The first steps to measuring baseline GHG emissions

Pressure is mounting for businesses to measure their Greenhouse Gas (GHG) emissions. Carbon reporting is a fundamental component of responsible business practice. It helps address regulatory requirements, meet stakeholder expectations and secures competitive advantage in a challenging commercial landscape. We are writing a series of articles to guide you through the process. From explaining the significance of GHGs to outlining the steps involved in setting your baseline, Wylde has it covered. In this next instalment we will focus on setting scopes, identifying sources and gathering data.

What we have learnt so far

In our first article we explained the role of GHGs in the climate crisis and discussed how human activity is accentuating the greenhouse effect. To keep global warming below 1.5°C, the race is on to achieve Net Zero emissions by 2050. Businesses have a key role to play in driving decarbonisation and reducing their carbon footprint by calculating, monitoring and reducing GHG emissions.

The next article in our series moved on from the why to explore the how. We outlined the importance of establishing a GHG emissions baseline as the basis of a carbon reduction strategy. We used the analogy of drawing a line in the sand and using the benchmarking exercise to understand your starting point. It defines where your business currently stands in terms of emissions and serves as the reference against which improvements, reductions, and successes can be tracked.

Getting started 

Firstly, you need to set out your baseline parameters. That means defining the organisational and operational boundaries of your GHG assessment. Which activities and parts of your value chain will be included in the baseline GHG measurements? Will you include emissions from joint ventures, leased assets, or outsourced services? It is important to take time to determine which entities, sites, or subsidiaries are included in the assessment.

In this preliminary stage you also need to decide what you will use as your baseline year. Businesses normally choose the most recent but make sure that it is representative, not affected by major operational changes and is supported by reliable data.

Remember that this will become the reference point against which decarbonisation efforts will be measured. It will be used for all targets) to ensure consistency in reporting. In the future there is the option to re-baseline if it no longer provides an accurate comparison due to factors such as major operational changes.

Sources

The next step is to determine where your emissions are coming from. When mapping these out categorise them into three scopes as defined by the Greenhouse Gas Protocol:

Scope 1 – Direct emissions from owned or controlled sources. Scope 1 refers to direct emissions from sources that are owned or controlled by the organisation. This will include emissions from heating buildings and operating vehicles.

Scope 2 – Indirect emissions from the generation of purchased energy, heat, colling or steam. They result from the activities of an external entity such as a power plant and might include emissions from burning natural gas to produce purchased electricity.

Scope 3 – All indirect emissions (not included in scopes 1 or 2) that occur in your value chain, incorporating both upstream and downstream emissions. This includes those relating to purchased goods and services, waste disposal, transportation and distribution.

This internationally recognised classification system enables organisations to manage and report on their emissions in a transparent way. It categorises emissions based on source and degree of influence.

Scope 3 emissions typically account for around 70% of the total but are the most challenging to calculate. It requires you to source data from suppliers, customers, contractors, and service providers, many of whom may not be tracking emissions. Yet reporting on scope 3 is key to establishing a meaningful GHG baseline, complying with regulations, responding to stakeholder expectations and identifying future opportunities to drive decarbonisation.

Data gathering

There are many sources of emissions data that will be readily available. You will need to collaborate with colleagues across the business to get the information you need and so it is a good idea to engage with department heads at an early stage to explain what you are doing and the benefits of establishing your baseline.

Key sources of data include utility bills, fuel purchase receipts, transport logs, procurement documentation and waste management records. The priority is to gather accurate up to date activity data such as kilowatt hours (kWh) of electricity used, litres of fuel consumed, or tonnes of waste produced.

Use an inventory which captures all sources of emissions, the scopes they are assigned to and the data required to measure them. You can then use this as a checklist as you gather information. 

It may not always be possible to obtain exact figures for some emissions sources. If necessary, you can use estimates or proxy data based on industry averages. The important thing is to be transparent about your assumptions.

Next steps

Our next article will move from data gathering to emissions calculations. We will explore the use of emissions factors and how GHG software platforms are used to convert your raw figures into emissions data that you can use for reporting. In addition, we will guide you in driving continuous improvement by constantly reviewing the quality and quantity of your GHG data.

Do you need some support getting started? Wylde Connections supports businesses in establishing their greenhouse gas (GHG) emissions baseline by offering a structured, expert-led approach tailored to your specific needs. Our team will guide you through the entire process, from scoping and data collection to analysis and reporting. With this insight you can set decarbonisation targets, track performance, and meet compliance requirements.

Our support is particularly valuable for businesses navigating supply chain expectations or positioning themselves for procurement with sustainability-conscious clients. Through bespoke workshops, strategic consultancy, and tailored reporting, we will help you understand your impacts. Through ongoing consultancy support we will then help you develop a robust carbon reduction plan and embed sustainable practice throughout your value chain. Visit www.wyldeconnections.co.uk or book a Discovery Call today.