Sustainability
4
mins

What Is a Carbon Footprint and Why It Matters

Updated on
June 23, 2025

What Is a Carbon Footprint?

A carbon footprint is the total amount of greenhouse gases, especially carbon dioxide (CO₂), emitted directly or indirectly by a person, company, product or process. It’s measured in CO₂ equivalent units (CO₂e), which lets us standardize emissions from different gases under one metric.

Why is it important? Because nearly every business activity, from powering offices and producing goods to transporting materials or serving customers, has a climate impact. Measuring your carbon footprint gives you visibility and control over that impact.

And this isn’t just an environmental concern anymore. Your carbon footprint is now a business metric, just like revenue, costs or customer satisfaction. It affects your operations, expenses and how others view your company.

Carbon footprint = climate impact + business data

When companies talk about cutting emissions, they’re talking about reducing their carbon footprint. But before reducing anything, you need to measure it properly.

There are three key types of emissions to track:

  • Scope 1: Direct emissions from your own operations (like fuel used in company vehicles or factories).
  • Scope 2: Indirect emissions from purchased energy (like electricity or heating).
  • Scope 3: All other indirect emissions throughout your value chain (including suppliers, product use and end-of-life).

Understanding all three scopes is essential to get the full picture of your impact, and to take action that actually moves the needle.

Let me know if you’d like this placed directly into your document or if you want it translated into Spanish too.

Talking about carbon footprint means talking about data. And as with any business data, if we don't measure it, we can't manage it. The same applies to the climate impact of our operations.

More and more companies are including this data as a key indicator in their strategic decisions. It's no longer just an optional matter, but a demand from the market, investors, and regulations.

At Dcycle, we are not auditors or consultants. We are a solution that connects ESG data with the different use cases your company needs: from legislation (CSRD, Taxonomy) to internal management, including standards like ISO, SBTi or EINF.

The 5 keys you need to understand and take action

1. Measuring is the start of any ESG strategy

Measuring the carbon footprint, Scope 1, 2, and 3, is not just a regulatory obligation. It's the starting point to identify improvement opportunities, reduce costs and anticipate risks.

With solid measurement, we can make decisions that not only reduce emissions, but also directly impact the efficiency and competitiveness of our business.

2. Complying with regulation is not enough

Complying with regulations like CSRD or the Taxonomy is important, but it's not the goal. The key is to use this data as a lever to improve models, processes, and results.

3. ESG data management must be automatic, not manual

Manual ESG data management consumes time and generates errors. We need a solution that automates the collection, validation, and distribution of data from different sources.

4. The carbon footprint is another financial data point

Reducing emissions has direct implications on the bottom line, potentially influencing our stock performance and investor appeal.

From energy prices to the supply chain, carbon data is part of the financial control of any competitive company.

We're no longer just talking about the environment, but about efficiency, reputational risk, and access to financing.

5. It’s not just about reporting, but about activating decisions

Measuring and reporting is fine, but if we don't use it to make decisions, it's useless. Sustainability is a competitive advantage only when it's embedded in the strategy.

Experience our platform firsthandm, schedule a demo.

How to Measure Your Carbon Footprint Step by Step

Define the Scope of Your Emissions First

Effective carbon footprint measurement starts with a solid understanding of the three emission scopes defined by international standards:

  • Scope 1: direct emissions from sources your company controls (e.g., fuel combustion in machinery or vehicles).

  • Scope 2: indirect emissions from the purchase of electricity, steam, heating or cooling.

  • Scope 3: all other indirect emissions across your value chain, from suppliers to the end use of your products.

Not all industries are the same. Knowing what to include and prioritize is key to accurate and useful measurement.

Structure and Validate Your Data

Your carbon footprint calculation is only as good as your data. That means you need a structured and traceable collection process:

  • Use trusted sources like utility bills, ERPs, internal systems or supplier reports.

  • Track your data: log unit, source and date.

  • Use validated frameworks: ISO 14067, PAS 2050, or reliable databases like ICE and EPD.

Guesswork and messy spreadsheets are a risk. A clean data structure saves time and ensures credible results.

