COP31 and Carbon Footprint: How Companies Measure and Reduce Emissions

Carbon footprint is one of the most important indicators used to assess a company’s environmental performance in the fight against climate change. Manufacturing activities, energy consumption, raw material use and supply-chain operations all create greenhouse gas emissions. Measuring these emissions is a core step in the transition to low-carbon industry.

COP31 takes place in Antalya, Türkiye, from 9 to 20 November 2026. The conference provides an important international framework for implementing global climate goals and accelerating emissions reductions. For industrial companies, measuring their carbon footprint, identifying emissions sources and developing reduction strategies are central parts of the sustainability agenda.

This is particularly relevant for energy- and material-intensive industries such as iron and steel. Effective carbon footprint management requires companies to assess production technologies, energy sources and supply chains together.
 

What Is a Carbon Footprint?

A carbon footprint is the amount of greenhouse gas emissions associated with an activity, product, organisation or process, calculated within defined boundaries and using a defined methodology.

Carbon footprint calculations may include not only carbon dioxide (CO₂), but also other relevant greenhouse gases. Their climate impact is expressed as carbon dioxide equivalent, or CO₂e, using global warming potential values.

For example, the carbon footprint of a manufacturing facility may include fuel consumption, purchased electricity and other relevant activities included within the selected reporting boundary.

However, carbon footprint is not a complete measure of a company’s environmental impact. Water use, natural-resource consumption, waste generation and effects on biodiversity must also be considered when assessing sustainability performance.
 

Why Is Carbon Footprint Important in the COP31 Context?

COP31 is part of the international climate negotiations held under the United Nations Framework Convention on Climate Change.

In line with the long-term temperature goals of the Paris Agreement, reducing greenhouse gas emissions remains a key priority for national climate policies. Achieving these goals requires transformation across energy, transport, agriculture and industry.

For industrial companies, one of the first steps is to determine current emissions using reliable methods. It is difficult to develop effective reduction strategies for emissions sources that have not been measured or properly understood.

Carbon footprint calculations help companies identify which activities generate emissions and estimate their scale. Yet calculating emissions alone does not mean that emissions have been reduced. Progress depends on turning calculation results into practical actions and monitoring performance over time using consistent and comparable methods.
 

How Do Companies Calculate Their Carbon Footprint?

Corporate carbon footprint calculation aims to quantify greenhouse gas emissions arising from an organisation’s activities during a defined reporting period.

The process starts by defining organisational and operational boundaries. Relevant activity data is then collected and converted into emissions using appropriate emission factors.
 

1. Define organisational boundaries: Determine which facilities, operations and entities are included in the calculation.
2. Identify emissions sources: Assess fuel consumption, electricity use, manufacturing processes and other relevant activities.
3. Collect activity data: Record energy consumption, fuel volumes, production data and other required information.
4. Calculate emissions: Apply relevant methodologies and emission factors to calculate emissions in CO₂e.
5. Review and report results: Assess results together with the methodology, assumptions, data quality and calculation boundaries.

Internationally recognised frameworks such as the GHG Protocol and ISO 14064-1 can support corporate greenhouse gas accounting. For calculations to be comparable, companies should clearly disclose their scope, data quality and calculation assumptions.
 

What Are Scope 1, Scope 2 and Scope 3 Emissions?

Scope 1, Scope 2 and Scope 3 are widely used categories for corporate greenhouse gas emissions. They help companies understand how each emissions source relates to their operations.
 

Scope 1: Direct Greenhouse Gas Emissions

Scope 1 emissions arise directly from sources owned or controlled by the company.

In industrial facilities, this can include fuel combustion, certain production processes and other direct emissions sources. In the steel industry, fuel use and process-related emissions can be significant depending on the production technology used.

Scope 1 emissions may be reduced through process improvements, energy-efficiency measures, fuel switching and the evaluation of suitable production technologies.
 

Scope 2: Indirect Emissions From Purchased Energy

Scope 2 emissions are indirect emissions from the generation of purchased and consumed electricity, steam, heating or cooling.

For energy-intensive industrial companies, Scope 2 can be a major area of assessment. Energy-efficiency initiatives and lower-carbon electricity procurement can support Scope 2 management.

