Carbon Footprint Definition: The Best Way to Start Your Sustainability Reporting Journey

Every corporate stakeholder, from investors to customers and regulatory authorities, is demanding responsible business operations. People have come to realize that their actions, such as investing and buying company products, can have huge impacts on the planet. Therefore, they are using this “power” to push companies to adopt sustainable models in their operations. 

The UK has indicated it will start requiring all companies within its jurisdiction to provide ESG reports in line with the Task-force on Climate-related Financial Disclosures (TCFD). New Zealand, Japan, and Canada, among other nations, are following the UK closely, while entities like the Hong Kong Stock Exchange (HKEX) and Go Finance have already outlined sustainability requirements for listed companies. To put it differently, sustainability reporting is mandatory, and the best point to start is carbon footprint definition. 


Carbon footprint is the total amount of greenhouse gasses released by a company, facility, city, or country. It can also calculated for an individual or product. Its measured in tons of carbon dioxide equivalent per year. With the problem of global warming getting worse every other day, sustainability efforts have become very important for most companies. 

When calculating carbon footprint for your company, you have to ensure that its correct by ensuring that all the sources factored in. So, ensure to start by identifying the sources of scope 1, 2 and 3 greenhouse gasses (GHG) for your company. Then, set a clear plan for reducing the emissions. For example, you might want to cut emissions progressively and achieve carbon neutral status in 20 or so years. 

ESG sustainability reporting is the process of disclosure of a company’s information in three main areas, environmental, social, and governance. The process of ESG reporting means that you need to have ample knowledge of carbon footprint and other sustainability matters. 

At the start of the ESG sustainability reporting process, carbon footprint calculation will come in handy to help you identify the main challenges facing your company. For example, if you establish that the machines are inefficient, perhaps because they are gasoline-fired, alternatives that cut down emissions would come in handy in helping the company achieve carbon neutral status. 

Before selecting the reporting topics in an ESG process, you will required to carry out a materiality assessment. Here, carbon footprint meaning will also be very useful. It can help you to identify the most important areas to focus on for greater impact. For example, do you prioritize a shift to solar energy or support reforestation projects to help the planet address the challenge of global warming

Clarity about carbon footprint can help increase the accuracy of ESG reports. Every ESG report should be prepared in line with the principles of sustainability reporting, which include clarity, accuracy, and verifiability. By following the right framework, whether the Greenhouse Gas Protocol (GHGP) or the Global Reporting Initiative (GRI), it will be easy to demonstrate the reducing carbon footprint. This might be all that you need to win more investors, customers, and other stakeholders’ support. 

Work with an Expert to Get Carbon Footprint and ESG Sustainability Correct 

Even after understanding carbon footprint meaning, accurate calculation and ESG reporting are never easy. This caused by the lengthy process that involves working with data and its analysis. The best way to get this right is to ensure you have the right sustainability management software and expert assistance. You can get both of these from professionals at 

With their advanced apps, such as DiginexClimate, managing climate, reducing emissions, and reporting is a lot easier. Its also pretty easy to track progress and determine if the plan you crafted at the start of the ESG reporting process is progressing as expected. Contact now for expert assistance and success in your sustainability efforts. 

Leave a Reply

%d bloggers like this: