What is Carbon Footprint?

A carbon footprint is the total amount of greenhouse gas (GHG) emissions, measured in carbon dioxide equivalent (CO₂e), produced directly or indirectly by an individual, organization, product, or activity. It is a key metric in climate change mitigation and sustainability strategies, helping businesses and individuals measure and reduce their environmental impact.

Why is carbon footprint important?

Reducing carbon footprints is crucial in the fight against climate change, as excessive greenhouse gas emissions contribute to global warming, extreme weather events, and environmental degradation. Organizations and governments worldwide are adopting carbon reduction strategies to meet Net-Zero and Science-Based Targets (SBTs).

Types of Carbon Footprints

Carbon footprints are typically classified into three categories:

• Personal Carbon Footprint: Emissions generated by an individual’s daily activities, such as transportation, diet, and energy consumption.
• Corporate Carbon Footprint: The total emissions from a company’s operations, including manufacturing, logistics, and office energy use.
• Product Carbon Footprint: The emissions associated with a product’s lifecycle, from raw material extraction and manufacturing to distribution, usage, and disposal.

Scope 1, 2, and 3 Carbon Emissions

Businesses measure their carbon footprint using the GHG Protocol, which classifies emissions into three scopes: 🔹 Scope 1: Direct emissions from owned or controlled sources (e.g., company-owned vehicles, industrial processes). 🔹 Scope 2: Indirect emissions from purchased electricity, heating, or cooling. 🔹 Scope 3: Indirect emissions across a company’s entire value chain, including supplier emissions, product use, business travel, and waste disposal.

Carbon Footprinting in ESG & Sustainability Reporting

Many companies are now required to disclose their carbon footprint as part of ESG (Environmental, Social, and Governance) reporting. Global frameworks such as CSRD (Corporate Sustainability Reporting Directive), TCFD (Task Force on Climate-related Financial Disclosures), and SEC Climate Disclosures mandate carbon reporting for investors, regulators, and stakeholders. 📌 Key ESG Reporting Metrics: 🔹 Carbon Intensity (emissions per unit of revenue or production) 🔹 GHG Reduction Targets (Science-Based Targets Initiative – SBTi) 🔹 Carbon Neutral & Net-Zero Commitments