Understanding carbon footprints: impact, benefits, and reporting

What is a carbon footprint?

A carbon footprint represents the total greenhouse gas (GHG) emissions, primarily carbon dioxide (CO₂), resulting from human activities. These emissions arise from various sources, including energy consumption, transportation, waste generation, and manufacturing processes. Carbon footprints can be calculated at different levels—ranging from individual lifestyles to corporate operations and even entire nations. Understanding and managing your carbon footprint is a crucial step towards becoming more sustainable, reducing environmental instability, and safeguarding ecosystems for future generations.

Why carbon footprints matter

Tackling carbon footprints has become a global priority, as emissions contribute to environmental instability, harming ecosystems and human wellbeing. Increasing carbon emissions drive extreme weather events, reduce biodiversity, and deteriorate air quality, significantly impacting communities and economies. Reducing carbon footprints not only mitigates environmental damage but also offers economic and brand benefits, such as cost savings through energy efficiency, access to carbon credit markets, and opportunities for innovation.

Close-up of Bulindi chimpanzee in its natural habitat. Bulindi Chimpanzee Habitat Restoration Project, DGB. 

How carbon footprints are measured

Carbon footprints are expressed in metric tonnes of CO₂ equivalents (CO₂e), accounting for various GHGs such as methane and nitrous oxide. Measurement involves assessing two main categories:

• Direct emissions: Emissions from activities under direct control, such as vehicle fuel use or factory energy consumption.

• Indirect emissions: Emissions from a broader supply chain, including the production of purchased goods and business travel, often forming the majority of a company’s footprint.

Read more: Carbon footprint measurement: a practical guide

What are the sources of carbon footprints

Corporate carbon footprints

Businesses, particularly large corporations, are significant contributors to global carbon emissions. These emissions are categorised into three scopes for effective tracking and management:Illustration of 3 scopes.

• Scope 1 emissions: Direct emissions from sources owned or controlled by the company, such as vehicles or on-site fuel combustion.

• Scope 2 emissions: Indirect emissions from the generation of purchased electricity, heating, or cooling consumed by the company.

• Scope 3 emissions: Other indirect emissions across the value chain, including the production of goods, business travel, and waste disposal. Scope 3 emissions often comprise the largest share (typically around 90%) but are also the most challenging to address.

Read more: Uncovering the impact of Scope 3 emissions

Personal carbon footprints

Individual carbon footprints arise from daily activities producing emissions. Although smaller in scale than corporate footprints, their cumulative impact across the global population is significant.

• Transportation: Cars, aeroplanes, and other transport methods represent a substantial portion. Switching to efficient vehicles or public transport can make a difference.

A plane flying over the forest. AI generated picture.

• Energy use: Heating, cooling, and powering homes, particularly through fossil fuels, contribute significantly. Reducing consumption and using renewable energy can lower emissions.

• Waste: Methane from organic waste in landfills is a major contributor. Recycling and composting are effective ways to minimise this.

Read more: Industry carbon footprints: transport, events, and celebrities

Tools and methods for carbon footprint measurement

There are a variety of tools and methods available to calculate carbon footprints, from simple calculators for individuals to complex software systems used by corporations. Some common methodologies include:

• Carbon footprint calculators: Accessible online tools to measure personal or small business carbon emissions.

• ISO 14064 standards: Provides an international framework for organisations to quantify and report their carbon emissions.

• GHG protocol: Widely used by businesses to measure and manage emissions in a standardised manner.

How to calculate your footprint easily

Calculating your carbon footprint may seem daunting, but expert guidance simplifies the process. At DGB, we’ve launched the CO2 Expert Tool, a carbon footprint calculator that pairs every client with a dedicated CO₂ expert. This ensures support at every stage of your journey—from data compilation and CSRD environmental reporting to compensation with carbon units and obtaining Carbon Neutral Certification.

Our online carbon calculator can provide a comprehensive carbon footprint analysis within weeks, calculating automatically your total carbon emissions across Scope 1, 2, and 3 using the most accurate emission factors. The earlier you determine your carbon footprint, the sooner you get valuable insights to mitigate your carbon emissions and align with global expectations and regulations. 

Rest assured, our calculations comply with international guidelines, including ISO 14064, PAS 2060, and the GHG Protocol. Whether you aim to reduce your carbon footprint, compensate for your emissions with our nature-based projects, comply with the latest Corporate Sustainability Reporting Directive, or obtain a Carbon Neutral Certificate, the CO₂ Expert tool and our experts are here to help.

