The Greenhouse Gas Reporting Program (GHGRP) requires approximately 8,000 US-based facilities to submit their report on greenhouse gas (GHG) emission data (sources, fuel and industrial gas suppliers, and CO2 emissions) and other pertinent information each year. Every October, the reported data from all companies is made available for public viewing.
Which are the three Scopes of Emissions in GHG reporting?
A good grasp of the language surrounding climate change and business is essential for impacting your organization. Learning about your company's emissions is a critical first step in taking corporate climate action. This will enable you to identify the areas where you can reduce emissions and how to make informed business decisions and investments that will benefit the future. Greenhouse gases are classified as either "direct" or "indirect" emissions, according to international and national carbon accounting standards, and broken down into three groups known as "scopes."
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Scope 1 Emissions: Emissions from sources owned or controlled directly by an organization owns/controls – for example, from burning fuel in our fleet of vehicles.
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Scope 2 Emissions: Emissions caused indirectly by a company when the energy it purchases and uses is produced. Examples include electricity in warehouses, electric vehicle fleets, refrigerators, etc.
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Scope 3 Emissions: Encompass all Indirect emissions that occur in the reporting company's value chain from sources that are not owned or controlled by it. Scope 3 emissions include both upstream and downstream emissions. An example is buying, using, and disposing of products from suppliers. Scope 3 emissions include all sources not within the Scope 1 and 2 boundaries.
Corporate Sustainability Reporting: Is it mandatory?
The European Commission found that the GHG emissions information reported by companies is insufficient. Therefore, on 5 January 2023, the Corporate Sustainability Reporting Directive (CSRD) came into play in order to modernize and strengthen the rules concerning the social and environmental information that companies have to report.
CSRD applies to:
1. All large EU companies (including EU subsidiaries of non-EU parent companies) that have at least two of the following criteria:
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More than 250 employees.
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A turnover of more than €40 million or a total assets of €20 million.
2. Companies with securities listed on an EU-regulated market, irrespective of whether the issuer is established in the EU or a non-EU country.
3. Non-EU companies that meet the following:
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Annual EU-generated revenues in excess of €150 million, and
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Companies that have a large or listed EU subsidiary or a significant EU branch (generating €40 million in revenue).
How can you get prepared with VesselBot?
Partnering with VesselBot empowers companies to overcome the challenges associated with Scope 3 emissions reporting and unlock significant benefits:
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Streamlined Data Collection: Connected with carriers, freight forwarders, and logistics providers, VesselBot eliminates the need for manual data collection, saving valuable time and resources.
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Automated Data Consolidation, Cleaning, Harmonization, and Enrichment: By eliminating manual intervention, companies can benefit from VesselBot's advanced technology and significantly reduce the time and resources allocated to time-consuming and error-prone processes. Lastly, automated enrichment processes can enhance the data's value by adding relevant context and details that further support emissions reduction efforts.
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Accurate Primary Data: VesselBot's direct access to primary data ensures the highest level of accuracy (up to 92%) and reliability in emissions calculations, enabling companies to confidently and effortlessly report their Scope 3 emissions.
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Advanced Analytics and Insights: VesselBot's comprehensive dashboards provide in-depth analytics on logistics network performance regarding emissions, empowering companies to identify optimization opportunities and make data-driven decisions to reduce both emissions and transportation costs.
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Actionable Recommendations: VesselBot goes beyond data collection and analysis by offering actionable recommendations for emissions reduction strategies, including network optimization and operational efficiency improvements.
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Reduced Internal Resource Burden: By outsourcing emissions data collection and analysis to VesselBot, companies can free up internal resources, allowing Sustainability and Logistics teams to focus on strategic initiatives rather than manual data processing.
By partnering with VesselBot, companies can transform their approach to Scope 3 emissions reporting, turning it from a complex challenge into a strategic advantage. VesselBot's comprehensive solution not only ensures compliance with evolving regulations but also empowers companies to proactively reduce their environmental impact and drive sustainable business growth.