How do Companies Measure CO2 Emissions?

With the increasing urgency to tackle climate change, businesses across the globe are becoming more conscious of their carbon footprints. But how exactly do companies measure CO2 emissions? This article sheds light on this important process.

CO2 emissions, commonly referred to as carbon emissions, encompass all greenhouse gases that a company emits directly or indirectly. For a systematic approach, businesses typically follow the Greenhouse Gas Protocol (GHG Protocol), a comprehensive global standard for measuring and managing greenhouse gases.

The GHG Protocol categorises emissions into three scopes: Scope 1, Scope 2, and Scope 3. Scope 1 covers direct emissions originating from sources owned or controlled by the company, such as combustion in owned or controlled boilers, furnaces, vehicles, etc. Scope 2 accounts for indirect emissions from the generation of purchased energy, predominantly electricity, heat, and cooling. Lastly, Scope 3 is the most comprehensive and includes all other indirect emissions occurring in a company’s value chain.

The measurement of these emissions generally involves a mix of direct monitoring, data collection, and calculations based on standardised emission factors.

Direct monitoring involves using sensors and other monitoring equipment to measure emissions released from sources like boilers, industrial processes, and company vehicles. This form of monitoring provides the most accurate data but can be complex and expensive to implement.

When direct monitoring isn’t possible or cost-effective, companies resort to a calculation-based approach. This involves gathering data about the company’s activities that result in emissions, such as the amount of electricity consumed, fuel used, or waste generated, and then applying relevant emission factors.

Emission factors are coefficients that quantify the emissions produced per unit of activity. For example, the emission factor for electricity might be the amount of CO2 emitted per kilowatt-hour (kWh) of electricity used. These factors are often sourced from scientific research or regulatory bodies and can be specific to regions, fuels, or technologies.

For Scope 3 emissions, which can be challenging to track and quantify due to their broad nature, businesses often utilise lifecycle analysis (LCA) or rely on industry averages. LCA involves assessing the environmental impact of a product or service throughout its entire lifecycle, from raw material extraction to disposal or recycling.

However, it’s important to note that measuring CO2 emissions is only part of the puzzle. To drive real change, businesses must take the next step: reducing their emissions. This could involve investing in renewable energy, improving energy efficiency, transitioning to low-carbon technologies, and encouraging suppliers to do the same.

To help track progress, many businesses set science-based targets (SBTs). SBTs are emission reduction targets in line with what the latest climate science deems necessary to meet the goals of the Paris Agreement – to limit global warming to well below 2°C above pre-industrial levels and pursue efforts to limit the temperature increase to 1.5°C.

Moreover, to ensure transparency and credibility, companies are encouraged to have their emission data and reduction efforts independently verified. Third-party verification provides assurance that a company’s greenhouse gas assertions are complete, consistent, accurate, transparent, and in accordance with agreed-upon standards and regulations.

In conclusion, measuring CO2 emissions is a complex process involving a mix of direct monitoring, data collection, and mathematical calculations. It requires a deep understanding of a company’s operations and value chain, and the commitment to not only measure but also reduce these emissions. With increasing regulatory pressure and growing public concern about climate change, the ability to accurately measure and manage CO2 emissions is becoming a critical business competency.