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Carbon Footprint:Critical Data in the Global Boiling Era What is the carbon footprint?4 Why does the carbon footprint matter?5 How can businesses measure their carbonfootprint?7 How prepared are Thai businesses for measuringand reporting carbon footprint?10 Krungsri Research View: Carbon footprintmanagement is no longer an 'option' but a 'mission'for businesses.16 References17 Unlessexplicitlystatedotherwise,thispublicationandallmaterialthereinisunder the copyright ofKrungsriResearch. As such, the reuse, reproduction, oralteration of this text or any part thereof is absolutely prohibited without priorwrittenconsent.Thisreportdrawsonawiderangeofwell-establishedandtrustworthysources,butKrungsriResearchcanmakenoguaranteeoftheabsolute veracity of the material cited. Moreover,KrungsriResearch will not beheld responsible for any losses that may occur either directly or indirectly fromany use towhich this reportorthe datacontained therein maybe put.Theinformation,opinions,andjudgementsexpressedinthisreportarethoseofKrungsriResearch, but this publication does not necessarily reflect the opinionsof Bank ofAyudhyaPublic Company Limited or of any other companies withinthe same commercial group. This report is an accurate reflection of the thinkingand opinions ofKrungsriResearch as of the day of publication, but we reservethe right to change those opinions without prior notice. For research subscription, contactkrungsri.research@krungsri.com Executive summary As climate change emerges as a pressing global agenda, businesses worldwide must prioritizeenvironmental responsibility. Carbon footprints, or the total greenhouse gases emitted from businessactivities, serve as essential data for evaluating environmental impact. As a result, both domestic andinternational regulations increasingly require businesses to measure and report their carbon footprints. Krungsri Research examined the readiness of Thai companies to disclose carbon footprint data and foundthat only half of the companies listed on the Stock Exchange of Thailand are able to report their carbonfootprints. High-carbon-emitting businesses tend to disclose data more extensively, while large enterprisesreport at twice the level of smaller ones. In the coming years, Thai businesses will face growing pressure to report their carbon footprints due tostricter regulations, trade rules, and rising demand from sustainability-conscious consumers and businesspartners. Nonetheless, businesses that effectively manage their carbon footprints can unlock newopportunities in trade and investment. Prapan Leenoi Analystprapan.leenoi@krungsri.com+662296 6235 What is the carbon footprint? Thecarbon footprintrefers to the amount of greenhouse gases generated by business activities, products, orservices. It includes various gases from multiple sources, such ascarbon dioxide (CO2)from fossil fuelcombustion,methane (CH4)from livestock activities and landfill waste,nitrous oxide (N2O)from agriculture,andfluorinated gases (F-gases)from industrial processes and refrigerants. These greenhouse gases significantlycontribute to global warming, with carbon dioxide accounting for approximately three-quarters of total globalgreenhouse gas emissions. As a result,emissions are commonly measured in Carbon Dioxide Equivalent (CO2e)units, combining all gases into a single metric, collectively referred to as the "carbon footprint." Despite being emitted in smaller quantities, other greenhouse gases still have a profound impact on climatechange. When measuring their Global Warming Potential (GWP) relative to carbon dioxide, methane has 25times the warming potential, while nitrous oxide is 298 times more powerful than carbon. More alarmingly,certain fluorinated gases have a warming potential exceeding 10,000 times that of carbon dioxide (Figure 1). Why does the carbon footprint matter? In an era when sustainable development is a major global megatrend, businesses need to drive theiroperations with a greater focus on environmental responsibility. The carbon footprint is a crucial tool fororganizations to measure their environmental impact, enabling better management, impact mitigation, andthe creation of new business opportunities. Therefore, by measuring their carbon emissions, businessescan reap three main benefits, as follows: Carbon Reduction and Cost Savings:When a business assesses its carbon footprint, it can planappropriate measures to reduce carbon emissions, aligning with sustainability goals at both theorganizational and national levels1/. Additionally, effective carbon footprint management, such asswitching to LED lighting and using recycled materials, can reduce energy consumption and resourceuse, ultimately lowering both the carbon footprint and operating costs. Increased Business Opportunities:Today, business partners and customers place greaterimportance on sustainability. Organizations that adhere to environmentally friendly standards andrecognize the significance o