GHG Inventory & Emissions Accounting
A comprehensive GHG inventory is the foundation of any decarbonization strategy. It enables organizations to measure, manage, and reduce carbon emissions while aligning with Net Zero and Carbon Neutral commitments. By quantifying emissions across Scope 1, 2, and 3, businesses gain a clear understanding of their carbon footprint and can implement effective reduction strategies.
At Clenergize, we support organizations in developing and maintaining accurate GHG inventories, ensuring compliance with international standards such as the GHG Protocol, Science-Based Targets Initiative (SBTi), Carbon Disclosure Project (CDP), and Task Force on Climate-related Financial Disclosures (TCFD). Our approach ensures transparency, regulatory alignment, and credibility in sustainability reporting.
Why a GHG Inventory is Essential for Organizations
- Provides a data-driven foundation for setting carbon reduction targets and Net Zero commitments
- Enhances regulatory compliance with climate disclosure frameworks such as CSRD, SFDR, and IFRS sustainability standards
- Strengthens corporate sustainability strategies by identifying high-emission activities and opportunities for reduction
- Supports access to sustainable finance by demonstrating carbon reduction commitments to investors and stakeholders
Key Components of a GHG Inventory
1 Identifying Emission Sources Across Scope 1, 2, and 3
An accurate GHG inventory classifies emissions into three scopes based on their origin and impact
Scope 1 – Direct Emissions
- Emissions from sources owned or controlled by the organization
- Includes fuel combustion from company-owned facilities and vehicles
- Covers industrial processes and on-site energy generation
- Direct emissions are often the most straightforward to measure but require precise tracking to ensure accuracy
Scope 2 – Indirect Emissions from Purchased Energy - Emissions generated from the production of electricity, steam, heating, and cooling that an organization purchases for operations
- Contributes significantly to an organization’s carbon footprint, depending on energy sources used by the utility provider
- Organizations can reduce Scope 2 emissions through renewable energy procurement, energy efficiency improvements, and electrification strategies
Scope 3 – Indirect Emissions Across the Value Chain- Scope 3 emissions often represent the largest share of a company’s total carbon footprint
- Covers all indirect emissions from upstream and downstream activities, including:
- Purchased goods and services
- Business travel and employee commuting
- Waste disposal and logistics-related emissions
- Use and end-of-life treatment of sold products
- Measuring Scope 3 emissions is complex but essential for comprehensive decarbonization strategies
2 GHG Data Collection and Quantification
Accurate data collection is crucial for establishing a credible GHG inventory. Organizations must identify emission sources, collect activity data, and apply appropriate emission factors to quantify emissions
- Primary data sources include energy bills, fuel consumption records, supply chain reports, and transportation logs
- Secondary data sources may include industry benchmarks and national emissions databases for estimating indirect emissions
- Emission factors are selected based on recognized standards, including the IPCC Guidelines, GHG Protocol, and national regulatory frameworks
3 Carbon Footprint Calculation and Reporting
Once data is collected, organizations must apply standardized methodologies to calculate their total carbon footprint
- GHG emissions are reported in metric tons of CO2 equivalent (tCO2e)
- Conversion factors account for the global warming potential (GWP) of different greenhouse gases, including CO2, methane (CH4), and nitrous oxide (N2O)
- The final inventory report serves as a baseline for tracking emission reductions over time
Developing a GHG Inventory Roadmap
1 Establishing a GHG Accounting Framework
- Selection of appropriate reporting boundaries based on operational or financial control approaches
- Alignment with international GHG reporting standards such as the GHG Protocol, ISO 14064, and TCFD guidelines
- Integration of climate risk assessments to identify vulnerabilities in emission-intensive operations
2 Verification and Assurance of Emissions Data
- Independent verification enhances credibility and ensures regulatory compliance
- External assurance audits align with industry best practices, reducing risks of misreporting
- Continuous data monitoring allows organizations to track progress and refine decarbonization strategies
3 Setting Science-Based Reduction Targets
- Net Zero and Carbon Neutral targets must align with the Science-Based Targets Initiative (SBTi)
- Emission reduction pathways include energy efficiency improvements, renewable energy adoption, and carbon offset strategies
- Organizations must establish interim milestones to track progress towards long-term decarbonization goals
How Clenergize Supports GHG Inventory Development
- Comprehensive GHG footprint assessments covering Scope 1, 2, and 3 emissions
- Custom data collection strategies to ensure accuracy and completeness
- Regulatory compliance guidance for aligning with CDP, TCFD, SBTi, and IFRS sustainability frameworks
- Third-party verification support to enhance credibility in sustainability disclosures
- Digital solutions for real-time GHG emissions monitoring and reporting
Industries Benefiting from a Robust GHG Inventory
- Corporates and industrial sectors reducing emissions and enhancing sustainability performance
- Financial institutions tracking financed emissions and aligning with climate risk frameworks
- Real estate and construction firms implementing low-carbon building strategies
- Transportation and logistics companies optimizing fleet emissions and supply chain sustainability
Why Choose Clenergize for GHG Inventory & Emissions Accounting
- Expertise in global GHG reporting frameworks ensuring accurate, transparent, and compliant emissions accounting
- End-to-end support from data collection and quantification to third-party assurance and regulatory compliance
- Tailored decarbonization strategies helping businesses transition to a low-carbon economy
- Proven track record of assisting organizations in meeting Net Zero, SBTi, and sustainability-linked financing requirements
Take the First Step Towards Decarbonization with Clenergize
A well-structured GHG inventory is the cornerstone of effective emissions reduction and long-term sustainability. Clenergize enables organizations to measure, manage, and mitigate their carbon footprint with precision, ensuring compliance with evolving climate regulations
Looking to establish or refine your GHG inventory? Contact Clenergize today for expert guidance in emissions accounting and decarbonization strategy development
