How to calculate and reduce the carbon footprint in industry

The carbon footprint in industry It measures the greenhouse gas (GHG) emissions associated with the activity of an organization, a product or an event. To calculate it, it is necessary to define the limits of the analysis, identify the emission sources, collect real activity data and apply the appropriate emission factors. Once the baseline has been established and the results analyzed, the company can prioritize the most efficient actions to reduce its environmental impact and optimize its costs.

Key points about the carbon footprint in the industry:

• The CO2 calculation establishes the essential baseline to detect inefficiencies before executing any investment.
• Separate emissions into scope 1 (direct by thermal combustion), scope 2 (indirect by electricity consumption) and scope 3 (value chain).
• The generation of steam and heat through fossil fuels concentrates up to 70% of total emissions in thermo-intensive plants.
• The footprint must be measured per unit of product to prevent production variations from distorting year-on-year follow-up.
• The substitution of fossils by Industrial biomass Through the ESCO model, it allows to eliminate the thermal scope 1 without providing initial capital (Capex 0).

What is the carbon footprint of an industry?

The industrial carbon footprint is an environmental indicator that quantifies all greenhouse gases emitted directly or indirectly by the operation of a factory, a production process or an organization as a whole.

• What does it measure: The total amount of GHG released into the atmosphere as a result of fuel burning, energy demand, or value chain activities.
• What emissions include: It not only covers carbon dioxide (CO2), but also other high-impact gases such as methane (CH4), nitrous oxide (N2O) or fluorinated gases.
• Why it is expressed in CO2 equivalent (CO2E): because each gas has a different global warming potential (GWP). For example, emitting 1kg of methane generates an impact equivalent to releasing approximately 28 kg of CO2. CO2e unifies all impacts under the same unit of measure to be able to add and compare them.
• Difference between emissions and carbon footprint: Emissions are the individual gas discharges released by a specific focus (eg a chimney), while the carbon footprint is the sum or consolidated inventory of all the focuses attributable to an entity during a given period.

Carbon footprint of a facility and a company

the footprint of a installation It is delimited to the physical perimeter of a specific work center or productive plant. On the other hand, the imprint of a company Consolidates data from all its locations, logistics centers and corporate activities.

Direct and indirect emissions

emissions direct They come from sources that are owned or under the operational control of the company (such as process boilers). The indirect They are a consequence of the company’s activities, but they occur in sources that belong to third parties (such as the generation of electricity consumed).

Why is it important to calculate the carbon footprint in the industry?

Measuring the carbon footprint is an operational diagnostic exercise that brings multiple advantages before tackling any technology investment:

• Know the real impact of industrial activity: Provides a transparent and quantitative view of the plant’s ecological footprint.
• Identify the processes with the highest emissions: It allows to detect immediately the most inefficient or with greater energy consumption of the production line.
• Set a baseline: It creates a rigorous reference on which to measure the effectiveness of the projects that are implemented in the future.
• Measure the evolution of emissions: It makes it easier to audit whether the operational measures put in place are achieving the planned reductions.
• Facilitate decision making: guides the allocation of capital (capex) towards those technologies that offer a greater reduction of emissions per euro invested.
• Respond to stakeholder requirements: It satisfies the ESG information requirements raised by international clients, investors and financial institutions.

What emissions are included in the industrial carbon footprint?

The international standard GHG Protocol And the ISO 14064 standard classifies industrial emissions into three main scopes:

Scope 1: Direct emissions

It covers all direct released emissions of greenhouse gases that come from sources owned by the company or under its control:

• Process boilers and steam generators.
• Industrial furnaces and dryers.
• thermal production equipment.
• refrigerant gas leaks.
• vehicles and fleet of the factory.

Scope 2: Indirect emissions associated with energy

It includes emissions derived from the generation of energy that the company acquires and consumes:

• consumption of electricity from the commercial network.
• steam, heating or cooling imported from a third party.
• It measures the level of energy dependence from external non-renewable sources.

Scope 3: Other indirect emissions

It encompasses the emissions of the company’s value chain, which occurred upstream and downstream:

• Extraction and production of acquired raw materials.
• Transport and external logistics distribution.
• Management of waste generated in the plant.
• Business trips and employee travel.

How to calculate the carbon footprint of an industry step by step?

The calculation of the carbon footprint is executed following a standardized methodology in six operational phases:

Step 1. Define what will be measured

Establish organizational and operational limits. It must be decided if the analysis covers the entire company, a specific facility or a product line, setting the base year or annual period under study.

Step 2. Identify emission sources

Prepare an inventory of all the points of the plant that generate GHG:

• Type of burned fossil fuels (natural gas, diesel, fuel oil).
• electrical connection points.
• chemical processes with process emissions.
• Equipment with possible leaks of refrigerant gases.

