GHG Carbon footprint has been introduced as one of the PAI indicators under the recently introduced Sustainable Finance Disclosure Regulation or SFDR.  What does it mean? How is it related to sustainability? And why do we need to measure them? 🤔

The GHG carbon footprint is used to measure total GHG emissions caused by an individual or a company. Carbon dioxide or CO2 has the major role in this emission, i.e. almost 75%, the other GHGs are methane, nitrous oxide, hydrofluorocarbons, and perfluorocarbons. To make it simple, every GHG measurement is the equivalent of CO2. Therefore, a company's carbon footprint entails more than just burning fossil fuels. It also has the indirect emissions associated with their services and products.