GHG Reporting Tips and Recommendations from an Internal Expert
We know all these calculations may seem daunting. That’s why we’ve asked one of our internal sustainability experts for their recommendations to help you carry out your GHG reporting successfully.
Here are three tips they shared:
1. Set up a process to collect your data
"One of the most important things you need to consider is setting up the right processes and systems to effectively collect Scope 1, 2, and 3 data,” says Bertil Abbing, Head of Sustainability Analyst at EcoOnline. “This is one of the biggest challenges organizations face because they don’t always know where all their information sits.”
Let’s take your Scope 1 emissions, for example. These include the use of fuel, natural gas, and more. You must decide whether you will find this information from meters on site and/or from company records. For Scope 2 emissions, refer to your electricity, heating and cooling bills to find the right data. These should be easily accessible and stored in a safe place.
Scope 3 emissions are often the hardest to collect because they include other indirect emissions. Take the time to set up the right methods in your organization to keep track of this data. As we previously mentioned, to find out more about employee commuting for example, set up a survey for employees to fill out twice a year to gather this information. Your finance team should also have records of all company investments and franchises (included as part of Scope 3 emissions). Lastly, once you’ve collected all of this data, make sure it sits in one place that is easily accessible.
It may take time to set up and improve data collection processes of your Scope 1, 2, and 3 data, but trust us; it’ll all be worth it in the end.
2. Always use the most up to date emissions factors
"Make sure you’re always using the most up-to-date emissions factors and assumptions because these values may change,” shared Abbing. For this reason, double check the numbers you are using when carrying out your GHG calculations.
For instance, emissions factors tend to change depending on location, air pollution, and/or types of activities which are carried out. For instance, in 2008 the emissions factor for grid electricity in the UK was 492g CO₂e, while in 2021 it decreased to 210g CO₂e. This is due to the significant decarbonization of the UK’s electricity grid.
Bertil Abbing told us, “When customers migrate to our [EcoOnline] platform, one of the first things we do is to review the historic emission factors that have been applied and in many cases, it highlights some wild inaccuracies. It is often the case that an external consultant has built a spreadsheet for a client, which is then used and expanded year after year but without the emission factors being changed, or where they have changed, they are not referenced in a way that can be audited. These spreadsheets inevitably break down in the face of time and changes within the business.”
3. Be transparent
“It’s important to be transparent. If you have evidence and can show what you’ve done to external auditors, the audit process will be much easier,” said Abbing. This piece of advice is important as it creates a sense of accountability for your team members.
In order to be transparent, make sure all the records you’ve collected are easily accessible by an external auditor. We recommend doing this digitally through a software system, where you can simply click a button and grant an external auditor access to your GHG reports. Not only does an electronic platform help you centralize all your data, but it also streamlines the audit process.
Answer all questions an auditor may have honestly, rather than guessing or saying what you think they may want to hear. This attitude will help during the process, as auditors will have a better picture of how you came up with your calculations and where you are in the process of building your sustainable strategy.