What is a carbon footprint? How to calculate it and what to do to reduce it?
With an expert eye
Paweł Biegajski, specialist in the field of financing energy projects
As climate change effects become more evident, there’s growing focus on carbon dioxide emissions and other pollutants. A key measure of how much a person, product, or organization impacts the environment is the carbon footprint. What is it, why is it important, and how can it be calculated? Read on to learn more.
What is a carbon footprint?
There are several definitions of the carbon footprint in scientific literature, varying in detail and scope. For this article, we will use two definitions.
The first definition, from the study “Carbon footprint management in energy sector companies in Poland – barriers and benefits. Energy policy,” describes the carbon footprint as the total amount of carbon dioxide and other greenhouse gases emitted throughout the life cycle of a product, [1]including its storage and disposal. Here, “product” can refer to an individual, organization, goods, or even an event.
A second definition, provided by ISO 14067:2018, defines a product’s carbon footprint as the total greenhouse gas emissions and absorptions, expressed in carbon dioxide equivalents. This is based on a life cycle assessment within a specific climate change impact category.
The Kyoto Protocol broadens the concept of greenhouse gases (GHGs) to include not only CO₂ but also nitrous oxide (N₂O), methane (CH₄), and various fluorinated gases (hydrofluorocarbons (HFCs), sulfur hexafluoride (SF₆), and perfluorocarbons (PFCs)). Each of these gases has a global warming potential (GWP) indicator, which quantifies their impact on global warming compared to carbon dioxide over a century[2].
Why is it worth calculating your carbon footprint?
Calculating a carbon footprint is crucial for several reasons. First, it helps identify the main sources of pollutant emissions within a process or organization, allowing for targeted changes to reduce environmental impact. Additionally, carbon footprint estimates serve several other functions:
- Informed Decision-Making: Understanding your carbon footprint can influence lifestyle choices, such as opting for eco-friendly transportation, reducing meat consumption, or saving electricity.
- Promoting Sustainable Development: It supports the idea of living in a way that meets current needs without compromising the ability of future generations to meet theirs.
- Increasing Transparency: Revealing environmental impacts can enhance transparency in supply chains and business practices, helping consumers connect with brands that have a lower environmental footprint.
For companies, especially those operating internationally, calculating the carbon footprint is particularly important. Many Western countries already widely use this practice. Accurate estimates are often necessary to secure contracts with significant clients, participate in public procurement, or apply for project co-financing. Beyond these formal aspects, carbon footprint also plays a significant role in brand image. Studies show that in countries like Great Britain and France, consumers often prioritize a product’s carbon footprint over its price.
How is the carbon footprint calculated?
Calculating your carbon footprint can be complex, as it involves numerous factors and data. The process typically follows established standards:
- The Greenhouse Gas Protocol (GHG Protocol): This international standard is used for assessing and managing greenhouse gas emissions at the corporate, project, and product levels.
- PAS 2050: Developed by the British Standards Institution, this specification assesses greenhouse gas emissions throughout a product’s life cycle and serves as a foundation for other carbon footprint standards.
- ISO 14064:2018: This standard provides guidelines for quantifying and reporting greenhouse gas emissions and removals at the organizational level.
- ISO 14067:2018: This standard outlines requirements and guidelines for calculating and disclosing the carbon footprint of products.
The final result is expressed in kilograms of carbon dioxide equivalent (kg CO₂e). For a product’s carbon footprint, it’s given relative to a functional unit (e.g., piece, kilogram). This sum includes emissions from various gases, converted to CO₂e using the Global Warming Potential (GWP100) factor specific to each gas[3].
The carbon footprint accounts for the entire life cycle. For example, calculating the impact of a car journey involves not only fuel consumption but also:
- The emissions from producing, operating, and disposing of the car,
- The extraction, refining, and distribution of the fuel,
- The construction and maintenance of road infrastructure.
The carbon footprint of an organization is a key component of any sustainable development strategy. It represents the total greenhouse gases emitted by a company, institution, or organization over a specific period. This includes emissions from both direct activities (e.g., energy use at company facilities) and indirect activities (e.g., emissions from the production of purchased materials or transportation). To estimate this, three main scopes are considered, following the Greenhouse Gas Protocol methodology:
- Scope 1: Direct emissions from stationary sources (e.g., boilers), mobile sources (e.g., company vehicles), and fugitive emissions (e.g., refrigerants).
- Scope 2: Indirect emissions from purchased electricity, heat, and steam.
- Scope 3: Other indirect emissions across 15 categories, including purchased raw materials and services, capital goods, transportation and distribution, employee commuting, business travel, waste generated by operations, rented assets, and processing of sold products.
Scope 1 covers direct emissions from the organization’s own activities. Scope 2 includes emissions from the consumption of purchased energy. Scope 3 encompasses all other indirect emissions associated with the organization’s activities.
Product carbon footprint
The carbon footprint of a product measures the greenhouse gas emissions associated with its entire life cycle, from production to disposal. This calculation helps assess environmental impact and enables consumers to choose more eco-friendly options. Two common models are used:
- Cradle-to-Gate: Applied to business-to-business (B2B) products, this model covers emissions from raw material extraction through to when the product leaves the factory.
- Cradle-to-Grave: Used for business-to-consumer (B2C) products, this model includes emissions from production, distribution, use, and final disposal.
Both models consider the same scopes of emissions but focus on different stages of the product’s life cycle.
