About carbon footprint and decarbonization
A carbon footprint is a measure of the total greenhouse gas emissions that are generated by an organization’s activities, product or service, expressed as carbon dioxide equivalent (CO₂e). The carbon footprint calculation includes direct emissions (e.g., fuel combustion) and indirect emissions (e.g., supply chain emissions). It is a key indicator to help assess an activity’s impact on climate change and is the foundation for building a sustainability strategy.
The Corporate Sustainability Reporting Directive (CSRD) requires companies to transparently report on sustainability, including the inclusion of greenhouse gas emissions within ESG reports.
Emissions that are mandatory to count are divided into three source areas:
- Scope 1 (direct emissions),
- Scope 2 (indirect energy-related emissions),
- Scope 3 (other indirect emissions in the value chain).
Regular monitoring and reporting of the carbon footprint allows organizations to discover new opportunities to reduce operating costs, optimize the supply chain by identifying less energy-intensive suppliers, develop innovative products and services that meet market needs, and increase employee engagement.
