Corporate carbon footprints and product carbon footprints in sustainability reporting

Reducing greenhouse gas (GHG) emissions has become a key issue in the face of increasing pressure on climate change. The carbon footprint (CF, tonnes CO₂e) is widely used to quantify the GHG emissions caused by an entity, person or product.
Given the need to quantify GHG emissions, numerous methods for calculating CF have been developed. These methods are based on three main protocols:

• the GHG Protocol standard developed by the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD);
• the ISO 14064:1:2018 and ISO 14067:2018 carbon footprint standards developed by the International Organisation for Standardisation (ISO);
• the PAS 2050 specification published by the British Standards Institution (BSI).

Of these, organisations most commonly use the GHG Protocol standard to calculate their carbon footprint. Emissions are divided into three types:

• Scope 1. Direct emissions, i.e. those associated with generation, processing and transport.
• Scope 2. Indirect emissions from electricity consumption and district heating.
• Scope 3. Emissions related to a company’s operations but not being within its control.

Scope 3 emission sources are divided into 15 categories and focus on “downstream” and “upstream” activities in a company’s chain of operations.
The obligation to calculate and report GHG emissions will apply to listed companies from 2025 (regarding 2024 data). Non-financial reporting, meanwhile, will include all large companies, including private companies with more than 250 employees from 2026 (regarding 2025 data).
As a matter of practice, companies also calculate the life cycle of their products or services (Life Cycle Assessment or “LCA”) during their entire life chain, from the acquisition of raw materials used, through production, distribution, use and final disposal of the relevant products. Emissions associated with manufactured products are reported in 3 of the 15 categories within Scope 3 emissions.
In practice, these methods make it possible to:

• determine the actual environmental impact of different solutions and consequently to select the least environmentally burdensome one;
• conduct strategic planning;
• develop environmental and social policy;
• assess the costs associated with reducing the carbon footprint;
• develop and improve a product or service.

Greeners can help you to comply with these regulatory duties by offering comprehensive support in managing the carbon footprint of your organization, your products and your services.