Common Misconceptions About Carbon Footprint Reporting

For the last two years, as 3pmetrics, we have been supporting companies not only with corporate carbon footprint calculation and reporting services, but also with intensive work to create net zero carbon roadmaps.

What is good is that when companies start working with us, they do not look at the topic only as “a carbon footprint calculation.” However, many companies we encountered had misinformation about the subject before they met us. One of the biggest reasons behind this is that consulting firms may try to steer companies toward only the area they focus on.

In many meetings we have repeated this so often that the “wrong information” learned from “the wrong people” stopped being a joke among us—and turned into “carbon therapy.”

That is why, in this post, we wanted to address misconceptions about carbon footprint. Many companies get stuck on three common wrong beliefs. Here are the misconceptions that are commonly found in carbon footprint reporting:

Misconception 1: “Scope 3 emissions are unnecessary.”

A report was published last year jointly by WRI (the main creator) and WBCSD (the main creator) together with the carbon footprint methodology GHG Protocol. Through our consultancy collaboration, SKD Türkiye and 3pmetrics also translated this report into Turkish:
“SOS 1.5: Roadmap for Net Zero Carbon.”

Because this report was published directly by WBCSD—the developer of GHG Protocol—we start by referencing it directly. The report clearly states that for companies, the most important subject to prioritize for a net zero carbon roadmap is Scope 3 emissions.

The outcome of the CDP survey, which appears on page 22 of the Turkish version of the report—that is, the results of company interviews conducted by WBCSD and BCG in the first quarter of 2020—is very clear. Scope 3 emissions account for more than 90% of companies’ real inventories. This table shows that it is a success to follow such a large number of emission sources under the Scope 3 heading. In the report, Scope 3 emissions for the food sector are cited as 95%, and for the Consumer Products (FMCG) group as 98%.

Misconception 2: “We have an accredited software.”

Carbon footprint is a calculation made according to the GHG Protocol methodology and reported according to the ISO 14064 standard. ISO 14064 standard accredits the report output—validated by an external verifier—not the calculation method itself. In other words, whether you calculate your carbon footprint manually, in Excel, with a consultancy, with software, or even “the old-school way,” there is no accreditation of the calculation methodology. There is no such reference in ISO 14064 either. Claiming otherwise is misleading.

In ISO 14064, the act of producing a report and the fact that the produced reports comply with the standard is real. The phrase “accredited software” is essentially a marketing move that may look harmless, but unfortunately is something beyond that—more than simple cunning. Worse still, it is an attempt to mislead the customer. As 3pmetrics, we are one of the official partners worldwide of the new guide that GHG Protocol is developing regarding land-sector emissions and reduction impact. Even though we are an official partner for the new version of GHG Protocol, they have not asked us whether our “software is accredited.” Why wouldn’t they ask? Because such accreditation does not exist.

Misconception 3: “Carbon footprint calculation is done once a year.”

As summarized in the Global Risks report published by the World Economic Forum, sustainability risks increasingly mean business risk. Preparing a one-year carbon footprint report limited to ISO 14064 only is not wrong—but it is incomplete.

This is something that the SOS 1.5: Roadmap for Net Zero Carbon publication—published by WBCSD and made available in Turkish together with SKD Türkiye—keeps emphasizing again and again. Calculating a carbon footprint only once a year and discussing it in maybe 1–2 meetings, then putting it back on the shelf, is not keeping up with the present. Just as monthly changes in production and monthly items like income and expense are tracked periodically, companies that want to manage carbon footprint correctly should avoid limiting themselves to calculating it only once per year.

The Importance of Managing Your Carbon Footprint and Its Contribution to Business Processes

On page 12 of the “Sustainable Banking Strategic Plan (2022–2025)” published by the Banking Regulation and Supervision Agency (BDDK) on 27 December 2021, the message is very clear:

“The Carbon Border Adjustment Mechanism—envisioned by the ‘European Green Deal’ published in 2019 and to be implemented gradually starting in 2026—poses a significant risk for our country’s economy, which realizes nearly half of its exports to the EU member states.”

Additionally, on the same page, the same report explicitly states that sustainability issues must be managed together with financial aspects:

“In the very near future, environmental and social sustainability criteria are expected to become a prerequisite for access to financing, and firms that do not demonstrate sufficient performance in this area will increasingly face difficulty in accessing financing in both national and international markets.”

As a result, carbon footprint reporting is becoming an increasingly important topic every day. However, removing incorrect information in this area will enable companies to reach sustainability goals with the right strategies. Managing your carbon footprint correctly and efficiently does not only help you reduce environmental impacts—it also makes your business processes more efficient.

Contributions of Managing Your Carbon Footprint to Business Processes

Cost Efficiency: Calculating and reporting carbon footprint provides opportunities for companies to make their energy and resource use more efficient. This creates savings in areas such as sustainable energy use and waste reduction.

Risk Management: Carbon footprint reporting helps companies better understand their sustainability risks. This enables compliance with regulations such as the Green Deal and makes business processes more resilient.

Reputation Management: Managing carbon footprint demonstrates that companies are fulfilling their environmental responsibilities. This strengthens the brand value of the company, reinforcing trust among consumers and investors.

Carbon footprint is becoming more and more important. Proper and effective management not only helps you reduce your environmental impact—it also makes your business processes more efficient. The actions you take at this point do not only contribute to your company’s green transformation, but can also improve your financial performance. That is why, today, carbon footprint management has become an integral part of business processes.

With 3pmetrics, you can manage your carbon footprint through auditable reporting. With the effective net zero carbon roadmap we build together, you can reach your net zero targets. Contact us and explore the sustainability solutions we offer to companies.

Sources

SOS 1.5: A Roadmap for Net Zero Carbon
BDDK Sustainable Banking Strategic Plan (2022–2025)