Table of contents
CO2e reporting requirements mean that companies need to share more information about their value chain. This also applies to you, as you need to be prepared to share carbon information with your customers.
Here are 4 simple tips you can take with you to get ready to share CO2e data in a simple and transparent way.
Clearly explain what your carbon footprint is based on
The first step to making your CO2e reporting simple and transparent is to explain what your reporting covers and what data it is based on.
This includes telling what is included, excluded, and what time frames it covers.
Show your data, methods and standards
Showing what data, methods and standards you use is important to explain what your carbon footprint is based on.
Therefore, you need to go beyond simply reporting the carbon footprint and include the underlying data.
This means being able to answer questions like:
- Which standards/calculation models have you used?
- Where does the data come from?
- Is your data provided in WTW (Well-to-Wheel) or TTW (Tank-to-Wheel)?
Being detailed builds trust and gives your report credibility.
Be aware of your carriers' data
You should not only be able to answer general questions about your own internal logistics, but also about your carriers' data.
Carriers use different calculation models, methods and standards, so it's important to know which ones they use and how they calculate CO2e data.
Therefore, ask your carriers for information on which standard they use, which data points they include and whether they calculate WTW or TTW.
If you want to make sure your CO2e data is accurate, but also want to compare across your carriers, you may want to calculate CO2e emissions yourself.
You can do this either manually or automatically, for example with FreightEmission.
A uniform calculation method ensures consistent data on all your shipments.
This means you can also start identifying which areas, carriers or shipment types emit the most CO2e and act proactively accordingly.
Divide your reporting into scopes
You may have heard of the three scopes of CO2 reporting.
These three scopes can give you and your recipients a better overview of your CO2e data.
In short, the three scopes include the following:
Scope 1 includes own activities - including own vehicles and production facilities.
Scope 2 includes indirect emissions resulting from the purchase of energy from external sources.
Scope 3 covers activities carried out by third parties in the value chain, including supplier impact and fuel.
Your internal logistics and transport will therefore be part of Scope 1, while transport performed by third parties will be in Scope 3.
Show your subtotal first, then your compensation
If you compensate for your CO2 emissions, this can also be included in your CO2e reporting.
But don't show your subtotal with compensation included.
Instead, show your subtotal CO2e emissions first, then you can subtract your offsets to find the final footprint.
This way, it's clear what you actually emit, and your efforts to offset CO2e emissions are also clearer to the recipients.
Be honest and transparent
Honesty goes a long way - and it also makes your reporting easier.
If you're missing data or unsure about any of the numbers collected, be honest about it.
It's okay to use expense-based reporting or only have data for some areas.
The most important thing is to be open about what you know and don't know.
To sum up
Sustainability and ESG reporting is becoming increasingly important for all companies, and carbon reporting requirements are starting to be felt more and more in the business world.
Collecting CO2e data is inevitable, but hopefully some of these tips will help make the process more tangible and make it easier to get started.