By CEMAsys
The value of accurate emissions reportingwith the GHG Protocol
The process of measuring, managing, and reporting greenhouse gas (GHG) emissions is known as carbon accounting.
The most commonly used standard for carbon accounting globally is the Greenhouse Gas Protocol, which was created by the World Resources Institute and the World Business Council for Sustainable Development. Companies may use it as a framework to account for their emissions and develop ways to decrease them.
For businesses, carbon accounting offers a wide range of positive environmental, social, and financial effects. From an environmental standpoint, it enables businesses to analyze their emission profile and find opportunities to reduce. This may involve taking steps to increase energy efficiency, transitioning to renewable energy sources, and putting into practice best practices for business operations and equipment upkeep. Companies can minimize their influence on the environment and combat climate change by cutting emissions.
From a social standpoint, measuring and reporting emissions may assist organizations in demonstrating their commitment to sustainability, which can improve their reputation and attract consumers, investors, and other stakeholders interested in supporting sustainable business practices. Organizations may also lower their total emissions and energy use, which can result in cost savings, by recognizing and managing emissions throughout the value chain.
Scope 1 emissions are direct greenhouse gas emissions from sources that the organization owns or controls, such as fuel burning in boilers or cars. Companies can develop a better understanding of their emission profile and identify opportunities to reduce emissions from their own activities by measuring and reporting scope 1 emissions.
Scope 2 emissions are indirect emissions from the generation of purchased energy. Indirect greenhouse gas emissions from the heat, steam, electricity, or cooling that an organization uses are considered Scope 2 emissions.
Scope 3 emissions are all indirect emissions (not included in scope 2) It refer to all other indirect emissions that occur outside of the organization’s owned and controlled operations but are a result of their activities. This includes upstream and downstream emissions from categories such as purchased goods and services, business travel, end-of-life treatment of sold products and more.
Economic perspective
By reducing emissions, companies can lower their energy costs and boost their bottom line.
From an economic perspective, carbon accounting can bring a range of benefits to companies. Cost savings from energy efficiency techniques are one of the main advantages. Understanding their own emission profile helps businesses adopt energy-saving strategies, effectively transition to renewable energy sources, and implement best practices for industrial processes and equipment maintenance.
Companies may get considerable economic benefit from carbon accounting by complying with existing requirements while also staying ahead of upcoming regulations. Companies can more easily maintain compliance with these policies and avoid costly fines or operational changes by measuring and reporting emissions in accordance with the GHG Protocol. Companies may also demonstrate their commitment to sustainability by monitoring and disclosing emissions, which can strengthen their credibility and draw in clients, investors, and other stakeholders who are interested in supporting sustainable business practices.
The GHG Protocol breaks down emissions into three scopes: scope 1, scope 2, and scope 3. Each scope has its own set of guidance for attributing, measuring, and reporting the relevant GHG emissions. This includes data quality measures as well as process suggestions when organizations cannot meet best practices. To better understand the GHG Protocol please see the following breakdown of the three scopes.