What is Carbon Footprint?
The total amount of greenhouse gases produced directly and indirectly by an individual, organisation, event, or product, expressed as carbon dioxide equivalent (CO₂e). A carbon footprint includes emissions from energy use, travel, supply chain, and waste.
Why it matters
Understanding your carbon footprint is the first step towards reducing it. Increasingly, customers, investors, and procurement teams want to see this number before entering commercial relationships. For UK SMEs, it also supports compliance with regulations like PPN 006 and SECR.
Example
A small e-commerce brand calculates its annual carbon footprint at 320 tCO₂e, with 85% coming from purchased goods and shipping. This insight helps the founder prioritise switching to a lower-carbon packaging supplier.
Related terms
Scope 1 Emissions
Direct greenhouse gas emissions from sources owned or controlled by an organisation. Examples include emissions from company vehicles, on-site fuel combustion in boilers and furnaces, and refrigerant leaks from air conditioning systems.
Scope 2 Emissions
Indirect greenhouse gas emissions from the generation of purchased energy consumed by an organisation. This includes electricity, steam, heating, and cooling purchased from utility providers. Scope 2 can be calculated using location-based or market-based methods.
Scope 3 Emissions
All other indirect emissions occurring in an organisation's value chain, both upstream and downstream. Scope 3 typically represents 70-90% of a company's total carbon footprint and includes emissions from suppliers, business travel, employee commuting, and product use.
Put your knowledge into practice
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