Step 3. Collect activity data

Collect the actual consumption data of the period analyzed by means of invoices, counter readings and production records:

• cubic meters (m3) or kWh of natural gas.
• kWh of electricity consumed.
• liters of diesel or tons of fuel consumed.
• tons of processed raw material.

Step 4. Apply emission factors

An emission factor is a ratio that converts activity data into GHG emissions (e.g. kg CO2e/kWh of gas). Current official databases (such as those published by the Ministry of Ecological Transition or official environmental agencies) should be used.

Step 5. Convert Emissions to Equivalent CO2

Multiply the activity data by the corresponding emission factor for each gas and convert the results to TCO2e added by their global warming potential factors.

Emissions (tCO2e) = activity data x emission factor

Step 6. Analyze the results

Evaluate the data obtained to detect the critical sources (hotspots), interpret the variations with respect to previous exercises and establish the priorities of action.

Example of calculating an industry’s carbon footprint

Below is a hypothetical example for a manufacturing industrial plant with direct thermal and electrical consumption:

Note: The emission factors of the table are purely illustrative and indicative. The actual calculation requires using the current official coefficients for the year and geographic region of the study.

How to interpret the carbon footprint of an industry?

Analyzing the carbon footprint implies going beyond the absolute data of total emissions; Intensity metrics should be used to assess the actual plant efficiency:

• Total emissions: The aggregate figure expressed in TCO2e. It indicates the absolute overall impact, but does not reflect whether the plant has been more or less efficient if the production volume has changed.
• Emissions per production unit: Ratio that divides total emissions by the number of units manufactured (eg Kg CO2e / ton of product). It is the key indicator to measure the actual decarbonizing efficiency.
• Carbon intensity: Relationship between the emissions generated and the turnover or the gross added value generated by the factory.
• YEARLY EVOLUTION: Comparison of the ratios with respect to the base year to validate if the operational improvements are having an effect.
• Identification of main focuses: Distribution chart showing what percentage of emissions come from heat generation versus electricity consumption.

What are the main sources of emissions in the industry?

In the industrial sector, emissions are predictably concentrated in five operational areas:

Generation of heat and steam

represents most of the scope emissions 1. The use of boilers and burners of natural gas or oil derivatives to produce process steam usually means more than 60-70% of the total footprint in thermointensive industries.

Electricity consumption

Main responsible for the scope 2. It is linked to the operation of engines, pumping systems, compressed air, lighting and industrial cold plants.

Industrial processes

Non-energy emissions released by the chemical or physical transformation of raw materials (such as in the production of cement, lime, glass or fine chemical industry).

Transportation and logistics

Movement of inputs and finished product through internal or subcontracted transport fleets.

Raw materials and supply chain

Indirect Impact (Scope 3) Derived from the life cycle of materials and inputs purchased from suppliers.

How to use carbon footprint calculation to prioritize reduction measures?

Once the footprint has been calculated, the company must activate specific measures for its reduction. These solutions range from low-cost interventions to technological transformations of the thermal vector:

• Reduce energy consumption: Eliminate leaks in compressed air networks, isolate steam pipes and optimize load curves.
• Improve process efficiency: Recover residual heat from chimneys by economizers or heat exchangers.
• Replace fossil fuels: To deepen the development and execution of these technical substitution strategies, we recommend that you consult our specialized content about How to reduce CO2 emissions in the industry.
• Incorporate renewable energy sources: Introduce photovoltaic self-consumption or replace the burning of fossil gas with solid biofuels of proximity in the boiler room.
• Measure and review the results: Maintain a periodic follow-up to ensure that the improvements implemented are consolidated over time.

To calculate the carbon footprint to define reduction targets

The emissions inventory is only the starting point. Structured environmental management must follow a logical process in phases:

1. Measure: Quantify the initial carbon footprint rigorously.
2. Analyze: Break down the emission sources and interpret the critical sources.
3. Set a baseline: Set the official reference point of the year analyzed.
4. Define objectives: Establish a medium and long-term percentage reduction plan (eg aligned with Science Based Targets initiatives).
5. Select measurements: Design and implement the set of most appropriate technical reduction actions, as well as compensate for part of the emissions. To structure it in a corporate strategic document, you can rely on the guidelines to design a Industrial Decarbonization Plan.
6. Track: Periodically audit the evolution of metrics.

What indicators help to track the carbon footprint?

