Organizational Carbon Footprint vs. Product Carbon Footprint: What Should You Know?

Table of Contents

What is the organizational carbon footprint?

The definition of an organizational carbon footprint refers to the total number of greenhouse gas emissions resulting from the activities of a given company or institution. It includes both direct emissions, such as fuel combustion in company vehicles or emissions from production processes, as well as indirect emissions resulting from the use of electricity or heating.

Emission classification according to the GHG Protocol

One of the key tools that enable the creation of greenhouse gas emission inventories for organizations, emission categorization, and their reporting is the GHG Protocol (Greenhouse Gas Protocol).

This standard divides emissions into three scopes:

• Scope 1 - Includes direct greenhouse gas emissions resulting from fuel combustion in stationary sources, e.g., fossil fuel combustion in company installations, emissions from production processes or from the fleet of vehicles owned by the company.
• Scope 2 - Includes indirect greenhouse gas emissions related to the production and delivery of purchased electricity, heat, or steam by another company.
• Scope 3 - Includes all other indirect greenhouse gas emissions that do not fall within scope 1 and 2. This covers both direct and indirect emissions resulting from external activities related to the organization’s operations, e.g., emissions from employee or customer transport, emissions from the delivery of raw materials and services, emissions from the disposal of production waste.

Emission categories according to ISO 14064

ISO 14064 is an international standard that provides a framework for measuring, reporting, and verifying greenhouse gas (GHG) emissions in the context of organizational activities. This standard is key to understanding and managing the organizational carbon footprint, providing precise tools and standards for effective monitoring and reduction of emissions.

In the context of the general principles of ISO 14064, we can distinguish six main emission categories that help organizations manage and report:

1. Direct emissions and absorption of greenhouse gases
2. Indirect greenhouse gas emissions from imported energy
3. Indirect greenhouse gas emissions from transport
4. Indirect greenhouse gas emissions from products used by the organization
5. Indirect greenhouse gas emissions related to the use of the organization’s products
6. Indirect greenhouse gas emissions from other sources

What is the product carbon footprint?

The product carbon footprint is the total sum of greenhouse gas emissions resulting from the entire life cycle of a given product. This includes all stages, from raw material acquisition, through production processes, transport, product use, to its disposal. It is therefore a more detailed and complex analysis aimed at identifying points in the product life cycle where changes can be made to reduce emissions.

Benefits of product carbon footprint analysis

To assess the product carbon footprint, methodologies such as Life Cycle Assessment (LCA) are used, which allow for accurate mapping and quantification of all emissions associated with the product.

Product carbon footprint analysis enables:

• Identification of the most emission-intensive stages in the product life cycle.
• Implementation of actions aimed at reducing emissions at each stage of the life cycle
• Improvement of production and logistics process efficiency

How can organizations manage their carbon footprint?

Measurement

Regular monitoring and reporting of greenhouse gas emissions is crucial. Organizations can use emission management software, conduct energy audits, and analyze data to get an accurate picture of their emissions.

Reduction

Identifying areas where effective changes to reduce emissions can be made is essential. Actions may include improving energy efficiency, switching to more environmentally friendly raw materials, optimizing the supply chain, and implementing modern technologies such as energy management systems.

Compensation

Investing in offset projects, such as afforestation, renewable energy projects, or other initiatives that neutralize emissions that cannot be reduced, is an important element of carbon footprint management. Compensation helps organizations neutralize emissions and improve their environmental image.

Education and engagement

Engaging employees, suppliers, and customers in activities to reduce emissions is key. Organizations can conduct training, information campaigns, and initiatives promoting sustainable development, which increase awareness and motivate action for environmental protection.

Summary

Understanding the differences between the organizational and product carbon footprints is crucial for effective greenhouse gas emission management. This process requires continuous commitment and precision but brings benefits both for the environment and for the organization itself.

Effective carbon footprint management is not only about meeting regulatory requirements, but also about building trust among stakeholders, improving operational efficiency, and preparing for future challenges related to climate change. Organizations that take proactive steps to reduce emissions gain a competitive advantage and contribute to building a more sustainable future.