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    Greenhouse-Gases-ReportingSince October 29, 2009, all companies in the United States must report their annual Greenhouse Gas (GHG) emissions as mandated by the Environmental Protection Agency. In many countries GHG reporting is still optional, but regardless of whether or not you are obliged to report your GHG emissions, your attitude toward reporting can have a big impact on your bottom line. Those who do not report or are satisfied to only meet the minimum reporting requirements are getting left behind in this increasingly environmentally-conscious market. Transparency is becoming more important amid growing public concern about GHG emissions. GHG emissions are actively being monitored and discussed by governments, NGOs, and citizens. Can you say that your business is doing everything it can to take advantage of GHG reporting?


    The way you approach Greenhouse Gases Reporting says a lot about the way you do business.

    When it comes to Greenhouse Gas (GHG) reporting commitments, there are three scopes of emissions that you responsible for reporting. These "scopes" are made up of both your direct and indirect emissions.

    When looked at in more detail, your direct core emissions (Scope 1) are from on-site power generation, and mobile sources like trucks and vehicles.

    Indirect sources (Scope 2) are those emissions generated from off-site utilities, which generate the electricity your site consumes.

    Your total GHG emissions also includes other indirect sources, like trucks shipping your product via a third-party hauler, and the emissions related to company employees using different forms of transportation. These Scope 3 emissions are optional to report, but businesses with sustainability initiatives are choosing to report them anyway.

    You might be asking yourself,

    "Why would successful companies choose to disclose more GHG emissions than they are required to?"

    GHG reporting is an opportunity for businesses to be transparent. Complete and accurate GHG emissions disclosures provide greater clarity to investors. This enables better decision making and helps to guide capital towards companies that are consciously addressing their impact on climate change.

    GHG reporting is an opportunity for businesses to be transparent. Complete and accurate GHG emissions disclosures provide greater clarity to investors. This enables better decision making and helps to guide capital towards companies that are consciously addressing their impact on climate change.

    100 companies in the world have been responsible for 71% of the global GHG emissions that cause global warming since 1998, according to The Carbon Majors Database. Experts purport that investors who keep their stakes in companies reliant on fossil fuels, may end up accepting greater risk, as the energy sector continues to change. Apple, Facebook, Google, and Ikea are leading the way obtaining 100% of energy from a renewable origin. Companies that fail to adapt to the changing landscape are sure to be left behind—GHG reporting is a valuable first step in demonstrating a good faith effort to sustainability practices.   

    1) Greenhouse Gas (GHG) Reporting is a Great Public Relations Tactic

    The market is changing, and people are actively seeking to do business with companies that are visibly greener. Younger consumers are more eco-minded than ever, and they are soon going to become your primary market. Not only does optional GHG reporting give your business a better image, GHG reporting translates in to higher profits and a better bottom line.

    2) Greenhouse Gas (GHG) Reporting Makes You a More Efficient Business

    Thorough GHG reporting encourages your business to operate as efficiently as possible and improve the areas where you aren’t. Once you become aware of how much energy you use and how you manage your resources, you’ll begin to find ways to reduce operating costs, make processes more efficient, and eliminate waste. GHG accounting allows you to manage your risks and identify opportunities. The process of taking account of all your GHG emissions – even the optional ones – gives you a complete picture of your business.

    3) Investors are attracted to proficient Greenhouse Gas (GHG) Reporting

    Greenhouse Gas reporting is one of many ways to make your business more sustainable, which means that it is a better long-term investment. Not only will your business be seen as a better investment, it will be perceived as a more transparent organization that encourages accountability. Both of these characteristics make your company highly attractive to investors and give you a competitive advantage over other companies that drag their heels about GHG accounting and reporting. Being perceived in this manner will also go a long way to getting you credit with the EPA, which is never a bad thing.

    4) Greenhouse Gas (GHG) Reporting is a Step Toward Sustainability

    Corporate sustainability emphasizes that your business is taking the necessary steps to be successful now and in the future. By measuring its environmental, social, and economic impacts, your company is ready & capable acting in a proactive manner. This is far more advantageous than reacting to unforeseen negative situations because you were not measuring and managing your triple bottom line. Tracking all your emissions, not just the mandatory ones, is one of the best ways to see which areas you are creating a potential hidden deficit.

    5) Greenhouse Gas (GHG) Reporting Doesn’t Have to Cost Much – Or Anything at All

    A study by the Pew Research Center published April 2008 found that “more than 40 Fortune 500 companies in the U.S. have set targets for greenhouse-gas reductions. Of these, 11 have already met them, and not one has lost money.”

    By making your business more efficient, identifying and acting on risk areas, and monitoring every step of your operations, you will be able to take total control of your business and save money.

    To learn more about greenhouse gas reporting and how your business can become more sustainable, or to get more information about how GHG emissions are calculated, download ERA Environmental's free eBook "A guide to Greenhouse Gas Accounting for Business"

    Disclosing GHG emissions is now becoming a norm. Countries and businesses must not only comply to government regulations regarding their GHG emissions, they must also communicate a message of social responsibility to shareholders and the public. 


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    Alex Chamberlain
    Post by Alex Chamberlain
    November 7, 2011
    Alex Chamberlain is a writer for ERA Environmental Management Solutions.