The retail industry accounts for 25% of global greenhouse gas emissions according to the World Business Council for Sustainable Development. The fashion industry alone is among the largest polluter in the world. It accounts for 6-10% of all carbon emissions worldwide, according to the UN.

To become carbon neutral, an increasing number of businesses are setting strong carbon reduction goals. Complete reduction of GHG emissions can only be achieved if every step and activity related to the business are analysed and made sustainably efficient. This guide will cover the basics of Corporate Carbon Footprint, its impact, and its importance in the fashion sector.

What is Corporate Carbon Footprint (CCF)?

Also known as Company Carbon Footprint, refers to the quantity of greenhouse gas emissions that a company produces via its operations. It includes the manufacturing, production, and distribution of goods and services and the consumption of energy.

Collection & Measurement of Data

Identification and measurement of a company's carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), and other greenhouse gas emissions are required to determine its carbon footprint. This can be accomplished using a variety of techniques, including monitoring fuel and energy use, measuring emissions from transportation, and evaluating the environmental impact of the business's supply chain. The Corporate Carbon Footprint covers all direct & indirect emissions with respect to the company’s operations which are further classified as scope 1,2, & 3 emissions.

Direct emissions: These emissions are generated from activities directly controlled by the company. They are easier to trace & retrieve since they are well-documented by the company.

Scope 1 emissions are those produced directly by an organization's operations, such as those from industrial processes, company-owned cars, and on-site burning of fossil fuels.

Indirect Emissions: These emissions occur beyond a corporation's direct control; these come because of decisions made by the company. Data for indirect emissions are more difficult to trace and obtain because activities such as production or services provided by the supplier and product usage by the customer fall under this category. 

Scope 2 emissions are unintentional emissions produced when a company uses heat, steam, or electricity that it has acquired. These emissions take place when an organization generates the energy it uses.

Scope 3 emissions include all additional indirect emissions that occur in an organization's value chain, such as emissions from suppliers and customers, as well as emissions from product usage and disposal. Because they can occur across a wide range of activities, places, and stakeholders, these emissions are typically the greatest and most difficult to manage.

“90% of the GHG emissions in the fashion industry come from Scope 3 emissions.”

Result & Benefits CCF

Once a company's carbon footprint has been calculated, it can make efforts to minimize its emissions, by investing in renewable energy sources, improving energy efficiency, and encouraging sustainable practices throughout its operations. Lowering a company's carbon footprint not only helps to prevent climate change but can also result in cost savings and improved brand recognition.

Organizations can take into account the following actions to lower emissions in all contexts:

• Clearly define your goals for reducing emissions and monitor your progress on a regular basis.

• Encourage the adoption of sustainable practices by educating staff members and stakeholders.

• Join industry-wide efforts and work with other groups to exchange information and best practices.

Corporate Carbon Footprint & the Fashion Industry

The fashion sector is well known for being a major source of carbon emissions due to its energy-intensive production methods and extensive global product shipping. Emissions generated by the fashion industry are expected to grow by 50% by 2030.

In order to determine a fashion brand's carbon footprint, the business must evaluate its emissions throughout its whole supply chain. Its activities (such as production, packaging, and delivery) as well as those of its suppliers, contractors, and even clients are included in this (such as through product use and disposal).

The organization can then take action to minimize its carbon footprint by adopting various strategies, including energy-efficient production techniques, the use of renewable energy, waste reduction efforts, and investments in sustainable transportation, once the emissions have been detected.

Conclusion

The world is eyeing the fashion industry to play its part in the journey to a sustainable and carbon-neutral future. Monitoring and analysing your carbon footprint not only help you take ownership of your environmental impact, but also conveys to multiple parties, including investors, customers, and the workforce, that you are committed to tackling the issue. As governments and investors become more concerned about tackling climate change, businesses will need to demonstrate accountability for carbon emissions to survive in the long run.

Several fashion businesses are now using recycled materials, minimizing their usage of virgin materials, and implementing sustainable manufacturing processes to lower their carbon impact. Some companies also invest in carbon offset schemes, which entail supporting initiatives that reduce greenhouse gas emissions elsewhere in order to offset their own emissions. 

Many carbon footprint calculators and software tools have been developed to make the work for companies easier in their sustainability claims. One such tool is MetrikFlow, which is expertly curated for fashion brands to make a sustainable impact.