Claims related to renewable electricity use should be assessed in accordance with applicable accounting standards and appropriate certification methods.
 

Scope 3: Other Indirect Value-Chain Emissions

Scope 3 emissions are all other indirect emissions occurring across a company’s value chain that are not included in Scope 2.

They may include purchased goods and services, transportation, business travel, waste management and selected emissions from the use of sold products. Not every Scope 3 category is equally material for every company.

The relevant categories depend on the company’s activities and value-chain structure. Scope 3 calculations can be more complex because they often require data from suppliers and other external parties. Data quality and traceability are therefore essential.
 

What Is the Difference Between Scope 1, Scope 2 and Scope 3?

The main difference is the relationship between the emissions source and the company’s activities.

For example, emissions from burning fuel at a steel plant may be considered Scope 1. Emissions associated with the generation of electricity purchased by the facility may be considered Scope 2. Emissions from third-party logistics used to transport raw materials may fall within relevant Scope 3 categories.
 

What Is the Difference Between Product and Corporate Carbon Footprint?

A corporate carbon footprint assesses greenhouse gas emissions associated with an organisation’s activities during a defined period.

A product carbon footprint focuses on emissions generated during the defined life-cycle stages of a specific product. For example, it may cover raw materials, manufacturing and other selected stages depending on the system boundary.

ISO 14067 is one of the standards that can be used in product carbon footprint studies. Meaningful product comparisons require consistent functional units, system boundaries and calculation methods. A single published carbon footprint value should therefore not be used alone to make definitive environmental comparisons between products.
 

Why Is Carbon Footprint Important for the Steel Industry?

The iron and steel industry produces one of the fundamental materials of the modern economy. Construction, automotive manufacturing, energy infrastructure and machinery production all depend on steel products.

At the same time, steel production can involve significant energy use and greenhouse gas emissions, depending on the technology used. Certain primary steelmaking processes rely on carbon-intensive inputs and high-temperature operations.

For this reason, carbon footprint management in the steel industry requires a combined assessment of production technologies, energy sources and raw-material flows.

Scrap-based production, energy efficiency, lower-carbon electricity and alternative reduction technologies may support emissions reduction under different conditions. Their actual impact depends on a facility’s production structure, raw-material characteristics and energy supply.
 

How Can Companies Reduce Their Carbon Footprint?

Carbon footprint reduction starts with identifying emissions sources and then evaluating practical reduction options.
 

Improve Energy Efficiency

Producing the same output with less energy can help reduce energy-related emissions. Equipment modernisation, process optimisation and waste-heat recovery may support efficiency improvements in suitable conditions.
 

Use Lower-Carbon Energy

The energy sources used to generate electricity affect the emissions profile of purchased energy. Appropriate renewable electricity procurement and energy-management practices can form part of a carbon management strategy.
 

Improve Production Technologies

Upgrading production technologies can help reduce energy and material consumption. The suitability of each option depends on the facility’s technical characteristics and economic conditions.
 

Increase Material and Resource Efficiency

Reducing material losses and using suitable recycled inputs can improve resource efficiency. In certain cases, these practices may also reduce product life-cycle emissions.
 

Manage the Supply Chain

Purchased materials, logistics and other value-chain processes can play an important role in indirect emissions. Supplier data sharing and collaboration on emissions reduction can support Scope 3 management.
 

What Is the Difference Between Carbon Neutral and Net Zero?

Carbon neutral and net zero are often used in climate discussions, but they do not necessarily mean the same thing.

Carbon neutrality is generally associated with balancing emissions within a defined scope through selected methods. Net zero is a broader target framework that focuses on reducing greenhouse gas emissions as far as possible and balancing residual emissions through appropriate removal methods.

The meaning of these claims may vary according to the applicable standard and the scope of the target. Companies making carbon-neutral or net-zero claims should clearly disclose their calculation methodology, reduction level and any offsetting or removal practices.
 

Is Calculating a Carbon Footprint Enough to Reduce Emissions?

No. Carbon footprint calculation is an important starting point, but it does not by itself mean emissions have fallen.

