Beyond Carbon Footprint: A Practical Guide to More Sustainable Businesses

An organizational greenhouse gas (GHG) inventory, prepared in accordance with ISO 14064-1:2018, helps a business quantify and understand its greenhouse gas emissions. But establishing the inventory is only the beginning of a broader sustainability journey.

The next questions are more strategic. Where can emissions be reduced? How much of the organization's environmental impact occurs across its supply chain? What changes could improve energy performance? And how can the business demonstrate that its sustainability commitments are supported by reliable evidence?

These questions require more than emissions accounting. They call for a structured approach that connects measurement with operational improvements, product assessment, credible reporting and independent verification.

For businesses responding to customer expectations, investor scrutiny and evolving regulatory requirements, the objective is clear: turn environmental information into decisions that support measurable progress.

1. Start with a reliable organizational GHG inventory

Before setting reduction, targets or communicating climate commitments, a business needs a credible understanding of its emissions.

ISO 14064-1:2018 establishes requirements and guidance for quantifying and reporting GHG emissions and removals at the organizational level. The resulting inventory provides a baseline for identifying emission sources and monitoring performance over time.

Greenhouse gases

Organizations commonly use the GHG Protocol Corporate Accounting and Reporting Standard to classify emissions into Scope 1, Scope 2 and Scope 3.

• Scope 1: Direct emissions from sources owned or controlled by the organization.

• Scope 2: Indirect emissions associated with purchased or acquired electricity, steam, heating and cooling.

• Scope 3: Other indirect emissions occurring across the organization's value chain, such as purchased goods and services, transportation and product use.

These classifications come from the GHG Protocol. They should not be treated as interchangeable with the six GHG categories used in ISO 14064-1:2018, which classify emissions and removals according to that standard's framework.

A useful inventory depends on clear organizational boundaries, consistent calculation methods, appropriate emission factors and reliable activity data. Businesses should also document assumptions and identify gaps that could affect the completeness or accuracy of their results.

Once the baseline is established, the organization can determine which sources deserve attention first.

2. Strengthen the evidence behind reported emissions

An emissions inventory is only as useful as the information supporting it.

Electricity bills, fuel records, production data, supplier information, transport records and waste data may come from different departments or external partners. Inconsistent reporting periods, incomplete records and undocumented assumptions can make it difficult to compare results or demonstrate progress.

This is where independent verification can help.

ISO 14064 comprises three complementary parts:

• ISO 14064-1:2018 addresses organizational GHG quantification and reporting.

• ISO 14064-2:2019 addresses quantification, monitoring and reporting of GHG emission reductions or removal enhancements at the project level.

• ISO 14064-3:2019 specifies requirements and guidance for verifying and validating GHG statements.

The applicable requirements depend on the type of statement and the purpose of the engagement.

We offer ISO 14064 GHG emissions verification to help organizations strengthen confidence in their reported emissions information. The relevant delivering entity, accreditation scope and applicable verification requirements should be confirmed for each engagement.

Independent verification can support more credible climate reporting and provide stakeholders with greater confidence in the information used to inform decisions.

3. Identify where emissions reductions will have the greatest impact

With a more reliable baseline, businesses can begin prioritizing practical improvements.

The largest emission sources will vary by industry. A manufacturer may focus on production equipment and energy consumption, while a logistics business may prioritize fuel use and transportation. A company with a complex supplier network may find that purchased materials account for a substantial share of its reported emissions.

Potential measures include:

• Improving energy efficiency in buildings and production facilities.

• Optimizing manufacturing processes and equipment.

• Reducing fuel consumption and improving logistics.

• Increasing the use of renewable energy where appropriate.

• Reducing material waste and improving resource utilization.

• Engaging suppliers to improve emissions data and performance.

• Reviewing product design and packaging.

The aim is not to implement every possible measure at once. Businesses should assess the likely environmental benefit, feasibility, investment requirements and operational implications of each option.

Set science-based targets

After identifying priority areas, organizations can translate their findings into measurable objectives.

The Science Based Targets initiative's Corporate Net-Zero Standard Version 2.0 provides a framework for companies developing and implementing climate targets. It introduces company categories and differentiated requirements, including specific assurance expectations for certain companies and data. These requirements depend on the applicable category and provision; they should not be generalized into a universal assurance obligation.

A target is most useful when it is supported by a credible emissions baseline, defined responsibilities, practical reduction measures and a process for monitoring progress.

Organizations should also distinguish between setting a target, having it validated under the relevant initiative, and independently assuring reported performance. These are separate activities.

4. Look beyond direct operations to the supply chain

An organization's operational emissions do not necessarily represent its full climate impact.

Purchased materials, contracted services, transportation, distribution and downstream product activities may contribute significantly to its overall GHG inventory. These sources can be more difficult to quantify because the relevant information is held by suppliers, logistics partners or other value-chain participants.

