Corporate carbon footprint is the total greenhouse gas emissions resulting from all activities of a company; it is measured in three scopes: Scope 1 (direct), Scope 2 (purchased energy), and Scope 3 (value chain) according to GHG Protocol or ISO 14064-1 standard. This is different from the product/facility-based embedded emissions calculation required by CBAM — CBAM only requires emissions from the production of specific products, not the entire corporate Scope 1/2/3 inventory (details below).
Many companies view carbon measurement as an environmental project. However, as of 2026, the situation has changed: if you export to the EU, CBAM requires embedded emissions calculation; if you are under TSRS, you need carbon data in your sustainability report; your EU customers send EcoVadis or CDP inquiry forms.
- Corporate carbon footprint is measured under Scope 1, 2, and 3 according to GHG Protocol or ISO 14064-1 standard
- Scope 3 (value chain emissions) can constitute a large portion of total emissions in many companies — but this proportion varies significantly by sector
- Verified actual emissions data in sectors covered by CBAM can create a cost difference compared to the EU's current default values; the outcome is facility-specific
- EcoVadis, CDP, GRI, TSRS, and a large part of CBAM require carbon data; collecting this data correctly once can ease the burden of multiple platforms
What is Corporate Carbon Footprint?
Corporate carbon footprint is the sum of greenhouse gas emissions generated by all activities carried out by an organization within a specific accounting period. Emissions are expressed in CO₂ equivalent (CO₂e).
Calculation is done using one of two main approaches: GHG Protocol is a widely used guideline for corporate inventory. ISO 14064-1 is a certifiable standard suitable for independent verification.
Scope 1, 2 and 3 Emissions: Importance of Distinction
🏭 Direct Emissions
Emissions released directly into the atmosphere from sources owned by the company. Factory boilers, company vehicles, refrigeration systems.
⚡ Energy Emissions
Indirect emissions from the generation of purchased electricity, steam, heating, or cooling from external sources. There are two calculation methods: location-based and market-based (below).
🔗 Value Chain
Other indirect emissions occurring in the company's value chain but not directly controlled by it, divided into 15 categories.
Scope 2: Location-Based and Market-Based Calculation
| Method | Description |
|---|---|
| Location-based | Uses the average grid emission factor of your region; does not consider who your energy supplier is. |
| Market-based | Reflects your contractual energy supply (e.g., renewable energy certificates, YEK-G); may yield different results. |
GHG Protocol's Scope 2 Guidance recommends reporting both methods (dual reporting).
GHG Protocol or ISO 14064-1?
| Criterion | GHG Protocol | ISO 14064-1 |
|---|---|---|
| Purpose of Use | Corporate inventory, reporting | Corporate inventory + independent verification infrastructure |
| Certification | Does not provide certification on its own | Can be audited and verified by an accredited body |
| EcoVadis/CDP compliance | Yes | Yes |
| For CBAM | Corporate inventory tool; CBAM's own calculation/verification rules are separate | Corporate inventory tool; CBAM's own calculation/verification rules are separate |
Why is Corporate Carbon Measurement Becoming Prominent in 2026?
CBAM: Direct Cost for Exporters to the EU
Effective from 1 January 2026 under the definitive regime, CBAM (Carbon Border Adjustment Mechanism) concerns specific products exported to the EU in sectors such as iron and steel, aluminium, cement, fertilisers, hydrogen, and electricity — this is a product/facility-based embedded emissions calculation, different from the company's general carbon inventory. If the authorised EU declarant cannot obtain actual emissions data, they will have to use the European Commission's current default values.
TSRS Reporting: Report is Incomplete Without Carbon Data
According to the thresholds updated by KGK's decision dated 16.01.2026 (1 billion TRY total assets, 2 billion TRY net sales revenue, 500 employees — provided that at least two thresholds are exceeded for two consecutive reporting periods at the group level, starting from accounting periods in 2025), companies within scope are obliged to prepare a sustainability report. A significant part of this report includes climate and emissions data; this section cannot be completed without Scope 1 and 2 data.
EU Supply Chain: Your Customers are Requesting Data from You
Some large EU companies under CSRD may request information from their supply chains. EcoVadis assessment forms, CDP supply chain questionnaires, and customer ESG assessment forms are the most common examples. This may not be a direct legal obligation; however, failure to respond can affect commercial relations.
A general scenario assuming an exporter received an ESG inquiry form from its European customer requesting Scope 1, 2, and supplier-based Scope 3 data, but did not have a team knowledgeable about which emission factors to use or how to calculate this data. In this situation, unpreparedness often stems from not collecting data in advance, rather than the complexity of the calculation itself. The timeline and results in this scenario are not based on an actual customer record.
How to Calculate Corporate Carbon Footprint? 5 Steps
Define Organizational Boundaries
GHG Protocol offers two approaches: Control approach (all units over which you have operational or financial control are included) and Equity share approach (emission share based on your equity in joint ventures).
Identify and Categorize Emission Sources
All emission sources within the defined boundaries are listed under Scope 1, 2, and 3. Such as natural gas boiler (Scope 1), grid electricity (Scope 2), raw material transport (Scope 3 Category 4), employee commuting (Scope 3 Category 7).
