Carbon footprint (GHG emissions) calculations are an indispensable topic of sustainability reports. Companies that fail to produce reliable reports on their emissions and take necessary measures towards their reduction will risk significant legal repercussions and lose any chance to compete in the international market. For instance;

– The Corporate Sustainability Reporting Directive (CSRD) that took effect on January 5, 2024, in the EU,

– Upcoming regulations expected to be released by the Securities and Exchange Commission (SEC) in the USA within 2024, and

– The Turkish Sustainability Reporting Standards (TSRS) implemented by the Turkish Public Oversight Authority, effective from 1st January 2024

are only few of many examples of the legal frameworks pushing companies toward taking necessary steps for carbon footprint calculation.

While it may appear at first glance that sustainability reporting regulations target only large-scale companies meeting specific criteria, this is not the case at all, for two main reasons:

  1. The regulators’ intention is to extend these regulations to include smaller-scale entities and SMEs in a phased manner over the next few years – an obvious necessity, since, according to OECD, approximately 40% of the business-sector GHG emissions is caused by SMEs,
  2. Sustainability reports (including disclosures on carbon footprint and emissions) are intended for the entire supply chain, both downstream and upstream. For instance, EU companies required to conduct sustainability reporting under the CSRD must also include in their disclosures information on the carbon footprint of their non-EU suppliers and business partnerships.

Therefore, in 2024 and the coming years we predict that a significant number of companies will be racing to initiate get their carbon footprint calculation over with as soon as possible, driven by both legislative requirements and their customers suddenly demanding their carbon footpring calculation and reduction strategies. 

We describe it as a race because carbon footprint calculation is a complex and expertise-requiring task, potentially lengthy depending on your company’s sector, scope, size, and level of preparedness, coupled with a limited availability of qualified consulting companies and professionals, such as 10k Consulting, to accurately conduct such work.

Whether you work with 10k or other specialized consulting companies, we strongly recommend all companies interested in having their carbon footprint calculated to take the following steps in order to expedite the process:

– Examine ISO 14064-1 and GHG Protocol documents. These guidelines establish the internationally recognized frameworks for carbon footprint calculation. Make sure you fully understand the implications.

You can find our detailed article on the key similarities and differences between ISO 14064-1 and the GHG Protocol by clicking on this link.

– Identify within your company the team and individuals who will take on this initiative, ensuring they have the authority and responsibility to liaise effectively with the consulting firm.

– Perform an analysis of your preparedness levels for undergoing a carbon footprint calculation practice. Assess factors such as the availability of necessary data, understanding of relevant methodologies, and the internal resources (both technical and human) available to support the calculation process. This step helps identify any gaps in your current capabilities and establishes a clear starting point for engaging in carbon footprint calculation efforts and also initiating your talks with the consulting company (if any).

– Review your data collection methods. Scrutinize your existing data, alongside the data collection and management processes. NOTE: Significant delays in this process are often caused by the lack of a robust infrastructure and system for reliable data collection. Collection of accurate data is a prerequisite for calculations to be reliable.

– Prepare a budget. Account for the costs associated with the consulting service for the calculation work (and verification work, if required), as well as the human resources you can dedicate to this task.

– Conduct market research. Compile a list of potential consulting companies to assess their reliability, ability to smoothly navigate the process, and the field experience of the experts they will assign to your project.

At 10k Consulting, we share the resumes of our experts assigned to each project with our Clients and proceed with the contract after receiving approval.

In summary: Calculating the carbon footprint is no small feat. However, taking  the above steps will help you take a well-informed decision. It will save time, facilitate the whole process and make it much more efficient.