Businesses can improve their understanding of Scope 3 emissions by mapping significant sources, prioritizing data collection and working with suppliers to improve the quality and consistency of their information.

The process can also reveal opportunities to reduce material use, improve transportation efficiency, reconsider sourcing decisions and strengthen supply chain traceability.

Where sustainability requirements extend to the origin and characteristics of materials, certification schemes may provide additional support. We offers selected International Sustainability and Carbon Certification (ISCC) services, including ISCC EU and ISCC PLUS at eligible locations. Scheme availability and scope should be confirmed with the relevant entity.

Supply chain sustainability therefore connects climate management with procurement, product responsibility and market requirements.

5. Assess products across their life cycles

An organizational GHG inventory answers questions about the company's emissions. It does not automatically explain the climate impact of a particular product.

A Product Carbon Footprint (CFP) quantifies the greenhouse gas emissions associated with a product within a defined life-cycle boundary. ISO 14067:2018 provides requirements and guidelines for quantifying and reporting a product's carbon footprint and is consistent with the Life Cycle Assessment framework in ISO 14040 and ISO 14044. It addresses the climate-change impact category rather than every environmental impact.

Depending on the product and study scope, an assessment may examine raw material extraction, manufacturing, distribution, use and end-of-life treatment.

The results can help businesses identify carbon hotspots, compare design alternatives where appropriate and assess opportunities to reduce product-related emissions.

However, a product with a lower carbon footprint does not necessarily have a lower overall environmental impact.

Go beyond carbon with Life Cycle Assessment

Life Cycle Assessment (LCA) provides a broader view of the potential environmental impacts associated with a product system throughout its life cycle.

ISO 14040:2006 establishes the principles and framework for LCA, while ISO 14044:2006 specifies requirements and guidelines for conducting an assessment. Together, these standards provide the foundation for defining the study's goal and scope, compiling life-cycle data, assessing environmental impacts and interpreting the results.

Depending on the study, LCA may examine resource consumption, energy use, water, waste and other relevant environmental impact categories in addition to climate change.

Our Product Life Cycle Assessment services help organizations evaluate product-related environmental impacts and identify opportunities for improvement.

The findings can inform eco-design, material selection, manufacturing decisions and sustainability strategies. The study's boundaries, assumptions and limitations should remain clear when the results are used for external communication.

6. Make energy performance part of the reduction strategy

Energy management is a practical connection between environmental data and operational improvement.

Energy audits can help organizations understand how energy is consumed, identify inefficiencies and evaluate potential improvement measures. ISO 50002 provides requirements and guidance for energy audits, while ISO 50001:2018 establishes requirements for an energy management system designed to improve energy performance continually.

Energy management systems

The two standards serve different purposes: an audit evaluates energy performance and identifies opportunities, while an energy management system establishes a structured approach to managing and improving performance over time.

Depending on the organization, this may involve equipment upgrades, process optimization, improved monitoring, building controls and changes to operating practices.

When linked to the GHG inventory, energy data can also help businesses understand how operational improvements influence their emissions.

The value comes from connecting the assessment to implementation and ongoing measurement rather than treating the audit as a standalone exercise.

7. Respond to regulatory and market expectations

Environmental performance increasingly affects access to markets, customer relationships and corporate reporting. The specific obligations depend on the business, its size, sector, activities, locations and value-chain relationships.

Several developments illustrate why reliable sustainability information matters.

EU Carbon Border Adjustment Mechanism (CBAM). The EU's definitive CBAM regime began on January 1, 2026. It establishes obligations for relevant importers and addresses the embedded emissions of covered imported goods. Companies supplying affected goods may therefore face requests for emissions information and supporting evidence.

Corporate Sustainability Reporting Directive (CSRD) and European Sustainability Reporting Standards (ESRS). These frameworks govern sustainability reporting for companies within their applicable scope. The EU adopted revised ESRS in July 2026, following changes intended to simplify reporting requirements. Businesses should assess the rules and transitional provisions applicable to their reporting situation rather than assume that every company is subject to identical obligations.

EU Directive 2024/825. This directive strengthens consumer protection against misleading environmental claims and other sustainability-related marketing practices. Businesses making environmental claims should ensure that their wording is specific, appropriately substantiated and consistent with the applicable rules.

Science-based climate targets. The SBTi Corporate Net-Zero Standard Version 2.0 introduces updated target-setting, governance and assurance provisions. Companies considering this framework should determine the requirements applicable to their category and submission timeline.

These developments do not mean every organization must purchase the same verification or certification service. They do, however, reinforce the business value of reliable information, transparent methods and evidence that can withstand scrutiny.

8. Strengthen sustainability reporting with appropriate assurance

As businesses communicate environmental performance to customers, investors, regulators and other stakeholders, the credibility of their reporting becomes increasingly important.