Collect Data
Activity data is needed for each emission source: how many litres of fuel, how many kWh of electricity, how many tonnes of product transported how many km. Data sources: energy bills, fleet vehicle fuel logs, production records, supplier invoices, HR data.
Apply Emission Factor and Calculate
Each activity data is multiplied by the relevant emission factor and converted to CO₂e.
Example calculation: Annual 120,000 kWh grid electricity × 0.7134 kg CO₂e/kWh (Ministry of Energy and Natural Resources, 2023 activity-based margin emission factor) = ~85.6 tonnes CO₂e. This value is updated annually; check the most current official form when calculating. Other accepted sources: IPCC, DEFRA, EPA.
Verify and Report
Reporting without verification: Generally sufficient for voluntary internal reporting, GRI reports, or some EcoVadis formats.
Independent verification: For CBAM emissions data, a verifier accredited specifically for CBAM according to EU's CBAM-specific accreditation rules is required. It is also a recommended path for those aiming for CDP A-list.
Scope 3: Why Often the Hardest, Often the Most Important?
Scope 3 emissions can constitute a significant portion of the total carbon footprint for many companies; however, this proportion varies greatly depending on the sector, business model, and structure of the value chain — there is no universal percentage.
| Sector | Priority Scope 3 Categories |
|---|---|
| Textile / Apparel | Category 1 (raw materials: cotton, polyester), Category 4 (logistics), Category 11 (Use of Sold Products) |
| Iron & Steel | Category 1 (ore and coal supply), Category 4 (raw material transport) — CBAM embedded emissions are a separate product-based calculation |
| Food / Beverage | Category 1 (agricultural raw materials), Category 4 (cold chain logistics), Category 12 (End-of-Life Treatment of food waste) |
| Chemicals | Category 1 (petrochemical raw materials), Category 11 (emissions from product use) |
| Retail / Logistics | Categories 4 and 9 (upstream + downstream transportation), Category 7 (employee commuting) |
How to Collect Scope 3 Data?
- Actual data from supplier: The most accurate method. Applicable for large suppliers, difficult for small ones.
- Spend-based estimate: Amount paid to supplier × sector emission intensity factor. Common as an initial estimate for Category 1.
- Average data: Sector average emission factors. Least accurate but used in the absence of data.
A general scenario assuming a food producer initially calculated only factory natural gas and electricity in its first carbon inventory, then found the total figure significantly increased after including agricultural raw material suppliers (Category 1). This is constructed to demonstrate that neglecting Scope 3 can lead to strategic decisions (e.g., "net-zero" targets) being based on incorrect foundations; these are not verified figures belonging to a specific company.
Carbon Data Once, for Multiple Platforms: EcoVadis, CDP, GRI, TSRS, CBAM
Many companies initiate separate processes for each ESG platform. However, a significant part of the data requested by platforms relies on the same sources: Scope 1, 2, and partly Scope 3 emissions.
🌍 EcoVadis
Includes environmental impact, energy, and emissions data; the contribution of this data to the overall score is not specified as a definite percentage in EcoVadis's public methodology.
📊 CDP
Scope 1, 2, and key Scope 3 categories are requested within the questionnaire. Many institutional investors use this data.
🇹🇷 TSRS
Climate risk and Scope 1/2 disclosures are core content. Compatible with ISSB/IFRS S2, but TSRS uses single materiality.
⚖️ CBAM
Embedded emissions declaration relies on product/facility-based direct and, if necessary, indirect emissions data; it is not identical to a general corporate Scope 1/2/3 inventory.
After Measurement: Net Zero Roadmap
1. Measure
Prepare Scope 1, 2, and 3 inventory with GHG Protocol or ISO 14064-1. Define your base year.
2. Reduce
Science-based reduction plan with SBTi targets. Energy efficiency, renewable energy, supply chain optimisation.
3. Offset
Quality carbon offsets certified by Gold Standard or VCS for unavoidable remaining emissions.
What are Science Based Targets (SBTi)?
Science Based Targets initiative (SBTi) is a framework used by companies to set emissions reduction targets consistent with the Paris Agreement. We recommend checking the official SBTi source for the current number of participants.
Carbon Offsets: When Valid, When Misleading?
The generally accepted approach is: first, technical and operational reductions are made, and then quality offsets are preferred for remaining and unavoidable emissions. Claiming net-zero solely by purchasing offsets without reduction efforts can be considered greenwashing and carries a reputation risk. Quality offset standards: Gold Standard, Verified Carbon Standard (VCS/Verra), Plan Vivo.
Frequently Asked Questions
Practical Suggestions to Get Started
✅ 3-Step Start-up Plan
- First step — Set up Scope 1 and 2: Energy bills and fuel records are already available in most companies. Collecting this data and calculating with current official emission factors is a relatively short task.
- Next year — Add priority Scope 3 categories: Select 2-3 categories that account for the largest share according to your sector. Prioritise based on materiality analysis, not all 15 categories at once.
- Long-term — Collect data throughout the year: Instead of rushing to collect data once a year, regularly monitor energy and fuel data.
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