GHG Emissions

Green House Gas Reporting

(And Why It Doesn’t Have to be Complicated)

Gathering Scope 1 and 2 data for Green House Gas Reporting, measuring and identifying the correct green house gases, applying emissions factors and Global Warming Potential conversions can be a daunting task. Measuring Scope 3 emissions is usually more difficult and consumes much more time.

First organizations need to develop the appropriate methodologies and processes, setting boundaries, base years, and reduction goals. Usually this doesn’t include Scope 3 emissions, and data is not collected and used in real-time business processes to support more effective decision making. Consumers usually don’t have a good idea of which products and services are best in class with the lowest emitting value chains.

Raefton’s platform collects performance data from your value chains, in real-time, and makes this information available to all stakeholders to support more effective decision making. And we make existing business processes more efficient as well.

Scope 1: Direct Emissions

Scope 1 emissions are from sources that are owned or controlled by the organization. Think of assets associated with fuel combustion like natural gas for heating or internal combustion engines contained in vehicle fleets. For most organizations these emissions will be a relatively small portion of the total emissions associated with their product or service.

Scope 2: Indirect Emissions - Purchased Energy

These are the emissions caused when an organization purchases energy in the form of electricity, steam, heat or cooling. These emissions are accounted for within an organizations GHG report as they are caused by an organization’s energy use.

Scope 3: Downstream Indirect Emissions

These are all other emissions caused by an organizations activity and are the most difficult to quantify. For this reason, many organizations that do report Scope 3 emissions rely on industry averages or static life cycle assessments to develop a rough calculation of emissions through their supply chains.

The Problem and Opportunity

Scope 3 is where the opportunity arises for organizations to participate in “green-washing” or “green-wishing”. The challenge with Scope 3 emissions arises due to the use of industry average data. With more than 80% or an organizations emissions residing in Scope 3 emissions, using industry averages removes the incentive for organizations to actually measure and reduce emissions within their supply chains.

McKinsey and Company Logo

“80% Share of consumer emissions reside in the supply chains. To meet the pathway to net-zero, CPG companies need to work with their suppliers to secure green raw materials and supply. “

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World Economic Forum

“Supply-chain decarbonization will be a ‘game changer’ for the impact of corporate climate action. Addressing Scope 3 emissions is fundamental for companies to realize credible climate change commitments.”

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Summary view of the Raefton Platform