Carbon Footprint Analysis Explained

Want to measure your company's carbon emissions? Here's what you need to know:

4 main ways to track carbon emissions:

Method	Best For	Key Feature	Cost
GHG Protocol	Any size business	3-scope framework	Free tools
ISO 14064	Large companies	Step-by-step process	Higher costs
PAS 2050	Product-focused	Tracks single items	Medium range
EcoHedge	Small-medium business	Automatic tracking	£999/year

Quick comparison of tracking methods:

Feature	GHG Protocol	ISO 14064	PAS 2050
Structure	3 scopes	6 categories	Product lifecycle
Data Needed	Basic records	Detailed logs	Full product data
Verification	Optional	Required	Required
Complexity	Low	High	Medium

Here's the thing: 75% of most companies' emissions come from their supply chain (Scope 3).

The numbers don't lie:

• 81% of S&P 500 companies report emissions
• 22,000+ companies worldwide track carbon
• Carbon tracking market growing 28.66% yearly

Bottom line: Pick GHG Protocol if you're starting out. Use ISO 14064 if you need detailed verification. Choose PAS 2050 for product-specific tracking. Go with EcoHedge if you want automation.

A YouTube Video Explaining the Concept of Scopes:

GHG Protocol: The Global Standard

The GHG Protocol splits emissions into three categories that every company needs to track:

Scope	What It Measures	Examples
Scope 1	Direct emissions you control	Company vehicles, on-site fuel burning
Scope 2	Indirect energy emissions	Purchased electricity, heating, cooling
Scope 3	All other indirect emissions	Supply chain, business travel, waste

Here's how companies use the Protocol to measure their carbon footprint:

1. Map Your Emissions

Start by listing EVERY source of emissions across all scopes. For a factory, this means:

• Equipment emissions
• Building energy use
• Staff commutes
• Material shipping

2. Get Your Numbers

Pull data from:

• Utility bills
• Fuel records
• Travel logs
• Supplier data

3. Do The Math

The Protocol comes with free tools that convert your data into CO2 numbers:

Tool Type	What It Does
Cross-sector	Basic math for any business
Sector-specific	Special tools for industries like cement
Country-specific	Calculations based on local power grids

The Protocol's impact? It's HUGE. 92% of Fortune 500 companies use it. And here's something that might surprise you: 75% of most companies' carbon footprint comes from Scope 3 emissions.

4. Get It Checked

You can't just calculate and call it done. The Protocol requires outside experts to:

• Look at your data
• Double-check calculations
• Sign off on results

These verified numbers let companies:

• Create carbon targets
• See if they're improving
• Show results to investors
• Meet government rules

Bottom line: The Protocol works because it's based on hard numbers and clear steps. It's carbon accounting made simple - no fluff, just facts.

2. ISO 14064: Step-by-Step Guidelines

ISO 14064 breaks down GHG emissions into six categories - it's simpler than the GHG Protocol's three scopes:

Category	What It Measures	Examples
1. Direct Emissions	Sources you control	Factory equipment, company cars
2. Imported Energy	Energy you buy	Electricity, heating
3. Transportation	Outside transport	Supplier deliveries, customer shipping
4. Products Used	Making what you use	Raw materials production
5. Product Usage	Customer emissions	When people use your products
6. Other Sources	Everything else	Waste disposal, employee commuting

Here's how to implement ISO 14064:

1. Pick Your Targets

Get your basics ready: utility bills, shipping logs, and supplier information. Know what you want to measure.

2. Set Your Limits

ISO 14064 gives you three options to define your measurement scope:

Boundary Type	What's Included
Operational Control	Everything you run
Financial Control	Everything you own
Equity Share	Based on ownership %

3. Get Your Numbers

Grab these for each category:

• Energy bills
• Fuel receipts
• Travel records
• Production data

4. Calculate Emissions

Turn your data into CO2 numbers. Here's how it works:

• 1 kWh electricity = X kg CO2
• 1 liter fuel = Y kg CO2

5. Verify Results

"Verification boosts GHG data accuracy and helps build better reduction plans", says Jun Ooi, ISO Lead Auditor with 11+ years of experience.

