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ESG Now

ESG glossary

Carbon footprint

A business carbon footprint is the total greenhouse gas emissions your organisation causes over a year, from energy, vehicles, travel, waste and more, expressed in tonnes of CO2 equivalent (tCO2e).

A carbon footprint adds up all the emissions linked to your business into one figure, usually for a 12-month period. It is the number customers, banks, grant funders and tender panels ask for first, and the starting point for any reduction target.

What it means for a small business

An organisational footprint is split into three scopes under the GHG Protocol:

  • Scope 1: fuel you burn directly, mainly gas heating and company vehicles
  • Scope 2: electricity you buy
  • Scope 3: other indirect emissions such as business travel, waste and water

Each line is calculated the same way: activity multiplied by an official emission factor. You need a year of energy bills, fuel or mileage records, and a rough record of travel and waste. Where you lack a figure, a sensible estimate is fine as long as it is labelled.

Your first footprint becomes your baseline. You compare future years against it to show progress, which is what most funders and buyers want to see.

There is also a “product carbon footprint”, which measures one product across its life cycle. That is a different, more specialised exercise.

An example

A 20-person firm with its own office and two company cars might have a footprint like this: 2.5 tCO2e from electricity, 4 tCO2e from gas, 6 tCO2e from the cars, 3 tCO2e from flights and rail, and under a tonne from waste and water. Total: around 16 tCO2e, with the cars as the largest single source.

How ESG Now handles it

The ESG Now questionnaire calculates your footprint across Scope 1, 2 and 3 from your answers, offering estimates where you lack data. The report shows each source, the calculation behind it and whether it was measured or estimated. It focuses on the main sources a small business controls and lists anything not included. Our guide to your small business carbon footprint walks through each step.