Sustainability assurance evaluates sustainability information against the applicable criteria and engagement requirements. Its scope, level of assurance and conclusion depend on the engagement.

ISSA 5000, the International Standard on Sustainability Assurance, provides a comprehensive framework for sustainability assurance engagements. It is effective for periods beginning on or after December 15, 2026, or as at a specific date on or after that date, subject to applicable adoption and jurisdictional requirements. Earlier application is permitted. Other standards, including ISAE 3000 (Revised) and ISAE 3410, may remain relevant depending on the engagement and applicable requirements.

Verification of GHG statements under ISO 14064-3 is distinct from broader sustainability assurance. An organization should select the appropriate approach based on the information being assessed, the intended users and the relevant criteria.

Independent assurance can help businesses support their disclosures with evidence and communicate the boundaries of what has been assessed. It should not be presented as a guarantee that every sustainability claim or activity is accurate.

9. Approach carbon neutrality with a clear reduction hierarchy

Carbon neutrality should be supported by a defined methodology, transparent reporting and credible evidence. Calculating emissions alone does not establish that an organization or product is carbon neutral.

ISO 14068 addresses the principles and requirements for achieving and demonstrating carbon neutrality. However, the edition must be checked carefully: ISO's current catalogue identifies ISO 14068:2026 as the newer version, replacing ISO 14068-1:2023. The applicable requirements should therefore be confirmed against the current edition and the service being offered.

Part 1: Carbon neutrality

Businesses should understand their emissions; establish reduction priorities and document how remaining emissions are treated under the applicable framework. They should also ensure that any neutrality claim is supported by the required evidence and communicated within its defined scope.

PAS 2060 has historically been used as a carbon-neutrality specification. Organizations transitioning from a PAS 2060-based approach should confirm the applicable scheme requirements and the transition arrangements relevant to their claims.

We offer carbon-neutrality-related services within its Carbon and Environmental Solutions portfolio. The applicable standard, verification basis and delivering entity should be confirmed before making a specific service or accreditation claim.

10. Turn sustainability information into continuous improvement

A credible sustainability strategy connects every stage of the process:

1. Establish the baseline. Prepare a reliable organizational GHG inventory and define its boundaries.

2. Validate the evidence. Review data quality, assumptions and calculation methods, and obtain independent verification where appropriate.

3. Prioritize action. Identify major emission sources and assess practical reduction opportunities.

4. Assess the value chain. Improve understanding of Scope 3 emissions, supplier data and sourcing practices.

5. Evaluate products and operations. Use Product Carbon Footprint assessments, LCA and energy audits where they address relevant business questions.

6. Set measurable objectives. Establish targets, responsibilities and indicators appropriate to the organization's goals and applicable frameworks.

7. Meet reporting and market requirements. Determine which regulatory, customer and certification requirements apply.

8. Monitor and communicate progress. Report results transparently and refine the strategy as performance and requirements evolve.

This is not a one-time exercise. Business operations change, suppliers evolve, reporting expectations develop and reduction opportunities emerge over time.

The most effective approach is to make environmental information part of routine decision-making, from procurement and product development to energy management, investment and corporate reporting.

Cotecna ESG Global Network

We bring together a global network of offices, laboratories and specialist entities supporting clients across testing, inspection, certification and assurance.

Our Carbon and Environmental Solutions portfolio includes GHG emissions verification, Product Carbon Footprint, carbon neutrality-related services, Life Cycle Assessment, energy management systems, ISCC certification and sustainability-related assurance. Availability and accreditation scope vary by service and delivering entity.

The network includes entities such as Suolo e Salute, ESTS (Extensive Standard Technical Services Co., Ltd.) and BCK. Their respective service portfolios, qualifications and accreditation scopes should be confirmed for the relevant engagement.

For more information, visit Cotecna's Carbon and Environmental Solutions page.

Build a stronger foundation for sustainability decisions

An organizational GHG inventory provides a starting point for understanding emissions. Its real value emerges when businesses use the information to prioritize reductions, assess their products and supply chains, improve energy performance and support credible reporting.

The appropriate combination of assessment, verification, assurance and certification depends on each organization's objectives and obligations.

We support businesses seeking to strengthen the evidence behind their environmental performance and make more informed sustainability decisions.

Ready to strengthen your sustainability strategy with reliable environmental data?

Contact us today to explore GHG emissions verification, Product Carbon Footprint, Life Cycle Assessment and other sustainability solutions suited to your business needs.

About Cotecna

For over 50 years, we have been supporting agriculture, food and pharma, minerals and metals, and consumer products supply chains all over the world. We provide testing, inspection, and certification services to help our clients navigate evolving regulations, ensure product compliance, and support their sustainability journey.