Why is it Necessary to Calculate the Carbon Footprint for Organizations?

Why is it Necessary to Calculate and Report the Carbon Footprint for Organizations?

Calculating and reporting the carbon footprint for organizations is an important step in sustainability and environmental management. The carbon footprint is a metric that measures a company's direct and indirect greenhouse gas (GHG) emissions. It is typically calculated in terms of metric tons of carbon dioxide equivalent (tCO₂e).

Why is it Necessary to Calculate the Carbon Footprint for Organizations?

Legal Obligations: Firstly, there are legal regulations for organizations engaged in commercial activities with the EU and their suppliers. According to the Carbon Border Adjustment Mechanism (CBAM), companies will face tax obligations for the carbon emissions resulting from exported products. Under the Green Deal Circular Action Plan, many industries will be required to calculate their carbon footprint.

Customer and Investor Demands:Green Transformation is gaining global importance. Regardless of the sector, low-carbon/carbon-neutral products and services are rapidly gaining value among customers and investors, becoming a reason for preference.

Corporate and Brand Image: Ending the global climate crisis requires quick action and the creation of an action plan. Having an organization calculate its carbon footprint will positively contribute to its brand image by demonstrating a climate- and environmentally-conscious stance. Leading global brands are effectively using carbon footprint calculations as part of their marketing strategies.

Participation in Emission Trading Systems: In Turkey, under the preparations for the Emission Trading System, organizations with higher greenhouse gas emissions will be able to purchase carbon certificates from those with lower emissions, creating a carbon emission trading system between organizations.

If you would like professional support on carbon footprint reporting for your organization or want to develop customized solutions for a specific sector, feel free to share the details.

Frequently Asked Questions FAQ

What is Turkey's Status in Terms of Climate Change?
Turkey has made significant strides in the fight against climate change in recent years. By ratifying the Paris Agreement in 2021, it announced a target of achieving net-zero emissions by 2053. The Nationally Determined Contribution (NDC) has been updated, renewable energy investments have increased, and the Green Deal Action Plan has been implemented. However, challenges such as dependence on fossil fuels, industrial emissions, and deforestation persist. With steps like carbon pricing mechanisms and incentives for sustainable production, Turkey aims to accelerate its transition to a low-carbon economy.
What is the European Green Deal (EU Green Deal)?
Climate change is a global threat, and countries are starting to implement their action plans by setting climate goals. In this regard, Europe has published the European Green Deal (EU Green Deal),which outlines its climate targets. In the deal released in 2019, Europe stated that it aims to become the first carbon-neutral continent by 2050. The deal emphasizes that Europe will develop a growth strategy to transform its industries and economy to achieve this goal. It also highlights that key sectors such as energy, transportation, agriculture, construction, and finance will be reshaped within the framework of climate goals.
What is the Importance of the European Green Deal for Turkey?
The European Green Deal is of critical importance for Turkey. As Turkey is a Customs Union partner with the EU, its commercial activities are highly dynamic. According to the Ministry of Trade's 2021 data, the European Union holds a 41% share of Turkey's $93 billion export, making it the largest partner in Turkey's total exports. Therefore, due to both the intensity of trade relations and the sustainable development goals, Turkey will also be part of the European Green Deal.
What is the Carbon Border Adjustment Mechanism (CBAM)?
The Carbon Border Adjustment Mechanism (CBAM) is a new carbon tax system by the European Union that will come into full effect in 2026. CBAM imposes additional costs on products with high carbon emissions, such as cement, steel, aluminum, fertilizers, hydrogen, and electricity, that are exported to the EU. The aim is to prevent carbon leakage and promote low-carbon production on a global scale. For countries like Turkey, which engage in intensive trade with the EU, the process of aligning with carbon emission reduction is of great significance.