All about the GHG inventory
Summary
The GHG inventory is a tool that measures an organization’s greenhouse gas emissions. It quantifies both direct and indirect emissions related to its activities. It is essential for reducing the carbon footprint and complying with environmental regulations.
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Definition of the GHG inventory
What is the GHG inventory?
The GHG (Greenhouse Gas) inventory is an approach that measures the greenhouse gas emissions generated by an organization. It is a legal obligation for certain companies and public entities according to Law No. 2010-788 of July 12, 2010:
Private entities with more than 500 employees,
Local authorities with over 50,000 inhabitants,
Public institutions with more than 250 employees,
and State services.
The GHG inventory by Ademe is based on international standards such as the GHG Protocol and covers direct emissions (Scope 1) and indirect emissions related to energy use (Scope 2). While accounting for Scope 3 (other indirect emissions) is recommended, it is not yet mandatory.
Differences between the GHG inventory and other emission management tools
The GHG inventory differs from other emission management tools by being mandatory for certain organizations, while other tools, such as the carbon footprint assessment, are often voluntary. The regulatory GHG inventory requires accounting for direct emissions (Scope 1) and indirect emissions related to energy use (Scope 2), whereas the carbon footprint assessment systematically includes Scope 3 emissions (supply chain, transportation, etc.), offering a more comprehensive view.
While Scope 3 is recommended for the GHG inventory, it is not mandatory, making the initial evaluation simpler. However, integrating Scope 3 into a more comprehensive assessment allows for a better understanding of the carbon footprint and identifying additional reduction opportunities. The carbon footprint assessment is often more exhaustive, but the GHG inventory ensures compliance with environmental regulations.
To further explore the difference between GHG inventory and carbon footprint assessment, read our related article.
Objectives of the GHG inventory
The GHG inventory helps companies and organizations understand and manage their environmental impact, particularly their greenhouse gas emissions. The main objectives of the GHG inventory are as follows:
Measure greenhouse gas emissions: It quantifies an organization’s direct and indirect emissions, providing a global view of the carbon footprint.
Identify emission sources: The GHG inventory precisely identifies the main sources of emissions, whether from energy, transportation, or the supply chain.
Reduce emissions: By better understanding emission sources, it is easier to implement effective strategies to reduce them and thus lower the carbon footprint.
Ensure regulatory compliance: The GHG inventory helps companies comply with emission regulations and meet legal obligations.
Improve transparency: GHG inventory results can be shared with various stakeholders to demonstrate a commitment to fighting climate change.
Anticipate risks: It helps businesses anticipate future changes in climate regulations and market expectations.
How to Conduct a GHG Inventory?
First, it is essential to define the scope of the GHG inventory. This involves determining which activities, sites, and emission sources will be included in the report. Emissions must also be categorized into Scope 1 (direct emissions), Scope 2 (emissions from purchased energy), and Scope 3, which is optional.
Once the scope is defined, relevant data must be collected. This includes information on energy consumption, employee travel, industrial activities, and emissions generated by suppliers. These data can come from energy bills, internal reports, or specific management tools like D-Carbonize.
The next step is to calculate emissions from the collected data. It is recommended to use recognized methodologies, such as the GHG Protocol or ISO 14064 standard, which provide precise rules for converting this data into CO2 equivalents.
After calculating the emissions, it is necessary to analyze the results to understand the main sources of emissions and identify reduction opportunities. Finally, a detailed report is produced, presenting total emissions, emission categories, and recommendations for reducing them. This report can then be used to develop action plans to reduce the carbon footprint and track progress over time.
Benefits of the GHG Inventory for Companies
The GHG inventory offers many advantages for companies by helping them better understand and manage their environmental impact. It is an essential first step in identifying the main sources of emissions and implementing effective reduction strategies. Conducting a GHG inventory can also lead to process optimization and reduced energy costs.
By conducting a GHG inventory, companies also comply with environmental regulations, while strengthening their position in a market increasingly focused on sustainability. Moreover, it improves transparency with stakeholders by demonstrating a concrete commitment to combating climate change and enhancing the organization’s brand image.
