Carbon footprint: Crack the Carbon Code

The carbon footprint or greenhouse gas balance sheet provides transparency about the emissions within the company and is therefore the foundation for initiatives aimed at developing and enhancing a climate strategy. It constitutes a systematic account of greenhouse gas emissions, encompassing all greenhouse gases with significant climate impact, as outlined in the Kyoto Protocol. 

The following greenhouse gases are accounted for: 

• Carbon dioxide (CO₂) (GWP=1) 
• Methane (CH4) (GWP=25) 
• Nitrous oxide (N2O) (GWP=298) 
• Sulfur hexafluoride (SF6) (GWP=23.500) 
• Hydrofluoroarbons (FKW/HFCs) (GWP ranging from 140 to 7.000) 
• Perfluorocarbons (CnF2n+2 − PFCs, FKWs) (GWP ranging from 6.000 to 9.000) 
• Nitrogen trifluoride (NF3) (since 2015) (GWP=17.200) 

Although all greenhouse gases responsible for global warming are considered, the term "carbon footprint" is used because carbon dioxide serves as the reference for all included greenhouse gases. The values in brackets represent the Global Warming Potential (GWP) of each gas, with CO₂ assigned a GWP of 1 as the reference value. A GWP of 25, for example, means 25 times the greenhouse potential of CO₂. Other greenhouse gases are converted into carbon dioxide equivalents (CO₂e) to establish comparability. 

In summary, the carbon footprint provides information on the amount of greenhouse gases emitted by a company, a product, a process, a project or an event. The carbon footprint is expressed in so-called CO₂ equivalents (CO₂e).  

Janitza will be happy to support you in determining the key figures for your carbon footprint. 

Corporate Carbon Footprint (CCF) 

The corporate carbon footprint involves the identification and consolidation of all greenhouse gas emissions produced by a company over the course of a year, resulting in a comprehensive carbon footprint. The individual carbon footprint is an important and useful tool for assessing the company's specific climate impact. With the help of the carbon footprint, suitable reduction targets and measures can be derived and presented in the sustainability report. 

Furthermore, the carbon footprint allows for a rapid identification of the areas within the company that contribute the most to greenhouse gas emissions and where the greatest potential for reduction measures exists. This is also of great economic importance, as the biggest emission drivers are often also the biggest cost drivers in the company.  

The regularly determined corporate carbon footprint serves as a vital indicator of the progress and success of a company's commitment to sustainability. 

Product Carbon Footprint (PCF)  

The product carbon footprint (PCF) refers to the assessment of greenhouse gas emissions throughout the entire lifecycle of a specific product. 

The product carbon footprint takes a holistic perspective, ranging from the procurement of raw materials to delivery ("cradle-to-gate") and possibly even taking into account the useful life and disposal ("cradle-to-grave").  

The carbon footprint of your products can also be derived from your company's carbon footprint. This enables you to quantify carbon emissions on a product or order basis and to individually identify customer orders or services in terms of their carbon emissions. In doing so, your company empowers customers to make targeted contributions to environmental conservation. 

At the core of corporate climate management is greenhouse gas balancing, which provides transparency about the largest sources of emissions within the company and can derive reduction potential. Approximately 75 % of greenhouse gas emissions worldwide are caused by the conversion of energy sources such as coal, oil or natural gas into electricity, heat or fuels. Therefore, the greatest potential for emissions reduction lies in this sector. 

The climate-related reporting of companies categorizes greenhouse gas emissions into three scopes: 

• Scope 1: Emissions directly resulting from the activities of the company itself (e.g., emissions from the combustion of natural gas in stationary equipment or diesel in company-owned vehicles). 
• Scope 2: Emissions not originating directly within the company but associated with the production of energy consumed by the company (e.g., electricity and district heating). 
• Scope 3: Emissions caused by the company along its value chain, such as emissions from the production of steel used by the company or emissions from employees' commuting. In some reporting standards, the calculation of Scope 3 emissions is optional. 

Calculating emissions can often be a complex challenge that requires the support of external partners. However, the necessary metrics can be determined with appropriate measuring devices and software solutions. Moreover, if the company already has a mature energy management system in place, the additional effort for expanding into climate management is minimal. This can be achieved, for example, by configuring the measuring devices within the GridVis® software and adding the carbon footprint dashboard functionality. 

The accounting process can be conducted either at the corporate level (Corporate Carbon Footprint, CCF) or at the product level (Product Carbon Footprint, PCF). The normative frameworks for this include the GHG Protocol, as well as ISO 14001, ISO 14064, and ISO 14067. 

The CSRD mandates comprehensive metrics on energy consumption and greenhouse gas emissions for obligated companies. Janitza can assist you in determining these key metrics. 

Climate management, including topics like resources, wastewater, and waste, is a part of environmental management, which in turn is integrated into sustainability management. Currently, unlike other areas such as energy management, there is no explicit standard for a structured climate management system. 

However, content elements of an environmental management system according to ISO 14001 can be utilized for this purpose. Several standards exist for determining the corporate carbon footprint (CCF) and product carbon footprint (PCF), primarily the GHG Protocol, ISO 14067, and ISO 14064, which are considered the most common principles for carbon accounting or the creation of a reporting certificate or certificate. 

The EMAS regulation (Eco-Management and Audit Scheme) often forms the basis for environmental management systems. It is regarded as a voluntary standard for environmental management and was developed by the European Union. 

Furthermore, the Corporate Sustainability Reporting Directive (CSRD) of the EU regulates the disclosure of non-financial information, including climate data, for certain companies within the European Union. 

Different standards in the fields of energy, climate, and environmental management overlap in some parts. For example, the EMAS regulation also includes the fundamental contents of climate management. Requirements and norms can also vary depending on the region and industry.

In order to minimize the effects of climate change, greenhouse gas emissions must be significantly reduced, and measures for climate resilience need to be taken. While sustainability encompasses many aspects, both public perception and the forthcoming CSRD directive emphasize climate protection, with a focus on energy consumption and greenhouse gas accounting. The reduction of carbon emissions is recognized as one of the most crucial levers in the business community's sustainability efforts. Additionally, other benefits are identified: 

• You gain transparency regarding emissions within your company. 
• You save on energy costs and reduce resource consumption – emission drivers often overlap with cost drivers. 
• You cut costs by reducing the portion of emissions that ultimately need to be offset. 
• You position your company in the market as a sustainable one, increasing your appeal to customers, investors, and the public. This ensures long-term viability. 
• You secure your competitiveness by planning for the long term and incorporating a climate strategy into your business model. 
• Various funding models are linked to the sustainability of the company.

An existing energy management system forms a significant foundation for expanding a climate management system, as a large portion of carbon emissions originates from energy generation for the company. Consequently, data on scope 1 and scope 2 emissions are often already available or relatively easy to determine. 

The additional effort required for expanding into climate management is minimal, such as configuring measuring devices within the GridVis® software and adding the carbon footprint dashboard functionality. 

Do you have any questions about this? Please feel free to reach out to us. 

• The use of Janitza measuring devices simplifies the process of collecting emissions data for you. With GridVis® software, you can capture all relevant energy consumption data, including electrical energy, steam, gas, oil, and district heating.

• GridVis® software enhances the level of automation in your workflow, saving you time and money.

• You gain access to a multitude of features for analysis, evaluation, key performance indicator generation, and data visualization. Identify data trends and establish meaningful correlations.

• Reduce the effort required to comply with legal reporting obligations and increase the sustainability of your company.

• You have complete flexibility: If you are already using our software for your energy management, you can also use it for climate-related tasks.