What carbon footprint means now for businesses

How the concept of ‘carbon footprint’ has given way to carbon accounting, and what it means for nature impact and net zero.

Faith Sayo

Faith Sayo

14 Jul, 2025

What carbon footprint means now for businesses

Businesses of all sizes leave a measurable impact on nature and the environment through their operations. Whether through energy use, manufacturing processes, or global supply chains, these operations drive ecological change, primarily through the release of greenhouse gases that contribute to climate change. This steady rise in emissions has already increased global temperatures by

approximately 1.1°C above pre-industrial levels

, contributing to extreme weather, disrupted ecosystems, and mounting operational risks. 

Corporate influence on climate outcomes is undeniable; just

100 companies are linked to over 70% of global industrial emissions

since 1988. That’s why businesses need to understand their environmental footprint, not just in terms of carbon, but with the wider environmental impacts their operations create. 

Carbon footprint

In the UK, SMEs constitute 99.9% of all businesses and collectively emit nearly 15 million tonnes of CO₂ annually. This accounts for approximately 44% of the UK's non-household emissions - Carbon Trust

What is a carbon footprint, in simple terms?

The concept of a carbon footprint was popularised in the early 2000s as a way to visualise and quantify the impact of human activities on climate change. It was originally adapted from ecological footprinting, and it has since become a core metric for measuring greenhouse gas emissions.

A

carbon footprint

is the total amount of greenhouse gas emissions generated by a company’s event, product, or process. This includes carbon dioxide (CO₂) as well as other heat-trapping gases like methane and nitrous oxide, all expressed in terms of carbon dioxide equivalent (CO₂e).

Even unknowingly, day-to-day operations produce emissions through energy use, transportation, purchased goods, and more. The size and sources of a company’s footprint vary by industry.

What is carbon accounting?

An awareness of our carbon footprint has given way to

carbon accounting

. Carbon accounting is the process by which businesses systematically measure and track their greenhouse gas emissions over time. It’s how organisations turn the abstract idea of a carbon footprint into concrete, actionable data.

Most companies follow the internationally recognised

Greenhouse Gas (GHG) Protocol

, a widely used framework for calculating and reporting emissions. Under this standard, emissions are broken down into three categories, known as

scopes

:

  • Scope 1

    : Direct emissions from sources owned or controlled by the organisation (e.g. company vehicles, on-site fuel combustion).

  • Scope 2

    : Indirect emissions from purchased energy, primarily electricity, where emissions occur at the generation source but result from the organisation’s consumption.

  • Scope 3

    : All other indirect emissions across the value chain. This includes emissions from suppliers, product distribution, business travel, employee commuting, and even the use and end-of-life of sold products.

Carbon accounting allows businesses to understand

how much

they emit and

where

those emissions come from. This helps set reduction targets, identify hotspots, report progress, and invest in credible climate solutions like carbon removals or nature-based offsets.

Carbon accounting benefits for businesses

In 2023, approximately 70% of large organisations globally used carbon accounting software or similar tools to monitor their environmental impact, up from 51% in 2020 - SNS Insider.

The benefits of carbon footprint accounting for businesses

Carbon accounting helps businesses create measurable impact in various ways:

  • Accountability and baseline for improvement:

    Establishes a starting point for measuring climate impact and setting emission reduction targets.

  • Informed strategy and cost savings:

    Reveals inefficiencies and cost-saving opportunities by highlighting wasteful practices.

  • Setting targets and tracking progress:

    Enables setting concrete, measurable climate targets and monitoring annual progress, facilitating goals like net zero or carbon neutrality.

  • Transparency, trust, and brand reputation:

    Improves stakeholder trust through clear disclosures and strengthens brand reputation.

  • Regulatory compliance and risk management:

    Helps businesses stay ahead of disclosure requirements and anticipate financial risks.

  • Access to carbon markets and offsets:

    Allows engagement with carbon markets, facilitating the purchase of offsets or generation of carbon credits.

