Materiality refers to the relative size of emission sources or categories within a corporate GHG inventory. It is a key indicator used to prioritise data collection, emission factor quality, QAQC checks, and general efforts to embed quality into a corporate GHG inventory.
Ensure relevancy of data
To ensure the reliability and relevance of your GHG inventory, accurately representing actual emissions is crucial. This not only establishes credibility but also builds trust among internal and external stakeholders involved in reporting.
Companies can achieve this by structuring their GHG inventory to align with their operational and value chain model, as well as adopting approaches like Financial Control or Equity Share if investments and financing play a critical role in their business model.
Measure in all completeness
Account for and report on all greenhouse gas (GHG) emission sources and activities within the defined measurement boundary. It is crucial to disclose and provide justifications for any specific exclusions. This method guarantees that no emissions are overlooked and offers a comprehensive view of a company's Corporate Carbon Footprint (CCF). To achieve thorough measurements:
Verify that all GHG emissions in the inventory align with the chosen consolidation method; this reduces the chance of overlooked emissions sources and fugitive emissions. For instance, refrigerants in Scope 1 emissions are often inadvertently omitted.
Utilize tCO2 emission factors beyond tCO2e to accurately capture all relevant GHG emissions like CO2, CH4, SF6, NO2, HFCs, and PFCs
Use consistent methodologies
Consistently apply the same calculation methodologies in your GHG inventory. It's also vital to document any changes to data, measurement boundaries, techniques, or other key factors in a chronological manner. This helps companies assess their progress in reducing emissions and enables meaningful comparisons. To uphold consistent methodologies, make sure to:
Apply assumptions consistently year after year in your reporting
Thoroughly document and justify any inconsistencies implemented
Use the same emission factor databases for all emission sources
Maintain detailed activity data where possible
Apply recalculation policies consistently, particularly if the company relies heavily on mergers and acquisitions as part of their growth strategy
Present accurate data
Ensure that your measurements of GHG emissions are accurate by avoiding overestimation or underestimation and minimizing uncertainties as much as possible. This will help your team make well-informed decisions based on the credibility and integrity of the data presented. Companies can enhance accuracy by:
Using the most accurate emission factors that are both technically sound and economically viable
Avoiding broad assumptions or estimated data
Aim for high levels of granularity within GHG calculations
Implement robust internal validation measures, such as assigning multiple individuals in data collection and calculations, and establishing an independent audit function internally to verify and validate the information provided
Maintain transparency in accounting
Address all pertinent issues factually and coherently, supported by a transparent audit trail. Disclose any key assumptions by outlining the accounting and calculation methodologies, as well as the data sources used. Transparency fosters accountability, aids stakeholders in understanding, and allows for thorough evaluation of emissions reporting. Companies can uphold transparency by:
Providing a clear and structured audit trail for all activity data used in a GHG inventory down to the source level, such as keeping records of electricity invoices
Ensuring there is easily accessible procedural documentation detailing how the GHG inventory was calculated to facilitate consistent replication
Disclosing GHG emissions data to external stakeholders with an appropriate level of granularity and in a consistent reporting structure (e.g., Scopes 1, 2, and 3, indicating the consolidation approach taken)
Transparently sharing any significant assumptions, challenges, exclusions, and deviations from the GHG protocol with explanatory details when necessary