Analyze Your Results and Make Data-Driven Decisions

Once data is collected, it’s time to calculate, interpret and act:

  • Apply the right methodology to convert raw data into CO₂ equivalent emissions.

  • Identify hotspots: materials, phases, locations or activities with the highest emissions.

  • Build reports for CSRD, SBTi, EINF or any regulatory framework.

Carbon footprint data is useless if it doesn’t drive action.

How to Use Carbon Footprint Data to Drive Strategic Decisions

Measuring is not the end of the road. It’s the beginning of a smarter way to run your business.

Knowing your carbon footprint gives you a clear view of how each area of your company impacts the environment. 

This shifts how decisions are made, moving from vague commitments to actionable, data-driven insights.

With accurate emissions data, you can evaluate which suppliers are not only cost-efficient but also low-impact. 

You can also spot which products need a redesign to remain compliant with EU regulations.

Sustainability becomes a real competitive advantage when it’s integrated into operations and business strategy.

Why the carbon footprint matters for modern businesses

The carbon footprint is more than just a number, it’s a lens into your company’s operational efficiency, cost management, and regulatory readiness. 

Beyond compliance with CSRD, EINF, SBTi, or the EU Taxonomy, your footprint measurement opens the door to smarter resource use, meaningful stakeholder engagement, and better risk management.

Tracking your emissions helps you pinpoint inefficiencies, from energy waste to supply chain hotspots, and take targeted action. This means you not only cut emissions, you also reduce costs, improve productivity, and avoid regulatory fines.

In a market where ESG performance influences investor decisions and customer loyalty, having a transparent carbon strategy isn’t optional, it’s a strategic differentiator.

Building a robust carbon footprint baseline

Before reducing emissions, you need a reliable baseline. This involves gathering consistent, traceable data across Scopes 1, 2, and 3, and documenting it to create a benchmark for improvement.

Use automated tools to import energy usage, fuel consumption, procurement info, and even logistics data. The key is to ensure your dataset connects directly with recognised standards (ISO 14067, PAS 2050), so your footprint is verifiable and defensible.

A well-structured baseline:

  • Enables year-over-year comparisons

  • Identifies top emission sources

  • Forms the basis for science-based targets or low-carbon roadmaps

  • Supports credible communication to investors, regulators, and internal teams

Integrating carbon footprint into business strategy

Once your carbon baseline is set, the real value is in turning data into action. Integrate your emissions insights into:

  • Procurement decisions, choosing suppliers with lower carbon impact

  • Process design, focussing on materials and methods that minimise embodied carbon

  • Operational optimisation, such as shifting to renewables or improving building energy efficiency

  • Product innovation, exploring circularity, recyclability, or low-carbon alternatives

    By embedding footprint data into strategic planning, budgeting, and KPIs, your carbon reduction becomes part of daily decision-making—not just an annual activity.

    This alignment ensures your ESG efforts drive real competitive advantage and prepare your business for future regulation and market shifts.

Strategic Advantages of Measuring Your Carbon Footprint

You Anticipate Risks and Avoid Surprises

Knowing your carbon footprint helps you see operational, financial and reputational risks before they escalate:

  • Will a regulation affect your supply chain?

  • Are you using materials that could be phased out soon?

  • Are your providers aligned with your climate goals?

With clear data, you stay ahead of the curve.

You Optimize, Save, and Improve

Once you understand where emissions are coming from, you can redesign key processes:

  • Swap out high-impact materials.

  • Optimize logistics.

  • Improve energy use.

And the impact is clear: lower costs, greater efficiency, and less waste.
Sustainability becomes a profit driver.

You Gain a Competitive Advantage

A solid carbon footprint gives you leverage in:

  • Public tenders that demand ESG compliance.

  • Client proposals that value transparent, measurable climate action.

  • Partner negotiations, where numbers matter more than intentions.

Practical recommendations to move forward

Let’s start with what we already have

The first step is to identify and centralize all the ESG information that already exists within the company. Often, we’re already managing relevant data, even if it’s scattered or not labeled as ESG, so let’s make the most of it.

From there, we can structure the process so that this information becomes useful and actionable for all our objectives: from legal reporting to strategic decisions.

