Carbon footprint and utilities: how to measure and communicate the real impact of networks and services

Why carbon footprint is central to utilities

Utilities operate on complex networks, characterised by energy-intensive assets, large volumes of data and processes with a significant environmental impact. The impact is not limited to production or distribution, but also includes network losses (technical and non-technical), the efficiency of pumping, compression and treatment systems, indirect emissions from energy purchases, the supply chain and procurement, and end customer behaviour.

Accurately measuring and reporting carbon footprints is therefore essential for:

• Manage physical and transition risks (ESG, EU taxonomy);
• Plan investments aimed at reducing losses, digitalisation and resilience;
• Improve credibility in the market (investors, certifications, ratings);
• Engage users and stakeholders in more sustainable choices.

How to measure real impact: methodologies and standards

Carbon footprint measurement is now based on established frameworks that ensure comparability and transparency.

1. GHG Protocol – Scope 1, 2 and 3

This is the global standard for calculating emissions. In the case of utilities:

• Scope 1: direct emissions from plants, fleets, generators, gas leaks (methane);
• Scope 2: energy purchased for pumping, treatment and remote control systems;
• Scope 3: materials for network construction and maintenance, disposal, procurement, supply chain, use of the service by customers.

For many utilities, Scope 3 accounts for over 70–90% of the total impact: not considering it means drastically underestimating the footprint.

2. Life Cycle Assessment (LCA)

The LCA methodology allows the environmental impact to be analysed throughout the entire life cycle of the infrastructure, including the design and construction phases of the network, consumption of materials (steel, PVC, copper, resins), transport and logistics, routine and extraordinary maintenance, decommissioning and recycling of components.

For gas and water network operators, LCA is increasingly used to assess which investments bring the greatest benefit in terms of emissions reduction.

3. EU Taxonomy & CSRD

The new European legislation requires companies to report not only on the quantity of emissions, but also on:

• alignment of investments with sustainability criteria;
• decarbonisation plans and annual results;
• physical risk and transition risk.

Utilities are therefore integrating carbon footprint measurement into their financial and strategic reporting systems.

Technologies that enable more accurate measurement

In recent years, technological advances have led to a quantum leap in the monitoring of environmental impact. First and foremost, smart metering and smart grids allow for the collection of more granular consumption and network data, which in turn makes it possible to identify leaks and inefficiencies in real time, calculate indirect emissions more accurately, support dynamic pricing models that reward virtuous consumption, and enable demand-response programmes. Digitalisation becomes not only an operational tool but also a strategic asset for sustainability. In addition, sensors distributed across electricity, water and gas networks enable the detection of methane leaks, abnormal consumption, critical temperatures and pressures, and energy inefficiencies in pumping and compression. This data improves the accuracy of greenhouse gas inventories and enables predictive interventions.

Added to this is the value of Artificial Intelligence, which facilitates accurate estimates of Scope 3 emissions, predictive models for plants and networks, automated LCA simulations, and customer segmentation based on emission reduction potential. Looking ahead, generative AI will also be able to automate ESG reporting and the creation of sustainability reports.

Measuring and communicating carbon footprints is no longer just a compliance exercise, but a strategic competitive lever for utilities. The integration of smart metering, IoT, AI and advanced reporting standards now provides a more complete view of the real impact of the network, enabling smarter investments and transparent dialogue with customers and stakeholders.

Utilities that can combine technical rigour, digitalisation and effective communication will be best placed to lead the transition to a more sustainable energy and environmental model.