The carbon footprint of Polish companies and organizations is increased by high-emission electricity production
In Poland, renewable energy sources are becoming increasingly common, with growing capacities in PV power plants, wind turbines, and other renewable energy solutions. This shift is naturally reducing the role of coal in the country’s energy sector.
Data from the Fraunhofer Institute [4] shows that in 2023, renewable sources contributed to 26% of Poland’s electricity production, totaling nearly 39.5 TWh—a 35% increase from the previous year. Wind turbines and photovoltaics led the renewable sector, providing 14.6% and 8.7% of the electricity, respectively. On December 26, wind farms alone supplied 61% of Poland’s energy needs.
As a result, the share of hard coal and lignite in Poland’s energy mix has decreased from over 72% to 63.8%. Despite this reduction, Poland’s reliance on coal remains among the highest in Europe, affecting energy prices and contributing to a high carbon footprint for companies without their own renewable energy sources.
The positive trend is supported by data from WysokieNapiecie.pl [5], which indicates that out of the approximately 166 TWh of electricity produced in Poland over the past year, 44 TWh came from renewable sources, accounting for 27% of the total mix.
These findings align with Poland’s European climate policy goals and the updated Polish Energy Policy until 2040, which aims to reduce coal’s share in electricity production to 20% by 2035 through increased renewable energy use and nuclear power development.
However, the current pace of change may not be sufficient to meet the goals of the EU’s Ready for 55 package. At the present rate, it is unlikely that Poland will achieve a 55% reduction in greenhouse gas emissions by 2030 compared to 1990 levels. Consequently, the reliance on energy from coal-fired power plants continues to significantly increase the carbon footprint of products and organizations.
What to do to reduce your carbon footprint?
Reducing the carbon footprint of a large industrial plant involves several steps, starting with assessing the current environmental impact to identify major emission sources. Based on this assessment, a reduction plan can be developed, which may include:
- Using Alternative Fuels: Switch to fuels like biodiesel, bioalcohol (methanol, ethanol, butanol), waste-based fuels, or hydrogen and biogas from renewable sources.
- Renewable Energy Production: Invest in renewable energy sources. Not only does this benefit the environment, but it can also be financially advantageous. For instance, as of mid-April 2024, the cost of 1 MWh of electricity in Poland was around 104 euros, making it one of the more expensive countries in Europe. Energy prices were even higher in January, coupled with high domestic demand, making renewable energy a cost-effective alternative.
- Promoting Zero-Emission Transport: Encourage employees to use zero-emission transport options like bicycles.
- Replacing Company Vehicles: Consider using public transport instead of maintaining a fleet of company vehicles.
- Building Insulation: Improve insulation to reduce heating and cooling needs.
- Using Recycled and Biodegradable Materials: Opt for materials that are recycled or biodegradable in product manufacturing.
- Increasing Use of Secondary Raw Materials: Use more recycled materials in production.
- Optimizing Delivery Routes: Plan more efficient delivery routes to cut down on transportation emissions.
- Minimizing Packaging: Reduce the amount of packaging used.
Each of these measures should be customized to fit the specific needs of the plant to effectively lower its carbon footprint.
Is calculating the carbon footprint mandatory in Poland?
Currently, there are no international requirements for calculating the carbon footprint of domestic households or companies. However, this is set to change for about 3,500 of the largest Polish companies due to the implementation of the Corporate Sustainability Reporting Directive (CSRD), adopted by the European Parliament in November 2022. Starting in 2025, these companies will be required to submit reports that include non-financial information, such as their carbon footprint.
In March 2024, the EU Council approved the Corporate Sustainability Due Diligence Directive (CSDDD), which was further approved by the European Parliament in April 2024. This directive mandates that businesses must take action to mitigate the negative impacts of their operations, particularly concerning human rights and the environment. Businesses involved in EU trade will need to provide their international partners with calculations of their carbon footprint or the indirect emissions from their supply chains.
Additionally, changes are coming to the Energy Performance of Buildings Directive (EPBD). Currently, this directive only addresses operational CO₂ emissions related to energy and water use, not the full carbon footprint. Soon, estimating the Global Warming Potential (GWP) coefficient will be required, with the most common implementation date being 2027.
Summary
The carbon footprint is a crucial tool for understanding our environmental impact and guiding efforts to reduce it. By calculating it, we can make better decisions, lower greenhouse gas emissions, and support sustainable development. For companies, individuals, or households, reducing fuel and travel costs can also be a significant benefit. As carbon footprint calculations become more common in public spaces, consumers will gain greater ability to influence their environment and make more eco-friendly choices.
Here’s a revised version of the references for clarity:
[1] J. Kulczycka, M. Wernicka, “Carbon Footprint Management in Energy Sector Companies in Poland – Barriers and Benefits,” Energy Policy, vol. 18, no. 2, pp. 61–63.
[2] A. Więk, K. Tkacz, “Carbon Footprint of Animal Raw Materials,” Advances in Science and Technology of the Agro-Food Industry, vol. 67, no. 2, pp. 83.
[3] Additional information can be found here.
[4] https://notesfrompoland.com/2024/01/03/poland-produced-record-26-of-electricity-from-renewables-in-2023/
[5] https://wysokienapiecie.pl/96011-udzial-wegla-i-oze-w-polsce-2023/
Paul Biegajski
A graduate of Nicolaus Copernicus University in Toruń. He specializes in obtaining financing for companies and institutions implementing projects in the field of sustainable development and energy.