Climate strategy under scrutiny: How the corporate carbon footprint becomes a competitive advantage

20 March 2025 – In times of net-zero targets and stricter regulations, determining the corporate carbon footprint is becoming a crucial component of sustainable corporate strategies – and delivering tangible competitive advantages.

Global pioneers are leading the way: Tech giants like Apple, Amazon, and Microsoft have already committed to ambitious climate goals. Apple, for example, aims to make all its products and its entire supply chain carbon neutral by 2030, Amazon plans to achieve carbon neutrality by 2040, and Microsoft even aims to offset all historical emissions by 2050. More and more companies around the world are following this trend— 45% of Fortune Global 500 companies alone have committed to being net carbon neutral by 2050. This wave of commitments increases the pressure on all companies to systematically calculate their own corporate carbon footprint (CCF) .

“What gets measured, gets managed.”

-Peter Drucker

This is precisely why precise CO₂ accounting is now becoming an integral part of modern business strategies.

Planning a Corporate Carbon Footprint

The starting point for creating a CCF is careful planning . Here are some crucial steps:

Top management support: Climate issues are now a board priority. 70% of executives say climate change will have a significant impact on their company's strategy and operations over the next three years.

Defining the scope: Companies must define which emissions they take into account:

• Scope 1: Direct emissions from company-owned sources (e.g. vehicle fleet, production facilities)

• Scope 2: Indirect emissions from purchased energy (electricity, heat, steam)

• Scope 3: All other emissions along the value chain (suppliers, transport, product use)

Selecting a standard: Internationally recognized frameworks such as the GHG Protocol Corporate Standard or ISO 14064 ensure consistent and reliable accounting.

Integration into corporate strategy: Many companies make climate indicators a KPI that is regularly reported and tracked.

The biggest challenge? Indirect Scope 3 emissions are often the most significant leverage point—but also the most difficult category to measure. Companies have limited influence over these external emission sources; detailed data from suppliers is often lacking. Yet this is precisely where enormous reduction potential lies.

Implementation: Data collection and calculation

The implementation phase involves the actual data collection and calculation of the corporate carbon footprint. The key elements:

Identifying emission sources: Which corporate activities cause greenhouse gases? Typical categories:

• Energy consumption in buildings

• Corporate fleets and logistics

• Purchased goods and services

• Waste management and disposal

Recording of activity data: electricity consumption in kWh, fuel consumption in liters, transport kilometers traveled, etc.

Calculation of emissions

• Using scientifically recognized emission factors, the data is converted into CO₂ equivalent.

• Different gases such as methane or nitrous oxide are standardized and converted into a common unit.

Documentation and transparency: Every assumption and estimate should be recorded in a comprehensible manner, ideally with external audit.

This structured approach creates a detailed picture of CO₂ emissions – the basis for effective reduction measures.

Challenges in CO₂ accounting

Some key challenges in creating a CCF:

• Scope 3 data gaps: Suppliers often do not have accurate CO₂ data, forcing companies to work with estimates.

• Double counting or gaps: Different data sources must be harmonized to avoid distortions.

• Regulatory requirements: The EU requires large companies to report comprehensively on CO₂ emissions under the CSRD.

But the effort is worth it! Companies gain valuable insights into optimization potential, reduce costs, and secure competitive advantages.

Strategic anchoring and implementation

After the calculation, the crucial step follows: the implementation of climate protection measures . Typical measures include:

• Energy efficiency measures: Investments in modern technologies reduce emissions and costs.

• Switch to renewable energies: Solar and wind energy replace fossil fuels.

• Supply chain optimization: Collaboration with suppliers to reduce CO₂ emissions in Scope 3 areas.

• Greener mobility concepts: converting company fleets to electric vehicles, preferring rail instead of air travel.

• CO₂ compensation: Offsetting unavoidable emissions through investments in climate protection projects.

  
  

Communication is also essential. A published carbon footprint demonstrates responsibility and builds trust among stakeholders, customers, and investors. Many companies have their carbon footprints audited externally or participate in ratings.

From climate risk to opportunity

A well-planned corporate carbon footprint offers companies tangible benefits:

• Transparency about emission sources and reduction potential

• Meeting growing regulatory requirements

• Competitive advantages through sustainability strategy

• Cost savings through energy efficiency measures

• Strengthening corporate reputation

Climate management and business success are not mutually exclusive—on the contrary: companies that act proactively now secure a strategic advantage . The corporate carbon footprint is more than just a reporting tool—it is becoming a key instrument of modern corporate management . Those who know their emissions can set effective goals, prioritize measures, and thus promote both climate protection and economic success .

Elevate your climate strategy and secure a competitive edge.

Partner with us now to transform your corporate carbon footprint into a powerful driver of long-term success.