How companies determine their CO2 footprint

The EU wants to be climate -neutral by 2050. This ambitious political announcement, which was commissioned by the acceptance of the EU Green Deal, also has an impact on the economies and industries of the individual Member States. European companies urgently need to find ways to continuously reduce their CO2 emissions in the coming years.

And it is not a very difficult task, as if one of the most important requirements were not defined: What is the CO2 footprint and how is it calculated? What challenges do companies have to master and what steps do you have to take to successfully make your sustainability orientation? In this article I would like to pass on some information that will help you with your thinking and experience.

What is a CO2 footprint?

A CO2 footprint is the result of an emission calculation or CO2 balance. CO2 footprints can be calculated for an entire company, sub-areas, products or individual projects and investments. A CO2 footprint reflects the amount of greenhouse gases that are emitted by an activity or a process. When and where emissions arise is of fundamental importance for determining the CO2 footprint of a company.

Direct delivery (company)
By buying necessary energy, products and services
As part of the upstream and downstream value chain (transport, logistics) when delivering raw, auxiliary and operating materials and their transport to the customer
Business trips, hotel stays, events etc.
When using or recycling and disposal of manufactured goods (customer)

Why do companies measure their CO2 footprint?

For companies, the CO2 footprint is the most important evaluation tool for evaluating your greenhouse gas emissions. They flow into ecological scale, are documented in sustainability reports and flow into the cost planning. The CO2 footprint shows where emissions are emitted, where there are hot spots in the production chain and where improvements and savings are possible. In addition, it forms the basis for the development of company climate goals (e.g. Science Based Targets).

Information about the CO2 footprint is also becoming increasingly important for the steak of companies.

Investors see enormous growth and earnings potential in promoting sustainable companies.
Banks consider ESG criteria (Environmental and Social Governance) in accordance with European banking supervision and applicable EBA guidelines. Among other things, the loan rates depend on whether ESG criteria are met or whether the loan is approved.
Customers are increasingly demanding clean products and services and considering this aspect when making their purchase decision.
Buyer to optimize your own CO2 footprint, buy buyers the climate protection standards of producers and suppliers.
Young talents are increasingly obtaining the environmental and environmental and environmental commitment of a company in their decision criteria when choosing future employers.

Calculation of the CO2 footprint

The most important international standards for calculating the CO2 footprint are the Greenhouse Gas Protocol and the ISO standard 14064. They assign the greenhouse gas emissions of the public sector and the companies three areas:

Step 1: Emissions that arise directly from fuel during operation or by transport activities and temporary emissions (e.g. unintentional leaks).

Step 2: Emissions made from purchased energy such as electricity, steam, heat and cold.

Step 3: All other indirect emissions that a company emits out as part of its value chain.

4 steps to a meaningful greenhouse gas balance

To determine a meaningful greenhouse gas balance, 4 steps are recommended:

Step 1: Define goals and limits
Define your company boundaries and set the scope to create your footprint.
Step 2: collect activity data.
Determine which activities and processes CO2 emissions cause and which scope you belong to.
Step 3: Determine CO2 emission factor:
Define an emission factor that is assigned to an activity or a process and determine the CO2 intensity.
Step 4: Create greenhouse gas balance:
Based on the previous steps, the company’s emissions can be compiled into a meaningful greenhouse gas balance.

Challenges in calculating the CO2 footprint

Every company is different. Nevertheless, the same hurdles have to be used almost everywhere when calculating the CO2 footprint. Sooner or later, all organizations will have to face the following challenges if they want to take the path to more climate transparency and sustainability.

Different interpretations of standards
Are the emissions to be attributed to the product or the company and where do they draw the limit? This problem applies in particular to greenhouse gas emissions that are not directly attributable to product production, such as: B. Business trips. While there are many approaches and approaches to determine the carbon footprint, the implementation of standards such as the GHG Protocol is partially interpretation. Some companies only deal with scope 1 and 2 emissions, others also take into account scope 3 and others only deal with a few categories. Even with results comparable across companies, it usually remains wishful thinking.
Bad database and quality
Calculation methods and underlying factors can cause problems when using standards. There are already many tools that make it easier for companies to calculate their CO2 emissions (Conclimate, Carboncare, Climatic, etc.), but it always depends on the source and quality of the data used. Companies usually have access to large quantities of primary data, so do not be fooled. If not, start with estimates and rough calculations. In this way, create a first database on which you can continue to build up and later receive more resilient results. To start with estimates and prioritize according to costs, such as B. purchased goods have the advantage that they learn to assess and weight the relevance of certain factors. If the emission factor is very small compared to others, a rough assumption is sufficient for the future.

Our tips for a better CO2 footprint calculation:

When accounting, pay attention to completeness, accuracy, transparency, consistency and relevance of your data.
Make sure that your company has the talent it needs in good time. A database alone is not enough to calculate a CO2 footprint. Experts have to find, merging and evaluate the correct data.
Start, try out different approaches and keep going. Because the only mistake you can really make is to put your head in the sand and do nothing. Everything else is just another step in the right direction.

Conclusion: Without initiative, no meaningful CO2 footprint

The topic of climate protection and sustainability is getting to the fore in the foreground faster and will not disappear at the legislator’s pressure. The course required for the implementation phase. Learning by doing is an important part of the process. External consultants can make important contributions, but the development of internal knowledge is essential for the development of new standards and the implementation of appropriate measures.