If you’ve been tasked with tracking your company’s carbon emissions, you may be struggling to get the full picture, especially if you're tracking lots of different emissions across your Scopes 1,2 and 3. But as companies scramble to comply with environmental regulations, and meet ambitious sustainability goals, emissions accuracy has never been more important.
Why are businesses falling short on emissions tracking? A BCG survey concluded that the problem is not willingness - 85% of organizations cited concern about reducing their emissions. The problem is actually inaccurate and inconsistent data, with an estimated 30-40% error rate in their emissions calculations.
We looked into the three most common signs that your company’s emissions are slipping through the cracks, and what you can do about it.
1. Incomplete or inaccurate emissions data
2. Lack of clear responsibility and accountability
3. Inefficient or outdated emissions tracking methods
Stop letting your emissions fall through the cracks, by following these simple strategies.
1. Clearly define roles and responsibilitiesAccountability starts with clear role definitions. Even if there is more than one person collecting the information, the direction and methodology needs to be set by one person or a team of people, who will ultimately have to sign off on the final output.
2. Invest in tools that can streamline emissions tracking and reporting
Inconsistent and inaccurate data will cost you money down the line. Having a good carbon accounting tool, or streamlined ways of collecting emissions data will help you ensure that you're capturing the data you need for your emissions reports.
3. Regularly review your emissions data
Treat your carbon accounting like your financial accounting. Regular audits and checks will mean that you don't end up with any nasty surprises at the end of the year, and have to back track on all the work you've done over time.
4. Get the C-Suite involved
If senior leadership isn't behind the work you're doing, you're set up to fail. Get senior management involved by showing them the financial and reputational benefits of reporting your carbon emissions. If that's not enough, you can explain the legal requirement to comply with the CSRD (Corporate Social Responsibility Directive).
5. Stay on top of climate regulations
If you're in charge of reporting on your company's carbon emissions, it's your responsibility to stay on top of developments in this space, because it will affect how and when you need to submit your emissions reports.
Conclusion
Understanding the problem is key to solving it. Whether you're new to ESG or a seasoned professional, the key to getting your emissions on track is to ensure a consistent and methodical approach from everyone in the team, using up-to-date tools. With these things in place, you'll be able to improve how you track your emissions, reduce your environmental impact, and get closer to your Net Zero goals.