Many companies want to voluntarily prepare a carbon footprint in order to increase their resilience and competitiveness. Others are obliged to do so under the Corporate Sustainability Reporting Directive (CSRD). In both cases, the aim is to create transparency: about one’s own emissions, about opportunities to exert influence and about levers for transformation.
A CO₂ balance sheet in accordance with the GHG Protocol is the standard. But getting there is challenging: missing data, unclear boundaries or complex supply chains are often an issue. In this article, we show the five steps to a carbon footprint and the typical challenges that companies have to overcome. We have also included some practical insights from our customers to make them easier to understand.
Table of contents
1. define reporting limits
Every CO₂ balance sheet starts with the question: where do you draw the boundaries? This involves both the organizational boundaries (e.g. by location or subsidiary) and the system boundaries (Scope 1, 2 and 3).
Challenge: Stakeholder expectations are particularly high in the financial sector. They demand transparency about all sources of emissions – even those outside the direct control of the company.
Practical example: Volksbank Köln Bonn has deliberately drawn its reporting boundaries wide. The aim was to transparently report indirect emissions in Scope 3 in addition to Scope 1 and 2, while at the same time fulfilling the requirements of the German Sustainability Code (DNK).
2. collect data
Data collection is usually the most time-consuming part. It requires information on energy consumption, mobility, purchased goods or services. The more precise the data, the more meaningful the balance sheet.
Challenge: Data is often stored in different systems – from accounting to supplier portals – or has to be requested from partners. Without clear processes and support, the flood of data is almost impossible to manage.
Practical example: LCS Cable Cranes had to record huge amounts of invoices and receipts for its first CO₂ balance sheet. Thanks to automated data capture with Code Gaia, the relevant information could be processed and analyzed efficiently – a crucial step when resources were scarce.
3. calculate emissions
Emissions are calculated on the basis of the information collected. This requires emission factors from recognized databases that are regularly updated.
Challenge: Different data qualities (e.g. consumption data vs. estimated values) make the calculation complex. In addition, emission factors must be applied consistently to ensure comparability.
Practical example: DINZLER Kaffeerösterei AG wanted to record its emissions along the entire value chain. Thanks to tailored support, it was able to create precise CO₂ balances and subsequently reduce its gas consumption by 17% with efficient measures such as modernizing its machinery.
4. analyze issue profile
The calculation is only the beginning. It is crucial to interpret the results: Where are the hotspots, which areas cause the greatest emissions and where is there the greatest potential for savings?
Challenge: Without clear visualizations and comparison options, figures remain difficult to grasp. Only analysis shows where the real leverage for reducing emissions lies.
Practical example: Vonmählen, a sustainable tech lifestyle manufacturer, was able to determine through detailed analysis that materials and transportation were responsible for the majority of emissions. The company then opted for recycled materials and more environmentally friendly transportation options.
5. identify fields of action
The analysis results in specific fields of action: Increasing energy efficiency, converting supply chains, reducing travel, promoting a circular economy. Which measures are most effective depends heavily on the emissions profile.
Challenge: Companies need to prioritize between fast-acting measures and long-term transformations. At the same time, employees and suppliers need to be involved.
Practical example: For the DINZLER coffee roasting plant, this meant not only drawing up a carbon footprint, but also continuously implementing new measures. In addition to modernizing its machinery, the company is working on heat recovery in the roasting process in order to reduce emissions in the long term.
Conclusion
A carbon footprint is not an end in itself. It is the starting point for a credible climate strategy, for transparency towards stakeholders and for long-term resilience. Getting there is demanding – but feasible if the challenges are tackled systematically. The examples of our customers Volksbank Köln Bonn, DINZLER, Vonmählen and LCS Cable Cranes show this: With a clear structure and the right tools, it is not just figures that emerge, but concrete options for action for the future.
How code supports Gaia
Code Gaia guides companies step by step through the process of creating their carbon footprint. The platform provides support with data collection, ensures the calculation is based on current emission factors and presents the results in an understandable way. Particularly important: the combination of software and consulting builds up knowledge that goes beyond the first balance sheet – towards a sustainable corporate strategy.
Here you can click through our Climate & ESG module to see how this works in practice in the software:
