FAQs: Carbon footprint calculation

It is quantified in tons or kilograms of carbon dioxide equivalent (CO2e) to standardize the impact measurement of various greenhouse gases (GHGs), as each gas has a different global warming potential. This measure helps identify and reduce emissions to mitigate climate change.

At the business level, we can distinguish between the company's carbon footprint (which assesses a company's overall impact and highlights key areas for targeted efforts) and the product carbon footprint (which calculates the GHG emissions related to a product or product category, allowing for differentiation with more sustainable products).

Why calculate the carbon footprint?

Although calculating the carbon footprint in organizations is still voluntary in many countries and sectors today, growing concern over climate change and its impacts, along with the pressure to meet the targets of the 2015 Paris Agreement, is driving many governments to implement stricter regulations. Additionally, the demand for sustainability transparency from investors and consumers is also promoting this trend. Beyond the essential contribution we all must make to mitigate climate change, having carbon footprint data for our organization allows us to:

• Meet local and international environmental regulations and standards
• Enhance the corporate image and reputation of the company and its brands
• Cut costs by identifying unnecessary consumption or areas for energy efficiency improvements
• Gain a competitive edge in public and private tenders that reward the calculation of carbon footprints
• Obtain client incentives tied to sustainability criteria for supplier benefits
• Enhance credibility with financial institutions and rating agencies
• Create unique sales arguments and strategies based on sustainability
• Evaluate the environmental benefits of organizational practices like remote work, travel policies, or mobility plans
• Supplement the assessment of emission reductions from operational or facility upgrades
• Establish environmental criteria for selecting suppliers

How to calculate carbon footprint?

There are different methods to calculate our company's carbon footprint, but we can phase this process into the following stages:

Scope 1,2 and 3 emissions

First, we need to define the scope of the carbon footprint calculation. Scope data refers to categories established by the Greenhouse Gas (GHG) Protocol to classify an organization's greenhouse gas emissions.

Scope 1 data covers direct GHG emissions from sources owned or controlled by the organization. Scope 2 refers to indirect emissions from energy that the organization does not produce directly but is indirectly responsible for due to its energy consumption. Currently, most companies that calculate their carbon footprint have the necessary activity data to measure Scope 1 and 2 emissions.

However, calculating Scope 3 emissions (indirect emissions in the value chain, including activities such as the production of purchased goods and services, transportation, business travel, and the use and disposal of sold products) is more complex. On the one hand, it's essential to clearly identify which emission sources should be included in this scope. The GHG Protocol's  "Corporate Value Chain (Scope 3) Accounting and Reporting Standard" provides categories to help with this.

Complete and traceable information on the activity level for each Scope 3 category is crucial, but it is not always available within companies. For instance, procurement data often only includes information from direct suppliers, without details on earlier stages like raw material extraction. In transportation and distribution, data might be held by logistics providers with restricted access. Emissions vary by sector, and Scope 3 generally encompasses a significant portion of emissions, particularly in purchases, transportation, and product use.

Next phases

Once the scope is defined, the next step is to gather data after identifying the various sources of GHG emissions as outlined in the scope. Emission factors are then used to transform this collected activity data into an estimate of greenhouse gas (GHG) emissions.

These factors are coefficients that indicate the amount of CO2 equivalent (CO2e) produced per unit of consumption (e.g., liters of gasoline or kWh of electricity).

Finally, the data is consolidated, analyzed, and reported.

More information

Calculating the carbon footprint is as important as doing it rigorously. To guarantee accuracy, it is advisable to hire carbon footprint assessment services by a third party.

The Energy and Industry division of Applus+ can assist you by providing a comprehensive range of environmental management services, including carbon management, environmental consulting, carbon footprint analysis, training sessions, and a web application that allows companies to calculate the effects of their greenhouse gas emissions independently. This carbon footprint calculator enables users to enter data related to various activities involved in calculations, update emission factors, edit calculation algorithms, configure reports, and set up a carbon footprint reduction strategy.

Get in touch with our experts to learn more.