What is the impact of carbon footprints

Environmental consequences and economic implications

Carbon footprints contribute to increased carbon emissions, which provoke environmental crises. The more carbon dioxide, the greater the disruption to natural ecosystems. This includes:

• Ecosystem damage: Rising carbon emissions cause changes in temperature and precipitation patterns, leading to habitat loss, species extinction, and reduced agricultural productivity.

• Economic costs: Damage from extreme weather, reduced agricultural yields, and health expenses related to pollution cost the global economy approximately $8 trillion annually, or 6% of global GDP, according to the World Bank. These economic implications highlight the importance of managing carbon footprints to avoid further financial strain.

Read more: How do carbon footprints work?

How to mitigate carbon footprints

The most effective way to reduce emissions is to avoid producing them. However, as emissions are an inevitable by-product of human activity, the focus should be on reduction and compensation. Carbon compensation provides a pathway to address past emissions and those that are difficult to eliminate (eg, Scope 3).

Everyone can mitigate their carbon footprints and create a sustainable impact by following either personal or corporate strategies:

Personal strategies

• Reducing energy use: Individuals can significantly reduce their carbon footprint by minimising energy consumption. Simple measures such as installing energy-efficient appliances, using smart thermostats, or switching to LED lighting can decrease household emissions.

• Sustainable transportation options: Choosing sustainable transportation options, such as electric vehicles, carpooling, biking, or public transportation, can help lower the carbon footprint associated with personal travel.

• Waste reduction practices: Recycling, composting, and reducing consumption of single-use plastics are all effective strategies for minimising waste and, consequently, lowering carbon emissions from waste production.

Read more: How to reduce your business’ travel emissions through nature

People riding bikes through the park to work. AI generated picture.

Corporate strategies

• Energy efficiency: Corporations can reduce their carbon footprints by adopting energy-efficient technologies, such as LED lighting, advanced heating and cooling systems, and renewable energy installations. Many companies are now shifting toward renewable energy sources like solar and wind to meet their energy needs.

• Sustainable supply chain management: One of the most effective ways for companies to reduce Scope 3 emissions is by improving supply chain sustainability. This can include sourcing materials from environmentally responsible suppliers, reducing the carbon footprint of transportation, and using recycled materials in production.

• Carbon compensation: Carbon compensation allows businesses to neutralise their carbon footprints by purchasing carbon units (also called carbon credits) from projects that reduce or capture carbon emissions elsewhere. These include reforestation, renewable energy development, and methane capture initiatives. By purchasing carbon units, individuals and corporations can compensate for their irreducible emissions and contribute to global efforts to restore nature.

Read more: Unveiling hidden carbon footprints: overlooked emissions sources in business operations

How does carbon compensation work?

Carbon units enable organisations to compensate for emissions they cannot eliminate. Once these units are used to balance their carbon footprint, they are permanently retired by the registry where they are recorded.

There are two primary types of carbon units: reduction (or avoidance) units and removal units. The key distinction lies in how they address emissions.

DGB’s nature-based solutions encompass both types. For instance, our Hongera Energy Efficient Cookstoves Project in Kenya produces reduction/avoidance units by significantly lowering the firewood required compared to traditional cooking methods, thereby preventing considerable emissions from entering the atmosphere.

A DGB team member and local community during the distribution of cookstoves in Kenya. Hongera Energy Efficient Cookstoves Project, DGB.

Conversely, our reforestation and afforestation initiatives—like our Greenzone Reforestation Project in Cameroon—generate removal units by planting trees and restoring forests, actively drawing carbon dioxide out of the atmosphere.

Tree nursery in Cameroon. Greenzone Reforestation Project, DGB.

Beyond mitigating carbon emissions, DGB’s projects deliver additional benefits such as ecosystem restoration, biodiversity protection, and socio-economic improvements for local communities. This multifaceted impact often makes our projects more appealing than single-focus carbon mitigation initiatives, such as renewable energy projects.

Carbon footprint reporting

Carbon footprint reporting has emerged as a vital practice for businesses, governments, and individuals to monitor and reduce their environmental impact. Companies across the globe are increasingly adopting carbon reporting, driven by both legislative requirements and voluntary commitments.

Read more: Sustainability simplified: Carbon footprinting for beginners

Growing importance of carbon footprint reporting

Many multinational corporations, such as Apple, Google, and Unilever, now publish annual sustainability reports that include their carbon footprints. These reports track Scope 1, 2, and 3 emissions, reflecting the growing emphasis on environmental responsibility. Reporting often complements corporate social responsibility (CSR) and Environmental, Social, and Governance (ESG) initiatives, helping to build trust with consumers, investors, and regulators.

