In the context of climate change and growing concerns about environmental impacts, many companies face challenges in developing effective sustainability strategies. One concrete and binding solution that helps organisations address these challenges is carbon footprinting, a method used to quantify greenhouse gas emissions. With the introduction of the Corporate Sustainability Reporting Directive (CSRD) and the European Sustainability Reporting Standards (ESRS), the reporting of these emissions is becoming a mandatory requirement for companies in the European Union.

To adopt a sustainable strategy, companies need to understand their own environmental impact. The CO₂ balance sheet, also known as the "corporate carbon footprint", is a vital tool for measuring the greenhouse gas emissions generated by an organisation's activities. It identifies all sources of carbon emissions and enables companies to assess their contribution to climate change.

The carbon footprint thus becomes the basis for an effective sustainability strategy, providing a clear method for companies to identify major sources of emissions and develop reduction measures. In general, emissions are divided into three categories (Scopes) which help to categorise and assess different sources of emissions:

1. Scope 1 - direct emissions resulting from the company's own activities, such as burning fossil fuels in production or using its own fleet vehicles.
2. Scope 2 - indirect emissions caused by purchased energy consumption (e.g. electricity produced from non-renewable sources).
3. Scope 3 - Indirect emissions from supply chain activities, such as the manufacture of materials or the use of the company's products after the sale. These are the most complex and difficult to measure.

With the implementation of CSR, the European Union has introduced a detailed sustainability reporting framework, regulated by the European Sustainability Reporting Standards (ESRS), which set out concrete requirements for companies to fulfil when reporting greenhouse gas emissions and other sustainability issues.

Under the ESRS, companies are required to report their CO₂ emissions in all three emission scopes (Scope 1, 2 and 3). This means that organisations must assess both their internal emissions (Scope 1 and 2) as well as their supply chain and product use emissions (Scope 3) to provide a complete picture of their environmental impact. The CO₂ balance sheet thus becomes an essential component in this reporting process, and failure to fulfil this requirement can lead to penalties or reputational damage.

In addition to the legal requirements imposed by the ESRS, carbon footprinting brings benefits to companies that want to adopt a long-term sustainable approach. By identifying the main sources of emissions, companies can develop clear strategies to reduce them, such as improving energy efficiency, using alternative transport or switching to renewable energy sources.

Monitoring progress is another important benefit. Companies need to regularly monitor their performance and review their carbon footprint annually, ensuring that they are moving in the right direction in terms of their sustainability objectives.

For companies looking to simplify their CO₂ emissions calculation and reporting process, specialised software solutions offer essential help. Platforms such as Persefoni, Sustainability Cloud Salesforce, Watershed, Normative or Plan A allow companies to collect emissions data, certify them and develop customised reduction plans, helping to make an effective transition to more sustainable practices.