What is a carbon footprint, and how is it measured?

In this guide on what is a carbon footprint and how is it measured, we’ll cover:

• What is a carbon footprint?
• How is a carbon footprint measured?
• Seven of the best carbon footprint calculators
• How can I reduce my carbon footprint?
• How Ecologi can help businesses reduce their carbon emissions

A simple definition is the total amount of greenhouse gases that is emitted directly or indirectly by an entity – for example, a person, product or business. In other words, it is one measure of the impact their activities are having on the environment, and how much they are contributing to climate change. 

The carbon footprint is usually expressed in terms of tonnes of ‘carbon dioxide equivalent’ – which allows us to account for the emissions of both carbon dioxide and other greenhouse gases. Activities like travel, energy use, producing goods and services all contribute to a carbon footprint, and once you know the measure of it, the goal should be to reduce it as much as possible.

What are some examples of carbon footprint?

We usually talk about the carbon footprint of an individual or company, but it could also refer to the impact of an event, like a big music festival or sporting event for example, or of a product throughout its life cycle. 

Why is it important to measure your carbon footprint?

Measuring your carbon footprint is important because it helps you understand and take responsibility for the amount of greenhouse gases you’re releasing into the atmosphere through your activities, whether that’s indirectly or directly. 

There are many reasons why that matters, but here’s just a handful:

Heightened environmental awareness  

When you understand your carbon footprint, you become more aware of how your actions are contributing to the big issues of climate change and environmental degradation. And awareness is the first step towards action. You’ll find you become more focused on making better choices for our planet.

More responsibility and accountability

Measuring your carbon footprint encourages personal responsibility. It helps people and businesses recognise the impact they have on the environment, and fosters a sense of accountability for their contribution to climate change.

Easier goal setting

If you know about it, you can do something about it. Once you’ve measured your carbon footprint, the next step is to set goals to reduce it. For businesses it could involve switching energy providers, using more efficient vehicles or working with greener suppliers. For individuals this might involve making changes to your lifestyle or choosing more environmentally-friendly products. 

Competitive advantage for businesses  

Calculating, understanding and reducing your carbon footprint is a collective responsibility for the wellbeing of the planet. Increasingly consumers are aware of this responsibility and are choosing businesses that show a commitment to sustainability. So carbon footprinting is good business! 

Economic savings

Many actions that reduce carbon footprints, like using energy-efficient lightbulbs or electric vehicles, can also lead to cost savings. Reducing energy consumption not only benefits the environment but also lowers bills, so it’s good for both the planet and profit. Win-win!

Measuring a carbon footprint involves assessing the total amount of greenhouse gas emissions produced by an individual or business, and it’s typically expressed in terms of carbon dioxide equivalent (CO2e).

Let’s take a look at how to calculate the carbon footprint of a company. The process of calculating a carbon footprint is very complex and methodologies vary. Companies may tailor their carbon footprinting approach based on their industry, location and available data – and it’s always advisable to work with an organisation with a carbon accounting background, to ensure you’re on the right track. 

Here’s the basic process:

Step 1 – Define boundaries

The Greenhouse Gas Protocol defines three types (‘scopes’) of emissions:

• Scope 1: Direct emissions from owned or controlled sources (e.g. emissions from company-owned vehicles, or from an onsite gas boiler).
• Scope 2: Indirect emissions from the generation of purchased energy (e.g. electricity).
• Scope 3: Indirect emissions from the entire value chain, including both upstream and downstream activities (e.g. supply chain, transportation and business travel).

As well as understanding the scopes of emissions business must also define the organisational and operational boundaries of the footprint – to establish which emissions the specific entity is responsible for.

Step 2 – Identify emission sources

Determine all sources of greenhouse gas emissions associated with the defined scopes. For a company’s carbon footprint, this can include: 

• Energy consumption, including electricity, fuel, and other energy sources (this includes Scope 1 and 2 emissions).
• Transportation, from owned or leased vehicles (Scope 1), as well as emissions from commuting and business travel (Scope 3).
• Supply chain emissions, including raw material extraction, manufacturing, and transportation (Scope 3).
• Waste management, including emissions from waste generation and disposal.

Step 3 – Collect data 

Next you need to gather data on energy use, fuel consumption, production processes, transportation methods, and any other relevant activities contributing to emissions. 

Our carbon footprinting tool, Ecologi Zero, simplifies this process. After answering a few essential questions about your business, including your number of offices and employees, you can connect Ecologi Zero to your Xero accounting software to import transaction data and get emissions values for each transaction. Collecting activity data about your energy usage, vehicles, and other parts of your business will refine your carbon footprint as well.

