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What does carbon footprint mean
Carbon footprint is the measure of the amount of greenhouse gas emissions that are released into the environment, expressed in tons of CO2 eq. It can be associated with the creation of a product, the provision of a service, or even with an activity carried out daily by each of us.
The carbon footprint is the key element for evaluating the contribution that human activities have on the climate change and includes the amount of greenhouse gas emissions, generated directly or indirectly by the activities carried out.
Calculate the carbon footprint helps to understand which activities generate emissions and to identify the actions to be taken to reduce them.
It's not just about CO2, according to the indications of Kyoto Protocol, the greenhouse gases that are part of GHG emissions are:
- carbon dioxide (CO₂;
- methane (CH4);
- dinitrogen monoxide (N2O);
- hydrofluorocarbons (HFCs);
- perfluorocarbons (PFC);
- sulfur hexafluoride (SF6).
To facilitate the quantification of their contribution to climate change, the emissions of these gases are translated into CO₂ equivalent. In practice, when it comes to tons of CO₂ eq, the figure includes all greenhouse gases.
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Why calculate a company's carbon footprint? The 5 main reasons
Calculate the carbon footprint is the first step for a company that wants to start a path of environmental sustainability.
Taking this step is necessary to become aware of your impact on the environment and identify which activities are responsible for the production of CO2 eq (emissive sources).
Only after the calculation is it possible to implement strategies to reduce environmental impact of their company.
In addition, calculating the carbon footprint and starting a path of environmental sustainability involves numerous advantages from a business point of view:
- allows them to become suppliers of large brands, which are required to know the emissions of their supply chain;
- helps the company to be in line with market demands, since customers are increasingly attentive to the environmental impact of products and services;
- it is essential to align the company with new regulatory obligations and European directives such as CSRD, to avoid sanctions and penalties;
- represents a fundamental point to be included in your sustainability report;
- is the starting point for obtaining sustainability certifications such as B Corp and ISO 14064-1, or join initiatives such as SBTi.
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How is the carbon footprint calculated
The calculation of the carbon footprint is based on the analysis of various daily activities and business processes that contribute to greenhouse gas emissions.
This includes the use of energy, the means of transportation used, the production and consumption of goods and services, and much more. The calculation takes place through the collection of specific data about these activities and the use of emission factors to convert these activities into tons of CO2 equivalent.
Do you want to calculate your company's carbon footprint?
At Up2You, we support you in collecting data and calculating emissions, providing you with the tools for simplify and expediting the process. Click the button below and find out how to calculate your business emissions.
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The reference standards for calculating the carbon footprint
To ensure that the calculation of the carbon footprint is accurate and comparable, there are several international standards, such as Greenhouse Gas Protocol (GHG Protocol) and the norm ISO 14064.
These standards provide guidelines detailed on how to measure greenhouse gas emissions, ensuring that companies and individuals can calculate and report their carbon footprint in a consistent and transparent manner.
ISO 14064
The ISO 14064 compliance certification certifies that the calculation of an organization's carbon footprint, within an annual financial year, took place according to the national technical standard UNI EN ISO 14064.
According to the standard, the term “organization” refers to companies or super-corporate organizational structures (holding, groups,... etc.), but it can also refer to more limited contexts, such as individual construction sites, production sites, contracts and the like.
The UNI ISO 14064 is divided into 3 parts, which can be used separately or as a set of integrated tools:
- ISO 14064-1, aimed at quantifying and reporting greenhouse gas emissions and their removal. Defines principles and requirements for the quantification and reporting of greenhouse gas emissions and their reduction;
- ISO 14064-2, for monitoring and reduction. Provides support in the development and choice of reduction and compensation projects, through principles and requirements for monitoring and reporting activities aimed at reducing or eliminating greenhouse gas emissions;
- ISO 14064-3, aimed at validating and verifying statements. It defines principles and requirements useful to those who conduct or manage the validation and/or verification of declarations on greenhouse gas emissions.
GHG Protocol
One of The most common global standard for calculating company emissions is the GHG Protocol Corporate Accounting and Reporting Standard, defined by GHG Protocol.
The GHG Protocol was established in 1990, following the need for a coherent framework for communication of data on greenhouse gases and Calculations of the company's carbon footprint. Today it collaborates with governments, industry associations, NGOs, companies and other organizations, to provide guidelines for calculating the most used emissions in the world.
To measure a company's carbon footprint as defined by the GHG Protocol, it is necessary to divide GHG emissions into 3 categories:
- Scope 1;
- Scope 2;
- Scope 3.
Scope 1 emissions
Scope 1 emissions are direct GHG emissions that derive from sources owned or controlled by an organization. These emissions are generated by the use of fossil fuels and the release of greenhouse gases into the atmosphere.
Scope 2 emissions
Scope 2 emissions are indirect emissions resulting from the generation of electricity, heat and steam purchased and consumed by the organization. These emissions are considered indirect, as the company is responsible for the use of energy, but not for the emissions generated by the supplier for its production.
Scope 3 emissions
Scope 3 emissions are indirect GHG emissions, excluding those produced by electricity, heat and steam: this category includes emission sources that are not under direct company control, but whose emissions are indirectly linked to the company's activity.
They include, for example, emissions upstream and downstream of the value chain, such as emissions from suppliers and customers.
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Carbon footprint calculator: what is it
There are several online tools and software that simplify the process of calculating the carbon footprint for individuals and companies. These calculators require the entry of data relating to their daily or business activities, and use emission factors to provide an estimation of the carbon footprint.
Very often, however, the result of these online calculators It is not reliable, and certainly cannot be used to communicate that your company has started a sustainability path (or at least not without risking big penalties for greenwashing). In fact, this type of calculators is hardly aligned with international standards seen previously, nor is it validated by certifying bodies.
