Why Organisations Measure Their Carbon
The business, regulatory and customer reasons behind a greenhouse gas inventory, and what the numbers are used for.
11 min
Activities: 0 of 2
A footprint is a management tool
A greenhouse gas (GHG) inventory is a structured list of the emissions an organisation causes in one year. It records each source, the amount of activity behind it, the factor used to convert that activity into emissions, and the result in tonnes of carbon dioxide equivalent (CO₂e).
Many people think the inventory exists only for a sustainability report. That is a small part of its value. A good inventory shows where energy and materials are wasted, which suppliers carry the largest emissions, and which decisions will change the total. A poor inventory gives a number that nobody can act on.
The person who prepares the inventory therefore needs two skills. The first is technical: choosing boundaries, data and factors correctly. The second is practical: turning the result into decisions that managers understand and accept.
The four main drivers
Many countries now require large companies to disclose emissions, and some run mandatory reporting or emissions trading schemes for energy-intensive sites. Requirements differ by country, so check the rules that apply to each legal entity.
Common mistakes when starting
A manager says, "We only need a footprint for the annual report." Which reply best describes the wider value of an inventory?