Carbon Footprint

KPI Name

Carbon Footprint

Alternative Names

Greenhouse Gas Emissions

KPI Description

Measures the total amount of greenhouse gases (GHG) emitted directly or indirectly by a company, measured in CO₂ equivalent (CO₂e).

Category

ESG & Sustainability

KPI Type

Quantitative, Lagging

Target Audience

Sustainability Managers, Compliance Officers, Business Owners

Formula

Carbon Footprint = Direct Emissions (Scope 1) + Indirect Emissions (Scope 2 & 3)

Calculation Example

If a company emits 500 metric tons of CO₂e from direct sources and 1,000 from indirect sources, Carbon Footprint = 1,500 metric tons

Data Source

Environmental Reports, Energy Consumption Logs, Carbon Accounting Software

Tracking Frequency

Monthly, Quarterly, Annually

Optimal Value

Lower is better; achieving net-zero emissions is the long-term goal.

Minimum Acceptable Value

A high footprint suggests excessive energy use and reliance on fossil fuels.

Benchmark

Industry benchmarks: Tech ~50-100 tons per $1M revenue, Manufacturing ~500-1,000 tons per $1M revenue

Recommended Chart Type

Line chart (to track trends), Bar chart (to compare departments)

How It Appears in Reports

Displayed in sustainability reports to track emissions reduction progress.

Why Is This KPI Important?

Indicates environmental impact and corporate responsibility.

Typical Problems and Limitations

Carbon offsetting does not fully eliminate emissions.

Actions for Poor Results

Implement energy-efficient practices, transition to renewable energy, optimize supply chain emissions.

Related KPIs

Energy Consumption per Unit, Waste Recycling Rate, ESG Score

Real-Life Examples

A logistics company reduced carbon footprint by 40% by switching to electric delivery vehicles.

Most Common Mistakes

Focusing only on carbon offsetting without reducing actual emissions.