A Guide To Measuring Your Company’s Carbon Footprint
This step-by-step guide walks businesses through how to measure their carbon footprint accurately and efficiently — from defining boundaries and collecting data to calculating emissions and taking action. It explains key concepts like Scope 1, 2, and 3 emissions under the GHG Protocol, highlights common pitfalls, and provides links to trusted tools and frameworks.
In the climate-conscious landscape of 2025, measuring your organisation’s carbon footprint is no longer optional — it's essential. Whether you’re preparing for mandatory disclosures (like the Corporate Sustainability Reporting Directive (CSRD)), responding to investor demands, or simply seeking to reduce costs and manage risk, understanding your emissions is the foundation of a credible climate strategy.
This guide walks you through how to measure your company’s carbon footprint step by step, using internationally recognised methods such as the GHG Protocol. You’ll also find useful resources and tools linked throughout.
What Is a Carbon Footprint?
A company’s carbon footprint (also called its corporate carbon footprint or GHG emissions inventory) is the total amount of greenhouse gases (GHGs) emitted, directly or indirectly, by your operations, supply chain, and value chain over a given period.
These emissions are expressed in CO₂-equivalent (CO₂e), which standardises different greenhouse gases (like methane or nitrous oxide) based on their global warming potential.
The Greenhouse Gas Protocol (GHG Protocol) is the most widely adopted framework for carbon accounting worldwide.
Under the GHG Protocol, emissions are categorised into three scopes:
Scope 1 (Direct emissions): Emissions from sources you own or control — like company vehicles, boilers, or on-site fuel use.
Scope 2 (Indirect, energy): Emissions from purchased electricity, heating, cooling, or steam that your company consumes.
Scope 3 (Other indirect): Emissions occurring throughout your value chain — for example, from suppliers, business travel, logistics, waste, and the use of your products.
For most companies, Scope 3 emissions represent the majority of their footprint — but they’re also the hardest to measure.
Step-by-Step: How to Measure Your Company’s Carbon Footprint
Step 1: Define Your Purpose, Timeframe, and Boundary
Start by clarifying why you’re measuring your emissions (for compliance, investor reporting, or internal sustainability goals) and set a timeframe — usually your last financial year.
Next, define your organisational boundary — i.e. which entities, operations, and geographies are included. Choose an accounting approach (operational control, financial control, or equity share) to keep your scope consistent across reporting years.
This clarity ensures your footprint is credible and comparable over time.
Step 2: Map Your Emission Sources
List all the emission sources across Scope 1, Scope 2, and Scope 3.
Do a quick materiality assessment — focus first on the biggest or most relevant categories (like energy use, travel, or purchased goods).
This helps you avoid analysis paralysis and ensures you prioritise data that moves the needle.
Step 3: Collect Activity Data
Gather the activity data that drives emissions — for example:
Litres of fuel used
kWh of electricity consumed
Kilometres travelled
Volume of waste produced
Number of flights taken
Spend by procurement category
Pull this information from invoices, utility bills, travel records, or procurement systems.
The more accurate your data, the more credible your footprint. Always document assumptions and data gaps so they can be improved later.
Step 4: Choose Emission Factors
Match each activity with the right emission factor — the amount of CO₂e associated with a given unit of activity (e.g. kg CO₂e per kWh of electricity, or per litre of diesel).
Use recognised databases like national inventories or the GHG Protocol’s calculation tools.
Whenever possible, use location-specific or supplier-specific factors to improve accuracy.
Step 5: Calculate Emissions
Now, it’s time to crunch the numbers.
For each emission source:
Activity data × Emission factor = Total emissions
Add up your totals by Scope (1, 2, and 3) and convert them into tonnes of CO₂e.
Be careful to avoid double counting (for example, don’t include both fuel use and the electricity produced from that fuel).
Step 6: Validate and Review
Perform a quality assurance check on your data and calculations.
Cross-check sources, spot anomalies, and ensure consistency in units and timeframes. For regulated reporting (like CSRD), external third-party assurance may be required.
Tracking assumptions and uncertainties will help you continuously improve the accuracy of your reporting.
Step 7: Report and Share Your Results
Prepare a clear report that breaks down emissions by scope and source, explains your methodology, and outlines data quality.
Transparency builds trust with investors, employees, and customers alike.
Step 8: Set Targets and Take Action
Once your footprint is measured, identify where emissions are highest — your hotspots — and develop an action plan.
Set clear reduction targets (for example, “reduce Scope 1 & 2 by 25% by 2030”), and explore levers like:
Energy efficiency projects
Renewable energy procurement
Sustainable logistics and travel policies
Supplier engagement for Scope 3 reduction
Your carbon footprint is only as valuable as the actions it drives.
Useful Resources and Tools
GHG Protocol – Calculation Tools and Guidance
Brightly – How to Calculate Your Business’s Carbon Footprint
GHG Protocol – Scope 3 Calculation Guidance
Best Practices for First-Time Reporting
Start simple — don’t aim for perfection in year one.
Document every data source and assumption.
Engage multiple departments early (finance, operations, procurement).
Use region-specific emissions factors where available.
Consider future assurance or audit needs.
Iterate annually — each cycle gets easier and more accurate.
Frequently Asked Questions
How long does it take to measure a full carbon footprint?
It depends on company size and data availability. SMEs with good record keeping can complete it in a few weeks; larger companies often take several months.
Do I need to include all Scope 3 emissions?
Not at first. Focus on the most material categories, like purchased goods, transportation, and business travel. Expand coverage each year.
Where can I find emission factors?
Many governments publish free emissions factor databases. You can also use those provided by the GHG Protocol.
Is external assurance required?
If you’re reporting under frameworks like CSRD or for investors, yes — third-party verification is often expected. For internal use, internal checks may suffice.
How often should I recalculate my footprint?
Typically once a year, in line with your financial reporting cycle. Regular updates help track progress and demonstrate continuous improvement.
What should I do after measuring?
Use your results to set science-based targets, engage your supply chain, and plan reduction initiatives. The goal isn’t just measurement — it’s transformation.