A McKinsey survey revealed that rising consumer demand for sustainability is also influencing companies to adopt greener practices. In fact, 66% of respondents preferred companies that directly reduce their carbon emissions. This trend is driving a shift towards more eco-friendly business operations as consumers prioritise environmental responsibility.

Legislation is further reinforcing this shift. Many countries have implemented mandatory carbon reporting frameworks, such as the European Union’s Emissions Trading System (EU ETS) and the United States' Environmental Protection Agency (EPA) GHG Reporting Programme. Voluntary initiatives, such as the Carbon Disclosure Project (CDP), encourage companies to track and report their emissions, fostering greater transparency and accountability.

Additionally, governments are introducing regulations to ensure compliance. For instance, the EU's Corporate Sustainability Reporting Directive (CSRD) requires EU businesses, including subsidiaries of non-EU companies, to disclose their environmental and social impacts. These regulations underscore that sustainability is no longer just a trend but a regulatory requirement.

Read more: Biodiversity reporting: Why corporates must take a quantitative approach

Why carbon footprint reports are helping companies thrive

Better understanding: finding solutions to reduce emissions

For businesses, understanding their carbon footprint is the first step towards reducing emissions. By analysing direct and indirect emission sources, companies can identify inefficiencies and implement targeted improvements. This not only reduces their environmental impact but also results in cost savings, such as through energy efficiency and supply chain optimisation.

Data-driven solutions: key to decision making

Carbon footprint reporting provides essential data for informed decision-making. With a clear understanding of emission sources, companies can prioritise actions that deliver the most significant results—both in terms of reducing emissions and enhancing profitability. Data-driven strategies help companies comply with regulatory requirements, manage risks, and thrive in a carbon-conscious economy.

Read more: The power of sustainability: Why investing in sustainability drives faster company growth

Brand reputation boost: attracting eco-conscious consumers

Incorporating carbon footprint reporting into a business strategy boosts brand reputation by demonstrating environmental accountability and commitment. It resonates positively with eco-conscious consumers, attracts sustainability-minded investors, and enhances trust among stakeholders. By aligning with global sustainability goals, your business showcases leadership in addressing environmental instability, strengthening its appeal and long-term competitiveness in a green economy.

A woman from a local community and a DGB team member in a tree planting training. Hongera Reforestation Project, DGB.

Carbon footprint reporting and compensation: the next big thing

The future of business success lies in sustainability, and carbon footprint reporting is at the centre of this transition. Combined with carbon compensation strategies, businesses are integrating emissions management into their core strategies. This allows them to demonstrate environmental leadership, comply with regulations, and tap into the growing carbon market.

What are the challenges in measuring a carbon footprint?

Several challenges can arise when measuring a carbon footprint:

1. Data collection and availability: Gathering accurate data on energy consumption, activities, and emissions across various sources can be complex and time-consuming. Data gaps for certain activities or locations may hinder accurate measurement.

2. Scope inclusion and boundaries: Defining the scope of emissions and including all relevant sources, especially indirect emissions (Scope 3), can be challenging due to supply chain complexities and unclear scope boundaries.

3. Data accuracy: Ensuring data reliability and consistency can affect the accuracy of emission calculations.

4. Emission factors: Identifying appropriate emission factors for diverse activities can be difficult, particularly for unique or specialised processes. Factors may also change over time due to advancements in technology or energy sources.

5. Calculation complexity: Calculating emissions from complex processes or international operations introduces additional layers of difficulty.

6. Verification: Ensuring accuracy through independent verification can be resource-intensive.

7. Reporting consistency: Maintaining consistency in annual emissions reporting is challenging, especially for organisations experiencing growth or operational changes.

Despite these obstacles, advancements in methodologies, technologies, and standardisation are enhancing the accuracy and reliability of carbon footprint measurements.

10 Advantages of DGB’s CO₂ Expert tool to address your needs

Achieving an accurate and comprehensive carbon footprint analysis can be a daunting task for businesses, given the challenges of data collection, scope definition, and maintaining consistency in reporting. These complexities can hinder your ability to identify emissions sources, set reduction targets, and align with sustainability goals.

