Greenhouse Gas Assessment Guide
A greenhouse gas (GHG) emissions assessment is imperative to comply with ESG and Californias regulations, identify opportunities for improvement, enhance competitive advantage, and contribute to a more sustainable future. Read on for a full expert guide:
1. Background
Greenhouse gas (GHG) emissions are a significant contributor to climate change, and companies are under growing pressure to measure, manage, and mitigate these emissions. Understanding your GHG emissions profile is crucial for developing effective sustainability strategies, reducing operational costs, enhancing brand reputation, and ensuring compliance with regulatory requirements. A GHG assessment provides a comprehensive analysis of your emissions across the value chain, enabling informed decision-making and targeted action to reduce carbon footprints.
2. Who Needs a Greenhouse Gas Assessment?
The following are required to complete annual GHG assessments:
Brands selling product in the European Union
The following will soon be required to complete GHG assessments:
Brands selling product in California
Public US companies may be required by SEC ruling 33-11275
Regardless of legal requirements, any brand with a commitment to sustainability, corporate responsibility, or regulatory compliance should consider conducting a GHG assessment. Companies operating in energy-intensive sectors such as manufacturing, transportation, and utilities typically have significant emissions footprints and are prime candidates for assessment. Additionally, businesses with high visibility in the public eye, such as consumer goods companies and retail chains, can benefit from demonstrating their environmental responsibility through transparent GHG reporting.
3. How to do a Greenhouse Gas Assessment?
A GHG assessment involves several key steps:
Data Collection: Gather data on energy consumption, fuel usage, transportation activities, waste generation, and other relevant sources of emissions across the organization's operations. This may require collaboration with various departments and stakeholders.
Emissions Calculation: Use established methodologies such as the Greenhouse Gas Protocol to calculate GHG emissions from the collected data. Emissions are typically categorized into three scopes:
Scope 1: Direct emissions from owned or controlled sources, such as combustion of fossil fuels.
Scope 2: Indirect emissions from purchased electricity, heat, or steam.
Scope 3: Indirect emissions from sources outside the organization's control, including supply chain activities, business travel, and employee commuting.
Analysis and Reporting: Analyze the emissions data to identify hotspots, trends, and opportunities for emissions reduction. Prepare a comprehensive GHG inventory report detailing emissions by scope, emissions intensity metrics, and relevant contextual information. This report serves as a baseline for setting reduction targets and tracking progress over time.
Snaplinc Consulting works with stakeholders across the supply chain to complete this entire assessment. If you’re ready to uncover your GHG impacts and hotspots, schedule a consultation call below:
4. When should I conduct a Greenhouse Gas Assessment?
Most brands opt to complete a GHG assessment at the start of each fiscal year, looking back on the previous year. While there may not be universal deadlines for conducting GHG assessments, companies should consider several factors:
Regulatory Compliance: Stay abreast of evolving regulatory requirements related to GHG reporting and disclosure. Many jurisdictions have implemented or are considering mandatory emissions reporting, and compliance deadlines vary.
Investor and Stakeholder Expectations: Investors, customers, and other stakeholders are increasingly demanding transparency and accountability on climate-related issues. Meeting their expectations may necessitate timely GHG assessments and reporting.
Internal Sustainability Goals: Companies with internal sustainability targets or commitments may set deadlines for conducting GHG assessments as part of their broader sustainability strategy.
Sample data visualization from a Snaplinc Consulting GHG Assessment report.
5. How Snaplinc Consulting Can Assist
Expertise and Guidance: We bring specialized knowledge and experience in GHG accounting methodologies, data analysis techniques, and emissions reduction strategies. We guide companies through the assessment process, ensuring accuracy, completeness, and compliance with best practices and standards.
Stakeholder Engagement: Snaplinc Consulting facilitates stakeholder engagement to gather relevant data, align organizational objectives, and communicate findings effectively. This may involve conducting workshops, interviews, or surveys with internal and external stakeholders. Snaplinc works with disparate departments to fill out provided templates for a comprehensive view of the company’s greenhouse gas impact. For example: Human Resources reports employee commutes, operations teams report shipping logistics, and finance teams reports any purchased offsets.
Customized Solutions: Snaplinc Consulting develops tailored emissions reduction strategies that align with your individual business objectives, operational constraints, and sustainability aspirations. This may include identifying low-cost emission reduction opportunities, implementing energy efficiency measures, or exploring renewable energy options.
Impactful reports: You can’t manage what you don’t measure. A GHG assessment is imperative in visualizing this otherwise invisible environmental impact. Snaplinc Consulting compiles engaging data visualization reports that translate greenhouse gas emissions into tangible, actionable impacts.
6. Conclusion
Conducting a GHG assessment is a crucial step for all companies committed to sustainability and climate action. By understanding emissions profiles, businesses can identify opportunities for improvement, enhance their competitive advantage, and contribute to a more sustainable future. Snaplinc Consulting streamlines the assessment process and unlocks additional value through expert guidance and customized solutions. Still have questions? Get in touch for a complimentary consultation.