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Today, employees and customers alike want to work and buy from companies that are cognizant of their carbon footprint – with up to 71% of people seeking eco-friendly employers and customers willing to pay a 9.7% sustainability premium, even in the midst of inflation.
In the midst of climate change, growing interest in sustainability, and the push for stronger environmental legislation – more and more companies are starting to take their carbon footprint seriously by making an active effort to measure and reduce their emissions.
However, tracking a corporate carbon footprint can sometimes prove more challenging than a household’s or an individual’s carbon footprint.
In this article, we’ll explain what a corporate carbon footprint is, why it’s important, how it is measured, and reasons why your company should track it too.
A Corporate Carbon Footprint, often referred to as (CCF), is the overall amount of GHG emissions that are created either directly or indirectly as a result of a company’s activities.
💡A CCF represents the total environmental impact of a company's endeavors, such as the emissions created from industrialization, transportation, energy usage, and waste management – all of which are expressed in metric tons of CO₂ equivalent (CO₂e) over a set period of time (usually per year).
Here are some of the factors that can contribute to a company’s Corporate Carbon Footprint:
👉 Overall, there are several factors that can contribute to a Corporate Carbon Footprint (CCF) – meaning that many companies will need to take a multifaceted approach to effectively measure and reduce their company’s carbon footprint.
The main reason for a company to measure their Corporate Carbon Footprint is that it can provide a baseline standard not only for companies to better understand their environmental impact and reduce their emissions, but to allow for improved communication and transparency with other businesses and sustainability vessels
💡As measuring and communicating information on a company’s carbon footprint builds greater trust with stakeholders and customers alike, it can also help the business to improve their brand image and boost their chances at becoming a role model in sustainability.
Here are some of the additional benefits for companies that choose to measure their Corporate Carbon Footprint:
| Benefit | Description |
|---|---|
| Identifies Emission Hotspots | Tracking helps pinpoint the main sources of emissions within the company’s operations, such as manufacturing, transportation, or energy use, allowing targeted reduction efforts. |
| Enables Setting of Reduction Targets | Provides a baseline of current emissions, which is essential for setting measurable and achievable carbon reduction goals. |
| Access to Carbon Markets | Enables participation in carbon markets by establishing a verified emission baseline, allowing companies to buy or sell carbon credits and offsets. |
| Regulatory Compliance | Ensures compliance with environmental regulations that require emissions reporting, helping to avoid fines and penalties. |
| Improves Stakeholder Transparency | Enhances transparency with investors, customers, and other stakeholders by demonstrating a commitment to sustainability and climate action. |
| Enhances Corporate Reputation | Positioning as an environmentally responsible company can boost brand image, attract eco-conscious customers, and improve public relations. |
| Drives Operational Efficiency | Identifying emissions often reveals inefficiencies, such as energy wastage, leading to cost-saving opportunities through improved processes and technologies. |
| Facilitates Risk Management | Understanding carbon exposure helps companies manage risks related to carbon pricing, regulation changes, and supply chain disruptions. |
| Unlocks New Revenue Streams | Companies can generate and sell carbon credits through verified reduction projects, creating additional revenue sources. |
| Supports Strategic Planning | Provides data for making informed decisions on investments in sustainability initiatives, such as renewable energy or energy efficiency projects. |
| Increases Investor Confidence | Tracking and reporting emissions align with investor demands for transparency in environmental, social, and governance (ESG) performance, attracting sustainable investments. |
| Promotes Long-Term Sustainability | Helps integrate sustainability into the corporate strategy, supporting long-term business viability and aligning with global climate goals. |
A Corporate Carbon Footprint (CCF) is measured by data categorization, collection, and analysis – all of which are meant to help companies reduce their carbon footprint more effectively.
Here are some of the steps taken by companies looking to measure their Corporate Carbon Footprint (CCF):
If you need a refresher, here’s a breakdown of the various scope emissions that are used to quantify and quality a company’s Corporate Carbon Footprint (CCF):
👉 Companies looking to go above and beyond may even consider measuring their scope 4 emissions – which refer to avoided emissions created outside of a product’s life cycle or value chain.
