A carbon footprint assessment measures greenhouse gas emissions across your operations (Scope 1 and 2) and your value chain (Scope 3), following GHG Protocol methodology. For most companies, Scope 3 is 70-90% of total emissions. The inventory establishes the baseline required for SBTi target validation, mandatory disclosure under CSRD, ISSB, and California SB 253, and customer ESG data requests that now cascade through supplier networks.

Scope 1 covers direct emissions from sources you own or control, such as fuel combustion in facilities or company vehicles. Scope 2 covers indirect emissions from purchased electricity, heating, steam, and cooling. Scope 3 covers all other value chain emissions, including purchased goods, business travel, commuting, and product use and disposal. For most companies, Scope 3 is the largest share and the hardest to measure accurately.

Offsets are not a primary decarbonization lever. SBTi's Corporate Net-Zero Standard requires reducing value chain emissions by at least 90% before using carbon removal credits for residual emissions. Credit quality matters: the Integrity Council for the Voluntary Carbon Market's Core Carbon Principles set minimum thresholds for additionality, permanence, and verification. SBTi v2.0 (mandatory January 2028) will require dedicated carbon removal targets separate from reduction targets.

CBAM's definitive phase started January 1, 2026. Importers exceeding 50 tonnes annually of covered goods (steel, aluminum, cement, fertilizers, hydrogen, electricity) must hold authorized CBAM declarant status. 2026 imports create financial exposure, but certificate sales only open February 1, 2027, with the first annual declaration due September 30, 2027. Certificate prices track EU ETS allowances and fluctuate with European carbon market conditions. Non-EU producers must provide verified installation-level emissions data or face conservative default values.