Why Manufacturers Need Accurate Carbon Reporting
GridDuck, a tech company helping B2B clients reduce their emissions and energy waste, is developing accurate and reliable carbon reporting. In this blog we explain why we need to transition to a low-carbon economy now and why most emissions metrics don’t cut it.
One-fifth of the world's carbon emissions come from global production sectors, with manufacturing a large contributor. A first step towards reducing the carbon footprint of manufacturing is accurate carbon reporting. GridDuck can measure the energy-related carbon of a production line by calculating the emissions per kWh using real-time location-based and tariff-based data. This innovation will help companies get ahead of regulations to disclose Scope 3 emissions and it will ultimately help with setting and meeting environmental targets.
GridDuck’s carbon reporting
It’s time to capitalise on the transition to a low-carbon economy by putting data at the heart of your business. Our solution is to measure each production line's energy consumption and to multiply that by the CO2/kWh at the time, available through National Grid data in real time. And this makes a difference because late afternoon electricity, for instance, is more carbon intensive than mid-morning. Even where your factory is based will affect how much carbon you produce; electricity, for example, is cleaner in some parts of the UK than others.
By using our solution, manufacturers will be able to see what the emissions are for every item made. In other words, submetering the entire production line for transparency and accuracy. But why is this necessary? Both the EU and the UK are asking for more granular data and are getting increasingly strict on this level of carbon reporting.
Energy makes up only 8% of a food producer’s emissions, while the other 92% is supply chain. However, since energy accounts for 35% of emissions globally, most of your supply chain emissions will be energy-related too.
Emissions
In addition to National Grid data, we would use tariff-based data pulled from meters. The better the data the better the measurement and carbon reporting. We can provide the sensors and clamps to accurately measure this in near real time for your production line. We then offer the analysis through GridDuck’s dashboard on a half-hourly basis – giving our clients a full picture of GHG emissions per process step and per end product quantity.
Assumptions-based metrics widely used
The Greenhouse Gas Protocol – a global standard for measuring and managing emissions – splits companies’ emissions into three types:
Scope 1: emissions that a company fully controls or ‘owns’
Scope 2: emissions that come from the purchase of energy
Scope 3: indirect emissions (excluding Scope 2) that occur all the way along the supply chain
Currently, reporting on Scope 3 emissions – which can be downstream or upstream – is
voluntary in the UK, but regulations are changing in the EU and already the British government is consulting on the practicality of Scope 3 emissions reporting.
Relying on suppliers to report their emissions data is a common barrier for Scope 3. To add to the complexity, many emissions from subcontractors are based on assumptions. A car manufacturer, for instance, will have the emissions for producing a tyre but this might have been based on an academic paper and not true for every factory. Is that good enough when it’s now possible to have accurate measurements based on readily available data? Much of carbon reporting is assumptions-driven, yet it demands the same rigor as financial reporting.
According to the CDP, a global nonprofit that runs the environmental disclosure system for companies, supply chain emissions are on average 11.4 times higher than operational emissions. This figure is more than double previous estimates because emissions reporting has improved. That alone demonstrates why accurate reporting is essential. Furthermore, figures from 2022 show that 92% of the emissions from European companies are Scope 3 but only 37% of these are being addressed by corporate decarbonisation measures.
Data is driving decarbonisation
To sum up, companies that have a full understanding of their carbon emissions, including the indirect emissions, will be better able to measure, manage and reduce them – and will get ahead of regulations to be introduced soon. This has benefits for the environment and society and will avoid the reputational risks associated with doing nothing.
We are entering a data-driven revolution. With technological advances in gathering and analysing data sources, we are now in a position to accurately report on emissions and transition to a low-carbon economy, which is the only option for the future.
Find out more about how GridDuck can calculate your carbon emissions by booking a 15 minute call.