What is a company’s carbon footprint?

Climate regulations, investor expectations and stakeholder demands are reshaping business priorities. Yet many companies still ask: What is a company’s carbon footprint?

A company’s carbon footprint measures all greenhouse gas emissions it generates—both direct activities and indirect value‑chain impacts. It underpins any credible carbon management strategy and is key to compliance under EU and UK frameworks.

In this guide, you’ll learn:

• what constitutes a company’s carbon footprint across Scope 1, 2 and 3
• how to calculate it using international standards and tools
• relevant EU/UK regulation such as CSRD, ESRS and SECR
• how to use carbon insights to reduce emissions and drive business value

Whether starting your carbon journey or refining your climate reporting, this article will provide clarity, structure, and actionable steps to move forward.

Understanding the carbon footprint of a company

A company’s carbon footprint is the total greenhouse gas emissions—measured in CO₂‑equivalent—that an organisation produces, directly and indirectly. It includes emissions from operations you control and those from your wider value chain.

Why it matters for businesses today

Knowing your carbon footprint is essential for managing transition risk, meeting investor and regulatory expectations, and aligning with climate goals like Science-Based Targets. With EU CSRD and UK SECR legislation, accurate carbon reporting is no longer optional for medium and large companies.

The link between climate goals and corporate emissions

Organisations that quantify emissions can then reduce them. By understanding which emissions come from energy, transport, suppliers or customers, you unlock targeted reduction strategies and enhance credibility with stakeholders.

What emissions are included in a company’s carbon footprint?

Scope 1: direct emissions

Scope 1 emissions cover greenhouse gases from sources owned or controlled by your company—for instance, boilers, company vehicles, fugitive refrigerant leaks or on‑site fuel combustion. It’s often the easiest to measure.

Scope 2: indirect emissions from energy

Scope 2 emissions include emissions generated off‑site during the production of purchased electricity, steam, heat or cooling used by your operations. Though indirect, you’re still responsible for them—as consumption lowers, so does demand at power plants.

Scope 3: other indirect emissions

Scope 3 emissions cover all value‑chain related carbon impacts—upstream and downstream. These include purchased goods and services, employee commuting, waste, transport logistics, sold product usage and even disposal. This is the largest share of your footprint in many sectors—often up to 90 %.

Examples from different industries

• A manufacturer may have Scope 3 emissions from raw materials and downstream usage.
• A bank’s most significant carbon footprint may derive from financed emissions in investments.
• A service firm may see emissions driven mainly by business travel and employee commuting.g

How to calculate your company’s carbon footprint

Data you need to get started

You’ll need:

• operational data (energy use, fuel, refrigerants, company vehicles)
• procurement data (purchased goods, travel, logistics)
• usage and disposal data for sold products or services
  

Common calculation methods and standards

Use the Greenhouse Gas Protocol Corporate Standard, and for Scope 3, the Corporate Value Chain (Scope 3) Standard. These follow principles of relevance, completeness, consistency and transparency. Some sectors may also apply ISO 14064.

Tools and software to simplify the process

Carbon accounting platforms support automated data collection, standardised calculations, scenario modelling and visual dashboards. These tools help reduce manual error, improve audit readiness and align with frameworks like CSRD and ESRS.

The role of climate consultants

Partnering with certified experts can help you design reduction strategies, prepare compliant carbon reports, and embed long‑term climate governance in your organisation.

Complying with carbon reporting regulations in Europe

CSRD (EU) and double materiality

Under the Corporate Sustainability Reporting Directive (CSRD), nearly 50,000 EU‑based large and listed companies must report using ESRS standards from fiscal year 2024 (first reports published in 2025). CSRD requires a double materiality approach: reporting impacts on your business and broader society.

SECR (UK) and other national frameworks

In the UK, large companies must comply with Streamlined Energy & Carbon Reporting (SECR), disclosing Scope 1 and 2 emissions—and Scope 3 if material. EU subsidiaries in the UK are also affected.

Timelines and thresholds for medium and large companies

CSRD applies first to wave one companies in 2024FY, wave 2 & 3 later. Simplification reforms may narrow obligations to companies with over 1,000 employees by mid‑2025.

