Concerns about climate change are increasingly present nowadays, and companies have an important role to play in this regard. Managing CO2 emissions is no longer just a legal obligation; it is a necessity for those who want to remain competitive and relevant in the market. In this scenario, an inventory of greenhouse gas (GHG) emissions is the first step towards understanding and managing a company’s environmental impact.
But what precisely is an emissions inventory? And why is it so important for your business? Let’s explain all this in a clear and straightforward manner.
What is an Emissions Inventory?
In simple terms, an emissions inventory is a kind of diagnosis. It maps out all of your company’s activities that generate greenhouse gases, such as energy consumption, transportation, and even waste disposal. With this information, you can understand your company’s “carbon footprint” and, from there, outline strategies to reduce this impact.
Think of an emissions inventory as a GPS that shows you where you are on the path to sustainability. Without it, it’s hard to know which changes are really making a difference in your operation.
Why should your company carry out an Emissions Inventory?
Carrying out an emissions inventory can provide many benefits to your company, both in terms of regulatory compliance as well as standing out in the market. Here are some reasons why you should consider taking this step:
Reducing Legal Risks: With environmental laws becoming more stringent, keeping up to date with legislation is essential. An emissions inventory helps your company prepare to comply with these rules, avoiding fines and opening doors to new markets that demand more sustainable practices.
Decarbonization: Decarbonization goes beyond offsetting emissions; it involves making changes within the company to directly reduce its environmental impact. With a well-executed inventory, you can identify which areas of your operation need more attention and which actions can generate the most positive results.
Transparency and Credibility: Nowadays, consumers and investors are looking for companies that truly care about the environment. Publishing an emissions inventory is a great way to demonstrate this commitment in a concrete manner and gain market trust.
How do you carry out an Emissions Inventory?
Conducting an emissions inventory may seem complicated, but with good planning and the right help, the process can be much smoother. Here are the key steps to carrying out an efficient inventory:
Define Limits: The first step is to decide which parts of the company will be included in the inventory. This could include different business units, branches, or even suppliers. The more complete the inventory, the better you will understand the full impact of your operation.
Choosing an Analysis Period: An inventory typically covers one year of operations, but there is nothing stopping you from taking more frequent measurements. The more information you have, the easier it will be to identify trends and make adjustments to the day-to-day running of the business.
Collect Data: Now it’s time to gather all information about energy consumption, fuel use, business travel, etc. The more accurate the survey, the more reliable the results of your inventory will be.
Calculate Emissions: With the data in hand, the next step is to calculate GHG emissions. There are several methodologies for doing this, and it is best to follow recognized standards, such as the GHG Protocol. This ensures that the numbers are accurate and can be verified in the future.
Inventory Publication
Although for most companies this step is optional, publishing a GHG inventory provides transparency to the market regarding the environmental impact of the business and the results of its mitigating actions.
There are several channels for publishing a GHG inventory, but the Public Emissions Registry (RPE) of the Brazilian GHG Program (GHG Protocol) is the main national public database for the disclosure of corporate inventories. Publication in the RPE is carried out annually and can be done by any company, as long as it is registered with the program and meets the deadlines within the current calendar.
Additionally, emissions inventories can be included in the business’s own sustainability report, ensuring even more visibility and transparency. Finally, there are other voluntary initiatives for the disclosure of inventories, such as the CDP (formerly known as the Carbon Disclosure Project) or the ICO2 index (Carbon Efficient Index) from B3, which enables access to more investment sources for publicly traded companies.
For companies seeking to effectively manage their emissions, a GHG inventory is an essential strategic step. In addition to ensuring compliance with regulatory obligations, it strengthens the company’s positioning in the face of climate change challenges, demonstrating a clear commitment to sustainability.
Another crucial aspect is the positive impact on the investment market. Investors are paying increasing attention to companies’ ESG practices, and a well-executed emissions inventory can attract new investments, improve access to financing and increase stakeholder confidence. The transparency and environmental responsibility provided by the inventory translate into a significant competitive advantage in the current financial scenario.
GHG Inventory with Ekôa:
Conducting an emissions inventory can be a complex task for any company, regardless of its level of maturity in emissions management. Data collection often requires the integration of different areas of the company, while calculations require in-depth knowledge of appropriate methodologies. These challenges make inventory preparation a multifaceted but essential activity for effective environmental management and for ensuring the accuracy and reliability of information about the company’s emissions.
At Ekôa, we have developed a Digital Emissions Management process, simplifying all the stages of your carbon calculation as well as adhering to the GHG Brazil Public Emissions Registry.
You can count on our expertise in every step of this process. From defining inventory limits to calculating emissions in detail and reporting results, our team is prepared to provide an integrated and efficient approach, aligned with best market practices.