What is a Carbon Footprint?
Carbon Footprint – the Basis for Emissions Savings
Climate action, sustainability, and carbon footprint. These terms are often inseparably linked: If you want to reduce emissions, you aim for a carbon footprint that is as small as possible. Learn more about the definition and calculation of this significant element to climate action and how you can advance your company's commitment to sustainability with First Climate.
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What does "carbon footprint" mean?
The carbon footprint is the result of an emissions calculation. It indicates the amount of greenhouse gases released by an activity, process or action. A carbon footprint can be specified for business or production processes of companies, for example.
Products also have a carbon footprint, which is comprised of the sum of emissions generated by the production, use, and recycling and disposal of the respective product. This applies to every conceivable product: from toys and technical equipment to furniture and furnishings.
A carbon footprint can also be calculated for many other activities and processes - both for companies and private individuals. For example, for an event, hotel accommodation, a business trip by car, train or plane, or the provision of a specific service.
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For companies engaged in sustainability, the carbon footprint is an important tool for assessing their climate impact and thus a central component of life cycle assessment and sustainability reporting.
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Why is a carbon footprint important for companies?
For companies committed to sustainability, the carbon footprint is an important tool for assessing their climate impact and is therefore a central component of life cycle assessments and sustainability reporting.
The carbon footprint shows in which areas the most greenhouse gases are released and where the greatest potential for savings and efficiency measures lies. As a result, the carbon footprint can also help companies financially, as companies can sustainably reduce their operating costs by making targeted savings on energy or other resources.
As part of the corporate climate strategy, the carbon footprint also provides the basis for formulating justified emission reduction targets, making it an important element for effective sustainability management.
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Our Expert Team
Jonathan Schwieger
Head of GHG Accounting & Climate Reporting
Sid Petersen
Managing Director
First Climate Consulting GmbH
How is the carbon footprint measured?
Usually, the carbon footprint is measued and reported in what's known as the CO2 equivalents (CO2e). In addition to carbon dioxide, emissions of other greenhouse gases mentioned in the Kyoto Protocol are also taken into account. These are methane (CH4), nitrous oxide (N2O), sulfur hexafluoride (SF6), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs) and nitrogen trifluoride (NF3). The global warming potential of these is in some cases significantly higher than that of CO2. For example, methane is more harmful by a factor of 21, and sulfur hexaflouride by a factor of 22,800.
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What are Scope 1, Scope 2, and Scope 3 Emissions?
In accordance with the ISO 14064 standard and the guidelines of the Greenhouse Gas Protocol, emissions from three different areas, so-called scopes, are accounted for when calculating the carbon footprint.
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Scope 1 includes emissions from the operation and use of the company's own vehicle fleet and the use of self-generated energy.
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Scope 2 shows the climate impact of purchased energy, i.e. electricity, heating and cooling.
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Finally, Scope 3 includes the CO2 emissions of business travel and other purchased services and products.
Depending on the respective scope, various market instruments can be used to reduce emissions, such as green energy and energy attribute certificates.
Public Image: Carbon Footprint and Stakeholders
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At the internal level, the carbon footprint is an important measure for the further development of corporate climate action. But it also shapes the external image of companies and how they are perceived by different stakeholder groups. For example, customers are increasingly demanding sustainable products and services and are increasingly taking this into account in their buying decisions.
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Companies' commitment to climate action also plays an important role for other stakeholder groups: investors analyze climate risks in their portfolios, buyers impose strict requirements with regard to the life cycle assessment of supplied goods, and shareholders expect compliance with demanding environmental and climate standards. In terms of stakeholder relations, active management of sustainability issues and transparent communication of the relevant measures are therefore indispensable for companies today.
More and more companies are making their carbon footprint public and publishing it as part of their reporting to reporting initiatives, such as CDP.
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Carbon footprints can be calculated as part of a comprehensive climate strategy for a wide range of products and services, value chains and even investments. Want to learn more?
First Climate is your experienced provider of solutions for climate protection and sustainable energy supply.