Practical Guide to Corporate Carbon Footprint

A carbon footprint is the total amount of greenhouse gases (GHGs), released into the atmosphere because of an individual's, organization's, or product's activities. It's essentially a measure of the impact of human activities on the environment, specifically related to climate change.  

Companies are setting ambitious net zero and emission reduction targets to achieve their net zero or carbon neutrality goals. 33.3% of the world’s largest publicly traded companies, now have net-zero goals. But a systematic reduction of greenhouse gas emissions is only possible if emission intensive hotspots can be identified and quantified. The Corporate Carbon Footprint offers a proven methodology for companies to pinpoint emission hotspots and reduction opportunities. This guide will cover what a Corporate Carbon Footprint is, how to calculate it, and the value it can add to your business.

What is Corporate Carbon Footprint?‍

Corporate Carbon Footprint is the amount of GHG emissions that are directly or indirectly caused by a company’s activities and operations. Data collection on the emission areas on Scope 1 (direct emissions) Scope 2 and Scope 3 (indirect emissions) is the first step to start measuring your emissions. Calculating the carbon emissions is the next step toward carbon neutrality, as it provides clarity on your emissions hotspots- after all ‘what gets measured gets managed’. Without measuring the major emissions hotspots and analyzing how your business activities are contributing to each of the emission hotspot, it’s difficult to define measurable decarbonization goals.

Benefits of Measuring Carbon Footprint

Measuring and reporting your carbon emissions creates the transparency needed to discover your optimal emissions reduction opportunities. It helps you identify the business-related climate risks and opportunities.

Evaluating and monitoring your carbon footprint shows the first step to stakeholders like customers, employees, and investors that to reduce their footprint. Establishment of carbon accountability will be crucial for long-term business success as investors and regulators expectations around climate change continue to rise.

How do we measure our Corporate Carbon Footprint?

When measuring the carbon footprint of a business, the first step is to define the scope of consideration. For a CCF calculation, this is largely defined by standards such as the GHG Protocol or ISO 14064. Corporate Carbon Footprint includes Scope 1,2 and 3 emissions covering all activities and operations of the company and emissions from its value chain too. For instance, IT companies will include all emissions from sourcing of equipment’s, heating and cooling system, electricity consumption, owned vehicles to business travel, employee commuting etc.

A CCF is calculated for a specific period, such as a calendar year or financial year. Changes in the emissions are tracked year on year through annual reporting of the company.

Collecting, Managing Data & Estimating Emissions

1. The first and the major step in CCF calculation is your ‘data’. More comprehensive the data is, more accurate your calculation will be.

2.  Pre-Documented data on various company activities such as energy consumption, fuel usage, business travel, employee commuting makes this process easier. If data is not pre documented you can take help from online tools for data management, one such tool is developed by OffsetGo, a technology-based company which provides tools like’’ CARBURN’’ to ease the document collection process. It works by coupling the activity data with appropriate emission factor and calculating your total carbon emissions.

3.    Scope 3 data which is sometimes difficult to obtain can be retrieved from vendors and supply chain using ‘’CARBURN’’ tool questionnaires. These emissions might happen off-site, but they’re still a consequence of the company’s actions. Employee commuting and business travel also fall into this category. These activities can represent a significant part of the company’s emissions.

CARBURN: The Smarter Way to Track to your Emissions

Take the hassle out of emissions tracking. CARBURN is a system-integrated platform designed to help you seamlessly collect, manage, and calculate your carbon footprint in line with GHG Protocols and ISO standards. Gain accurate insights, ensure regulatory compliance, and drive your sustainability goals all with clarity, integrity, and transparency.

Start your Corporate Carbon Footprint journey today with CARBURN.