Corporate Carbon Reporting

Corporate carbon reporting has evolved into a central pillar of modern corporate sustainability strategies. With the introduction of the Corporate Sustainability Reporting Directive (CSRD) and increasing regulatory requirements, the systematic recording and communication of greenhouse gas emissions is becoming mandatory for a growing number of companies. This development reflects the increasing awareness of the role of business in climate protection.

Definition of Corporate Carbon Reporting

Corporate carbon reporting encompasses the systematic recording, calculation, and communication of all greenhouse gas emissions arising from a company's business activities. This includes the so-called Corporate Carbon Footprint (CCF), which is divided into three scopes according to the internationally recognized Greenhouse Gas (GHG) Protocol: Scope 1 (direct emissions), Scope 2 (indirect emissions from purchased energy), and Scope 3 (all other indirect emissions along the value chain). Reporting is increasingly carried out as part of the management report and is standardized by European standards such as the European Sustainability Reporting Standards (ESRS).

Legal Requirements and Developments in Corporate Carbon Reporting

With the introduction of the CSRD, companies are experiencing a fundamental change in corporate carbon reporting. The new directive replaces the previous Non-Financial Reporting Directive (NFRD) and significantly expands the circle of companies required to report. While previously mainly capital market-oriented companies with over 500 employees were affected, large companies with 250 employees and certain small and medium-sized enterprises (SMEs) must now also prepare comprehensive sustainability reports.

Implementation is taking place in several stages, with the first companies having to report according to the new standards for the 2025 financial year. A central element is the concept of double materiality: companies must report both on the impacts of climate change on their business and on their own impacts on the environment and climate. Sustainability reporting thus receives the same status as financial reporting and must be externally audited.

Methodology and Standards of Corporate Carbon Reporting

The GHG Protocol forms the foundation of corporate carbon reporting and defines clear categories for recording emissions:

• Scope 1 includes all direct emissions from sources controlled by the company, such as combustion in own facilities, vehicle fleet, or chemical processes
• Scope 2 refers to indirect emissions from purchased energy such as electricity, steam, heat, or cooling
• Scope 3 includes all other indirect emissions along the value chain, from procurement through use to disposal of products

Calculations are carried out according to internationally recognized methodologies such as ISO 14067 for product carbon footprints or ISO 14083 for transport emissions. Various greenhouse gases are taken into account and converted into CO₂ equivalents. The use of certified calculation methods and validated emission factors ensures the comparability and credibility of reporting.

Practical Implementation and Digital Solutions for Corporate Carbon Reporting

Implementing effective corporate carbon reporting requires systematic processes and often the use of specialized software solutions. Modern platforms enable the automated collection and calculation of emission data from various sources, integration into existing corporate systems, and the creation of CSRD-compliant reports.

Digital solutions such as the Sustainability Management Platform support companies in precisely calculating and analyzing their CO₂ emissions. The Sustainable Companies module, for example, enables the calculation of the Corporate Carbon Footprint according to GHG Protocol methodology, while CS-RDy supports the creation of CSRD-compliant sustainability reports. Product Carbon Intelligence focuses on calculating product carbon footprints according to ISO 14067, and Sustainable Transport enables the recording of transport emissions according to GLEC v3 and ISO 14083.

The integration of these solutions into existing ERP systems and business processes enables continuous monitoring and optimization of CO₂ performance. By using AI-supported analyses and automated matching procedures for emission factors, the accuracy of calculations can be increased and the effort required for reporting can be reduced.

Conclusion

Corporate carbon reporting is evolving from a voluntary sustainability measure to a legal obligation for a growing number of companies. The systematic recording and communication of greenhouse gas emissions is becoming an integral part of corporate governance and requires robust processes, reliable data, and often specialized digital solutions. Companies that invest early in professional carbon reporting can not only meet regulatory requirements but also gain competitive advantages through improved transparency and optimized processes.