How to avoid GHG accouting errors

Finding errors in GHG accounting is common, as the process of calculating scope 1,2 & 3 requires in depth understanding of the green house protocol as well as how companies act and operate. Here are a couple of common errors to look out for:

1. Incomplete Data Collection:

   • Not capturing all relevant emission sources, especially from indirect emissions (Scope 3), leads to underreporting. This often happens when companies overlook emissions from supply chains, waste management, and business travel.

2. Inaccurate Emission Factors:

   • Using outdated or inappropriate emission factors for different activities or regions results in incorrect emission calculations. Ensuring emission factors are current and contextually relevant is essential for accurate accounting.

3. Incorrect Boundary Setting:

   • Misdefining organizational boundaries (e.g., operational control, financial control) can lead to either underestimating or overestimating emissions. Properly establishing boundaries in line with standards like the GHG Protocol is crucial.

4. Errors in Data Management:

   • Data entry mistakes, such as transcription errors or incorrect unit conversions, can significantly distort GHG inventories. Implementing rigorous data management and verification processes helps mitigate these issues.

5. Lack of Regular Updates:

   • Failing to update GHG inventories regularly to reflect changes in operations, emission factors, or methodologies can result in outdated and irrelevant data. Regular reviews and updates ensure the GHG inventory remains accurate and relevant.

These errors can be addressed through robust data collection, management, and verification processes is essential for reliable GHG accounting. Always include a third party to assess and assure the processes as well as the quality of calculations and underlying data.