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Introduction
The GHG inventory — commonly referred to as the Corporate Carbon Footprint (CCF) — is today one of the most central ESG metrics. Few other indicators attract as much attention from regulators, investors, customers, and the public.
Even though data collection, boundary-setting, and calculation can be complex and at times resource-intensive, companies can no longer afford to ignore it. Why has this particular metric gained such momentum?
The answer lies in its strategic significance: the GHG inventory makes climate impact measurable. It links regulatory requirements with financial risks, operational management, and long-term competitiveness. Those who can transparently capture their emissions lay the groundwork for credible climate targets — and for concrete decarbonisation measures.
The GHG inventory is therefore far more than a reporting obligation. It is a management tool in an economy that is structurally moving towards climate neutrality.
Six steps to a robust CCF
A well-structured CCF accounting process saves time, avoids unnecessary costs — and creates the basis for effective reduction measures.
Figure 1: Steps to the GHG inventory. Source/Copyright: susform GmbH
1. Define objectives, standard, and system boundaries The first step is to define the purpose of the Corporate Carbon Footprint — for example, internal management, regulatory compliance, or external communication. Building on this, organisational and operational system boundaries are established, i.e. which entities, locations, and activities are included. A distinction is made between the operational control approach and the financial control approach. These decisions determine the scope, data depth, and informational value of the entire inventory.
At this stage, it is also necessary to determine which standard should underpin the CCF calculation. The most widely used internationally is the Greenhouse Gas Protocol, which serves as the methodological basis for many regulatory requirements. In addition, ISO has introduced a parallel standard with ISO 14064.
2. Identify emissions sources and methods In the next step, all relevant emissions sources along the value chain are identified. The Greenhouse Gas Protocol divides GHG emissions into three so-called scopes. Scope 1 covers all direct emissions from sources owned or controlled by the company, such as its own fossil-fuel installations, vehicles, or processes. Scope 2 includes indirect emissions from purchased energy such as electricity, heat, or steam, which arise outside the company but are caused by its energy procurement. Scope 3 captures all remaining indirect emissions along the upstream and downstream value chain — from purchased raw materials through transport and business travel to the use and disposal of sold products. In many industries, Scope 3 accounts for the largest share of the total Corporate Carbon Footprint, often up to 80–90%.
Figure 2: GHG scopes per GHG Protocol. Source/Copyright: susform GmbH
3. Collect activity data The required activity data is then gathered — for example, energy consumption, material quantities, or transport kilometres. Where possible, primary data should be used as it offers the highest accuracy. Missing data must be estimated in a traceable manner and documented transparently.
4. Select emissions factors The collected activity data is converted into CO₂ equivalents using appropriate emissions factors. The key is selecting factors that are current, geographically relevant, and methodologically consistent. The quality of this selection significantly influences the informational value of the inventory.
5. Calculate emissions The actual calculation is performed by multiplying the activity data by the respective emissions factors. The results are aggregated and presented in a structured breakdown by scope. This produces a complete picture of the company-wide carbon footprint.
6. Documentation and analysis Finally, assumptions, methods, data sources, and results are documented transparently. Particularly important is the analysis of emissions hotspots to identify priority areas for action. The GHG inventory thus forms the basis for concrete decarbonisation measures and a continuous improvement process.
Focus beats perfection
For calculating a Corporate Carbon Footprint, various methodological approaches are available — depending on data availability. They differ primarily in terms of accuracy, effort, and management effectiveness.
Figure 3: Methods for GHG accounting. Source/Copyright: susform GmbH
Measurement / supplier data This method is based on directly measured emissions or specific data from suppliers. It offers the highest accuracy and is particularly well suited to reliably tracking progress on decarbonisation. The effort required is, however, comparatively high.
Volume- or quantity-based calculation Here, precise activity data (e.g. litres of fuel, kWh of electricity, tonnes of material) are multiplied by appropriate emissions factors. With good data quality, highly robust results can be achieved. This approach is widely used in practice and often represents a good compromise between effort and accuracy.
Spend-based method Where no quantity or consumption data is available, emissions can be estimated on the basis of expenditure. Monetary values are linked to industry-specific average factors. The effort is low, but accuracy is limited. This method is best suited to an initial approximation or less material emissions sources.
Reference values and proxy data Where even expenditure data is unavailable, approximate values are calculated using benchmarks or proxy assumptions. This method yields only rough estimates, but helps to understand the order of magnitude of emissions sources and set priorities for more detailed data collection.
In practice, these methods are often combined. The aim is to apply the most robust approaches to material emissions sources and use pragmatic solutions for less relevant categories.
Our tip!! Focus on your material emissions sources — and apply robust methods there. For less relevant categories, pragmatic approaches are perfectly legitimate.
Digitalisation and efficient processes
To reduce complexity, preserve valuable resources, and minimise the potential for errors, it is advisable to support GHG accounting with a dedicated software tool.
NetCero offers a comprehensive module that guides companies through every step of GHG accounting — from defining system boundaries to evaluation and analysis. Our solution supports targeted group-wide collaboration with clear workflows and approval processes. Decentralised data collection down to plant level can be combined with central consolidation. Integrated databases with over 9,000 emissions factors, flexible import and interface functions, and automated calculations simplify operational execution. Clearly structured dashboards create transparency, while full auditability and traceability ensure robust, auditable reporting.