Verifiers check:

• Data quality
• Math accuracy
• Method correctness

ISO 14064 vs GHG Protocol - key differences:

Feature	ISO 14064	GHG Protocol
Structure	6 categories	3 scopes
Flexibility	Choose your methods	Set methods
Focus	Verification process	Calculation details
Requirements	Less strict	More detailed

Your ISO 14064 results matter to:

• Investors
• Customers
• Regulators
• Carbon markets

3. PAS 2050: Product Carbon Measurement

PAS 2050 is the first standard for measuring a product's carbon footprint. Released by BSI in 2008, it tracks emissions throughout a product's life.

Here's what PAS 2050 measures at each stage:

Life Cycle Stage	What to Measure	Data Needed
Raw Materials	Extraction and processing	Supplier emissions data
Manufacturing	Production processes	Energy usage, waste data
Distribution	Transport and storage	Shipping records, fuel use
Usage	Customer product use	Product energy consumption
End-of-Life	Disposal or recycling	Waste management data

The process works in 4 main steps:

1. Pick Your Scope

You'll need to decide what goes into your calculations:

• Manufacturing emissions
• What suppliers produce
• Moving products around
• How customers use products

2. Get Your Numbers

Data Type	Sources
Primary Data	Energy bills, production logs
Secondary Data	Industry averages, emission factors
Supply Chain Data	Supplier reports, transport records

3. Do The Math

PAS 2050 keeps it focused:

• Skips anything under 1% of total emissions
• Must cover 95% of the product's life
• Counts carbon storage up to 100 years

4. Check Your Work

You'll need outside experts to verify:

• Your numbers are right
• Your math adds up
• You kept good records

Protocol Feature	PAS 2050 Requirement
Cut-off Level	<1% of emissions
Coverage	95% minimum
Carbon Storage	Must be included
Verification	Third-party required

The proof? An MDF study showed PAS 2050 measured -667.75 kg CO₂e, close to GHG Protocol's -658.42 kg CO₂e, while ISO 14067 showed 816.92 kg CO₂e.

Want to use PAS 2050? Here's what you need:

• EcoHedge software (£999/year)
• BSI verification
• Industry calculators

"The 2011 revision of PAS 2050 makes the methodology more relevant and accessible to a wider range of businesses", - Rob Smallcombe, EcoHedge founder

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4. EcoHedge: Automated Carbon Tracking

EcoHedge connects to your existing business tools to track carbon emissions automatically. It pulls data from 20+ accounting apps, so you don't have to do the work manually.

Here's what EcoHedge tracks:

Category	What It Tracks	How It Works
Direct Emissions	Fuel use, company vehicles	Links to fuel cards, expense systems
Purchased Energy	Electricity, heating	Connects to utility accounts
Supply Chain	Supplier emissions	Pulls from accounting software
Business Travel	Flights, accommodation	Integrates with booking systems

The software works in 3 steps:

1. Data Collection

EcoHedge automatically grabs data from your:

• Bank statements
• Utility bills
• Travel bookings
• Supplier invoices

2. Auto-Categorization

The system organizes your emissions like this:

Emission Type	Examples
Scope 1	Gas, fleet fuel
Scope 2	Bought electricity
Scope 3	Business travel, purchases

3. Report Generation

You'll get clear reports showing:

• Monthly emission totals
• Year-on-year changes
• Reduction targets
• GHG Protocol reports

Here's what you get:

Feature	Details
Data Import	20+ accounting app connections
Calculations	Built-in emission factors
Reporting	GHG Protocol aligned
Cost	£999/year

"EcoHedge software makes carbon accounting as simple as financial accounting by automating data collection and calculations", - Rob Smallcombe, EcoHedge founder

The software supports major frameworks like GHG Protocol, ISO 14064, and PAS 2050 - perfect for businesses just starting with carbon tracking.

