Tracking Carbon Emissions: A Practical Guide

As ESG (Environmental, Social, and Governance) reporting becomes more critical for SMBs, tracking carbon emissions has emerged as a top priority. Accurate carbon accounting helps SMBs meet regulatory requirements, reduce costs, and demonstrate commitment to sustainability.

In this guide, we’ll break down the Greenhouse Gas (GHG) Protocol, outline practical steps for carbon tracking, and provide actionable insights to simplify the process for SMBs.

1. What is the GHG Protocol?

The Greenhouse Gas (GHG) Protocol is the world’s most widely used framework for measuring and managing greenhouse gas emissions.

Key Principles of the GHG Protocol:

• Relevance: Ensure the data reflects the business's carbon footprint.
• Completeness: Include all relevant emissions sources.
• Consistency: Use consistent methodologies for comparison.
• Transparency: Provide clear documentation.
• Accuracy: Minimize uncertainties.

Key Insight: The GHG Protocol ensures standardized and credible carbon accounting across industries.

2. Understanding Scope 1, 2, and 3 Emissions

The GHG Protocol categorizes emissions into three scopes:

Scope 1: Direct emissions from owned or controlled sources (e.g., company vehicles, manufacturing processes). Scope 2: Indirect emissions from purchased electricity, steam, or heating. Scope 3: Indirect emissions from the value chain, including suppliers, transportation, and product usage.

Example: A logistics SMB tracks Scope 1 emissions from delivery vehicles, Scope 2 emissions from office electricity, and Scope 3 emissions from supplier activities.

Key Insight: Addressing all three scopes ensures comprehensive carbon accounting.

3. Steps to Track Carbon Emissions Using the GHG Protocol

Tracking carbon emissions requires a structured approach.

Step 1: Define Organizational Boundaries

• Identify which operations and facilities will be included.

Step 2: Identify Emission Sources

• Map out direct and indirect emission sources.

Step 3: Collect Data

• Use utility bills, fuel consumption records, and supplier reports.

Step 4: Calculate Emissions

• Apply GHG Protocol emission factors.

Step 5: Set Reduction Targets

• Align goals with science-based targets.

Step 6: Report and Verify

• Prepare an emissions report and verify through third parties if needed.

Example: A manufacturing SMB used the GHG Protocol to track energy consumption data and reduce emissions by 15%.

Key Insight: A systematic approach simplifies carbon tracking and enhances accuracy.

4. Tools for Carbon Emissions Tracking

Using the right tools streamlines data collection and analysis.

Recommended Tools for SMBs:

• Wardn ESG Platform: Automated data tracking and reporting.
• GHG Protocol Calculation Tools: Free tools for emissions calculations.
• Carbon Accounting Software: Integrated solutions for SMBs.

Example: A retail SMB implemented Wardn’s platform to automate Scope 1 and 2 emissions reporting.

Key Insight: Digital tools reduce manual errors and save time in carbon tracking.

5. Common Challenges in Carbon Tracking (And How to Overcome Them)

SMBs often face barriers when implementing carbon tracking systems.

Challenge 1: Data Availability

• Solution: Standardize data collection processes across teams.

Challenge 2: Complexity of Scope 3 Emissions

• Solution: Prioritize high-impact suppliers and partners.

Challenge 3: Lack of Expertise

• Solution: Provide training or collaborate with ESG consultants.

Key Insight: Overcoming these challenges ensures effective carbon tracking.

6. Setting Carbon Reduction Targets

Once emissions are tracked, SMBs should set reduction targets.

Steps to Set Carbon Goals:

1. Identify baseline emissions.
2. Set realistic, science-based targets.
3. Monitor progress regularly.
4. Adjust targets as needed.

Example: A tech SMB reduced carbon emissions by 25% through energy efficiency initiatives.

Key Insight: Clear targets drive accountability and measurable results.

7. The Role of the VSME Framework in Carbon Tracking

The VSME framework simplifies carbon tracking for SMBs by providing clear guidelines and reporting standards.

Benefits of VSME in Carbon Accounting:

• Tailored guidelines for SMB operations.
• Simplified reporting templates.
• Alignment with global standards like the GHG Protocol.

Key Insight: VSME ensures SMBs can efficiently track and report carbon emissions.

8. How Wardn Simplifies Carbon Emissions Tracking

At Wardn, we help SMBs streamline carbon tracking with:

• Automated Data Integration: Collect emissions data in real-time.
• Customizable Dashboards: Monitor Scope 1, 2, and 3 emissions.
• Compliance Tools: Align reporting with GHG Protocol and VSME.

Example: A hospitality SMB used Wardn’s ESG platform to cut emissions tracking time in half.

Key Insight: With Wardn, SMBs can focus on achieving carbon reduction goals without administrative hurdles.

FAQs

1. What are Scope 1, 2, and 3 emissions? Scope 1: Direct emissions, Scope 2: Indirect energy-related emissions, Scope 3: Value chain emissions.

2. How often should SMBs track carbon emissions? At least annually, with quarterly reviews for high-impact activities.

3. What tools can SMBs use for carbon tracking? Platforms like Wardn, GHG Protocol tools, and carbon accounting software.

4. Why is Scope 3 tracking challenging? It requires collaboration with suppliers and access to their emissions data.

5. How does the VSME framework support carbon tracking? It provides tailored guidelines and simplified reporting processes for SMBs.