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Maciej Orzechowski

What is a Carbon Footprint and How to Calculate It?

Reducing greenhouse gas emissions is one of the most significant challenges of our time. Starting in 2024, according to the CSRD (Corporate Sustainability Reporting Directive), all large companies and corporations are required to report on sustainable development. Understanding what a carbon footprint is and how to calculate it is crucial for businesses that not only want to meet legal requirements but also strive for climate neutrality and Net Zero. How can they effectively manage it so that their reports reflect real actions toward minimizing climate change? You'll find the answers to these questions in this article. 



What Is a Carbon Footprint? 

A carbon footprint is a measure of the total amount of greenhouse gases, such as carbon dioxide (CO2), methane (CH4), and nitrous oxide (N2O), emitted directly or indirectly by an organization. These emissions are expressed in carbon dioxide equivalent (tCO2e) and cover all stages of a product's or service's life cycle—from raw material extraction, through production and transportation, to usage and disposal. 


Example: A car manufacturing company may have a carbon footprint that includes: 

  • Emissions associated with extracting steel and plastic needed for production. 

  • Energy consumed in factories. 

  • Transportation of finished vehicles to dealers. 

  • Emissions generated during the use of cars by customers. 


Why Does the Carbon Footprint Matter? 

A company's carbon footprint reflects its environmental impact. Excessive CO2 emissions contribute to climate changes like global warming. Since the Industrial Revolution, the concentration of carbon dioxide in the atmosphere has increased by about 50%. 

Understanding and monitoring the carbon footprint is essential for implementing effective sustainability strategies and reducing greenhouse gas emissions. 


How to Calculate the Carbon Footprint 

To estimate the size of the carbon footprint, a company must consider various emission sources and use appropriate tools. Simple online calculators are useful for individual consumers, but businesses need more advanced methods. 


Key Elements of the Calculation: 

  • Direct Emissions (Scope 1): Emissions resulting from fuel combustion in stationary installations and the company's vehicle fleet. 

  • Indirect Emissions from Energy (Scope 2): Emissions related to the production of electricity and heat supplied to the company by providers. 

  • Other Indirect Emissions (Scope 3): Include employee commuting, business travel, waste management, and emissions generated within the supply chain. 

To accurately determine CO2 emission indicators, companies should use tools like the GHG Protocol or ISO 14064 standards. 


Benefits of Reducing the Carbon Footprint 

Reducing the carbon footprint brings benefits not only to the environment but also to the company itself: 

  • Financial Savings: Emission reduction often leads to lower operational costs by decreasing energy and resource consumption. 

  • Positive Brand Image: Companies that prioritize ecological responsibility are perceived as more trustworthy, attracting customers and business partners. 

  • Market Competitiveness: Proactive carbon footprint management gives an edge over competitors, especially in sectors aiming for climate neutrality. 


How to Reduce the Carbon Footprint 

Calculating the carbon footprint is just the beginning. A company should take concrete actions to reduce it. Here are some strategies: 

  • Optimize Production Processes: Implement modern, more efficient technologies that reduce energy and resource consumption. 

  • Improve Building Energy Efficiency: Undertake thermal modernization and implement intelligent energy management systems. 

  • Invest in Renewable Energy Sources: Utilize solar, wind, or biomass energy. 

  • Carbon Capture and Storage Technologies (CCS): Reduce emissions through CO2 sequestration. 

  • Advanced Carbon Footprint Analysis: Use platforms offering comprehensive tools for emissions assessment and create reports compliant with GHG Protocol and ISO standards. 


FAQ – Frequently Asked Questions 

  • What are the ways to reduce a company's carbon footprint? A company can reduce its carbon footprint by optimizing production processes, improving the energy efficiency of buildings, and investing in renewable energy sources. 

  • Why is it important to calculate the carbon footprint? Calculating the carbon footprint helps identify areas where CO2 emissions can be reduced, promoting sustainable development and more efficient resource management. 

  • What is a carbon footprint, and how does it affect climate change? A carbon footprint measures the greenhouse gas emissions generated by a company. It affects climate change by contributing to global warming and environmental degradation. 


Conclusion 

Protecting our planet's natural resources is a shared challenge for both businesses and consumers. Managing the carbon footprint is a crucial step toward achieving climate neutrality and minimizing negative environmental impact. Companies aware of their carbon footprint gain a market advantage and better meet expectations related to sustainable development. 

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