Since the Paris Agreement was signed in 2015, there has been a dramatic surge in mandatory carbon reporting. This momentum continues to accelerate, bolstered by the global race to achieve net zero as well as external investor and stakeholder pressures.
But complex carbon calculations and granular requirements can make carbon reporting a heavy lift for many companies at the beginning of their journey. Novata’s Carbon Onboarding Lead, Oren Karp, and Manager of Advisory Services, Matt Babic, recently held a live webinar sharing actionable tips for first-time reporters to simplify their carbon reporting processes.
Learn the key insights from their conversation on carbon reporting below:
1. Lean on Accessible Data to Build a Carbon Inventory
For first-time carbon reporters, putting together a carbon inventory starts with gathering emissions data related to facilities and energy usage, or the operational activities an organization has control over. These are likely the most accessible data in your business, and emissions like these fall under Scope 1 and 2. Focus on essential information such as:
- The size and location of your facilities
- Physical energy usage of electricity, gas, and fuel consumption across all facilities
- Any renewable energy credits or purchases your organization may have
There are typically two methods of calculating emissions: activity-based and spend-based. If you don’t have access to physical data (i.e., activity-based method), looking at estimates through financial data (i.e., spend-based method) can be helpful during early-stage carbon accounting. The spend-based method is useful when carbon data is scarce, but it should not be used to accurately pinpoint emission drivers.
2. Build Internal Best Practices and Capacity for Effective Carbon Reporting
Emissions data collection is a cross-functional effort—one that must account for the full emissions impact of a company’s operations and its broader value chain. Gathering accurate data is made even more difficult by scattered data across multiple systems and stakeholders, or by gaps where emissions information simply doesn’t yet exist.
Oren notes that having high-level sustainability champions throughout the organization can be extremely helpful for buy-in and ownership of carbon data processes. These champions act as trusted advocates and central points of coordination to ensure accountability throughout the collection process. Coupled with establishing structured, iterative measures, this lays a solid groundwork for year-on-year performance and process improvements.
“Think of all the different disclosures, frameworks, and investor requests you may receive to report on your emissions. At Novata, we say: Collect once, report many. This approach applies massively to greenhouse gas inventories. You only need to collect this information once, and you can report anything you need efficiently and accurately,” Matt said.
3. Leverage Technology to Capitalize on Carbon Reporting Insights
The benefit of carbon reporting goes beyond regulatory compliance. As Matt noted, “The calculation of an emissions inventory is in and of itself quite a low value activity. The real value is in the application of the findings and what you do with the data.”
The real ROI of carbon reporting comes from utilizing the data to enable tangible business value, including:
- Informing strategic business decisions on sustainability initiatives, internal policies, and employee conduct
- Driving product innovation and building resilience into business models
- Articulating your environmental impact and realizing tangible change with evidence-based actions
But the complexity of carbon data collection can mean that many organizations don’t have the resources or expertise to effectively capitalize on its strategic value. Leveraging technology, such as a carbon accounting solution, can streamline the reporting process and help companies leverage this critical business insight for growth and innovation.
Start Your Carbon Reporting Journey on the Right Foot
For first-time reporters, remember: Start where you are, work with the data you have, and improve systematically over time. Companies that begin building their capabilities today will find themselves better positioned to navigate future requirements and capture the business value that comes with robust carbon data management.
The Novata Carbon Navigator can help simplify this process by making it easy to track energy consumption and calculate carbon emissions, freeing sustainability teams to focus on harnessing the intelligence within the data to identify areas for improvement and strategically respond to regulatory and climate-related risks. Pairing those insights with subject matter expertise, such as Novata’s Advisory Services, can transform that data into a catalyst for measurable change and lasting success.
Experience the Novata Carbon Navigator in action with a 5-day free trial. Start your free trial today to see how it makes emission calculations a seamless process.
