Common Misconceptions About Carbon Footprint Reporting

For the past two years, 3pmetrics has been providing corporate carbon footprint calculation and reporting services, as well as actively working on creating net-zero carbon roadmaps.

The good thing is that when companies start working with us, they don’t only view the topic as carbon footprint calculation. However, many companies, until they meet us, had misconceptions about the subject. One of the main reasons for this is that consulting firms tend to steer companies toward their own area of expertise. This has become more of an inside joke for us, a “carbon therapy,” due to the “wrong information” learned from the “wrong people,” which we repeatedly address in most meetings.

That’s why in this article, we wanted to highlight the common misconceptions surrounding carbon footprints. Many companies often get stuck on three main pieces of incorrect information. Here are the common myths about carbon footprint calculations:

Myth 1: “Scope 3 emissions are unnecessary.”

A report was published last year by WBCSD, the main creator of the GHG Protocol, along with WRI. This report was translated into Turkish by SKD Turkey and us at 3pmetrics under our consultancy: “SOS 1.5: Roadmap for Net Zero Carbon”.

Since the report was directly published by WBCSD, the creators of the GHG Protocol, let’s begin by referring to it. The report clearly states that Scope 3 emissions should be the top priority for companies when creating their net-zero carbon roadmap.

On page 22 of the Turkish version of the report, the findings from the CDP survey — a result of company interviews conducted by WBCSD and BCG in the first quarter of 2020 — are very clear. Scope 3 emissions account for more than 90% of companies’ actual inventories.

This chart demonstrates that the success in carbon footprint calculation lies in how many emission sources are tracked under Scope 3, not just calculating the carbon footprint itself. For example, in the food sector, Scope 3 emissions account for 95%, and in the Fast-Moving Consumer Goods (FMCG) sector, this figure rises to 98%.

Myth 2: “We have an accredited software.”

Carbon footprint calculations are done based on the GHG Protocol methodology and reported according to the ISO 14064 standard. The ISO 14064 standard does not accredit the calculation method itself but accredits the final report produced, which should be verified by an external auditor. Whether you calculate your carbon footprint manually, using Excel, with a consultant, or a software, there is no accreditation for the calculation methodology. There is no reference to such accreditation in the ISO 14064 standard either. Anyone claiming this is misleading you.

The ISO 14064 standard is about ensuring that the produced report aligns with the standard. The term “accredited software” is a marketing tactic, often more of a shallow deception rather than something innocent. Unfortunately, it’s an attempt to mislead customers. At 3pmetrics, we are one of the 48 official partners working on the new GHG Protocol guidelines for land sector emissions and reduction impacts. Despite being a partner in this project, no one has ever asked us whether our software is accredited because such an accreditation does not exist :)

Myth 3: “Carbon footprint calculations are done once a year.”

As summarized in the Global Risks report by the World Economic Forum, sustainability risks are now business risks. It’s not wrong to prepare a carbon footprint report once a year according to the ISO 14064 standard. However, this is quite inadequate. The “SOS 1.5: Roadmap for Net Zero Carbon” publication, which we worked on with SKD Turkey and WBCSD, reiterates this point. Simply calculating the carbon footprint once a year, discussing the report in one or two meetings, and then shelving it doesn’t align with current practices. Just like monthly production changes and revenue-expenses are tracked regularly, companies aiming to manage their carbon footprint effectively should avoid calculating it just once a year.

The Importance of Carbon Footprint Management for Your Business

According to the “Sustainable Banking Strategic Plan (2022-2025)” published by the Banking Regulation and Supervision Agency (BRSA) on December 27, 2021, it’s clear that the carbon regulation mechanisms, which will be implemented in stages starting in 2026 as part of the European Green Deal, pose significant risks for the Turkish economy, particularly for those industries exporting to EU countries. Furthermore, the same report emphasizes that environmental and social sustainability criteria must be managed alongside financial criteria. It states that: “In the near future, environmental and social sustainability criteria will be a prerequisite for access to financing. Companies with insufficient performance in this area will find it increasingly difficult to access financing in both national and international markets.”

In conclusion, carbon footprint calculation and reporting is becoming an increasingly important topic. However, eliminating misconceptions in this field will help companies achieve their sustainability goals with the right strategies. Effectively managing your carbon footprint will not only help reduce your environmental impact but will also make your business processes more efficient.

The Role of Carbon Footprint Management in Business Processes

Cost Efficiency: Calculating and reporting your carbon footprint provides companies with opportunities to use energy and resources more efficiently. This can lead to savings in areas like sustainable energy use and waste reduction.

Risk Management: Carbon footprint calculation helps companies understand sustainability risks better. This enables them to comply with regulations like the Green Deal and makes their business processes more resilient.

Reputation Management: Managing your carbon footprint demonstrates environmental responsibility. This strengthens your brand value and boosts consumer and investor confidence.

Carbon footprint management is becoming more critical every day. Proper and effective management will not only reduce your environmental impact but also improve your business processes. Actions taken in this area will not only support your company’s green transformation but also improve its financial performance. Therefore, today, carbon footprint management has become an integral part of business processes.

With 3pmetrics, you can manage your carbon footprint through accurate calculations and verifiable reporting, and reach your net-zero goals with an effective net-zero carbon roadmap. Contact us to explore the sustainability solutions we offer to companies.

Sources

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