FAQ: Frequently asked questions about the carbon footprint in companies

CO2-neutral means that we as individuals, organisations, cities or regions do not produce any carbon dioxide on balance. 
Greenhouse gas neutrality considers the seven greenhouse gases with the greatest impact on the climate. In addition to carbon dioxide (CO2), these are methane (CH4), nitrous oxide (N2O), halogenated fluorocarbons (CF4), hydrofluorocarbons (C2H2F4), nitrogen trifluoride (NF3) and sulphur hexafluoride (SF6).
Climate neutrality includes these seven greenhouse gases as well as all effects on the climate (e.g. from particulate matter).
Being neutral does not necessarily mean that no emissions are emitted. Rather, it is about avoiding and reducing emissions and offsetting the remaining unavoidable ones.
We have summarised the differences between CO2 neutrality, greenhouse gas neutrality and climate neutrality in a further blog articles treated more deeply.

CO2e emissions include all relevant greenhouse gases, i.e. in addition to the most frequently occurring carbon dioxide - CO2 accounts for almost 90 % of the greenhouse gases caused in Germany - also others such as methane and nitrous oxide, which are produced in agriculture, among other things.
The climate impact of greenhouse gases is expressed in CO2e.

The CO2 footprint balances the greenhouse gas emissions emitted by a company, for example. The CO2 handprint does the opposite. It measures how many greenhouse gas emissions have been saved.

If the carbon footprint is to be measured, certain organisational and structural process steps must be taken. Here you can read our blog article for a Step-by-step guide to creating a corporate carbon footprint. The steps are summarised briefly and concisely:
1. management consensus on the project and provision of resources 
2. internal communication of the project with opportunities for queries and active participation in the project
3. appoint a responsible person and/or project team
4. define the standard to which the process is orientated, e.g. DIN EN ISO 14064-1 or Greenhouse Gas Protocol
5. define system boundaries for the carbon footprint in the company to limit the project and data collection, i.e:
Organisational system boundaries, i.e. which locations, subsidiaries, etc. does the company include in the carbon footprint?
Time system limit, i.e. in which year and period do I collect the data? 
Operational system boundaries, i.e. which emission categories are material and do I have to collect them? 

How many human, time and financial resources are required depends on a variety of factors. These include the size of the company, the complexity of the value chain, the inclusion of locations and the existence of data. 
This determines which and how many divisions and subsidiaries need to be included. 

Climate accounting for a manufacturing company tends to be more elaborate and complex than for a service company.
A guideline: A medium-sized service company with 500 employees at 5 locations can prepare a carbon footprint with the help of ¼ staff over a period of 3 months. If appropriate software is purchased, the time and labour required can even be reduced. 
Manufacturing companies often have complex supply chains for raw materials, intermediate products and differentiated manufacturing processes. These factors make climate accounting more complex and time-consuming.

In principle, there is a difference between the carbon footprint for companies and the carbon footprint for products or product lines. 
The carbon footprint for companies is also known as the corporate carbon footprint (CCF). The CCF shows which emissions are generated by the company as a whole and in which areas. The CCF is ideal for identifying CO2 avoidance and reduction potential with the aim of achieving climate neutrality for the entire company.
The carbon footprint for products is also known as the product carbon footprint (PCF). It is suitable for analysing a product and its supply chain in terms of emissions and calculating the emissions with the aim of significantly reducing greenhouse gas emissions. 

The carbon footprint can also be analysed by including the entire supply chain. This involves analysing upstream and downstream value creation steps for the company. Upstream are, for example, the purchase of products, services, fixed assets and logistics. Downstream are, for example, the further processing, use and disposal of the manufactured product.
Emissions from the upstream and downstream value chain are recorded in various categories in the Scope 3 GHG Protocol. This requires data from suppliers. Sufficient time should be planned for data procurement. 
If the data is not available, estimates and assumptions help to calculate the CO2e emissions.

The measurement of the corporate carbon footprint, also known as the CO2 balance, greenhouse gas balance or climate balance in companies, shows in which areas the most emissions are emitted. 
Do the majority of my emissions come from my vehicle fleet, business trips or employee mobility? From electricity consumption, heating and cooling? Or can my main emissions be attributed to logistics or the use or disposal of my product? 
The greenhouse gas balance shows the areas in which the company generates CO2e emissions.

As a rule, companies already have a large amount of data, particularly internal company data - especially if they already have certifications such as DIN ISO 14001, environmental management systems have been introduced in the company or data is collected as part of statutory regulations. But even companies without these prerequisites have good chances. For example, every company can easily check certain consumption data and convert it into CO2 equivalents by means of invoices from the energy supplier, meter readings or petrol tank receipts.

The carbon footprint can also be analysed by including the entire supply chain. This involves analysing upstream and downstream value creation steps for the company. Upstream are, for example, the purchase of products, services, fixed assets and logistics. Downstream are, for example, the further processing, use and disposal of the manufactured product.
Emissions from the upstream and downstream value chain are recorded in various categories in the Scope 3 GHG Protocol. This requires data from suppliers. Sufficient time should be planned for data procurement. 
If the data is not available, estimates and assumptions help to calculate the CO2e emissions.

This is achieved through sufficiency, efficiency and effectiveness measures.
In addition to avoidable emissions, there are usually also emissions that cannot be avoided. These can be offset. The choice of an effective and comprehensible offsetting partner and project is crucial here. (read more about compensation here)
After avoidance, reduction and offsetting, the company is CO2 or greenhouse gas neutral in total. Depending on whether only CO2 or the other greenhouse gases were considered.