Why a CO₂ balance sheet is important

Getting started with a commitment to sustainability can be a challenge for many companies. However, the CO₂ balance sheet offers a concrete and important starting point for quantifying a company's emissions and is even becoming mandatory with the Corporate Sustainability Reporting Directive (CSRD).

The_{carbon footprint} as the basis for the sustainability strategy

In order to become sustainably active, companies must first gain an overview of their own emissions. The CO₂ balance sheet offers a method for measuring a company's greenhouse gas emissions. The corporate carbon footprint, as the carbon footprint is also known, records all activities that cause carbon emissions and enables companies to understand their contribution to climate change. The carbon footprint therefore forms the basis for a holistic sustainability strategy and the development of reduction measures. It typically comprises three areas - known as scopes - of emissions, which make it possible to distinguish and assess the various sources of greenhouse gas emissions.

What are Scope 1, 2 and 3 emissions in the_{carbon footprint}?

Scope 1 emissions are direct emissions caused by the combustion of fossil fuels in production or by processes within the company itself. Examples include emissions from energy sources at the site, the combustion of fuels in vehicles (own vehicle fleet) or the operation of ovens, boilers or machines. 

Since control of these emissions lies within the company, they can be measured and controlled relatively easily.

Scope 2 emissions are indirect emissions caused by the purchase of energy or electricity. An example of Scope 2 emissions are emissions caused by the combustion of coal or gas in power plants that the company uses to generate electricity. Emissions can be reduced by purchasing renewable energy. If a company has its own facilities for generating electricity, the associated emissions fall under Scope 1.

Scope 3 emissions are indirect emissions caused by processes that take place outside the company but are related to the company's production and operations. Compared to Scope 1 and 2, emissions are often more difficult to measure and control. Examples include emissions caused by the production of materials or the use of products or services purchased by the company. 

Scope 3 distinguishes between upstream and downstream emissions:

• Upstream emissions include all emissions within the value chain related to services and purchased goods
• Downstream emissions are indirect emissions within the value chain that occur in the goods or services sold by the company once they have left the company
  

What are the benefits of the_{carbon footprint}? 

1. Identify sources of emissions: The_{carbon footprint} reveals the areas in which emissions occur and what the biggest emissions hotspots are.
2. Set targets: The next step should be to set clear goals on how to reduce emissions. These targets should be measurable, achievable and given a deadline.
3. Develop strategies: To be able to achieve the goals, strategies should be set up. These include energy efficiency measures, alternative means of transport, sustainable supply chains or renewable energies.
4. _{CO2 reduction}Emissions must be actively reduced. 
5. Monitor and measure: Companies should regularly monitor and measure their progress in reducing their_{CO2 emissions} so that strategies can be optimized and targets achieved. This also applies to the_{CO2 balance} itself, which must be recorded anew every year. This is the only way to ensure that the company is on the right track.
6. Report and communicate: When companies publicize and communicate their efforts to reduce CO₂, they can benefit in many ways: Internally, employees' awareness of sustainable action is increased, which can lead to greater loyalty to the company. Externally, companies can benefit from an improved reputation, a competitive advantage, cost savings, customer loyalty and a reduction in risks. In addition, the CSRD will require large companies to report on their commitment from 2024. This creates additional incentives.

It is clear that the_{carbon footprint} is an important measure for companies to become sustainable in the long term. Based on the balance sheet, companies can identify and analyze their emission sources, strategically develop potential savings and measure, monitor and communicate their progress.

Software solutions simplify the recording of the_{carbon footprint}

With the Planted software solution, you can record your company's_{CO2 emissions} TÜV-certified and across teams. In addition, our software solution enables you to optimize your emissions in a targeted manner via an individualized reduction plan.

Get started today with a no-obligation_{carbon footprint} demo within the Planted sustainability platform.

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