The Corporate Carbon Footprint (CCF) is a measure of a company\u2019s climate change impact. It visualizes a company\u2019s 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.\u202fIt is a strategic management tool, for example, to build stakeholder confidence in a company\u2019s sustainability. It also serves as a significant indicator for investors to assess the impact of climate risks in the business model.\u00a0\u00a0<\/p>\n\n\n\n
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\u00a0 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. \u202f\u00a0<\/p>\n\n\n\n
By disclosing their carbon footprint, companies are not only complying with various regulations \u2013 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. \u202f \u202f \u202f\u00a0\u00a0 \u00a0<\/p>\n\n\n\n
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.\u00a0 \u00a0<\/p>\n\n\n\n