Estimating your carbon footprint is not just a trend; it is becoming essential for companies aiming to thrive in a rapidly changing market. As the world grapples with the urgent need to combat climate change, businesses are increasingly expected to take responsibility for their environmental impact. By calculating your business's emissions, you can identify areas for improvement, meet regulatory requirements, strengthen your brand's reputation, and increase business margins.
Failing to estimate your carbon footprint poses risks that could negatively affect your business. Regulatory non-compliance, reputational damage, and missed cost-saving opportunities are just a few consequences. Moreover, businesses that do not engage in climate action may find themselves left behind as the market increasingly favors companies that demonstrate environmental responsibility.
A carbon footprint measures the total greenhouse gas (GHG) emissions generated by a business's activities, from energy use to transportation and supply chain operations. These emissions are often categorized into three scopes according to the GHG Protocol:
Scope 1: Direct emissions from owned or controlled sources (e.g., company vehicles).
Scope 2: Indirect emissions from purchased electricity, steam, or heating and cooling.
Scope 3: All other indirect emissions linked to the supply chain, including those from food items, waste management, and employee commuting.
For many businesses, Scope 3 emissions represent the largest share, making it crucial to take a comprehensive approach when you estimate your carbon footprint.
With climate-related regulations tightening across the globe, businesses must stay ahead of compliance requirements. For example, the EU's Corporate Sustainability Reporting Directive (CSRD) mandates that companies disclose detailed information about their sustainability practices. Estimating your carbon footprint enables you to track progress, prepare for reporting requirements, and avoid potential fines.
In addition to regulatory compliance, meeting these standards can also facilitate smoother relationships with partners and clients, many of whom are likely to demand climate-related disclosures as part of their procurement process.
While more companies are recognizing the importance of sustainability, those that act early gain a significant competitive edge. By being among the first in your industry to estimate your carbon footprint and reduce emissions, you can establish your brand as a leader in climate action. Early adopters are better positioned to capitalize on emerging market trends, such as the growing demand for carbon-neutral products and services.
Sustainability is no longer just a nice-to-have for brands; it's a business imperative. A recent survey by Deloitte found that over 60% of consumers consider sustainability when making purchasing decisions. Businesses that proactively estimate their carbon footprint and take steps to reduce it demonstrate a commitment to sustainability, which can help differentiate them in a crowded market.
Tracking your carbon emissions can uncover inefficiencies in your operations that are costing your business money. For instance, identifying energy-intensive processes allows you to adopt energy-saving practices, leading to lower utility bills. Companies that estimate their carbon footprint often find that optimizing their supply chain, streamlining transportation, and reducing waste can yield significant cost savings.
According to a report by McKinsey, companies that improve their resource efficiency can reduce operating costs by up to 20%. Estimating your carbon footprint is a critical first step in identifying these opportunities.
Investors are increasingly prioritizing Environmental, Social, and Governance (ESG) criteria when making investment decisions. Businesses with a solid carbon footprint reduction strategy are more likely to attract investors who are focused on long-term sustainability. Demonstrating that you actively estimate your carbon footprint and have actionable plans to lower it signals that your business is prepared for the future.
Estimating your carbon footprint may sound daunting, but tools and frameworks are available to simplify the process. A good starting point is gathering data on your energy usage, purchased goods, transportation, and waste generation.
For Scope 1 and 2 emissions, this data—like energy consumption—is often the easiest to collect. However, Scope 3 emissions, particularly Category 1 (purchased goods and services), can be more complex and harder to quantify. This is where your focus should be, as it often represents a significant portion of a business's total emissions.
Using a carbon footprint calculator or software, like Klimato, can automate the process of measuring, tracking, and reducing emissions across all three scopes. Klimato also offers consultancy services for comprehensive Scope 3 reporting. Our framework follows the Global Reporting Initiative (GRI), and we are a licensed GRI software provider, ensuring that the data you collect and report meets industry standards.
The key steps of carbon footprint estimation include:
Data Collection: Gather information on food ingredients, energy consumption, raw materials, logistics, waste, and employee travel.
Use a Carbon Footprint Calculator: Plug this data into a reliable carbon footprint calculator to get an accurate measurement.
Analyze the Results: Identify high-emission areas and develop a strategy to reduce them.
Monitor and Report Progress: Regularly update your carbon footprint estimates and report progress to stakeholders.
The path to decarbonization is not a one-time effort but a continuous process. Regularly updating your carbon footprint estimate allows your business to keep pace with changes in regulations, market demands, and technological advancements. Staying proactive ensures that your company remains resilient and can adapt to evolving sustainability standards.
Estimating your carbon footprint is no longer optional—it's a strategic move that can unlock significant financial benefits while securing your place in a rapidly evolving market. Beyond regulatory compliance and improved brand reputation, calculating your emissions opens the door to real cost savings by identifying inefficiencies, streamlining operations, and cutting waste. Whether it’s lowering energy bills or reducing supply chain expenses, the ROI on sustainability initiatives can be substantial, with companies often seeing up to 20% reductions in operating costs.
By partnering with Klimato, you can make this process even easier. Our app automates carbon tracking, provides actionable insights, and supports you in meeting both your sustainability goals and bottom-line targets. Don't miss out on the opportunity to future-proof your business, save costs, and stay ahead of competitors.
UNLOCK YOUR POTENTIAL
We're a team of scientists and technologists building tools to help food businesses become more sustainable.