What types of carbon footprint assessments exist? Why are more and more companies paying attention to accounting and verification of their carbon footprint? What standards can be used for conducting the assessment? We have collected the answers to these quite popular questions in this article.
In simple words, a carbon footprint is the amount of greenhouse gases emitted and absorbed by an organization, an activity or during the product life cycle. Although greenhouse gas emissions only will be referred to in the current article, we should keep in mind that greenhouse gas removals should be also considered where it is applicable for the organization.
There are two key types of carbon footprint assessment:
- Corporate carbon footprint (CCF) - greenhouse gas emissions from an organization's operations over an annual period. These emissions are divided into Scope 1 - emissions over which the organization has direct control, Scope 2 - indirect emissions from purchased energy, and Scope 3 - indirect supply chain emissions over which the organization does not have direct control.
- Product carbon footprint (PCF) - greenhouse gas emissions from the product life cycle chain over a period that fully reflects the technological process. The calculation differs from the corporate carbon footprint in that emissions are attributed to a unit of production, for example, a ton of steel, grain, a liter of diesel fuel, etc.
Besides, the following terms are widely used:
- Carbon emissions intensity is the ratio of corporate emissions to the amount of products produced during the period.
- Specific embedded emissions mean the embedded emissions of one tonne of goods, expressed as tonnes of CO2e emissions per tonne of goods. Specific embedded emissions are calculated under the Carbon Border Adjustment Mechanism (CBAM).
The calculating methodologies mentioned above allow to obtain the amount of emissions in tons of CO2-equivalent. CO2-eq. units are used to estimate emissions of various greenhouse gases on a single basis.
What standards are used to conduct the assessment?
There are different types of assessments, and each type of assessment has its own standards. The most used ones are presented in the table below.
Why are companies increasingly focusing on carbon footprint calculations?
The key "drivers" of carbon footprint calculations are as follows:
- Supply chain members: more and more companies, especially the large ones, are adding requirements to include carbon footprint information as part of procurement or contractual procedures,
- Investors: criteria related to the carbon intensity of products, greenhouse gas emissions calculations, their dynamics, ratings and the company's climate strategy are usually among the first to be evaluated,
- Regulatory requirements: mandatory requirements of countries, and individual entities (e.g. CBAM - EU requirement),
- Industrial requirements: programs, industry standards, ratings (CDP, World steel association etc.)
Why do we need carbon footprint verification?
It is worth noting that attention is paid not only to the calculation but also to the reliability of the information, which often requires verified carbon footprint information. Verified carbon footprint information allows to confirm that the reports and statements on greenhouse gas emissions:
- meet the criteria of standards and methodologies,
- contain no errors, omissions, or misrepresentations of fact,
- are based on the use of reliable initial data, operating technological systems and processes.
The verification procedure increases the level of confidence of stakeholders in the high quality of the provided information on greenhouse gases.
How SGS can help?
We have been providing climate and greenhouse gases (GHG) services since 1998 and have expertise in verification and calculation of greenhouse gases emissions for a wide range of industries.
We stand ready to assist in responding to both national and global climate challenges and demands, and in achieving GHG reduction and carbon neutrality goals.
SGS holds several accreditations under various standards and schemes including but not limited to: ISO 14065 (ISO 14066), European Emissions Trading System (EU ETS), EU ETS aviation, CORSIA.
For expert guidance, contact our local experts today.
About SGS
SGS is the world’s leading Testing, Inspection and Certification company. We operate a network of over 2,500 laboratories and business facilities across 115 countries, supported by a team of 99,500 dedicated professionals. With over 145 years of service excellence, we combine the precision and accuracy that define Swiss companies to help organizations achieve the highest standards of quality, compliance and sustainability.
Our brand promise – when you need to be sure – underscores our commitment to trust, integrity and reliability, enabling businesses to thrive with confidence. We proudly deliver our expert services through the SGS name and trusted specialized brands, including Brightsight, Bluesign, Maine Pointe and Nutrasource.
SGS is publicly traded on the SIX Swiss Exchange under the ticker symbol SGSN (ISIN CH1256740924, Reuters SGSN.S, Bloomberg SGSN:SW).
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