How to account for greenhouse gas

Article posted

7th Jun 2023

Read time

4-8 min read


Mollie Pinnington

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What are greenhouse gases?

Greenhouse gases are gases that trap heat in the atmosphere and contribute to global warming. Greenhouse gases are created from a variety of activities, including burning fossil fuels for energy, and land-use changes such as deforestation and industrial processes.

Greenhouse gases that companies produce usually come from fossil fuel combustion, industrial processes, and land-use changes. Burning fossil fuels such as oil, natural gas, and coal for energy releases carbon dioxide into the atmosphere. Additionally, industrial processes involved in production and manufacturing often emit other greenhouse gasses such as methane and nitrous oxide. Land-use changes such as deforestation and agricultural activities also release greenhouse gases.

What is greenhouse gas accounting?

Greenhouse gas accounting is the process of measuring and tracking your business’s emissions of these gases. This allows you to understand the impact that your operations are having on the environment and determine where emissions can be reduced. It also allows you to compare your performance with other companies and set achievable targets for reducing emissions.

When it comes to greenhouse gas emissions these are often split into different measurement scopes. Some are easier to measure and reduce than others.


What are the different scopes of GGA?

Greenhouse gas accounting aims to measure and track emissions of greenhouse gases. These emissions are divided into three scopes: scope 1, 2, and 3.

Scope 1

These emissions refer to direct emissions from sources that are owned or controlled by the company, such as onsite combustion of fossil fuels, leaks from refrigerants, and transportation of company vehicles. For example, if you own a fleet, this would be considered scope 1 emissions.

Scope 2

Scope 2 emissions refer to the indirect energy-related emissions associated with electricity and heat used by the company, such as from power plants that generate electricity consumed by the company. For example, the energy you get from your supplier. If you are on a brown energy contract then you are still contributing to the output of fossil fuels.

Scope 3

Finally, these emissions are the hardest to track and manage. Scope 3 emissions refer to other indirect activities related to a company’s operations, such as the transportation of goods and services, the use of products by customers, and outsourced activities. For example shipping your products and the end of life of your products as in how the are disposed of.


How can your business implement GGA?

If you are interested in implementing greenhouse gas accounting, there are a few steps you should take. First, identify which scopes are relevant to your business operations and begin collecting data on the emissions associated with each scope. Once you have collected this data, you can begin to create a plan for reducing emissions and monitoring progress. This will involve setting goals and implementing strategies such as energy efficiency improvements, renewable energy procurement, and waste reduction initiatives. Finally, it is important to engage stakeholders in the process by conducting regular reporting on progress towards your goals.

Greenhouse gas accounting can be a complex and challenging process, so it is important to seek out experts in the field who can provide guidance. There are also various tools available online that can help with tracking emissions and setting targets.

By taking these steps, your business will be able to track its greenhouse gas emissions more accurately and take action to reduce them. This will help you become more efficient, reduce costs, and contribute to a cleaner environment.


What are the benefits of greenhouse gas accounting for your company?

Greenhouse gas accounting offers a range of benefits for companies. By tracking and measuring emissions, businesses can gain a better understanding of the impact their operations have on the environment and identify opportunities to reduce their emissions. This can help improve operational efficiency, boost brand reputation, and allow the company to meet regulatory requirements. Measuring greenhouse gas emissions can also help a business to set achievable reduction targets that are tailored to their operations. Finally, carbon accounting can help a company better understand the full cost of their operations and inform decisions around purchasing, energy efficiency, and waste management.

In addition to these benefits, greenhouse gas accounting can provide valuable data that helps the company track its progress over time. This data can also be used to set, track and monitor environmental goals, which can help the company demonstrate its commitment to sustainability.

Overall, greenhouse gas accounting offers a number of benefits for businesses. By tracking emissions and taking measures to reduce them, companies can improve their operational efficiency while reducing their impact on the environment. This can help companies save money, increase their brand reputation, and build a stronger relationships with stakeholders.

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