Calculating the carbon footprint

Carbon footprint is a measure of the amount of greenhouse gases emitted directly or indirectly during the production, delivery, and use of products or services. It is a key indicator in assessing the impact of human activity on climate change. By calculating the carbon footprint, it is possible to identify the main sources of emissions and develop reduction strategies aimed at minimizing the negative impact on the natural environment.

Direct emissions – the first scope of the carbon footprint covers greenhouse gas emissions produced directly by the company. This includes, for example, fuel combustion in production processes, gas emissions from chemical reactions, or fermentation processes. Direct emissions are those resulting from burning fuels in the company’s own stationary or mobile sources, as well as emissions from its own technological processes or refrigerant leaks.

Indirect emissions from purchased energy – the second scope of the carbon footprint covers greenhouse gas emissions resulting from the consumption of externally purchased and used electricity, heat, process steam, or cooling. How can you calculate the emissions from the electricity consumed by a plant? Each year, a national emission factor is established, allowing the estimation of emissions generated during energy production in the National Power System. Its value depends on the energy sources – if coal is the dominant fuel, the factor will be higher, whereas with a greater share of renewables, it will be lower.

Other indirect emissions – the third scope of the carbon footprint covers all other emissions associated with the company’s activities, related to the product beyond the company’s boundaries. They occur throughout the value chain – including the production of raw materials or semi-finished products, waste management, transportation, business travel by employees, and even the use of products by their end users. Scope 3 emissions account for an average of 78% of the total carbon footprint – although they are the most difficult to calculate, they hold hidden potential for both cost savings and emission reductions.

Did you know that your scope 3 is actually scope 1 and 2 of your supplier?

Scope 3 is a challenge, especially if we want to obtain actual indicators that provide a starting point for zero-emission strategies. A key element in accurately calculating the third scope are suppliers who cooperate and share valuable data.

Calculating the carbon footprint of a company is a process that includes a series of steps. Below you will find a basic step-by-step guide:

Define the scope

Before you start calculating the carbon footprint, decide which aspects of the company’s operations will be included. This may include emissions related to production, transport, materials used, energy consumption, waste, etc.

Many companies choose the method called “cradle to gate” – this method is much more precise and allows you to examine all measurable processes until the product leaves the production plant.

The second method is “cradle to grave”, which means calculating the carbon footprint through the entire product lifecycle (often using averaged data). Such estimation includes, among others, situations that could happen with the product but do not necessarily have to. For this reason, it is less accurate and chosen less frequently by entrepreneurs.

Collect data

Gather all necessary data regarding energy consumption, greenhouse gas emissions, fuel consumption, water usage, amount of waste, etc. Data may come from bills, invoices, measurement data, company reports.

Convert data into emissions

Convert data on energy consumption, fuels, water, etc. into greenhouse gas emissions. You can use emission calculators or available average emission factors for different types of fuels and energy.

Calculate emissions related to transport

Calculate emissions related to transport, including emissions from company vehicles, goods transport, etc. You can use data such as kilometers traveled, fuel consumed, or type of vehicles.

Include external emissions

If your company uses external services, products, or materials, also include emissions related to these factors. This may include emissions related to deliveries and external services.

Sum all emissions

Sum all obtained emissions to get total results. Emissions from scope one and two are usually easier to calculate. The main challenge is measuring scope three – Scope 3.

Upstream

• purchased goods and services,
• capital goods,
• fuel- and energy-related activities,
• upstream transportation and distribution,
• waste generated in operations,
• business travel,
• employee commuting,
• upstream leased assets.

Downstream

• downstream transportation and distribution,
• processing of sold products,
• use of sold products,
• end-of-life treatment of sold products,
• downstream leased assets,
• franchises,
• investments.

Prepare a report

Prepare a report that contains detailed information about the calculated emissions, along with their division into individual categories.

Identify the areas with the greatest impact

By analyzing the report, identify the areas that have the greatest impact on your company’s carbon footprint. This will allow you to focus reduction efforts on those areas.

Implement reduction actions

Develop an action plan aimed at reducing your company’s carbon footprint. It may include investments in energy efficiency, changes in production processes, investments in renewable energy sources, or changes in transport.

Monitor progress

Regularly monitor greenhouse gas emissions to track progress in reducing the carbon footprint and adjust the reduction strategy as needed.

The increasing concentration of greenhouse gases in the atmosphere is a direct cause of ongoing climate changes. It is currently the greatest threat to the modern world. By calculating the carbon footprint, you take a step towards introducing positive changes in the enterprise. These will translate into a range of benefits, which we can divide into three main categories: environmental (you minimize the negative impact of the company's activities on the environment), economic (you optimize the production process, reducing the previous expenditures allocated for production), and reputational:

• awareness and social responsibility – calculating the carbon footprint allows companies to understand and monitor their greenhouse gas emissions, which helps build a positive company image and increases social engagement;
• financial savings – identifying the main sources of emissions can help pinpoint areas where energy can be saved and operational costs reduced;
• regulatory compliance – implementing carbon footprint calculations enables companies to adapt to increasingly stringent regulations regarding greenhouse gas emissions;
• market competitiveness – a company that actively takes steps toward reducing its carbon footprint can gain a competitive advantage in the market, especially in the context of growing ecological awareness among consumers.

As you can see, calculating the carbon footprint is a key step for industrial enterprises striving for sustainable development and reducing their negative impact on the natural environment. For technical specialists, understanding the process of calculating the carbon footprint and identifying emission reduction areas is an important part of their role in the company. Adopting a proactive approach to emission reduction can bring both ecological and economic benefits to the enterprise.