No matter which reporting standards or framework a company is following, Greenhouse Gas (“GHG”) emissions are a critical component in its ESG/ Sustainability reporting. As climate change becomes an increasingly pressing issue, stakeholders are holding companies accountable for their environmental impact, including their Greenhouse Gas emissions emissions. However, measuring and reporting Greenhouse Gas emissions emissions can be a complicated and challenging process, requiring specialised skills and tools.
Accurate Greenhouse Gas emissions reporting is essential for companies to demonstrate their commitment to sustainability and meet regulatory requirements, which also enables companies to identify areas where they can reduce emissions, set targets, and track progress.
Both Singapore Exchange (“SGX”) and Hong Kong Stock Exchange (“HKEX”) are requiring issuers to adopt internationally accepted GHG accounting system the GHG Protocol, to measure their GHG emissions, with methodologies and emission factors used disclosed in their ESG / Sustainability Report.
What is GHG Protocol？
GHG Protocol sets comprehensive global standardised frameworks to measure and manage GHG emissions from private and public sector operations, value chains and mitigation actions. Its Corporate Accounting and Reporting Standard guides the accounting for virtually every corporate GHG reporting program in the world. It helps companies prepare a GHG inventory that represents a true and fair account with reduced costs and increase the consistency and transparency in GHG accounting and reporting among various companies and GHG programs.
As the first step to account for a company’s GHG emissions, it should first set its organisational boundary based on the three approaches listed below:
To compile a GHG Inventory for a company, it should understand the three main components of its carbon footprint.
| Scope | Emission Source |
|---|---|
| Scope 1 – Direct Emissions | from stationary and mobile combustion of fuels or leakage |
| Scope 2 – Energy Indirect Emissions | from purchased electricity, town gas, heat and steam |
| Scope 3 – Other Indirect Emissions | from the company’s value chain e.g. employee business travel |
Reference: https://ghgprotocol.org/corporate-standard
What is Scope 3 GHG Emissions?
In realisation that the majority of total corporate emissions come from Scope 3 sources, which are outside of companies own walls — from the goods purchases to the disposal of the products sold, the Scope 3 Standard (Corporate Value Chain Standard) was designed to allow companies to assess their entire value chain emissions impact and identify where to focus reduction activities. The Scope 3 Standard is currently the only internationally accepted method for companies to account for these types of value chain emissions. Companies shall review their emissions from 15 categories of Scope 3 activities, both upstream and downstream of their operations.
What GreenCo can do for you
At GreenCo, we understand the importance of accurate GHG emissions reporting and the challenges involved in calculating and reporting GHG emissions. We provide comprehensive GHG emissions reporting services that help companies accurately account for and report their GHG emissions, which cover a wide range of emissions sources, including direct emissions from operations, such as fuel combustion, and indirect emissions from the electricity grid, purchased goods and services and employee commuting. We use the latest methodologies and tools to ensure accurate and reliable GHG emissions reporting, including the GHG Protocol, ISO 14064, and other recognised standards and frameworks.
Our team of experts has extensive experience in GHG emissions accounting and reporting, and can help clients navigate the complexities of the reporting process, meet regulatory requirements, and enhance their reputation as responsible and sustainable companies. Contact us to learn more about how we can help your company achieve GHG emissions accounting and reporting standards.