Environmental Management Magazine Publication

The Carbon Footprint as a tool for management and communication

Natalia Drault – Ignacio Barutta

Climate change is one of the greatest challenges we face globally. We are all part of the solution, which is why it is essential to have tools that facilitate the management and communication of a climate strategy. All companies, regardless of size or sector, can make a difference.

More than 30 years after the creation of the United Nations Framework Convention on Climate Change (UNFCCC), several drivers for action can be identified. Among them, and the most important: the evidence confirming that global climate change is accelerating due to anthropogenic causes. This is an indisputable fact.

The Paris Agreement — through which signatory countries commit to implementing emission reduction strategies — increasingly introduces regulatory elements at both national and local levels, driven by the need to meet its targets (Nationally Determined Contributions - NDCs). In addition, consumers demand low-carbon products, clients require their suppliers to manage greenhouse gas (GHG) emissions, and regulations increasingly affect business operations.

The first step to defining a robust climate strategy is understanding where we stand — that is, knowing the Carbon Footprint generated by our activities. Calculating the Carbon Footprint involves identifying direct emission sources (those under operational control) and indirect emission sources (those we influence but do not control), such as emissions from suppliers or customers.

Direct emissions are typically classified as Scope 1, indirect emissions from purchased energy as Scope 2, and all other indirect emissions as Scope 3. Additional standards, such as ISO 14064-1, complement this classification by defining specific categories.

Once emission sources are identified and activity data is available (such as consumption, distances, power, usage time, etc.), the most appropriate quantification method is selected based on internationally accepted methodologies. These allow the calculation of greenhouse gas emissions generated by each activity. This quantity reflects the potential climate impact, which can be linked to business activities through indicators such as carbon intensity — at both organizational and product levels.

At the same time, this indicator can be analyzed at different levels:

• By emission source (e.g., stationary combustion, refrigerant leaks)
• By sector (production, logistics, etc.)
• Business unit
• Sites
• Lifecycle stages (upstream, core, downstream)

Analyzing disaggregated carbon intensity provides insights to identify emission reduction opportunities and define a climate strategy. Each organization defines a reduction target aligned with its commitments, often based on limiting global warming to 1.5°C or 2°C (Science Based Targets methodology).

These reduction targets require defining actions or emission reduction projects through which they can be achieved.

In this way, the Carbon Footprint can be monitored to understand the impact of these activities or projects in terms of climate change mitigation.

Managing the Carbon Footprint and identifying reduction opportunities can also generate savings, particularly by reducing energy, materials, and resource consumption — creating positive impacts across the value chain.

Climate action is also increasingly evaluated by society. Strong climate performance enhances corporate reputation with stakeholders (clients, investors, employees). Capital providers are increasingly aligned with the transition to a low-carbon economy, making sustainable business practices key to long-term growth.

“We are running out of time, but not out of options to face climate change.”

Natalia Drault
COO & CO-Founder de LEAF

Ignacio Barutta
CEO & CO-Founder de LEAF

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