6 Reasons to Measure your Carbon Footprint

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

Why is it important to measure your carbon footprint? There are many reasons that have become evident in an increasingly severe and urgent climate context. Not only are these affecting individual consciousness, but also impact decision-making processes in the business world.

Within a business environment, customers and investors are becoming increasingly sensitive to environmental issues. Measuring your carbon footprint is a strategic tool for structuring a solid environmental strategy. A large majority of companies are calculating their carbon footprint and here are 6 reasons for you to do the same:

6 reasons to measure your carboon footprint


1. Comply with Existing Regulations & Anticipate Upcoming Regulation Changes

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 2024 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 directive concerns more than 50,000 companies.

In the event of a breach of these legal obligations, the company concerned may be issued a fine of €10,000. Following that, an increase of up to €20,000 fine if there is a repeat offense.

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 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 means increasing your efficiency and cost-effectiveness. Implementing low-carbon solutions not only leads to reductions in emissions, but also overall costs. 

4. Strengthen your Reputation

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

Although this is still considered a competitive advantage today, this trend will tend to weaken, as environmental commitment increasingly becomes 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 allows 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 talent.  Individuals are more sensitive to the sense of their work and are increasingly interested in making a difference. Today, successful professionals favor a company that shares the same environmental values. 

For more information on what your company can do to reduce its emissions, check out our article, "What can my company do to reduce its carbon emissions?"

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