In today’s world, sustainability is no longer just a phrase, it’s a business necessity. In the context of European sustainability Reporting standards (ESRS), companies are obliged to report in detail on their GHG emissions as part of their sustainability reports. Measuring and managing greenhouse gas emissions, carbon footprint (carbon footprint) is one of the key parts of sustainable business as well as sustainability reports, and the aim is to reduce the impact on the environment and climate change.
These data would be used to analyse the company’s impact on the environment and to ensure transparency and accountability to stakeholders and the public.
Greenhouse gases include emissions of all anthropogenic greenhouse gases (CO2, CH4, N2O, HFCs, PFCs, SF6, and NF3).
The calculation of a company’s carbon footprint is defined by the Greenhouse Gas Protocol (GHG Protocol) and ISO standards (ISO 14064-1 and ISO 14069).
The starting point is the ability to accurately measure and understand the company’s carbon footprint. Here, the GHG Protocol becomes invaluable, a global standard for measuring and managing greenhouse gas emissions. By following this standard, a company can systematically monitor and report on its emissions across various scopes and sources, providing a comprehensive overview of environmental impact.
Creating a GHG inventory involves mapping business operations, collecting data, and analysing emission sources from various activities within the organization. The calculation includes direct emissions from owned or controlled sources (Scope 1), indirect emissions from purchased electricity, heat, or steam (Scope 2), and other indirect emissions from sources such as business travel and supply chains (Scope 3). Reporting on emissions in these scopes gives you insight into the full spectrum of emissions, enabling the identification of “hot spots” and opportunities for reduction.
The benefits of creating a GHG inventory provide much greater opportunities than mere compliance with regulations. It is about fostering positive changes within the organization. By understanding its emission profile, a company can identify areas where efficiencies can be achieved, reduce costs, and implement sustainable practices. This not only reduces environmental impact but also increases operational resilience and long-term profitability.
Moreover, calculating GHG emissions using the GHG Protocol standard ensures consistency and comparability between industries and geographies. This standardized approach allows companies to compare their performance with competitors, set significant reduction targets, and transparently demonstrate progress to stakeholders. Whether it’s a small startup or a multinational corporation, adhering to this recognized standard strengthens credibility and builds trust with investors, customers, and regulators.
In addition, adopting the GHG Protocol standard is a strategic step towards securing the future of business. With increasing pressure to address climate change, regulatory requirements are becoming stricter, and consumer preferences are shifting towards environmentally responsible brands. By proactively measuring and managing emissions, companies not only stay ahead of regulatory developments but also position their company as a leader in sustainability, attracting environmentally conscious customers and investors.
Implementing a GHG inventory may seem daunting at first glance, but through our consulting services that provide expertise and leadership, companies have access to a range of solutions tailored to their needs and budgets.
Creating a GHG inventory and calculating greenhouse gas emissions according to the GHG Protocol is not just a regulatory compliance process; it is a strategic imperative for companies committed to sustainability. By adopting this standard, companies can gain valuable insights, spur operational efficiencies, enhance their reputation, and contribute to a more sustainable future for everyone. So why wait? Start your journey towards a greener, more resilient business today.
For all information regarding the calculation, you can contact us at sales@boost.hr.
