Introduction
Understanding the intricacies of carbon accounting is crucial for businesses striving to meet sustainability goals and regulatory requirements. The KEY ESG app simplifies this process by offering a comprehensive guide to Scope 3 emissions, specifically focusing on Purchased Goods and Services (Scope 3.1). This article addresses frequently asked questions about categorizing Scope 3.1 emissions, accounting for delivery trucks, and understanding the nuances of upstream and downstream emissions, providing clear guidance on utilizing the app for accurate and efficient carbon reporting.
Carbon FAQs
The majority of Environment FAQs relate to carbon, namely reporting on your Scope 1, 2 and 3 carbon emissions.
What is carbon accounting and why is it important? Carbon accounting involves measuring and reporting greenhouse gas emissions from your organisation. It's crucial for tracking carbon footprint and achieving sustainability goals.
How do I collect data for carbon accounting? Data can be collected from utility bills, fuel consumption records, supplier information, and transportation logs. Automated data integration with thr KEY ESG platform can streamline this process. For example, we have the bulk upload option for you to ingest any Excel data automatically to your portal.
What are Scope 1, Scope 2, and Scope 3 emissions?
Scope 1: Direct emissions from owned or controlled sources.
Scope 2: Indirect emissions from purchased electricity, steam, heating, and cooling.
Scope 3: All other indirect emissions in the value chain, including upstream and downstream activities.
Which category should I choose for Scope 3.1 Purchased Goods and Services? Purchased Goods and Services include anything that you have purchased for your business. Within the KEY ESG app, there are a variety of data collection methods to choose from, based on what data is available in your organization:
Average-based: when you have the specific amounts of goods/services purchased e.g. kg of batteries, ML of water, or tones of IT equipment.
Spend-based: when you have records of the amount of currency spent on a good or service e.g. £500 spent on air transport services.
Direct entry: when you have calculated the final emissions value from a purchased good or service in kgCO2-eq.
After you have chosen your calculation method, you need to select an option from the dropdown list which best matches your purchased good or service. Here are a few common categories, and examples:
Cloud-based computing e.g. AWS, Microsoft Azure, select the drop-down Information and Communication services: Information services.
Computers, printers, electrical accessories, select the drop-down Electrical equipment: IT
Construction items like bricks, select the drop-down Building materials: Bricks
How do I account for delivery trucks? This depends on who owns and operate the vehicles. There are three options:
Scope 1: Mobile Fuels: your company owns or operates the vehicle and you are responsible for its activity. In this scenario, you would enter your data using the fuel-based or distance based method under Scope 1 Commercial Vehicles.
Scope 3.8 Upstream Leased Assets: you lease the vehicle and do not have operational control. In this scenario, you would enter the Total emissions, measured in Kg CO2-eq. Other data calculation methods will go live in the app shortly.
Scope 3.4 Transportation and Distribution: a third-party company is delivering materials to you. In this scenario, you would enter your data using the fuel-based or distance-based method.
What is Scope 3.3 Fuel and Energy related Activities? There are two aspects that constitute Scope 3.3:
Well to Tank: The upstream emissions associated with the extraction, refining and transportation of fuel.
Combustion: Emissions from the burning of fuel which releases gases into the atmosphere.
The KEY ESG app automatically calculates your Scope 3.3 based on the data you entered in Scopes 1 & 2.
What is the difference between upstream and downstream emissions? Upstream emissions are associated with raw materials and supply chain activities, while downstream emissions are related to the use and disposal of the final product.
What should I do if my carbon data changes after reporting? Update your records in the KEY ESG platform and notify your FM and relevant stakeholders of the revisions.
How can I set and track emission reduction targets? You can set actions and targets in the KEY ESG platform. This is a crucial step towards improving your organisations' ESG performance. Watch this Loom video to see how.
How can I improve the accuracy of my carbon accounting? Ensure comprehensive data collection, use verified emission factors, and regularly audit your processes within your organisation. Using more accurate data collection methods within the KEY ESG platform, is a positive step towards improving the accuracy of your data collection.
Conclusion
Navigating the complexities of carbon accounting can be challenging, but the KEY ESG app provides the tools and clarity needed for accurate emissions reporting. By understanding how to categorize Scope 3.1 Purchased Goods and Services, account for delivery trucks, and differentiate between upstream and downstream emissions, businesses can ensure their sustainability efforts are accurately reflected. Remember to update any changes in carbon data promptly in the KEY ESG platform to maintain transparency and compliance with environmental standards.