Glossary entry

Carbon Footprint

Definitions

Carbon Footprint

Option 1

Carbon Footprint means the total annual Greenhouse Gas Emissions caused directly or indirectly by [insert name of individual], [insert organisation name], [insert event name] or [insert product name], expressed as a Carbon Dioxide equivalent (CO2e).

Option 2 (as defined in Teddy’s Clause)

Carbon Footprint means the amount in tonnes of Carbon Dioxide Equivalent of Greenhouse Gas Emissions that will be released into the atmosphere as a result of the [manufacture/supply/use] of [the Product/Service/Business Operation/Project]
[determined in accordance with international Carbon Reporting practice, being the accepted practice from time to time in relation to reporting for the purposes of the protocols to the United Nations Framework Convention on Climate Change].

Option 3 (as defined in Dottie's Clause)

Carbon Footprint means the amount in tonnes of Carbon Dioxide Equivalent of Greenhouse Gas Emissions that will be released into the atmosphere as a result of the activities of the Company in the year ending [date].

Organisational Carbon Footprint

Option 1

Organisational Carbon Footprint means the total annual direct and indirect Greenhouse Gas Emissions originating from all activities across [insert organisation name].

Option 2 (as defined in Zoë and Bea’s Clause)

Organisational Carbon Footprint means total annual worldwide Greenhouse Gas Emissions from all the activities across the organisation, including energy used in buildings, industrial processes and company vehicles and including [Scope 1 and Scope 2] [Scope 1, Scope 2, and Scope 3] [DELETE AS APPROPRIATE] activities.

Product Carbon Footprint

Option 1

Product Carbon Footprint means an overall measure of Greenhouse Gas Emissions over the whole life of a product (goods or services) provided by [insert organisation name], which are a consequence of the extraction of raw materials,
manufacturing, use, re-use, recycling or disposal.

Option 2 (as defined in Zoë and Bea’s Clause)

Product Carbon Footprint means total Greenhouse Gas Emissions over the whole life of the Supplied Products, from the extraction of raw materials and manufacturing through to its use and final re-use, recycling or disposal, including [Scope 1 and Scope 2] [Scope 1, Scope 2, and Scope 3] [DELETE AS APPROPRIATE] activities, as described in the Greenhouse Gas Protocol.

Supply Chain Carbon Footprint

Option 1

Supply Chain Carbon Footprint means total annual Greenhouse Gas Emissions resulting from the purchase of raw materials and services by [insert organisation name] in order to deliver its service[s] [[and] product[s]].

Option 2 (as defined in Zoë and Bea’s Clause)

Supply Chain Carbon Footprint means total annual Greenhouse Gas Emissions associated with the raw materials and services purchased by the Supplier in order to deliver the Supplied Products.

Drafting notes

Carbon Footprint

  • The term ‘Carbon Footprint’ is often used as an umbrella term for more specific carbon emission measurements, such as Organisational Carbon Footprint, Supply Chain Carbon Footprint, and Product Carbon Footprint. Therefore, the common use of ‘carbon footprint’ often means these more specific terms are obscured or conflated. It is important to ensure that the correct term is used in contracts and other legal documents.
  • An overall Carbon Footprint accounts for all six Kyoto Greenhouse Gas emissions (see the definition of Greenhouse Gases (GHGs)).

Organisational Carbon Footprint

  • Direct emissions are emissions from activities within an organisation’s control. This includes emissions from on-site fuel combustion, manufacturing and process emissions, refrigerant losses and company vehicles. Under the World Resources Institute (WRI) and World Business Council for Sustainable Development (WBCSD) Greenhouse Gas (GHG) Protocol, these are termed Scope 1 emissions. Indirect emissions are emissions from any electricity, heat or steam purchased and used by an organisation and any other indirect emissions from sources outside the organisation’s direct control. The organisation is indirectly responsible for the release of GHG associated with that power or other source of GHG. These emissions are classed (respectively) as Scope 2 and Scope 3 emissions under the GHG Protocol. Scope 3 emissions can include use of sold goods, employee commuting and business travel, outsourced transportation, waste disposal and water consumption. For more information, see the definition of Scope 1, 2 & 3 Emissions.

Supply Chain Carbon Footprint

  • It would be appropriate to use this more specific definition of Carbon Footprint in supply chain contracts that seek to reduce carbon emissions at each stage of a manufacturing process.

Product Carbon Footprint

  • This product-specific definition of Carbon Footprint may be favoured by larger companies when assessing the overall environmental impact of their products (goods and / or services) and meeting CSR obligations.
  • Product Carbon Footprint is sometimes abbreviated to ‘PCF’.
  • The Product Carbon Footprint sums up the total Greenhouse Gas emissions generated by a product over the different stages of its life cycle, ‘from cradle to grave’ (see the definition of Embodied Carbon (Embedded Carbon)).
  • In recent years, various standards have been developed to determine the CO2 balance of products. The best-known standards for calculating a carbon footprint are the British PAS 2050, the GHG Protocol and ISO 14067 (see the definition of Carbon Footprint Standards).

Application

Company articles, shareholder agreements, employment contracts, consumer laws, supply chain clauses, loan agreements and government guidance.

Used in Zain’s Clause [Mutual Sustainability Rights].