A corporate carbon footprint is calculated under the Greenhouse Gas Protocol, and a product carbon footprint using a life-cycle approach. Because of regulations such as CBAM, carbon footprint data is becoming a commercial necessity for exporters.
Related terms
Scope 1, 2 and 3 emissionsThe classification of greenhouse gas emissions by source into direct emissions (Scope 1), indirect emissions from purchased energy (Scope 2) and other indirect emissions in the value chain (Scope 3).Carbon Border Adjustment Mechanism (CBAM)An EU regulation that puts a price on the embedded carbon emissions in the production of certain goods imported into the European Union.Climate-related risksThe potential effects on a company's financial position of physical risks arising from climate change and transition risks arising from the shift to a low-carbon economy.Double materialityAssessing sustainability matters both in terms of their effect on the company's financial position (financial materiality) and the company's impact on the environment and society (impact materiality).ESGShort for environmental, social and governance factors, used to assess companies' sustainability performance.Green financeInstruments such as green bonds, green loans and sustainability-linked loans used to finance projects with environmental benefits.
Last updated: October 22, 2026 · This definition is for general information only.