  • Alignment with global goals and stakeholder expectations:

    Aligns businesses with global sustainability frameworks and meets investor and supply chain expectations for climate performance.

Maroalika

A local woman supports Earthly’s mangrove regeneration project in Maroalika, Madagascar. NbS are holistic by design - delivering carbon removal, biodiversity support, and uplifting communities. Studies show they can provide up to 37% of the carbon mitigation needed by 2030.

Crucial steps after carbon accounting:

Reduce what you can, offset what you can’t, report on everything

Once you know your carbon footprint, you’ll need to align your climate and sustainability strategy to the insights revealed in your footprint. The priority should always be to reduce emissions at the source - across operations, energy use, logistics, and your supply chain.

But not every emission can be eliminated immediately. Carbon offsetting will help your business take responsibility for its remaining footprint by investing in high-quality, verified nature-based projects like reforestation or carbon removal.

After reduction and offsetting, the next step is transparent reporting. Sharing your progress - what’s been reduced, what’s been offset, and what’s next - builds trust with stakeholders, supports regulatory compliance, and helps track year-on-year performance.

How can a business reduce its carbon footprint?

Reducing emissions requires consistent action across core business areas:

  • Improve energy efficiency

    : Upgrade buildings, equipment, and operations (e.g., LED lighting, smart HVAC).

  • Switch to clean energy

    : Transition to renewables via on-site solar/wind or green power purchases (RECs, PPAs).

  • Rework transportation and logistics

    : Electrify fleets, optimise routes, reduce air freight, use rail/sea, and encourage remote work/public transport.

  • Engage suppliers

    : Collaborate on Scope 3 emission reduction through disclosure, lower-carbon materials, and packaging.

  • Redesign products

    : Choose low-carbon materials, design for reuse/recyclability, and extend product life cycles.

  • Use technology and innovation

    : Adopt digital tools (emissions tracking software, IoT, AI) and invest in low-carbon R&D.

  • Offset what remains

    : Purchase high-quality, verified carbon offsets, focusing on removals (reforestation, carbon capture).

How to offset a corporate carbon footprint

Offsetting a carbon footprint

involves compensating for emissions by supporting projects that either avoid or remove an equivalent amount of greenhouse gases elsewhere. The goal is to achieve climate balance. 

Here’s how businesses can approach carbon offsetting credibly:

1. Measure accurately first

: Establish a verified carbon footprint (Scopes 1, 2, and key Scope 3) before offsetting.

2. Reduce before you offset

: Offset only unavoidable emissions; it's not a substitute for internal reduction.

3. Choose high-quality offsets

: Work with projects from reputable registries like Gold Standard, Verra (VCS), or the American Carbon Registry. Look for projects that are:

  • Additional

    (they wouldn’t have happened without offset funding)

  • Permanent

    (the carbon won’t be re-released)

  • Verified

    (independently audited)

  • Transparent

    (with clear documentation and retirement records)

4. Align offsets with your values

: Select projects that match your industry, location, or mission.

5. Retire credits publicly

: Officially retire purchased offsets in a registry to ensure accountability and prevent double-counting.

Peatland protection, Rimba Raya

Locals take part in surveying our peatland protection project in Rimba Raya, Indonesia. So far, the project that has prevented 44 million tonnes of CO₂e, protected 55 endangered species, and improved healthcare for over 9,000 people.

Why use nature-based solutions to offsetting a carbon footprint?

Nature-based solutions use ecosystems, such as forests, wetlands, soils and regenerative farming to remove and store carbon. These solutions provide co-benefits that technology-based offsets don’t - including support for biodiversity, soil health, water cycles, and local livelihoods. They are also endorsed by leading global frameworks like the

UN Race to Zero

and the

Natural Climate Solutions Alliance

.

For effective investment, choose credible, verifiable projects that offer transparency and long-term benefits through:

  • Verified carbon outcomes (third-party certification)

  • Clear permanence and monitoring plans

  • Meaningful community engagement

How carbon footprint accounting fits into a business’ net zero goals and beyond

Net zero is an essential objective: to reduce greenhouse gas emissions as close to zero as possible and offset any unavoidable residuals so that, overall, no additional emissions are added to the atmosphere.

