The first step companies should take to reduce their environmental impact is to measure the size of their carbon footprint and report on it. This helps them set targets and effectively allocate time and resources for sustainability strategies and policies. However, many companies still make mistakes in calculating GHG emissions. Your organization needs to self-reflect. Are you sure you are doing it right, or are you still not utilizing a proper calculation methodology? Let’s look at some common mistakes below that you need to avoid.
1. Using overly generalized and outdated emission factors
Emission factors are the currency of GHG emission calculations and are important for transforming activity data into CO2 equivalents. Using old-fashioned or overly generalized emission factors can lead to inaccurate calculations. For example, the emission factor for each electricity grid is different because it is influenced by differences in power generation efficiency and transmission network infrastructure in each location. If the company used the incorrect emission factor for electricity, the conversion will also be incorrect. To ensure accurate GHG calculations, companies should remember to update emission factors annually and choose one that is specific and relevant to their activities and location.
2. Data inconsistency
The accuracy of calculations depends heavily on the quality of the data and activity data used. Data inconsistency is caused by many factors that essentially make activity data lose credibility and become less reliable. Generally, what is often experienced by some companies is a lack of transparency in data sources, unclear data coordination between divisions, to the absence of documentation of the assumptions used. Typically, there is no systematic Inventory Management Plan (or some kind of GHG procedure) because GHG inventory activities are included in existing divisions, and there should be clear procedures and teams for coordinating GHG calculations and reporting. Companies should maintain logs of all data, including assumptions, estimates, and measured data, be transparent about data sources, conduct adequate training for responsible personel, and conduct internal data validation procedures.
3. Not considering all scope of GHG emissions
Common practice shows that many organizations tend to focus only on Scope 1 and Scope 2 emissions, considering the data for these scopes is easier to access and collect. Usually, Scope 3 emissions are ignored because data collection is more complex. Companies should be encouraged to identify and calculate Scope 3 emissions so that emissions reports provide a complete and accurate picture of the company’s total impact on climate change.
4. Lack of verification
To ensure accurate carbon footprint calculations, it is important to consider third-party verification of data. In the absence of an independent verification process, errors in emissions calculations may go undetected by responsible internal company personnel and possibly company management. In other words, the third-party verification process can detect errors and discrepancies in procedures and data because it checks for accuracy and ensures that GHG reporting complies with applicable standards and methodologies such as ISO 14064-1. Independent verification could increase credibility to the report and strengthens public and stakeholder trust.
At Decar, we understand the importance of reducing carbon emissions and achieving good GHG emissions reporting. Decar Verite Asia can verify GHG emissions and provide insights on how to do it right. By verifying GHG emissions, companies can help identify areas where improvements in the emissions calculation system can be made. Contact us to get more information on how your company can be verified by us.
Author: Hashinatul Fikrial Rabbani
