# Corporate carbon footprint: what it is and why it matters

> An organization's carbon footprint is the annual amount of greenhouse gas emissions from its activities, in tons of CO₂e. What it is made up of, how it is calculated and why it is needed.

Source: https://7g.carbonplatform.asia/en/kb/corporate-carbon-footprint

An organization's carbon footprint (corporate carbon footprint) is the total amount of greenhouse gas emissions associated with its activities over a reporting period, usually a calendar year. It is expressed in tons of CO₂ equivalent (t CO₂e) and calculated according to recognized rules, above all the GHG Protocol and ISO 14064-1. The calculation shows where the company uses energy and resources with the greatest climate impact and helps it respond to requests from banks, customers and regulators.

## What makes up a carbon footprint

An organization's emissions are usually divided into three scopes:

- **Scope 1**: direct emissions from the company's own sources, such as gas burned in a boiler house, fuel burned in vehicles, and industrial processes.
- **Scope 2**: indirect emissions from purchased electricity, heat and steam; they occur at the power plant but are caused by your consumption.
- **Scope 3**: other indirect emissions across the value chain, such as purchasing, transportation, use of sold products and so on.

For more about the boundaries, see [Scope 1, 2 and 3](https://7g.carbonplatform.asia/en/kb/scope-1-2-3). Not only CO₂ is counted, but also methane, nitrous oxide and other gases, converted to a common unit using the global warming potential; see [Greenhouse gases and CO₂ equivalent](https://7g.carbonplatform.asia/en/kb/greenhouse-gases-co2e).

## How it is calculated: activity data × emission factor

The basic formula is simple: **emissions = activity data × emission factor**. Activity data is the amount of energy and fuel consumed, taken from invoices, certificates of completion and meter readings. The emission factor shows how much CO₂e is released per unit of a resource.

A worked example: we use emission factors of 0.726 kg CO₂e/kWh for grid electricity and 2.04 kg CO₂e/m³ for natural gas.

| Resource | Annual consumption | Emission factor | Emissions |
|---|---|---|---|
| Natural gas (Scope 1) | 50,000 m³ | 2.04 kg/m³ | 102.0 t CO₂e |
| Electricity (Scope 2) | 400,000 kWh | 0.726 kg/kWh | 290.4 t CO₂e |
| Total | | | 392.4 t CO₂e |

Even a calculation this simple shows that, for this business, electricity accounts for almost three-quarters of emissions, so energy efficiency measures should start there.

## Why calculate your carbon footprint

- **Market requirements.** Customers in the EU are asking for data on the embedded emissions of products, including in connection with CBAM.
- **Finance.** Banks and investors assess borrowers' climate risks and their own financed emissions.
- **Cost management.** An emissions inventory is essentially an energy audit: it shows which facilities and resources account for the main burden.
- **Climate projects.** Accurate accounting of a facility's emissions is the foundation of the baseline for emission reduction projects.
- **National regulation.** In Uzbekistan, Law No. ZRU-1073 “On Limiting Greenhouse Gas Emissions” is in force (effective January 9, 2026); in Belarus, the environmental norms and rules EcoNiP 17.09.08-001-2024 apply; for details, see [greenhouse gas accounting in Belarus](https://7g.carbonplatform.asia/en/kb/ghg-accounting-belarus).

## Where to start

1. Determine which legal entities and facilities fall within the inventory: your [organizational boundaries](https://7g.carbonplatform.asia/en/kb/organizational-boundaries).
2. Draw up a list of sources: boiler houses, vehicles, purchased energy.
3. Collect monthly consumption data for the year, along with supporting documents.
4. Choose emission factors and calculate Scope 1 and Scope 2.
5. Check the data, prepare the report and, if needed, submit it for verification.

## How it works in the platform

Everything starts with facilities: you add them with the [New facility](https://7g.carbonplatform.asia/objects/new) wizard, and the full list is kept in the [Facilities](https://7g.carbonplatform.asia/objects) section. Then, on the [Data entry](https://7g.carbonplatform.asia/data-entry) screen, you enter Scope 1, Scope 2 and Scope 3 (categories 1–14) data month by month for each facility, together with supporting documents; the platform takes emission factors and methodologies from its reference catalog. [Company GHG analytics](https://7g.carbonplatform.asia/ghg) shows totals by year, region and month, and the administrator creates the annual company report in PDF and DOCX on the organization's GHG page.

## Frequently asked questions

### How is an organization's carbon footprint different from a product carbon footprint?

An organization's footprint covers all of the company's activities over a year, while a product footprint covers emissions per unit of product over its life cycle. Products are covered by a separate standard, ISO 14067:2018; organizations by ISO 14064-1:2018 and the GHG Protocol.

### Do we have to calculate Scope 3 from the start?

No. Most companies start with Scope 1 and 2, where the data is in their own invoices. Scope 3 is added later, starting with the most significant categories.

### What period should a carbon footprint cover?

Usually a calendar year, with data collected monthly. Monthly accounting makes checks easier and helps you spot errors and gaps in time.