The first step on the way to carbon neutrality and the creation of a successful climate strategy is usually for a business to first calculate its corporate carbon footprint (CCF). This gives the company an overview of the areas in which CO2 emissions occur and how high they are. Subsequently, the company can use this balance to create a basis for the development of a holistic climate strategy that contributes to the goal of emission reductions.
The corporate carbon footprint captures all emissions generated by a company's operations over the course of a year. For the measurement and management of greenhouse gas emissions, it is advisable to use a globally recognised standard, such as PAS 2060 or the Greenhouse Gas Protocol (GHG Protocol). According to the GHG Protocol, emissions are divided into 3 scopes: Scope 1, Scope 2, and Scope 3. This means that in addition to direct emissions, all indirect emissions are also included. For manufacturing companies, for example, this means that the entire value chain is part of the corporate carbon footprint. This includes all emissions from the supply chain, logistics, use phase and disposal of all products. The CCF is usually determined for a specific period, such as a calendar year, and changes between reporting periods.
Why should companies calculate their carbon footprint?
The calculation of a corporate carbon footprint can serve several purposes:
Attract new customers and employees: The topic of climate protection is becoming increasingly important. Not only is the proportion of customers who prefer companies with an active climate policy growing, but the issue of corporate sustainability is also playing an increasingly important role for job applicants when choosing an employer.
Prepare for stricter regulations: While some companies can still disclose information voluntarily, non-financial reporting is already mandatory for many companies. It is expected that there will be even more regulations and legislation regarding climate change in the future as pressure grows both within companies and from governments and other external stakeholders.
Savings potential: Implementing an effective carbon reduction strategy not only helps companies to save CO2, but also to save costs in the long run.
Investors are looking for future-oriented companies: This topic is already at the top of the list for investors. Globally, sustainable investment has peaked at $30 trillion - a 68% increase since 2014.
How can a company save CO2?
By implementing effective measures, a company can save CO2 in a number of areas. The possibilities for doing so vary depending on the size and complexity of the company's value chain.
In the article "How to reduce carbon emissions in your company" you will find a comprehensive list of possible measures.