6 reasons to measure your carbon footprint

2 min read
July 19, 2022 at 9:59 AM

In an increasingly severe and urgent climate context and a business environment (in which customers and investors are increasingly sensitive to environmental issues), a carbon footprint is a strategic tool for structuring a solid environmental strategy. Let's see together why an increasing number of companies are calculating their carbon footprint and what are the reasons for doing so:

reasons 2

1- Comply with existing regulations and anticipate upcoming regulation

Companies with more than 500 employees are obliged to carry out a GHG assessment (by EU directive 2014/95/EU, French ​”Grenelle II law”, German “CSR​ Act”). However, since the business sector is largely responsible for each country’s emissions, climate regulations are very likely to change and affect a broader scope of companies. From 2022 onwards, the European Sustainability Reporting Directive (EU CSRD) will extend this requirement to companies with more than 250 employees (SMEs and all companies listed on regulated markets). This will affect at least 49 000 companies in the EU. 


2- Meet your clients’ & investors' growing expectations

It is increasingly common for investors nowadays to request companies to disclose their carbon footprint and reduction strategies. It has become a key decision factor for their investment or partnerships. Customers also attach greater importance to a company's environmental commitment, and it is a criterion that increasingly influences their purchasing decision. These growing concerns are likely to become a new norm for stakeholders. More and more investors are paying attention to the extra-financial parameters of a company related to ESG (environmental, social, governance). In the Environmental part (E), the measurement of the carbon footprint plays a fundamental role in creating an environmental strategy that can align with investors' requirements. In addition, the SFDR regulation requires companies in the financial sector to communicate extra-financial information for each of their products and to classify them.


3- Reduce your costs and impacts 

Measuring your carbon footprint allows you to determine carbon reduction opportunities, usually linked to energy and transportation. Excessive energy use or other inefficiencies are frequently associated with high levels of greenhouse gas emissions. Lowering your GHG emissions thus means increasing your efficiency and cost-effectiveness. Implementing low-carbon solutions not only leads to reductions in emissions, but also costs. 


4- Strengthen your reputation

Transparently disclosing your carbon emissions and reduction goals can be a competitive advantage. It shows your involvement and commitment to preserving the environment.

Although this can still be considered as a competitive advantage today, this trend will tend to weaken, as environmental commitment will increasingly become the new norm.  


5- Fight against global warming

Fighting climate change should be the first motivation for measuring your corporate carbon footprint. We all have a role to play in the fight against global warming, but companies have the biggest room for action. By measuring their carbon footprint, companies can identify their highest emission sources, which allow them to implement an emission reduction strategy and thus reduce their environmental impact.


6-Raise awareness and attract new talents 

Awareness leads to action. By measuring your carbon footprint, you inspire others to do the same. It highlights the fact that reduction measures exist and can be implemented. In addition, being a company that has a robust sustainability strategy is also a way to attract and retain talents as especially after covid, people are more sensitive to the sense of their work and are increasingly sensitive to these subjects. Today, successful professionals favor a company that shares their same environmental values. 

Measuring your carbon footprint is the first step toward a successful environmental journey. Ready to get started? Contact ClimateSeed.