Carbon footprint

Definition

A carbon footprint is the total amount of greenhouse gases, primarily carbon dioxide, that are emitted directly or indirectly by human activities. It is measured in units of carbon dioxide equivalents (CO2e).

5 Must Know Facts For Your Next Test

1. Carbon footprints can be calculated for individuals, organizations, products, and processes.
2. Reducing a company's carbon footprint can lead to cost savings through energy efficiency and waste reduction.
3. Sustainability reporting often includes disclosures about a company's carbon footprint and efforts to reduce it.
4. Businesses use carbon footprint data to identify areas where they can improve sustainability and create business value.
5. Carbon offsetting involves compensating for emissions by funding equivalent CO2 saving projects like reforestation.

Review Questions

• What is a carbon footprint and how is it measured?
• How can reducing a company's carbon footprint create business value?
• What role does carbon footprint play in sustainability reporting?

Related terms

Greenhouse Gases: Gases that trap heat in the atmosphere, contributing to global warming; examples include CO2, methane, and nitrous oxide.

Sustainability Reporting:

The practice of disclosing an organization's environmental, social, and governance (ESG) performance to stakeholders.

Carbon Offsetting: A method for compensating CO2 emissions by investing in environmental projects aimed at reducing future emissions.