Definition
The total amount of greenhouse gases (GHGs) emitted directly and indirectly by an individual, organization, product, or activity, expressed in carbon dioxide equivalent (CO₂e). It includes emissions from energy use, transportation, production, and supply chains.
Why It Matters
- Calculation of carbon footprint helps businesses and individuals understand their climate impact by identifying major sources of emissions.
- Supports corporates to set decarbonization strategies by quantifying emissions reduction targets, which can lead to actual implementation through increased energy efficiency, adopted renewable energy, and reduced waste.
- Enables regulatory compliance and ESG reporting, as many governments and investors require organizations to disclose their carbon footprint.
- Transparently disclosing carbon emissions can strengthen a company's reputation and attract environmentally conscious customers and investors.
Types of Carbon Footprint
- Corporate Carbon Footprint: Measures an organization's total emissions, covering Scope 1, 2, and 3 emissions.
- Product Carbon Footprint: Assesses the emissions generated throughout a product’s life cycle, from raw material extraction to disposal.
- Personal Carbon Footprint: Includes individual lifestyle choices, such as energy consumption, transportation, diet, and consumption habits.
Further Reading
