
Methodological framework – The GHG Protocol (Greenhouse Gas Protocol) is a globally recognized corporate standard for carbon footprint measurement and reporting. It standardizes the measuring, managing, and reporting of a company’s GHG emissions. It was developed jointly by the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD).
The GHG Protocol categorizes emissions related to company operations into three scopes (areas). It has become a widely used international standard.
Emissions generated by activities controlled or owned by an organization and released directly into the air:
Emissions associated with the consumption of purchased energy:
Emissions resulting from company activities outside of the company’s control or ownership:
This is the broadest and least precisely defined category.