An increasing number of firms are performing sustainability audits of their company activities as environmental problems gain acceptance in economies across the world. According to the 2017 Emissions Gap Report from the United Nations Environment Programme, “the world is still headed for a temperature rise far beyond the Paris Agreement goals of limiting global warming to well below 2°C and pursuing 1.5°C.” Therefore, in order to make a significant change, businesses, governments, and people all need to evaluate their carbon footprints.

How does carbon footprint work?

A person, organization, event, or product’s total greenhouse gas emission, whether they were created directly or indirectly, are known as their “carbon footprint.” Tonnes of carbon dioxide equivalent, or CO2e, are used to express it and are calculated over a 12-month period. Carbon dioxide, methane, nitrous oxide, and fluorocarbons are examples of greenhouse gases (GHGs). Since global warming is a phenomenon that has disrupted natural ecosystems all over the world, it is well known that these carbon emissions and climate change are closely related.

A company’s carbon footprint is what?

Your company’s carbon footprint is how it affects the environment. It is a tool to assess the environmental impact of your company.

One of the most important steps in implementing a long-term, sustainable green business plan is calculating a company’s corporate carbon footprint. Three categories or scopes are taken into account by corporate carbon footprint by

Scope 1: These are emissions that are produced directly from owned or managed sources, such as burning fuel for industrial production, heating, privately owned vehicles, and other sources of a same nature.

Scope 2: These are emissions that are produced indirectly as a result of the energy that the company purchases and uses, such as electricity.

Scope 3: These are indirect emissions produced by activities such as logistics, the procurement of products and services, the use of water, the disposal of trash, and business travel in vehicles not owned by the organization that are part of the value chain of a firm.

Why is knowing your carbon footprint crucial?

To understand where your company stands in relation to the international standards for decreasing carbon dioxide emissions and global warming, you must calculate the corporate carbon footprint. Consumers are becoming more environmentally conscious as they become more aware of their carbon footprint and the effects of climate change, even if legal restrictions may be one of the drivers driving businesses to prioritize environmental impact.