The food and beverage industry is a significant contributor to climate change, with the global food system being responsible for more 21-37% of total annual greenhouse gas (GHG) emissions. Meanwhile, only half of the top 100 global food and beverage companies have measured, disclosed, and set goals for scope 3 emissions, which account for approximately 88% of a company’s emissions across the value chain.
It’s clear that change is urgently needed — a net zero future isn’t possible without action from the food and beverage industry.
The first step to making progress on sustainability goals is measuring where you are today. For businesses, that means accounting for your full carbon emissions profile and calculating your corporate carbon footprint (CCF).
In this article, we will discuss:
- What is a corporate carbon footprint (CCF)?
- Why should businesses know about their corporate carbon footprint?
- How is a corporate carbon footprint calculated?
- Tips and best practices for collecting data for your carbon footprint
- How to reduce your company’s carbon footprint
- How carbon offsetting can help you reduce your footprint
- Frequently asked questions about corporate carbon footprint
What is a corporate carbon footprint (CCF?)
A corporate carbon footprint is the total measurement of GHG emissions generated by a business through its operations and value chain. It provides a comprehensive view of the direct and indirect emissions a company is responsible for, offering a critical foundation for understanding its climate impact and taking meaningful action.
Understanding your corporate carbon footprint helps businesses:
- Identify and reduce emissions hotspots
- Align with global sustainability goals
- Comply with regulatory frameworks
Why should businesses know their carbon footprint?
There are several reasons why it’s important for businesses to understand and manage their corporate carbon footprint — notably, it’s a necessary first step to better understanding current environmental impact and how to move towards a net zero future.
Regulatory compliance
Many regions have introduced mandatory carbon reporting and emissions reduction requirements for companies. As one example, the European Union’s (EU) Corporate Sustainability Reporting Directive (CSRD) requires transparent climate goal reporting starting in 2025 for 2024’s business activities.
Stakeholders expectations
Investors and customers are increasingly demanding that companies take responsibility for their environmental impact. Investors are urging companies to integrate supply chain climate action into their decision-making processes. And according to PwC’s 2024 Voice of the Consumer Survey, consumers are willing to pay, on average, 9.7% more on goods that are sustainably produced or sourced — even in the face of inflation.
Cost savings
Identifying emissions often reveals inefficiencies. Reducing energy use, waste, and other emissions-intensive activities through improved processes and technologies can lead to direct cost savings for your business.
Competitive advantage
Taking steps to understand and manage your corporate carbon emissions can bolster your brand reputation and make you more attractive to environmentally-conscious consumers and partners. In a survey of 350 senior executives from food and agriculture companies, nearly all participants reported that their investments in sustainability initiatives resulted in increased revenues, correlated with value chain collaboration.
How is a corporate carbon footprint calculated?
A corporate carbon footprint is measured by calculating the total GHG emissions produced by a company across its operations and supply chain. This requires data collection, categorisation, and analysis.
💡Note that a CCF includes not just carbon emissions, but also other GHGs including methane and nitrous oxide — which are particularly relevant to the agricultural stage of the food industry. Rather than ‘carbon footprint,’ you might prefer the more inclusive term: climate footprint.
The GHG protocol is a global corporate standard for carbon footprint measurement and reporting, created jointly by the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD).
The protocol categorizes emissions into three scopes:
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Direct emissions (Scope 1) |
Indirect emissions (Scope 2) |
Value chain emissions (Scope 3) |
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Such as those from company-owned vehicles or facilities |
Like those from purchased energy |
Which cover the broader supply chain, from sourcing raw materials to distribution |
A company must first identify the sources of its GHG emissions, categorize them by scope, and then collect quantitative emissions data.
Tips and best practices for collecting data for your carbon footprint
Collecting, categorizing, and analyzing the data required to calculate your business carbon footprint is a meticulous process. You’ll need to develop a system suitable to the size and complexity of your business.
Here are five tips and best practices to help you get started on your journey:
1. Plan your data collection system. A spreadsheet is unlikely to cut it. You’ll want to choose the right tool — a software purpose-built for your sector will help you collect and visualize decision-useful data.
2 Determine your methodology. Will you take a physical, monetary or hybrid approach to your carbon accounting?
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Physical-unit method (also known as “activity-based”) |
Spend-based method |
Hybrid method |
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Determined by tracking the actual physical quantities of materials or energy consumed by a company |
Determined by multiplying the monetary value of purchased goods and services by an industry average emission factor |
A combined approach that leverages both “spend-based” and “physical-unit” methodologies |
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Pros |
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Cons |
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3. Get stakeholders on board. You’ll want to be sure the relevant people understand why measuring and managing your carbon footprint is important. Buy in across the value chain is key for establishing trust, aligning goals, and gaining approval for proper resource allocation.
4. Identify a logical starting point. Start with the areas of your business that are most likely to be carbon intensive. By focusing on these hotspots first, you can make meaningful progress while building the expertise and systems needed for broader carbon accounting efforts.
