What is a carbon footprint | carbon footprint definition

A carbon footprint is a calculation of the total greenhouse gas emissions caused directly and indirectly by an organisation or company. This is typically calculated and reported over a period of 12 months, being either a financial or calendar year.

What often makes a carbon footprint complicated is defining the boundaries of the audit. The Greenhouse Gas Protocol provides the guidance to assist in determining and defining both the organisational and operational boundaries of the audit or carbon footprint.

The organisational boundary is determined through one of two approaches, namely the equity or control approaches. The control approach is further split into financial and operational control.

Once the organisational boundary is determined, the operational boundary defines which operations and sources of emissions will be included in the GHG inventory. If this sounds complicated, our team of experts at The Carbon Report can assist as our solution is specifically geared to demystify this complexity.

A carbon footprint is calculated using business activity information such as electricity consumption or fuel purchases. This business data is converted into carbon dioxide equivalents using emissions factors that are relevant to the organisation and geography concerned.

Greenhouse gas emissions (often referred to as carbon emissions) are categorised as direct and indirect and accordingly grouped into Scopes for accounting and reporting purposes.

Direct Emissions – Scope 1

Emissions are categorised as ‘direct’ when they are generated from company owned or controlled sources and activities within the reporting company’s organisational boundary. Under the GHG Protocol these are called Scope 1 emissions and are accounted for as such. Scope 1 emissions largely include fuel burned in company owned assets and air conditioning and refrigerant use.

Indirect Emissions – Scope 2 and Scope 3

‘Indirect’ sources are those emissions related to the company’s activities, but that are emitted from sources owned or controlled by a third party. These are categorised as either Scope 2 emissions for purchased electricity or as Scope 3 for other non-owned or controlled emissions e.g. rental cars, commercial airlines or paper use.

Once emission source activities are defined and the organisational boundary agreed, emissions data is quantified through scientifically developed factors which convert consumption data into emissions data. Although there is a degree of scientific and estimation uncertainty in calculating emissions, this is largely beyond the remit of most reporting organisations and uncertainty is accepted as a inherent principle in footprint calculations.

A carbon footprint is an important step in embarking upon a low carbon strategy, as it acts as a baseline from which to measure the success of carbon and energy reduction initiatives.