Step 4 – Convert data to CO2e 

Different greenhouse gases have different ‘global warming potentials’, so the next step is to convert the activity or expenditure data for each emission source into emissions (measured in CO2e), so you have a standardised measure. 

This is done using emissions factors, which are values that represent the average amount of emissions produced per unit of activity. Using these factors you can convert the data about how your business runs, into a total amount of emissions, in CO2e.

Step 5 – Calculate the carbon footprint 

Then all you need to do is multiply the activity data by the appropriate emission factor to calculate the emissions for each source. And once all these emissions are added together, voila, you get your total carbon footprint.

Step 6 – Report the carbon footprint 

Show your commitment and build trust by transparently reporting your carbon footprint and sharing your progress (even if you’re not perfect). Subscribers to Ecologi Zero Premium get an annual report included in their plan. 

Step 7 – Set goals and take action

Once the carbon footprint is measured, businesses can identify their emissions hotspots and set goals to reduce them. This might involve switching to renewable energy, improving energy efficiency, or making changes in the supply chain. Identifying hotspots and setting goals is another feature included in Ecologi Zero Premium.

Looking for a helping hand? Here’s seven tools that can do a lot of the hard work for you: 

Ecologi Zero 

Ecologi Zero makes it quick and simple for UK-based SMEs to calculate their carbon footprint by integrating with Xero accounting data. Premium users can also get tailored advice to identify hotspots and benefit from an annual report to share with their community. 

GHG Protocol

Developed by the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD), the GHG Protocol provides a comprehensive framework for businesses to measure and manage their greenhouse gas emissions. It offers standards and guidance for both corporate and product life cycle accounting.

Carbon Trust

Carbon Trust offers a suite of tools and calculators for businesses and individuals. Their individual calculator considers energy usage, transportation and lifestyle choices, providing a comprehensive overview of your carbon footprint. Their Footprint Expert software helps businesses measure and manage their carbon emissions, providing insights into areas where emissions can be reduced.

Eight Versa 

Eight Versa is a sustainability consultancy that works with all kinds of businesses. They provide expert carbon footprinting and carbon reduction support, guiding organisations through Scopes 1, 2 & 3 and creating a roadmap of decarbonisation solutions. Their methods are in-line with international standards such as ISO 14064, the Science Based Targets Initiative and GHG Protocol. 

Global Footprint Network

The Ecological Footprint calculator by Global Footprint Network not only calculates carbon emissions but also considers other ecological factors. It also provides an estimate of how many Earths would be needed if everyone lived like you.

My Climate Carbon Footprint Calculator

My Climate offers a carbon footprint calculator that considers various aspects, including travel, energy and consumption. It also facilitates users to support climate protection projects.

MyEmissions 

MyEmissions is a leading provider of food carbon labelling, working with some of the largest food companies in the world. They’ve also published a free food carbon footprint calculator so everyone can see the impact of what they eat.

For both businesses and individuals alike, knowledge is power when it comes to reducing your carbon footprint. By going through the process of calculating your carbon footprint you’ll get a clearer idea of where your hotspots are, and therefore where you can make the biggest impact in reducing them.

For individuals it’s about making conscious lifestyle choices. For businesses it involves a combination of strategic planning, operational changes, and employee engagement. 

Ecologi Zero Premium customers receive in-depth technical guidance on how to reduce their emissions – which can vary from business to business. Here’s ten general tips that both individuals and businesses can use to minimise their environmental impact:

For businesses:

1. Be more energy efficient: Conduct an energy audit and invest in energy-efficient technologies and appliances.
2. Switch to renewable energy: Consider switching to renewable energy sources such as solar or wind power.
3. Encourage cleaner commuting: Encourage hybrid working and offer staff incentives to use public transport, carpool, or bike to work.
4. Green your supply chain: Work with existing suppliers to reduce emissions and prioritise new suppliers who have strong climate creds.
5. Reduce waste: Encourage employees to minimise paper use, invest in digital technologies, and choose suppliers that use minimal packaging.
6. Go circular: Consider circular economy principles like product refurbishment and recycling.
7. Engage your team: Create a culture of environmental awareness among employees and provide training on sustainable practices.
8. Assess life cycles: Conduct life cycle assessments of products and services to identify opportunities for improvement, considering the impact from design to disposal.
9. Get certified: Seek third-party certifications like ISO 14001 for environmental management.
10. Collaborate and advocate: Work with industry peers to share best practices and advocate for sustainable policies.

