How to search and report on the right activities

If you are about to calculate your CO2 emissions for the first time or contribute to a carbon footprint at the group level, you may wonder which activities are relevant. Here are some pointers. At the end of the article, you’ll see how to add these in Daato:

What are relevant activities?

When calculating your carbon footprint according to the GHG Protocol for the first time, you should focus on the most relevant categories, scopes, and activities that significantly contribute to your company’s emissions or are easy to measure. Here’s an overview:

1. Scopes according to the GHG-Protocol

The Greenhouse Gas (GHG) Protocol is the internationally recognized standard for measuring and reporting greenhouse gas emissions. Daato also aligns its CO₂ accounting with the categories defined by the GHG Protocol. Emissions are divided into three scopes to provide a clear and comparable structure. Scope 1, 2, and 3 cover different emission sources along a company's value chain. While Scope 1 and 2 reporting is mandatory, Scope 3 remains voluntary in many cases—yet for many companies, it presents the greatest leverage for emission reduction.

Scope 1: Direct Emissions

Scope 1 includes all direct emissions resulting from activities within the company. These include emissions from on-site heating systems, generators, and production facilities that use fossil fuels such as natural gas or diesel. Additionally, company-owned vehicles such as trucks or forklifts that run on gasoline or diesel are also part of Scope 1.

Fugitive emissions from industrial processes or refrigerants also fall under this category. For example, chemical and steel production generate process-related emissions that are released directly during production. Companies with air conditioning or industrial cooling systems must also consider that refrigerant leaks can release greenhouse gases such as fluorinated gases (F-gases).

Data collection for Scope 1 typically relies on direct measurements, such as fuel consumption meters, or estimates based on production equipment and fleet usage.

Scope 2: Indirect Emissions from Purchased Energy

While Scope 1 covers emissions directly caused by the company, Scope 2 accounts for indirect emissions from purchased energy. This includes electricity, district heating, district cooling, and steam used to operate production sites, offices, or warehouses.

Although these emissions do not occur directly within the company, they are still attributed to it because they result from the production of the purchased energy. The CO₂ footprint of Scope 2 emissions depends heavily on the energy source. Electricity generated from coal-fired power plants results in higher emissions compared to electricity from renewable sources.

The data for Scope 2 is typically collected from electricity and energy bills, which show the total consumption. To refine the calculation, emission factors can be applied to determine how much CO₂ is generated per kilowatt-hour. These factors are often available from energy suppliers or official environmental statistics.

Under the GHG Protocol, companies must report both location-based and market-based Scope 2 emissions if market-specific data is available. If no market-based information is available, the location-based calculation is sufficient.

• The location-based method uses the average emission factors of the power grid at the company’s location. It reflects how electricity is generated in the region or country as a whole, regardless of whether the company purchases renewable energy.
• The market-based method, on the other hand, takes into account the actual purchased electricity sources if the company has specific information about its energy procurement. This includes Guarantees of Origin (GoOs), green electricity tariffs, or direct power purchase agreements (PPAs).

Scope 3: Other Indirect Emissions

Scope 3 encompasses all other indirect emissions that occur along a company's value chain but are beyond its direct control. These emissions are divided into two main groups:

• Upstream Emissions: These include emissions that arise before products reach the company, such as those from the production and transportation of purchased raw materials, business travel, or employee commuting. Emissions from the production of machinery, computers, or buildings used by the company also fall into this category.
• Downstream Emissions: This includes emissions that occur after products leave the company, such as distribution to customers, product use by consumers, or end-of-life disposal. These emissions are particularly relevant in industries such as automotive or electronics, where vehicles and household appliances often generate more CO₂ during their use phase than during production.

Collecting Scope 3 data poses significant challenges for companies, as it relies on supplier data, market studies, and life cycle assessments. However, Scope 3 is gaining increasing importance as it often accounts for the largest share of a company's total emissions.

Source: https://ghgprotocol.org/sites/default/files/ghgp/standards_supporting/Diagram%20of%20scopes%20and%20emissions%20across%20the%20value%20chain.pdf

2. Activities – Key Examples for Getting Started

A structured approach to CO₂ accounting begins with a targeted analysis of key emission sources. It is important to prioritize the areas with the greatest emission potential and identify existing data sources that enable accurate calculations.

Energy Consumption (Scope 2)

Energy consumption is one of the most tangible and well-documented emission sources, making it an ideal starting point for CO₂ accounting.

✅ Steps for analysis:

• Collect electricity and gas bills from the past 12 months to assess total energy consumption.
• Examine the share of fossil energy sources in your electricity mix using information from your energy provider or national electricity grid databases.
• Determine CO₂ emission factors for your location to calculate the precise emissions generated by electricity and heat consumption.

ℹ️ If your company operates multiple locations or production sites, conduct a separate analysis for each site, as the local electricity mix may vary.

ℹ️ Ensure that your Scope 2 emissions are reported using both the market-based and location-based approach. The GHG Protocol requires dual reporting whenever market-specific data is available. The tool allows you to record both values without the risk of double counting.

Vehicles and Mobility (Scope 1 / 3)

Corporate mobility generates various emissions, including direct emissions from company-owned vehicles (Scope 1)and indirect emissions from employee travel and logistics (Scope 3).

✅ Steps for analysis:

• Record fuel consumption of company-owned vehicles and calculate the associated Scope 1 emissions.
• Analyze business travel emissions, including flights, train journeys, and company cars (Scope 3).
• Assess employee commuting behavior using internal surveys or mobility data. Particularly in urban areas, promoting public transportation or bicycle programs can significantly reduce emissions.

ℹ️ While gasoline and diesel vehicles fall under Scope 1 due to direct fuel combustion, electric vehicles are treated differently. When charging electric vehicles using purchased electricity, emissions are classified as Scope 2 since they originate from power generation by the energy provider.

Production and Processes (Scope 1 / 3)

Production often accounts for the largest share of emissions, especially when energy-intensive machinery or resource-intensive processes are involved. These emissions may be direct (Scope 1) due to fossil fuel use or indirect (Scope 3) through supply chain activities.

✅ Steps for analysis:

• Examine the energy sources and fuel consumption of machines and equipment.
• Analyze the use of raw materials and consumables to understand their impact on Scope 3 emissions.
• Identify leakages of refrigerants or other industrial gases, as they often have a high global warming potential.

ℹ️ If your company operates emission-intensive processes, conducting a Life Cycle Assessment (LCA) can provide insights into the overall environmental impact of your production and help define targeted reduction measures.

Logistics and Supply Chain (Scope 3)

A significant portion of corporate emissions occurs outside company premises, particularly in transportation, distribution, and supply chain activities.

✅ Steps for analysis:

• Collect data on product transportation, including shipments by suppliers and distributors.
• Calculate emissions based on the transportation mode (truck, ship, airplane, rail) using standard emission factors.

ℹ️ Engage your suppliers in the reporting process. They can provide essential data and documentation to enhance the accuracy of your emission calculations.

Waste Management (Scope 3)

In addition to production-related emissions, waste handling significantly impacts a company’s CO₂ footprint. When waste is incinerated or sent to landfill, greenhouse gases are released, making efficient waste management a key factor in emission reduction.

✅ Steps for analysis:

• Track the amounts and disposal methods of waste, including recycling, composting, and landfilling.
• Assess opportunities to convert waste into valuable resources or reduce waste generation through better material choices.

ℹ️ Leverage data from waste management contracts, internal records, and reports from disposal service providers to determine how much waste is recycled, incinerated, or landfilled. Ensure emission factors are accurately applied for each disposal method to achieve a realistic CO₂ balance.

3. How do we solve that on Daato?