The carbon footprint is the total sum of greenhouse gas emissions (expressed as carbon dioxide equivalent – CO2 emitted into the atmosphere as a result of an entity’s activities, products, services or processes. The carbon footprint shows the impact of an entity’s activities on climate change, since greenhouse gas, like carbon dioxide, is a major contributor to the increase in the Earth’s temperature. The carbon footprint of a product is the amount of greenhouse gases that are emitted during the entire life cycle of a product or during specific phases. It is estimated depending on the approach chosen (cradle-to-gate or cradle-to-grave).
What are the benefits of calculating a carbon footprint?
Regulatory compliance: calculating the carbon footprint is the only way to be able to comply with current standards (GHG Protocol, ISO 14064 and ISO 14067). Early response to regulations allows the company to be adequately prepared and avoids possible legal or financial risks.
Company competitiveness: calculating and managing an organisation’s carbon footprint increases a company’s attractiveness in the eyes of customers/co-operators and strengthens its position in the market. Increasingly, customers are prepared to pay more for eco-friendly products and choose service providers whose activities are geared towards sustainability.
Process optimisation: monitoring of greenhouse gas emissions in a dedicated system allows faster identification of areas where changes can be made, resulting in reduced energy consumption and emissions.
Environmental awareness: carbon footprint management is an ideal way to raise environmental awareness not only among organisations but also among consumers. This in turn translates into a better understanding of society’s impact on the environment and an effort to make our lifestyles more climate-friendly.
What is the CSRD and who does it apply to?
On 5 January 2023, new European Union legislation on sustainability reporting came into force. The changes introduced through the so-called Corporate Sustainability Reporting Directive (CSRD) aim to harmonise standards for reporting sustainability-related information and to increase the comparability of reporting data.
The sustainability reporting obligations will be introduced gradually. The timing of their implementation depends on the category (size) of the entities:
From 1 January 2024: large public interest companies with more than 500 employees and covered by the NFRD. The reporting deadline is scheduled for 2025.
From 1 January 2025: large companies that have not yet been subject to the NFRD, but have more than 250 employees, and/or have a turnover of more than €40 million, and/or a balance sheet total of more than €20 million, will have to report in 2026.
From 1 January 2026: small and medium-sized listed entities with more than 10 employees and a turnover of more than EUR 700,000. The reporting deadline is 2027, but these entities will have the option to delay reporting until 2028.
What does Scope 1, 2 and 3 of the carbon footprint cover?
Scope 1 – Includes direct greenhouse gas emissions from the combustion of fuels in stationary sources, e.g. the combustion of fossil fuels at the company’s installations, emissions from production processes or from the company’s fleet of vehicles.
Scope 2 – Includes indirect GHG emissions from the production and supply of purchased electricity, heat or steam by another company, e.g. emissions from electricity generation purchased from an external supplier, emissions from purchased hot water or steam.
Scope 3 – Includes all other indirect greenhouse gas emissions that do not fall under Scope 1 and Scope 2. Includes both direct and indirect emissions resulting from external activities related to the organisation’s operations, e.g.: emissions from transporting employees or customers, emissions from supplying raw materials and services, emissions from disposing of production waste.
What does the TÜV Nord certification for NEOGAGE Carbon Footprint cover?
TÜV Nord certification confirms that NEOGAGE application meets the highest standards for calculating carbon footprint, i.e.
PN-EN ISO 14064-1:2019-04 – entirely
GHG Protocol Corporate Accounting and Reporting Standard – entirely
PN-EN ISO 14067:2018-10 – entirely
The certification is available at an annex to this study
Why did SYNTOIL S.A. choose the NEOGAGE Carbon Footprint application?
NEOGAGE Carbon Footprint is a tool aimed at those responsible for reporting and reporting on the carbon footprint of organisations and products. It is undoubtedly a key element in the pursuit of sustainability, helping to understand how our actions affect the climate and the environment. In addition, the obligation to report non-financial data will gradually be imposed on business entities in accordance with the new EU CSRD (Corporate Sustainability Reporting Directive).