For individuals:

1. Power down: Use energy-efficient appliances and light bulbs, turn off lights and electronics when not in use, and unplug chargers! 
2. Drop the diesel: Choose public transport, start a carpool, or even better, get on a bike.
3. Refuse, reduce, reuse, recycle: Reject single-use plastics, recycle what you can, and donate or sell items when you’re done with them.
4. Embrace plant power: Switch to a plant-based diet (or at least eat less meat), choose locally-sourced and seasonal foods, and be mindful of food waste.
5. Every drop counts: Fix leaks and think about how you can limit water use (even switching off the tap while brushing your teeth helps!)
6. Buy green: Shop for products with minimal packaging and support eco-friendly brands.
7. Make your home more efficient: Insulating your walls, installing energy-efficient windows and doors, and using programmable thermostats can all make your home that little bit smarter.
8. Switch to renewable energy: Switch to an energy supplier that uses renewable sources, and consider installing solar panels on your property if you can.
9. Travel lightly: Choose direct flights to reduce emissions and consider eco-friendly accommodation. 
10. Go minimal: Embrace a minimalist lifestyle to reduce consumption and waste.

Remember, every small effort counts, and collectively these actions will all add up to a big reduction in your carbon footprint. You have to start somewhere, so choose the changes that are easiest to get going with and you can gradually incorporate more and more sustainable switches into your day to day. 

What are the biggest causes of carbon emissions for businesses?

The biggest causes of carbon emissions for businesses can vary from industry to industry, but here’s some of the usual culprits that most businesses will need to tackle: 

1. Energy consumption, including energy-intensive processes for manufacturing, heating and powering equipment, which involve burning fossil fuels.
2. Transportation, including fleet vehicles and the daily commuting of employees.
3. Supply chain, including raw material production and logistics.
4. Waste management, including generation and disposal.
5. Product manufacturing, including carbon-intensive manufacturing processes and product transportation.
6. Buildings, including construction, maintenance, heating, cooling and lighting.
7. Technology, including data centres powered by non-renewable energy sources, and the disposal of electronic equipment.
8. Water, including waste water treatment.
9. Business travel, particularly by air!
10. Financial Investments, particularly if a business has investments in fossil fuel industries 

Understanding the main sources of emissions allows businesses to be more strategic in pinpointing their sustainability efforts. If in doubt, start where you can make the biggest dent with the least effort!

What are the biggest causes of carbon emissions for individuals?

For individuals, the causes of carbon emissions are also very lifestyle dependent, and stem from various comings and goings of people’s daily lives. Here’s some of the main offenders:

1. Energy consumption, including heating, cooling, and powering homes.
2. Transportation, including driving and air travel. 
3. Diet, including meat consumption and choosing food that has been transported long distances.
4. Waste generation, particularly the disposal of single-use plastics and sending waste to landfills.
5. Shopping, particularly fast fashion and excessive consumption.
6. Water use, including heating water for showers, laundry, and dishwashing, along with excessive water usage.
7. Technology, including the production and disposal of electronic devices and internet use.
8. Financial choices, particularly through investments in fossil fuel industries (which your pension provider could be doing without you even knowing!)
9. Events, particularly large scale events and celebrations, which might involve a lot of travel and consumption.
10. Lack of awareness about sustainable practices can sometimes be a big cause of unintentionally high carbon footprints.

Ultimately it’s all about balance, and doing what you can. No-one would want to totally give up all of the above, or even be able to, but being aware of the impact of each choice is the first step to making good decisions where possible. And often there’s a win-win, as making a greener choice can also save your money or be better for your health and wellbeing. 

From tree planting, to funding certified climate avoidance projects, through to calculating your company’s carbon footprint, we’re your trusted partner in taking climate action. We offer a range of products and services to businesses of all sizes.  

Ecologi Zero 

It’s quick and simple to calculate your carbon footprint with Ecologi Zero. We take the legwork out of calculating your emissions through simple integrations, so you can focus on reducing them. Ecologi Zero is suitable for service-based small and medium businesses using Xero (other options available to larger businesses)

Custom climate action

For larger businesses looking for a custom climate impact solution, or for those who are not sure where to start, our team of experts can create a tailored solution to suit your needs. They can support your business and find the right solution to suit your needs including calculating your business’s carbon emissions through one of our specialist partners.