Companies need to assess their results, identify reduction opportunities and develop practical action plans. If energy-related emissions are found to be high, for example, energy-efficiency investments may be evaluated.

Performance should be tracked over time. Changes in production volumes should also be taken into account, so total emissions and indicators such as emissions intensity per unit of product can be assessed together.
 

Why Is Emissions Verification Important?

The reliability of carbon footprint calculations depends on the accuracy of the data and the consistency of the methodology. Data quality, traceability and transparency are therefore important in greenhouse gas reporting.

Independent verification can help assess whether an emissions statement meets defined criteria. However, the scope and level of assurance may vary.

A verified emissions statement does not automatically mean that a company operates with low-carbon production or has achieved its emissions-reduction targets. Verification primarily provides assurance regarding the reported information against specified criteria.
 

How Is Carbon Footprint Related to the Carbon Border Adjustment Mechanism?

The European Union’s Carbon Border Adjustment Mechanism, or CBAM, is a mechanism for addressing embedded emissions associated with imports of certain products. Iron and steel are among the sectors covered by the mechanism.

For this reason, calculating and reporting emissions related to the production of relevant products is important for international trade.

However, CBAM embedded-emissions calculations are not the same as a general corporate carbon footprint calculation. Product scope, calculation boundaries, reporting obligations and applicable rules may differ. Companies should rely on current EU legislation and official implementation guidance when assessing CBAM obligations.
 

How Does Digitalisation Support Carbon Footprint Management?

Digital technologies can help companies collect and analyse activity data more systematically. Energy-monitoring systems, automation infrastructure and data analytics can provide a more detailed view of manufacturing processes.

For example, monitoring energy consumption across different production lines can help identify high-consumption points. Assessing production data together with energy data can also support the analysis of emissions intensity per unit of product.

Digital systems do not automatically guarantee correct calculation results. Data quality, calculation methods and system boundaries must still be properly defined.
 

COP31 and Measurable Climate Performance in Industry

In the COP31 context, discussions around implementing climate goals provide an important framework for industrial companies to measure emissions and strengthen reduction actions.

Carbon footprint calculations are a fundamental tool for understanding the current situation. But the transition to low-carbon production goes beyond calculation and reporting alone.

Energy efficiency, appropriate production technologies, resource management and supply-chain collaboration need to be assessed together. In the steel sector in particular, carbon footprint management is important for understanding production-related impacts and comparing available reduction options.

Over the long term, successful carbon management depends on combining reliable data infrastructure with measurable emissions reductions.
 

Frequently Asked Questions About COP31 Carbon Footprint

COP31 carbon footprint discussions highlight the need for companies to measure greenhouse gas emissions reliably, identify Scope 1, Scope 2 and Scope 3 sources, and develop practical reduction plans. Below are answers to frequently asked questions about corporate carbon footprint calculation, decarbonisation and low-carbon industry.
 

What is a carbon footprint?

A carbon footprint is the amount of greenhouse gas emissions associated with a product, activity or organisation, expressed as carbon dioxide equivalent (CO₂e) within defined calculation boundaries.
 

How do companies calculate their carbon footprint?

Companies define their reporting boundaries, identify emissions sources, collect activity data and apply appropriate emission factors to calculate greenhouse gas emissions.
 

What are Scope 1, Scope 2 and Scope 3 emissions?

Scope 1 covers direct emissions, Scope 2 covers indirect emissions from purchased energy and Scope 3 covers other indirect emissions across the value chain.
 

How can companies reduce their carbon footprint?

Companies can reduce their carbon footprint through energy efficiency, lower-carbon energy, production-process improvements, resource efficiency and supply-chain management.
 

Are product and corporate carbon footprints the same?

No. A corporate carbon footprint covers an organisation’s activities over a defined period, while a product carbon footprint assesses emissions across selected life-cycle stages of a specific product.
 

Why is COP31 important for carbon footprint management?

COP31 is an international platform for advancing climate-goal implementation. Carbon footprint measurement helps companies identify emissions sources and manage reduction activities in a measurable way.
 

Why is carbon footprint important in the steel sector?

Steel production can involve energy- and material-intensive processes. Carbon footprint management helps companies identify emissions sources and evaluate low-carbon production options.