Personal FinanceJuly 18, 2025
Reading time5 mins read

What Is a Carbon Footprint?

What Is a Carbon Footprint?
Climate crisis is no longer an abstract threat; it has become a tangible reality that permeates every aspect of our daily lives. Rising temperatures, droughts, extreme weather events, and deteriorating ecosystems are clear signs of how human activity increasingly impacts the environment. At this point, the concept of carbon footprint, one of the most important ways to measure the responsibility of individuals and institutions alike, comes into play. In this article, we provide a detailed examination of what a carbon footprint is, how it is calculated, the factors that influence it, and what we can do to mitigate it.
 

What is a carbon footprint?

The total greenhouse gas emissions caused directly or indirectly by a person, institution, activity, or product are collectively referred to as the carbon footprint. As a numerical expression of the impact of human activities on nature, the carbon footprint is typically calculated in terms of carbon dioxide (CO₂) equivalent. Since people’s daily actions directly affect the amount of greenhouse gases in the atmosphere, this concept is a significant indicator in the fight against climate change.
 
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How is the carbon footprint calculated?

A carbon footprint is the total amount of greenhouse gases (CO₂, CH₄, etc.) emitted directly or indirectly into the atmosphere by an individual, product, or organization, measured in carbon dioxide equivalent (CO₂e). So, how is it calculated?
 

Defining the boundaries

The first question to ask at this stage is whose or what’s footprint is being calculated. The carbon footprint of a person, organization, event, or product can be measured. Then, the geographical, temporal, and operational boundaries — including Scope 1, 2, and 3 — are clearly defined.
 

Identifying emission sources

* Scope 1: Direct emissions (vehicles, fuel use, on-site combustion)
* Scope 2: Indirect emissions (purchased electricity, heat, cooling)
* Scope 3: More indirect emissions such as supply chain, logistics, business travel, waste, and the production and usage stages
 

Data collection

  • Activity data: Local consumption amounts (liters/hours, kWh, km, etc.)
  • Financial data: Emission estimation based on spending (spend-based)
  • Hybrid method: Uses both activity and financial data

Applying emission factors

Each activity or financial data point is multiplied by an emission factor. For example, 1 kWh of electricity is equivalent to 0.5 kg CO₂e. These multiplications are calculated for each type of activity to obtain annual values.
 

Life cycle assessment (LCA)

If the calculation is product-specific, a Life Cycle Assessment (ISO 14040/44) is performed, covering the entire process from raw material acquisition to production, use, and disposal.
 

Aggregation and reporting

The CO₂e values obtained from all sources are aggregated to find the total carbon footprint. In corporate organizations, this process is reported under the GHG Protocol (ISO 14064/67).
 
To make it easier to understand, let’s explain with an example:
1. Annual household electricity consumption: 3,000 kWh × 0.5 kg CO₂e/kWh = 1,500 kg CO₂e
2. Annual driving distance of 12,000 km → 2,300 kg CO₂e
3. Annual air travel → 800 kg CO₂e
→ Total = 4,600 kg CO₂e or 4.6 tons of CO₂e
 

Factors affecting carbon footprint

There are both individual and corporate factors that influence the carbon footprint. These can be listed as follows:
 

Individual factors

Frequent air travel and the use of personal vehicles — especially those with large engines — significantly increase carbon footprints. Choosing alternatives like bicycles, public transport, or walking results in lower emissions.

* Transportation habits: Frequent flights and personal vehicle use significantly increase carbon footprint, especially with large-engine vehicles. Alternatives like cycling, public transportation, or walking result in lower emissions.

* Dietary preferences: Diets high in red meat and dairy produce far higher greenhouse gas emissions than plant-based diets.

* Energy use: The type and amount of energy consumed for heating, cooling, and electricity in homes matter. Fossil fuel usage leads to higher emissions, while renewable energy and sound insulation offer significant savings.

* Consumption and waste behavior: Single-use products, fast fashion, frequent electronic upgrades — all increase embedded carbon emissions. Recycling and sustainable choices help reduce this impact.

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Corporate factors

* Business sector and operation type: Scope 1, 2, and especially Scope 3 emissions (supply chain, logistics, product use) vary between companies, with higher emissions seen in production- and energy-intensive industries.

* Company policies and tech infrastructure: Strategies like energy efficiency, waste management, and green procurement are crucial to lowering the carbon footprint.

* Corporate structure and external pressures: Legislation, stakeholder demands, investor pressure, and sustainability standards (CDP, GHG Protocol, SBTi, etc.) drive emissions measurement and management.

* Supply chain control: Collaborating with key suppliers can help manage Scope 3 emissions — this is especially critical for large organizations.

Ways to reduce the carbon footprint

To reduce the carbon footprint, energy efficiency should be increased, and energy consumption should be reduced at home and in the workplace. This can start with structural improvements, such as using energy-efficient bulbs (LEDs), appliances with energy labels, insulation, and double-glazed windows. Another method is to turn off or unplug electronic devices that consume standby energy. Optimizing thermostat settings according to the season, utilizing shading in summer, or enhancing insulation in winter also significantly reduces energy consumption. Changing transportation habits is another crucial area — choosing biking, walking, or public transport over private vehicles is a great way to reduce emissions.
 
In terms of consumption habits, prioritizing plant-based diets and local food sources is recommended. Reducing consumption of red meat and dairy can significantly reduce an individual's annual carbon footprint. Avoiding fast fashion, opting for second-hand shopping, or selecting durable products helps reduce the embedded emissions associated with production. Regulating water use at home — such as taking shorter showers or using low-flow faucets — and washing clothes in full loads at low temperatures also contribute to saving energy and water.
 
Bringing all these methods together creates a lifestyle that consumes far less energy and is a highly effective way to reduce your carbon footprint.
 
To build a sustainable world, minimizing our carbon footprint is essential. So, what is sustainable finance doing about it? You can find the answer in our article “What is Sustainable Finance?
 
 
Sources: 1.
 
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