The Corporate Carbon Footprint (CCF) is a measure of a company’s climate change impact. It visualizes a company’s direct and indirect greenhouse gas emissions within a given year. It creates a fair framework and incentives for companies to analyze and improve their environmental performance. It is a strategic management tool, for example, to build stakeholder confidence in a company’s sustainability. It also serves as a significant indicator for investors to assess the impact of climate risks in the business model.  

Reducing greenhouse gases to ‘net zero’

The European Green Deal, adopted by the EU in 2019, sets a clear goal: to achieve net zero greenhouse gas emissions by 2050. European emissions trading schemes and company energy audits are mechanisms that contribute to this decarbonization goal. A CCF enables companies to provide a transparent and clear account of  the emissions that have been generated in their own operations and along their supply chain. The carbon footprint therefore also shows indirect emissions from operators in the upstream and downstream value chain, which are not visible at first glance.   

Climate indicators ensure corporate sustainability  

By disclosing their carbon footprint, companies are not only complying with various regulations – they are also securing their future. The global market is constantly changing. To adapt to these changes and operate successfully, companies need to know their greenhouse gas emissions. This enables them to identify and analyze risks and develop strategies to address them. This is how companies can thrive in the coming low carbon economy.          

EU and national greenhouse gas regulations  

The disclosure of a CCF is required by various European and national regulations. The Corporate Sustainability Reporting Directive (CSRD) and the recently adopted Directive on Corporate Sustainability Due Diligence (CSDDD) require companies across the EU to disclose their GHG emissions and their reduction plans. Regulations also require reporting in specific sectors, such as the financial sector, e.g. the SFDR (Sustainable Finance Disclosure Regulation). Regulations also exist at national level, for example in the UK. The SECR (Streamlined Energy and Carbon Reporting) and SDR (Sustainability Disclosure Requirements) provide a framework for the disclosure of greenhouse gas emissions.   

Building a CCF with AI-based software  

The accounting principles of the Greenhouse Gas (GHG) Protocol, such as relevance and accuracy, form the basis for effective climate management. GHG accounting software solutions enable the detailed recording of direct and indirect emissions, as well as the complex collection of Scope 3 data. Carbon accounting is seen as an essential tool for long-term business success. It enables companies to adapt to changing market dynamics and develop strategic approaches to carbon neutrality. Climate indicators serve as a starting point for indicator-based and sustainable business development. The osapiens CCF solution is based on the Greenhouse Gas Protocol standards and enables comprehensive accounting and complete transparency across all emission scopes. 

Transparency as a starting point  

Supply chain transparency and stakeholder interests require full disclosure of a company’s environmental performance in all areas. This underlines the need for open data sharing and shared responsibility for the environment. For many companies, carbon accounting is not only a legal obligation due to the multitude of ESG regulations, but also an opportunity to become more sustainable and competitive. Companies, consumers and investors increasingly expect sustainable management. Companies that meet these requirements and demonstrate this by publishing their environmental performance indicators can attract customers, funding and talent.