5. Learn and improve. Carbon management is not a one-and-done activity. After establishing your baseline, the real work begins: actively reducing emissions and tracking progress.
How CarbonCloud can help you calculate your company’s carbon footprint
For food and beverage companies, calculating a corporate carbon footprint can be challenging due to the complexity of value chains and the significant role of scope 3 emissions. Leveraging a climate intelligence platform like CarbonCloud can make the process more efficient and accurate by automating calculations and centralizing data.
The largest part of the corporate carbon footprint of food producers and retailers typically comes from Purchased goods and services. This is how we help you assess that part.
How it works, at a glance:
- Simply provide your bill of materials or list of products purchased
- Our AI engine will map ingredients and items to relevant categories and automate the transportation and production inventory
- Next, our scientific models will calculate the carbon emissions of your products and activities using data from our extensive database
- With a handle on your corporate emissions profile, you can accelerate your climate strategy and reporting
We will also give you a short list of questions that will help us assess the remaining part of the corporate carbon footprint.
CarbonCloud’s models are scientifically validated and its data points are backed with a detailed breakdown of activity parameters. Our automated modeling technology accurately assesses climate impact from the carbon embedded in packaging to the transportation associated with products.
Access to a robust emission database can help businesses to map corporate activities to the correct emissions factors, enabling them to gain a clear understanding of their emissions profile.
How to reduce your company’s carbon footprint
Reducing your corporate carbon footprint is not just about compliance or meeting consumer expectations — it’s a business imperative for long-term resilience. For food and beverage companies, which account for a significant share of global emissions, taking action is especially critical.
Here’s how you can start reducing your company’s carbon footprint today:
Identify supply chain emission hotspots
Consider using a tool like CarbonCloud to pinpoint where the highest emissions are generated. Focus efforts on the most impactful areas, such as sourcing ingredients with lower carbon footprints or switching to cleaner energy for transportation.
Engage and collaborate with suppliers
Working closely with suppliers to identify areas where sustainability investments (i.e. improving food loss and waste management) might benefit the entire value chain can unlock significant reduction opportunities.
Invest in sustainable packaging
Switching to renewable, recyclable, or compostable materials, or optimizing packaging designs to use fewer materials and reduce total weight can considerably reduce embedded emissions of your products.
Transition to renewable energy
Replacing fossil fuels with renewable energy sources can drastically lower emissions from operations. Consider solar, wind, or biogas for production facilities and warehouses, and partner with suppliers using renewable energy to further reduce scope 3 emissions.
Optimize transportation and logistics
Transportation emissions can be reduced by improving logistics and adopting cleaner transportation methods. Consolidate shipments to maximize efficiency and minimize vehicle trips, and consider transitioning fleets to electric or low-emission vehicles.
Measure, track, and improve
Continuous monitoring of your emissions and reduction efforts is key to success. Use a tool like CarbonCloud to track progress, refine your climate strategy, and regularly revisit your data and goals to ensure alignment with your sustainability targets and evolving regulations.
How carbon offsetting can help you reduce your footprint
While reducing emissions should always be the priority, some carbon emissions are unavoidable. Carbon offsetting allows companies to balance these emissions by investing in projects that reduce or remove greenhouse gases from the atmosphere. Just remember that it’s a complementary strategy — not a replacement.
Ready to measure and manage your corporate carbon footprint?
The CarbonCloud platform can help you with science-backed data, supply chain engagement tools, and automated emissions modeling. Get in touch with our team today to get started.
Frequently Asked Questions
What’s the difference between a product and a corporate carbon footprint?
A product carbon footprint (PCF) measures the greenhouse gas emissions associated with the lifecycle of a single product, from raw material extraction to end-of-life disposal.
A corporate carbon footprint (CCF) accounts for the total emissions generated by a company’s entire operations and value chain, including all products, services, and activities.
How do you calculate a corporate carbon footprint (CCF)?
To calculate a corporate carbon footprint:
- Identify all sources of greenhouse gas emissions (scopes 1, 2, and 3).
- Collect data from operations, suppliers, and other value chain partners.
- Use emissions factors to quantify total GHG emissions. Tools like CarbonCloud can automate and simplify this process.
Why is calculating your carbon footprint important?
Calculating a corporate carbon footprint helps businesses:
- Comply with regulations like CSRD and meet sustainability reporting requirements.
- Identify inefficiencies and emissions hotspots to reduce costs and risks.
- Build trust with stakeholders and align with market expectations for sustainable practices.
- Lay the foundation for achieving net-zero goals and long-term resilience.
What role does carbon offsetting play in reducing a carbon footprint?
Carbon offsetting allows companies to balance unavoidable emissions by investing in projects that reduce or remove greenhouse gases from the atmosphere. While it’s not a replacement for direct reductions, offsetting complements a company’s broader carbon management strategy, helping to meet net-zero goals and demonstrate environmental leadership.