DGB’s CO₂ Expert Tool is designed to address these challenges with precision and ease, offering a user-friendly platform equipped with advanced features to support every step of your carbon management journey. From simplifying data input to automating complex calculations and generating transparent reports, the CO₂ Expert tool ensures businesses can confidently manage their carbon footprints while meeting regulatory standards and enhancing stakeholder trust. Here are 10 benefits of using our carbon calculator: 

1. Streamlined data collection: Simplifies the process of gathering accurate data from multiple sources and locations, addressing potential gaps to ensure comprehensive tracking. Plus, the tool automates emission calculations, integrating emission factors for seamless and precise results.

2. Comprehensive scope inclusion: Helps define emission boundaries, covering all scopes—including the challenging Scope 3 emissions from supply chains—and allows the addition of new locations and emission sources for detailed tracking.

3. Enhanced data accuracy: Boosts data reliability and consistency through expert-reviewed methodologies, ensuring high-quality, trustworthy results.

4. Preloaded emission factors: Comes with a robust, up-to-date database of emission factors for a wide range of industries and activities, removing the need for constant manual updates.

5. Simplified calculations: Automates complex emission calculations, making it easy for businesses of all sizes to manage their carbon footprint.

6. Verification support: Provides expert validation to ensure compliance with international standards, minimising the verification burden and ensuring accurate reporting.

7. Customised solutions: Tailors tools and strategies to meet specific business needs and sustainability goals, whether it’s purchasing verified carbon units, obtaining a carbon neutral certification, or setting and achieving meaningful emission reduction targets.

8. Ongoing support: Provides continuous guidance to help monitor, manage, and improve carbon footprint efforts over time, ensuring that you can maintain consistent reporting year after year, even as your business evolves.

9. Insightful dashboards: Delivers visually engaging breakdowns of your emissions, allowing you to quickly identify trends and opportunities for improvement.

10. Shareable reporting tools: Generates engaging, detailed, and easy-to-understand reports to seamlessly share results and progress with investors, customers, and other stakeholders.

Our tool provides businesses with a range of innovative advantages designed to overcome common challenges in carbon footprint measurement and management, enabling you to embark on your sustainability journey with ease while making the process more streamlined and effective.

Read more: How to use DGB Group's carbon footprint calculator on your journey to net zero

How long will my sustainability journey take?

The timeline for your sustainability journey depends on the ambition of your company’s goals. However, with fast data collection, we estimate that within just four months, your business can make significant progress. This includes measuring its carbon footprint, offsetting emissions, and implementing a carbon reduction strategy aligned with your sustainability objectives. You’ll also be equipped to effectively market these achievements and provide transparent sustainability reports.

The value of taking action

These steps offer transformative benefits: advancing your sustainability goals, strengthening your brand’s reputation, attracting eco-conscious customers, and meeting the expectations of investors, regulators, and ESG reporting standards. By starting today, you can avoid missed opportunities, reduce future costs, and address regulatory pressures—gaining a competitive edge through proactive sustainability initiatives.

Aquatic biodiversity and fish populations are predicted to decline due to high nutrient levels, overfishing, alien species invasion, and pollution.

The loss of biodiversity will have direct and indirect impacts on human wellbeing. Direct consequences include a higher likelihood of abrupt environmental events, such as fishery collapses, floods, droughts, wildfires, and disease outbreaks. Indirect effects include disputes over dwindling food and water supplies.

Despite an expected increase in the average income per person, there may be more inequality in access to food. Trade-offs between opposing aims, such as agricultural production and water quality, or water use and aquatic biodiversity, will need to be addressed in major decisions. Conserving biodiversity can provide many benefits derived from ecosystems, leading to higher levels of wellbeing.

Partner with DGB for your sustainability journey

DGB provides a comprehensive, one-stop solution for your carbon strategy. We help businesses transition to net zero with detailed emissions reports, cost-effective energy-saving insights, customised carbon reduction plans, and reliable carbon compensation solutions.

Close-up of a man planting a tree seedling. Hongera Reforestation Project, DGB.

Our large-scale, nature-based carbon projects do more than mitigate emissions. They promote biodiversity restoration, rejuvenate ecosystems, and create socio-economic benefits for communities. By partnering with DGB, your carbon mitigation journey goes beyond compliance—it generates measurable environmental and social impacts.

As a direct project developer, DGB ensures full transparency, eliminating intermediaries to connect you directly with impactful initiatives.

Meet Wienke, Marco, Esther, and Mare; DGB's CO2 Experts.

Start your sustainability journey by measuring your carbon footprint with DGB. Contact us to learn how we can help you achieve your goals and thrive as a responsible, sustainable business.