This is important because studies have shown that to

limit global warming to 1.5°C, the world must reach net zero by 2050

. Increasingly, companies are making public net-zero commitments, often targeting full decarbonisation or 90%+ emissions cuts by mid-century.

Unfortunately, you can’t reach net zero without knowing your starting point. Carbon footprint accounting is how businesses map that starting point, and then track the journey.

Carbon footprint accounting supports business' sustainability and net-zero progress, driving nature-positive outcomes, and laying the groundwork for biodiversity integration.

Carbon accounting gives businesses the insight needed to build effective climate strategies — from reducing emissions to reporting progress and supporting nature. Here’s how it supports net-zero goals:

  • Measure emissions and set a baseline

    : Quantify Scope 1 (direct), Scope 2 (indirect energy), and Scope 3 (value chain) emissions to establish your starting point. This baseline forms the foundation for setting meaningful targets and tracking future reductions.

  • Identify emissions hotspots

    : Break down emissions by activity, department, or supplier to locate the biggest contributors, such as electricity use, air freight, or purchased goods. These hotspots highlight where action will deliver the greatest impact.

  • Set science-based targets

    : Use your footprint data to set ambitious, measurable goals aligned with the 1.5°C climate limit. These targets can be validated through frameworks like the Science-Based Targets Initiative (SBTi).

  • Develop reduction strategies

    : Carbon accounting insights inform decisions on how to decarbonise your business - upgrading energy systems and switching to renewables, to redesigning products and improving supplier practices.

  • Track progress and stay accountable

    : Annual carbon inventories help monitor performance, reveal gaps, and support transparent reporting to customers, investors, and regulators.

  • Plan credible offsetting

    : Once reductions are underway, your footprint helps quantify residual emissions, guiding investments in high-quality removals like reforestation or carbon capture.

How carbon footprint accounting drives nature-positive impact

Even though carbon accounting focuses on emissions, it often leads to wider environmental benefits.

Ultimately, reducing emissions slows global warming, directly supporting biodiversity and protecting ecosystems from climate-related stress.

Efforts to reduce carbon often align with sustainable business practices with nature benefits such as:

  • Resource efficiency reduces pressure on raw materials

  • Sustainable sourcing helps improve land-use and prevents deforestation

  • Waste reduction promotes circularity and reduces pollution

And finally, i

nvesting in nature-based projects like reforestation, regenerative agriculture, or wetland restoration not only offsets emissions but also supports biodiversity, water security, and soil health.

Paving the way for biodiversity integration

Leading companies are moving beyond carbon-only goals to understand their broader environmental impact.

  • Adopt integrated frameworks:

    Initiatives like TNFD and SBTN guide businesses in identifying and managing nature-related risks and dependencies.

  • Recognise ecosystem services:

    Carbon footprinting prompts businesses to acknowledge the natural systems they depend on, like clean water, fertile soil, and pollination.

  • Mitigate biodiversity risks:

    Understanding how your operations impact nature helps reduce exposure to risks like supply chain disruption, reputational harm, or compliance issues.

mai ndombe

Aerial view of our rainforest protection project in Mai Ndombe, DRC. It is verified under VCS and awarded CCB Double Gold. All Earthly projects are verified to recognised standards to ensure real, lasting impact for climate, nature, and people.

Meet your net zero targets with Earthly’s NbS projects

At

Earthly

, we help businesses take credible climate action by investing in high-integrity nature-based solutions. All our projects are independently verified under recognised standards such as Verra, Gold Standard, or Plan Vivo, and align with best-practice frameworks for net-zero-aligned offsetting.

We can help your business offset residual emissions and integrate nature-based solutions into your sustainability strategy, with transparency and real impact.

Let’s talk

, we would love to support your net-zero journey.

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