Ten Steps to a Greenhouse Gas Inventory

I’ve received several  questions regarding the “10 steps to a comprehensive greenhouse gas inventory” I discussed during my Introduction to Greenhouse Gas Inventories webinar so I’ve decided to dedicate a blog post to filling in a few of the details.

As many of you know, Renewable Choice has recently launched the Choice Inventories greenhouse gas consulting service. These ten steps are a quick overview of the process we follow with all of our Choice Inventories clients .

1. Consider business goals
A greenhouse gas inventory can help you achieve a variety of business goals such as increased brand recognition, participating in a voluntary reporting program,  or setting and achieving greenhouse gas reduction targets. How you conduct your inventory will be defined by these goals. Outlining your goals early on will help ensure your final product meets your organizations specific needs. 

2. Choose accounting methodology
The greenhouse gas accounting methodology you choose will dictate how your inventory should be completed and what should be included.  The most widely used accounting protocol is the Greenhouse Gas Protocol commonly referred to as just the GHG Protocol. The GHG Protocol was created by the World Resources Institute and provides the basic framework for any inventory. In addition to the GHG Protocol numerous other protocols have been created by various reporting programs such as EPA Climate Leaders and The Climate Registry. 

3. Define organizational boundaries
One of the most common questions that comes up with our Choice Inventories clients is “what do we include in the inventory?”. Defining your organizational boundaries is the first step in answering this question.  When establishing organizational boundaries, a company selects either financial control, operational control, or equity share for the purpose of defining their organization. The approach you choose can dramatically influence the results of your inventory so it is important to understand which selection will work best with your goals.  Once you’ve selected a method for defining your organization’s boundaries, the method should be applied consistently throughout the inventory process.

4. Define operational boundaries
Your operational boundary will dictate which sources of emissions you include in your inventory as well as the specific gases you’ll account for. At a minimum your operational boundary should be drawn to included all assets that fall within your organizational boundary. To achieve a more complete picture however, many organizations choose to include sources outside their direct organizational boundary such as purchased electricity, business travel, and supply chain emissions.

5. Select base year
Greenhouse gas accounting is an ongoing process. The first inventory you conduct is known as your base year. The base year is used as a point of reference to track changes in your inventory as well as progress toward reduction goals. Before selecting a base year be sure to take in to account data availability, program requirements, and existing reduction efforts. 

6. Identify emissions sources
You set the stage for your inventory with the previous steps – now it’s time to start looking at the specifics of your organization. To complete this step you will need to compile a comprehensive list of the emissions sources that fall within your operational and organizational boundaries.  It is never wise to undertake this task on your own.  When we work through this step with our Choice Inventories clients we often create a team of individuals that span numerous departments within the organization. Bringing in individuals from as many different departments as possible will help avoid missing emissions sources and set the stage for efficient data collection down the road.

7. Collect data and calculate emissions
For each emissions source you’ve identified, the data you’ll need to collect will be dictated by data availability. Most protocols outline optimal data and calculations as well as alternative methods to be used when data are missing. Organizations completing an inventory for the first time will rarely have all of the data necessary to follow all of the optimal calculation methods and will need to use alternative estimation methods.  To increase the accuracy of future inventories you should work to implement record keeping changes to facilitate the use of optimal calculation methods. Often simple changes such as tracking gallons of fuel purchased along with financial data can increase the accuracy of your inventories dramatically.

8. Report emissions
Documenting your findings and methodology is a critical, yet often overlooked step in the inventory process. Greenhouse gas inventories can be an incredibly valuable tool and are increasingly being used to make business decisions. A greenhouse gas inventory report should include all raw data and sources, emissions factors, calculation methodology, assumptions, and boundaries. Thorough documentation will ensure inventories conducted in subsequent years always use the same standards enabling accurate year over year comparisons.

9. Establish reduction targets
Now that you’ve completed your inventory it’s time to put it to work. A greenhouse gas inventory can help you identify low hanging reduction opportunities or activities that are highly carbon intensive. Establishing reduction targets also provide a great opportunity to communicate your organization’s environmental commitment. 

10. Verify inventory (optional)
Hiring a 3^rd party to audit or verify your inventory can lend credibility to your findings. The high cost of verification generally leads most smaller organizations to forgo verification, however. The verification process will generally include site visits, a methodology and data review, as well as a % error estimation.  Large organizations that anticipate falling under greenhouse gas regulations or those participating in voluntary reporting programs may need to consider verification.

PERSONALLY SPEAKING
Completing a greenhouse gas inventory for the first time can seem like a daunting task but once you’ve set up your framework and established a baseline each subsequent inventory will get dramatically easier.  Visit our Greenhouse Gas Services page to find out more about how Renewable Choice can help you measure and manage your organization’s greenhouse gas footprint.