Understanding and reducing your company’s carbon footprint is no longer a niche concern. It’s a strategic priority. Whether you're preparing for compliance with the Corporate Sustainability Reporting Directive (CSRD), aligning with the Science-Based Targets initiative (SBTi), or taking proactive ownership of your environmental impact, a carbon assessment is the logical first step.
But what does it actually take to measure your company’s emissions?
In this guide, you’ll find a clear, five-step process for conducting a carbon assessment that is practical, transparent, and aligned with global standards. Whether you’re starting from scratch or looking to improve the structure of your current approach, these steps will give you a strong foundation to build on.
Step 1: Define the scope of your assessment
The first step is all about clarity: determining what you’re going to measure. This is called scoping and involves setting both organizational and operational boundaries.
Organizational boundaries define which parts of your business are included in the assessment. You can base this on ownership, operational control, or financial control.
Operational boundaries refer to the types of emissions you include, typically categorized into three scopes as defined by the GHG Protocol:
Scope 1 covers direct emissions from sources that your organization owns or controls, such as company vehicles or on-site fuel combustion.
Scope 2 includes indirect emissions from purchased electricity, steam, heating, or cooling.
Scope 3 captures all other indirect emissions across your value chain, from supplier operations and logistics to business travel, waste, and product use.
While Scope 1 and 2 are relatively straightforward, Scope 3 often makes up the majority of a company’s total emissions and is more complex to track. It’s also where much of the opportunity lies to drive meaningful reductions.
Want to know more about scope 1-2-3 emissions? Read this article.
Step 2: Collect activity data
With your scope defined, the next step is to gather operational data—known as activity data—which will form the basis of your emissions calculations. The goal here is to capture information about everything your company does that results in greenhouse gas emissions.
This could include:
Electricity and gas consumption from utility records
Fuel use for vehicles or machinery
Travel activity, including flights, train trips, and commuting patterns
Purchase volumes or spend data for raw materials and goods
Waste generation and disposal methods
The quality of your data determines the quality of your carbon assessment. Whenever possible, collect actual usage figures rather than relying on assumptions. That said, proxy data or estimates can still be useful if they are transparently documented and clearly flagged for improvement over time.
Step 3: Convert activity data into emissions
Once your activity data is ready, the next step is to convert it into measurable emissions, typically expressed in carbon dioxide equivalents (CO₂e). This is done using emission factors.
An emission factor is a multiplier that tells you how much CO₂ is produced per unit of activity. For example, one kilowatt-hour of electricity consumed might result in a specific amount of CO₂ depending on the energy mix in your region.
Reliable sources of emission factors include:
Choose emission factors that are specific to your country or industry wherever possible. Many digital tools allow you to integrate these databases directly, making calculations faster and easier to replicate.
Read this article to learn more about emission factors.
Step 4: Analyze and interpret the results
Now it’s time to understand what your data is telling you. The analysis phase of a carbon assessment helps you answer important questions about your emissions profile and identify where to focus your reduction efforts.
Here are a few examples of insights you might uncover:
One product line accounts for a disproportionate share of emissions
Purchased materials from a particular supplier have high embodied carbon
Most emissions come from electricity use or business travel
Scope 3 emissions significantly outweigh those in Scope 1 and 2
Visualizing your data, using charts or dashboards, can make it easier to communicate these findings with internal teams or external stakeholders. Ultimately, the goal is to move from numbers to insight, and from insight to action.
Step 5: Set targets and take action
With a clear picture of your emissions, the next step is to make a plan. Setting reduction targets transforms your carbon assessment from a report into a strategy.
Your targets might be:
Absolute targets, such as reducing total emissions by 40 percent by 2030
Intensity targets, such as reducing emissions per unit of revenue or per product sold
Science-based targets, which align with pathways to limit global warming to 1.5°C
Refer to frameworks like the Science-Based Targets initiative or the UN Race to Zero for guidance on setting credible goals.
From there, define tangible actions—such as switching to renewable electricity, electrifying your fleet, optimizing logistics, or collaborating with suppliers on low-carbon alternatives.
Don’t forget to put in place a process for tracking progress. This will allow you to refine your approach, maintain transparency, and build accountability over time.
Final Thoughts
A carbon assessment is more than just a measurement exercise. It’s a gateway to smarter decisions, stronger reporting, and more resilient business models.
By following these five steps, scoping, data collection, emissions calculation, analysis, and target setting, you’ll create a carbon baseline that can guide both strategy and action. Whether you're doing this for compliance, competitive advantage, or climate leadership, it all starts here.
Taking that first step is easier when you follow a structured process. And once you begin, you may find that understanding your emissions doesn’t just reveal problems; it also unlocks possibilities.
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