Your company is ready to take climate action. But where do you begin?
When it comes to corporate carbon footprints, it’s easy to feel overwhelmed by Scopes, certifications, and sustainability frameworks. But don’t worry, we’re here to break it down and help you get started.
In this guide, we’ll provide practical insights grounded in real-world applications for defining, measuring, reporting, and reducing your corporate carbon footprint.
All you need to know about carbon footprint
What is a corporate carbon footprint?
Think of your corporate carbon footprint as your company’s environmental signature; it’s the total greenhouse gas (GHG) emissions your business activities create, directly and indirectly. Everything a business does leaves its mark on our planet, from the lights in your office to manufacturing processes and supply chain operations, feed into your CCF.
To be able to manage your carbon footprint in any meaningful way, you have to first take time to understand the individual factors that contribute to your overall footprint. For most companies, scope 3 emissions are typically the biggest contributors, with 75% of total emissions falling under this category. They’re tricky to track, but that’s precisely why they matter. Ignoring them means missing the full picture.
Why do companies report on their corporate carbon footprint?
With the world being more sustainably-focused, there are far more factors driving people to report:
Some key reasons:
- Regulatory compliance: European directives, such as the Corporate Sustainability Reporting Directive (CSRD), now mandate that companies disclose sustainability data in their management reports.
- Market transparency: Detailed carbon reporting helps reduce greenwashing, builds stakeholder trust, and helps financial institutions design sustainable investment portfolios.
- Access to finance: Companies with strong environmental performance often enjoy more attractive loan rates and increased interest from green investors, opening doors that might otherwise remain closed.
- Strategic benefits: By translating long-term climate objectives into measurable actions, you can align your operations with sustainability goals while managing climate-related risks before they impact your bottom line.
Corporate carbon reporting strengthens your overall business strategy by unlocking growth opportunities and minimizing financial risks.
The ROI on decarbonization
Businesses investing in smart carbon management are doing more than just helping the planet. They’re making moves that could save them millions.