Ultimately, there are several reasons to track a Corporate Carbon Footprint – seeing as it can help companies to comply with environmental legislation, increase transparency and trust with stakeholders, and to improve risk management and brand reputation.
Here 10 benefits for companies willing to track their Corporate Carbon Footprint:
Taking the time to understand where your company’s emissions originated from can help you to develop a more effective emissions reduction strategy later on.
This can help your company to come up with personalized solutions and incentives to not only get your employees involved in the fight against climate change, but your customers, too.
Oftentimes, companies are spending more than they need to be in one specific area that also contributes to excess carbon emissions.
💡 This means that tracking a corporate carbon footprint can help offer insight on their supply chain emissions, energy usage, and other business inefficiencies that can be optimized. As a result, these improvements made as a result of carbon footprint data can help the company to reduce their environmental impact.
For instance, companies could discover through corporate carbon footprint tracking that the majority of their emissions are coming from old lighting or electrical equipment in the office – and upgrade these appliances or light fixtures to reduce emissions and in turn also cut down on utility costs.
These days, it’s becoming increasingly common for companies to follow compulsory environmental protocols – but tracking your corporate carbon footprint can help your company to automatically comply without any additional effort.
This is because many regulations such as the CSRD or the SEC Climate Disclosure Rule will encourage companies to share their carbon footprint, and by tracking your corporate carbon footprint – your company will adhere to these new regulations by default.
As businesses and consumers alike become more aware of the global threat of climate change, it’s more important than ever before to put your best “green” foot forward and show your commitment to environmental reform.
One of the easiest ways to do that is to be committed to tracking your corporate carbon footprint, as it demonstrates a genuine effort to better understand and reduce your company’s environmental impact.
💡 In turn, this can help to boost brand reputation, increase customer loyalty, and help the business to thrive in the midst of a global movement towards greater sustainability.
New studies show that up to two thirds of Gen Z workers would turn down a job if the company didn’t have firm ecological policies in place.
In addition to this, customers are growing more environmentally conscious as well – with 62% of people saying they try to seek out exclusively sustainable products.
Therefore, tracking your corporate carbon footprint is a great way to show to both employees and customers alike that your business takes sustainability seriously.
A baseline of emissions can help companies understand where they need to reduce emissions, and can provide greater insight to which carbon credits or carbon offsets they should seek.
As a result, companies that track their corporate carbon footprint will have greater access to the carbon market.
Tracking your company’s carbon footprint can help to bring potential risks to light and provide the opportunity to fix those risk hazards, such as discrepancies in your supply chain or inefficient project organization.
👉 As a result, companies could save on energy, fuel prices, and encourage their suppliers to do the same – all of which help to mitigate internal organizational risk while also reducing emissions.
Tracking your corporate carbon emissions can help reveal which business equipment, cars, office buildings, and more could be revamped or replaced to improve energy efficiency and reduce emissions from outdated technologies.
Making an effort to track your corporate carbon footprint can open doors to use new suppliers or establish new business partnerships that otherwise would never come to fruition if it weren’t for your company’s newfound effort to track its corporate carbon footprint.
Also, tracking your corporate carbon footprint can help your company to gain trust in stakeholders and expand your network in sustainability.
Tracking your corporate carbon footprint can help to inspire other businesses and individuals alike to reassess their own environmental impact.
Essentially, demonstrating our self-awareness towards our own ecological challenges can give others the courage to do the same – helping to drive a global movement towards more sustainable business practices.
Overall, there are multiple benefits to tracking a corporate carbon footprint and next to no cons –get started today and see how your company could change for the better
If reading this article on 10 reasons to track a corporate carbon footprint has made you interested in reducing your carbon emissions to further fight against climate change – Greenly can help you!
It can be overwhelming to figure out how to effectively reduce your corporate carbon emissions, but don’t worry – Greenly is here to help. Click here to schedule a demo to see how Greenly can help you find ways to ensure your company is complying with all current and future environmental regulations.
Greenly can help you make an environmental change for the better, starting with a carbon footprint assessment to know how much carbon emissions your company produces.
Click here to learn more about Greenly and how we can help you reduce your carbon footprint.
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