What Works and What Doesn't

Let's break down how different carbon tracking methods perform:

Method	Works Well	Doesn't Work Well
GHG Protocol	• Clear scope definitions (1, 2, 3) • Flexible guidelines • Works for any company size	• No formal certification • Less structured verification • Limited calculation guidance
ISO 14064	• Third-party verification • Step-by-step framework • Strong data accuracy	• Complex implementation • Higher costs • Time-intensive process
PAS 2050	• Clear cut-off rules • Specific product focus • Carbon storage tracking	• Limited to products only • Less suited for services • Requires 95% lifecycle data

Here's what you need to know about data collection:

Approach	Best For	Main Drawbacks
Activity-Based	• Large companies • Detailed reporting needs • Regulatory compliance	• High data requirements • More expensive • Takes longer
Spend-Based	• Small businesses • Quick assessments • Limited budgets	• Less accurate • Based on averages • Missing specific details
Hybrid	• Mid-sized companies • Balanced approach • Getting started	• More complex setup • Needs both data types • Higher initial effort

Let's look at how different software options stack up:

Software	Strong Points	Weak Points
Sweep	• L'Oreal and Burberry use it • Good for large companies • Strong supplier tracking	• Limited reporting features • Higher price point • Complex setup
Watershed	• Used by FedEx and Walmart • Full sustainability tools • Good dashboards	• Manual data entry needed • Service-dependent • Less automation
EcoHedge	• 20+ app connections • Quick setup • £999/year pricing	• Newer platform • Limited features • UK-focused

"The best carbon accounting software should match your company's size, budget, and data needs", says Rob Smallcombe, EcoHedge founder.

The numbers tell an interesting story. Take medium-density fiberboard production:

• PAS 2050: -667.75 kg CO2e
• GHG Protocol: -658.42 kg CO2e
• ISO 14067: 816.92 kg CO2e

Why such big differences? It comes down to three factors:

• Data inclusion rules
• Carbon storage calculations
• Process boundary definitions

Key Takeaways

Here's what different companies need for carbon tracking:

Company Size	Best Method	Best Software	What You Get
Small Business	GHG Protocol	EcoHedge	• Links to 20+ apps • Costs £999/year • Handles basic reports
Medium Business	Hybrid Approach	Watershed	• FedEx's top pick • Clear data views • Both auto and manual tracking
Large Enterprise	ISO 14064	Persefoni	• Outside checks • Money-focused reports • Built for big companies

Pick your tracking style based on what you need:

What You Want	How to Do It	What to Expect
Fast Check	Spend-based	• 2-4 weeks to start • 70-80% right • Costs less
Deep Dive	Activity-based	• 8-12 weeks to start • 90%+ right • Costs more
Middle Ground	Hybrid	• 4-6 weeks to start • 80-85% right • Medium price

The numbers show why this matters:

What We See	The Facts
Market Growth	Up $9.61B by 2026
How Fast	28.66% yearly jump
Big Business	92% of Fortune 500 use GHG Protocol
Who Reports	8,400+ companies in 2019

"Pick carbon software that fits your size, money, and data needs", - Rob Smallcombe, who started EcoHedge.

What works:

• Use one tool for everything
• Start with Scope 1 and 2, add Scope 3 later
• Match your method to your data
• Get tools that work with what you have
• Think about outside checks

See how others did it:

Who	What They Did	What Happened
IKEA	New bio glues	Cut climate impact 6%
L'Oreal	Uses Sweep	Better supplier data
Walmart	Picked Watershed	Full green tracking

FAQs

What is the difference between PCF and LCA?

PCF focuses ONLY on carbon emissions, while LCA looks at ALL environmental impacts. Here's a breakdown:

Aspect	Product Carbon Footprint (PCF)	Life Cycle Assessment (LCA)
Focus	Only GHG emissions	Multiple impacts (emissions, land use, ozone depletion)
Scope	Product-level carbon tracking	Full environmental analysis
Measurement	CO2 equivalents (CO2e)	Various environmental metrics
Analysis Type	Can be cradle-to-gate	Always cradle-to-grave
Time to Complete	Shorter	Longer

Pick PCF when you need:

• Quick carbon numbers
• GHG Protocol reporting
• Product-specific emission data

Go with LCA if you want:

• A complete environmental picture
• Supply chain analysis
• ISO 14064 compliance

Bottom line: PCF gets you carbon data fast. LCA takes longer but shows every environmental impact.

Related Blog Posts

• Carbon Footprint Accounting Simplified for SMEs
• Carbon Footprint of a Business: Streamlining Your Strategy
• Eco Carbon Footprint: Navigating the Technicalities
• Greenhouse Gas Production: Navigating Carbon Accounting