Calculating the carbon footprint
Company and product carbon footprint
In the era of growing environmental awareness, more and more companies see the need to measure and reduce their impact on the natural environment. One of the key elements of this process is calculating the carbon footprint, i.e. the total greenhouse gas emissions generated by the company's operations. The carbon footprint includes greenhouse gas emissions generated not only directly from production, but also indirectly, for example through energy consumption, transport or even suppliers' activities. Understanding and monitoring the carbon footprint allows companies to identify the most carbon-intensive areas of their operations, which is the first step towards implementing effective actions that contribute to reducing the carbon footprint and thus support sustainability initiatives.
What is an organization's carbon footprint?
A carbon footprint is a measure of the total amount of greenhouse gas emissions that are directly and indirectly caused by a company's operations or a product's life cycle. When calculating the carbon footprint, the main gas taken into account is carbon dioxide (CO2).
The basic categories of emissions within the carbon footprint are:
- Scope 1: Direct emissions from the company's own or controlled sources, such as emissions from boilers, furnaces, company vehicles and production processes.
- Scope 2: Indirect emissions from the generation of purchased electricity, heat, steam or cooling that are used by the company.
- Scope 3: Other indirect emissions that result from the company's activities but originate from sources not directly controlled by the company.
Product’s Carbon Footprint
A product's carbon footprint is the total sum of greenhouse gas emissions, expressed in carbon dioxide equivalents, that are generated at all stages of a product's life cycle – from raw material extraction, through production, transport, use, to disposal or recycling. This includes both direct emissions from production processes and logistics, as well as indirect emissions from the consumption of electricity and other resources.
In order to accurately determine the carbon footprint that an organization generates, it is necessary to use a holistic approach that takes into account different areas of impact. By analysing how individual products affect the environment throughout their life cycle, it is possible to precisely identify areas that need improvement. Monitoring the carbon footprint of an organization, on the other hand, enables an overall calculation of gas emissions that arise as a result of overall operations.
The synergy of these two methods allows for informed decisions to be made to reduce emissions and promote the Sustainable Development Goals by companies and consumers.
Calculating the carbon footprint of your company - benefits
- Compliance with legal regulations - under international agreements, such as the European Green Deal, the Paris Agreement, the UN Sustainable Development Goals or the European Climate Law, organizations are obliged to implement all actions by reducing carbon dioxide emissions by 55% by 2030.
- Response to stakeholder needs – actions for the climate, communities and around corporate governance, including effective decarbonisation strategies, are aspects increasingly taken into account by external partners (customers, local community, investors) when making key decisions regarding cooperation or financing of a given organization.
- Optimization of operating costs - a responsible approach to greenhouse gas reduction and sustainable development activities brings measurable financial benefits. The organization knows areas where energy efficiency can be improved and the consumption of raw materials reduced. This leads to significant savings in operating costs, for example by reducing energy consumption or optimizing production processes.
See also: ESG – sustainability advisory services | Crowe Poland
Calculating the carbon footprint – Crowe support
Crowe experts develop an effective decarbonization strategy, based on the GHG Protocol methodology when examining the carbon footprint in the organization and LCA (Life Cycle Assessment) analyzing the environmental life cycle of the product. We help at every stage of the process.
How do we help in calculating the carbon footprint?
- We analyze the amount of greenhouse gases produced by the company and its products. We indicate the places that generate the highest greenhouse gas emissions
- We prepare an appropriate strategy that takes into account decarbonisation goals, as well as opportunities and possible risks
- We select the right tools to reduce greenhouse gas emissions. We are striving for zero-net emissions, in line with the goal of climate neutrality for 2050
- We create a cost estimate related to the reduction of the organization's carbon footprint
- We prepare a final report that we share with all interested parties
We are partnering with Envirly, a technology company offering an innovative sustainability management platform. Envirly solutions help to measure and analyze the carbon footprint of an organization or product, as well as generate full ESG reports. Automation of the above processes enables a thorough analysis of the organization's impact on the environment, facilitating the achievement of sustainable development goals.
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Thanks to the synergy of Crowe's expert knowledge and Envirly's advanced technology, our clients will receive comprehensive support in the ESG area, including calculating the organization's carbon footprint.
See more: Crowe Poland and Envirly join forces in the ESG field | Crowe Poland
Calculation of the carbon footprint in your organization. Check how we can help.