To continuously evaluate the environmental performance of the plant, the following key performance indicators (KPIs) must be monitored:

• Total tons of CO2e: Evolution of the absolute volume of annual emissions.
• Emissions per unit of production (t CO2e / unit): Efficiency metric detached from total sales volume.
• Energy consumption per unit produced (kWh / unit): Measures the efficiency in the use of energy before applying conversion factors.
• Emissions distribution Scope 1 vs. Scope 2: It allows to monitor if the thermal or electrical substitution actions advance as planned.
• YoY variation of the footprint (%): Percentage of reduction or increase in emissions compared to the previous year.

Common errors when calculating the industrial carbon footprint

When preparing the emissions inventory, it is common to commit bias that reduces technical validity to the study:

• Use incomplete consumption data: Skip secondary energy bills, fuel consumption of auxiliary machinery or estimate key consumption without real measurements.
• Failure to correctly define the scope of the calculation: Exclude operational or non-transparent areas which activities of the plant have been left out of the limits of the analysis.
• Do not differentiate the emission sources: Mix the fuel consumption destined for the generation of process heat with those used for transport.
• Use incorrect or outdated emission factors: Apply conversion coefficients from previous years or from different geographic frameworks.
• Analyze only total emissions: Evaluate only the absolute figure of TCO2e without relating it to the volume of production, which can distort the results in years of low industrial activity.
• Do not compare the results in time: Calculate the footprint as an isolated exercise without giving interannual continuity to the follow-up.
• Measure without setting tracking indicators: Collect data without linking it to operational KPIs that allow executive decisions to be made.

How can ENSO help reduce the industry’s carbon footprint?

On ENSO We help manufacturing companies transform their emissions diagnoses into real carbon footprint reduction projects, acting as a technology partner, operational and financial specialized in the Industrial decarbonisation:

• Analysis of the energy profile: We evaluate the energy balances of your plant to quantify the emissions associated with the generation of heat and steam process.
• Identification of thermal emissions: We locate the opportunities of greatest impact on your boilers, dryers and distribution networks.
• Development of decarbonisation solutions: We project and install high-efficiency bioenergy solutions adapted to the pressures and flows required by your production process. If you want to know the range of alternatives available, you can explore the different Technologies for industrial decarbonization.
• Replacing fossil fuels: We replace the combustion of natural gas or diesel with local sustainable biomass, directly eliminating scope 1 emissions.
• Financing without initial investment: through the Esco model, we assume 100% of the initial investment (ZERO CAPEX for the customer), selling only the necessary thermal energy at a predictable rate.
• Monitoring and monitoring of results: We take care of the operational management, maintenance and continuous measurement to certify the emission reduction achieved and verify the Economic benefits of industrial decarbonization.

If you want to analyze the real emission reduction potential of your industrial plant, you can learn about our proposal on What is Industrial Decarbonization or put you in contact With our team of engineers.

Calculate the industrial carbon footprint It has ceased to be a mere exercise of environmental reporting to become the most effective diagnostic tool with which to optimize operating costs and ensure the competitiveness of a plant. Establishing a transparent baseline is the essential step to transition from measurement to action, allowing fossil fuels to be replaced, eliminate direct emissions from scope 1 and build an efficient and prepared production model for demanding NET Zero commitments. 

Carbon Footprint in Industry FAQs

What is the difference between carbon footprint and CO2 emissions?

CO2 emissions are the specific release of carbon dioxide. The carbon footprint is the grouped global inventory that adds the CO2 and the rest of the greenhouse gases (CH4, N2O, etc.), expressing the consolidated result in TCO2e.

What scope should industrial companies calculate?

In general and mandatory under most regulatory frameworks, companies must measure the Scope 1 (direct emissions) and the Scope 2 (indirect energy emissions). The Scope 3 (value chain) is highly recommended and is progressively incorporated according to the requirements of ESG reporting and its specific characteristics.

How often should the carbon footprint be calculated?

It is recommended to calculate it annual, matching the period with the closing of the fiscal or accounting year in order to compare the interannual evolution of the indicators.

Is it necessary to calculate the carbon footprint for each installation?

Yes. For industrial plants with geographical locations or different process lines, it is advisable to calculate the footprint in a disaggregated way by work center to detect specific inefficiencies before consolidating the data at the corporate level.

How can the carbon footprint of two different years be compared?

The comparison should be made using intensity indicators (eg TCO2e / ton manufactured), so that variations in the overall production volume of the factory do not mask the true evolution of energy efficiency.

What data is necessary to calculate the industrial carbon footprint?

Annual natural gas consumption invoices and records (M3 or kWh), electricity consumption (kWh), liters of liquid fuels (diesels, fuel oil), hours of machinery use and the total volume of production of the period, among others, are required.

How to know which process generates more emissions?

multiplying the energy consumption broken down of each line or equipment by its corresponding emission factor. Usually, the equipment dedicated to the generation of steam and process heat represents the highest percentage of emissions in the manufacturing industry.