What are the best practices for reporting on greenhouse gas emissions?

Choosing a standard is key in greenhouse gas reporting. The Greenhouse Gas Protocol offers comprehensive guidance. However, the audience matters. For investors or regulators, the TFCD, focusing on financial risks and opportunities from climate change, may be more relevant. The GRI, covering various sustainability aspects, may appeal more to customers or NGOs. Aligning reporting with international norms enhances credibility and comprehension. Choose a standard fitting your context and audience.

Inspired by the discussion, a key takeaway is the importance of choosing the right standard for GHG reporting. For instance, a company like XYZ Corp. adopted the GHG Protocol, aligning their reporting with international norms. This not only enhanced their credibility but also provided clear insights into their environmental impact. They further ensured data accuracy through rigorous third-party verification, setting a benchmark in transparent and responsible reporting. It's a testament to how strategic choices in reporting can elevate a company's CSR profile.

To drive the decarbonization of the planet, companies must extend their emissions reduction targets throughout their entire supply chain, including suppliers, transporters and consumers. That is, it requires a holistic approach that considers direct and indirect impact of organisations when defining a transition strategy to a low-carbon economy. Precisely, the biggest challenge for companies is their indirect emissions (whether linked to the use of their products or services or their supply chain). This implies an enormous challenge of organisation, measurement and analysis. It is necessary to calculate the carbon footprint of a company (suppliers, distributors, transporters, sellers and consumers). To do so, follow the GHG Protocol.

Reporting greenhouse gas (GHG) emissions is vital for managing climate-related risks and opportunities, and the GHG Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard is a leading method for doing so. It enables firms to track indirect emissions that occur within their entire value chain, encompassing 15 distinct categories. This granular approach helps in identifying areas for emission reduction and ensures meticulous reporting, avoiding double counting, and promoting transparency.

First of all, you cannot manage, let alone improve, what you cannot measure. As such, energy metering plays a pivotal role; to reduce as much manual calculations/conversions as possible. Another challenge is securing data accuracy, so getting your data sanity checked by 2 or 3 layers is always good. If your data is getting third party verified, it's best to align understanding and method of intended assessment with the third party, especially if they are only verifying it remotely (desktop). It is super important that they understand the context and actual condition of the industry to be able to get a sense of the data they are analyzing.

Making GHG emission reports publicly accessible and easy to find increases transparency and stakeholder engagement. In my previous roles, ensuring that our emissions reports were easily accessible on our website and through other public platforms played a significant role in building trust and reinforcing our commitment to environmental stewardship Demonstrating a forward-looking approach by including future emission reduction strategies and investments in the report is crucial. My experience in strategic planning for sustainability showed that outlining future steps, such as investing in renewable energy or energy-efficient technologies, enhances stakeholder confidence in the company's long-term commitment to reducing its carbon footprint

When you create targets and action plans - access to finance also needs to be explored in parallel. We know transition to green energy is not cheap, but various financing schemes are available in the market to accelerate your decarbonization journey!