Ensuring data quality and audit readiness

Ensure internal processes for data collection, quality control, documentation and audit trails. Use platforms and external audits to stay compliant and credible.

Turning carbon insights into climate action

Setting reduction targets (SBTi, Net Zero)

Use insights from your carbon footprint to set reduction targets aligned with frameworks like the Science Based Targets initiative (SBTi)—covering Scope 1, 2 and in many cases Scope 3—to drive long‑term change.

Engaging your team and supply chain

Involve employees and suppliers—suppliers often account for Scope 3 emissions. Explain carbon data, set incentives, and collaborate on low‑carbon sourcing. Procurement plays a key role in emission reduction across supply chains.

Reduction strategies that work

• Switch to renewables for energy
• optimise logistics and business travel
• Choose lower‑carbon materials and suppliers
• Implement circular practices for products and waste
  

When & how to use carbon contributions

Use carbon contributions only when unavoidable. Prioritise internal reductions first. Contributions may complement strategy but never replace mitigation efforts.

The business benefits of tracking your carbon footprint

Risk management and regulatory alignment

Accurate carbon reporting reduces compliance risk under CSRD, SECR and emerging EU climate regulations. It prepares you for future carbon pricing or border adjustment mechanisms.

Investor & stakeholder expectations

Investors and customers increasingly expect ESG transparency. Your carbon footprint demonstrates credibility in climate strategy and strengthens stakeholder trust.

Competitive advantage and innovation

Low‑carbon operations can reduce costs, spur efficiencies and open new market opportunities. Carbon awareness fosters innovation in procurement and product design.

Internal engagement and culture

Transparent reporting energises employees and encourages sustainable organisational behaviour—from sustainable transport to digital efficiency.

Quick Takeaways

• Your company’s carbon footprint covers Scope 1 (direct), Scope 2 (energy), and Scope 3 (value chain) emissions
• Scope 3 often represents up to 90 % of total emissions—don’t ignore it
• Use GHG Protocol and ESRS / CSRD standards for calculations and reporting
• Software and expert partnership simplify carbon data gathering and governance
• Engage suppliers and employees to turn insights into real emissions reductions
• Compliant reporting under CSRD (EU) and SECR (UK) builds credibility
• A robust carbon footprint helps mitigate regulatory, financial and reputational risks

Conclusion

Measuring your company’s carbon footprint is the foundation of a credible climate strategy today. By understanding all three emissions scopes and applying recognised standards, you comply with EU and UK regulations and gain strategic insight into business optimisation.

Whether you operate in Belgium, France, the Netherlands, Luxembourg, or the UK, getting this right supports risk management, stakeholder trust, and long‑term innovation. Start with precise data, engage your teams and supply chain, and translate measurements into action.

Tapio’s carbon management software and certified experts make this easier—from data collection templates and dynamic reduction modelling to visual dashboards and audit‑ready reporting.

Ready to build your carbon strategy and produce compliant carbon reports? Contact Tapio to begin your journey toward decarbonisation with ease, clarity, and impact.

Tapio is a carbon management software that allows companies and consultants to calculate and reduce carbon emissions.

FAQs

1. What is a company’s carbon footprint, and why should I measure it?
It’s the total GHG emissions—Scope 1, 2 and 3—associated with your company. Measuring it helps with compliance under CSRD/SECR and supports carbon reduction strategies.

2. How do I calculate a business carbon footprint?
Collect data across energy, fuel, procurement, travel and product use. Use the GHG Protocol and tools or carbon accounting software for calculation and scenario modelling.

3. What are scopes 1, 2 and 3 emissions explained?
Scope 1: direct emissions your company produces.
Scope 2: indirect emissions from purchased energy.
Scope 3: all other value chain emissions, often the largest share.

4. What are the carbon reporting obligations under EU CSRD and UK SECR?
CSRD requires large EU‑based companies to disclose full GHG emissions using ESRS from FY 2024. SECR applies in the UK and involves Scope 1 and 2, plus material Scope 3 where relevant.

5. How can I reduce my company’s carbon footprint?
Set reduction targets (eg SBTi), engage suppliers and staff, switch to renewables, optimise travel and logistics, and embed a low‑carbon culture across activities.