Let’s choose a solution that adapts to any use case

It makes no sense to develop different processes for each regulation or initiative. The priority is to have a solution designed to cover all ESG fronts, without duplicating efforts or wasting time.

Let’s move away from complex or manual processes

Spreadsheets, email processes, or endless meetings slow down progress. We can move much faster if we leave behind traditional methods that offer little value.

Let’s connect sustainability with business

Measuring ESG is not just about complying with rules. It’s the basis for competing

More and more clients, investors, and partners demand to understand the environmental sustainability impact of companies.

If we don’t measure it, we’re left out of the conversation, miss business opportunities, and make it harder to access financing. Sustainability is now part of the business.

Let’s involve all areas, not just sustainability

For it to truly work, ESG management must be integrated into the daily operations of all departments. From procurement to operations, including finance and HR.

That’s why it’s essential to have tools that allow each team to access, share, and leverage ESG data, without always depending on an expert profile.

Frequently Asked Questions (FAQs)

What is the carbon footprint and why should I measure it?

The carbon footprint is the total amount of CO₂ and other greenhouse gas emissions generated by an activity, product or company throughout its life cycle.

Measuring it allows you to understand your real environmental impact, make better decisions, and comply with regulations like the CSRD, Taxonomy or SBTi are no longer optional for many organizations.

How does Dcycle help me measure my carbon footprint?

Dcycle is a digital solution that simplifies the entire process. It centralizes your data, connects it with reliable environmental databases and allows you to calculate the carbon footprint of materials, products, or facilities.

In addition, you can reuse this data in reports and regulations without starting from scratch.

What data do I need to calculate the carbon footprint with Dcycle?

You don’t need to have everything from the start. We can begin with data on energy consumption, transportation or materials used, and gradually add more information.

The more information you have, the more accurate the measurement will be.

Can I measure only the carbon footprint or also other ESG indicators?

Yes, you can measure your entire ESG impact from a single platform.

The carbon footprint is only one part. With Dcycle you can also integrate social and governance indicators and comply with multiple frameworks like EINF, SBTi or ISOs.

What are the advantages of measuring the carbon footprint now, even if I’m not required to?

Getting ahead gives you a competitive advantage.

Measuring your carbon footprint today prepares you for tomorrow’s market demands and demonstrates your commitment to compliance.

Additionally, it improves your reputation, reduces costs and shows commitment to sustainability to clients, investors, and employees.

Take control of your ESG data today.
Take control of your ESG data today.
Start nowRequest a demo
Jacobo Umbert
CRO and Co-Founder

Frequently Asked Questions (FAQs)

How Can You Calculate a Product’s Carbon Footprint?

Carbon footprint calculation analyzes all emissions generated throughout a product’s life cycle, including raw material extraction, production, transportation, usage, and disposal.

The most recognized methodologies are:

  • Life Cycle Assessment (LCA)
  • ISO 14067
  • PAS 2050

Digital tools like Dcycle simplify the process, providing accurate and actionable insights.

What Are the Most Recognized Certifications?
  • ISO 14067 – Defines carbon footprint measurement for products.
  • EPD (Environmental Product Declaration) – Environmental impact based on LCA.
  • Cradle to Cradle (C2C) – Evaluates sustainability and circularity.
  • LEED & BREEAM – Certifications for sustainable buildings.
Which Industries Have the Highest Carbon Footprint?
  • Construction – High emissions from cement and steel.
  • Textile – Intense water usage and fiber production emissions.
  • Food Industry – Large-scale agriculture and transportation impact.
  • Transportation – Fossil fuel dependency in vehicles and aviation.
How Can Companies Reduce Product Carbon Footprints?
  • Use recycled or low-emission materials.
  • Optimize production processes to cut energy use.
  • Shift to renewable energy sources.
  • Improve transportation and logistics to reduce emissions.
Is Carbon Reduction Expensive?

Some strategies require initial investment, but long-term benefits outweigh costs.

  • Energy efficiency lowers operational expenses.
  • Material reuse and recycling reduces procurement costs.
  • Sustainability certifications open new business opportunities.

Investing in carbon reduction is not just an environmental action, it’s a smart business strategy.