CCF allows businesses to quantify and understand their environmental impact. A high-quality carbon footprint represents a company’s overall greenhouse gas emissions — not just carbon dioxide but 7 types of gases including methane and nitrous oxide which are significant byproducts of agricultural practices. This serves as the basis for a company’s decarbonization strategy.
The data underpinning a company’s footprint is a critical but easily overlooked element of successful climate action.
Getting your sustainability data right directly impacts the confidence level of any emissions measurement, future projections, and therefore the effectiveness of any resulting decarbonization plan.
At the same time, it is important to balance speed and accuracy when measuring emissions. Seeking perfection is not the goal. Rather it is about making the most of the data you already have to unlock and focus your next best set of actions — which could mean planning reduction efforts where you have confidence in the hotspots you have identified, or gathering more granular data from a targeted group of suppliers.
Organizations benefit from strategically and systematically improving the quality of their emissions data over time, both to future proof against increasingly stringent global regulations but to also build increasing trust that real progress is being made.
Why data granularity is important today?
The absence of granular emissions data makes it harder to set realistic goals and make material emissions reductions
To be decision useful, sustainability data needs to be robust
Accurate emissions data, especially for Scope 3, is becoming foundational for reporting, decarbonization planning, and product R&D
Stakeholders are demanding greater transparency
Not all emission footprints are of equal quality. A lack granular data creates potential regulatory, audit, and commercial risk
Enterprises need greater certainty on whether they will meet their targets
Poor and incomplete data negatively impacts the certainty of future projections and the confidence of delivering on commitments
How does Terrascope evaluate the accuracy of reported Scope 3 emissions data?
Terrascope possesses proprietary capabilities for tracking data confidence, visualising emission factors in detail, and simulating the impact of reduction initiatives on emission factors. All these features enable companies to address their existing data gaps and move towards using more precise data for carbon measurement.
How does Terrascope help with ESG reporting?
In essence, Terrascope addresses the emissions aspect of the E (environment) component within ESG reporting.
By providing credible and auditable emissions data that are GHG Protocol compliant, Terrascope is able to deliver on the carbon-related analytics that many companies need for accurate and timely disclosures.
In addition to our software, we offer professional services and collaborate with a network of expert partners to support your sustainability journey comprehensively. By leveraging technology to automate and expedite processes, coupled with the expertise of both internal and external specialists, we aim to minimise uncertainties in your sustainability landscape.
What reporting framework would you recommend for companies?
Companies need to be aware of any regulatory reporting requirements they need to fulfill, and if they are listed on any stock exchanges, any mandatory reporting requirements required.
Beyond mandatory requirements, the appropriate choice of framework depends on the purpose of disclosure. Considering that companies often face resource constraints such as manpower and financial budgets, it's crucial to prioritize based on practical necessities.
For instance, if your customers or investors seek comprehensive reports covering environmental, social, and governance (ESG) domains, aligning with GRI could be advantageous.
Conversely, if stakeholders prioritize climate-related risks and opportunities, initiating with a TCFD-aligned report might be prudent. Subsequently, gradual enhancements can align with ISSB standards.
Be it a company or a large multinational, climate change affects all businesses. Getting started, regardless of the chosen reporting framework, is the best way to prepare.
How does Terrascope help companies with CSRD?
Terrascope can help companies with carbon accounting and disclosing mitigation plans in line with CSRD requirements.
What is the CSRD? The Corporate Sustainability Reporting Directive (CSRD) came into effect in January 2023, marking a significant shift in sustainability reporting for companies operating in the EU.
Implications of the CSRD Companies operating in the EU will be required to report their measurements according to the CSRD, which supersedes the existing Non-Financial Reporting Directive (NFRD) and goes beyond the Task Force on Climate-related Financial Disclosures (TCFD).
Unlike the NFRD, the CSRD mandates independent assurance and imposes penalties on non-compliant entities. Even companies that follow the TCFD now will likely need to expand the nature and extent of their disclosure to comply with the CSRD.
Starting from 2024, companies with ≥500 employees will be required to report their measurements in line with the CSRD. In subsequent phases, other large EU companies, listed EU small and medium enterprises, and non-EU parent companies with subsidiaries in the EU will also be required to comply.
For more on how Terrascope facilitates CSRD compliance, readhere.
Why do companies need separate CDP and TCFD reports?
Though CDP and TCFD reports have many similarities, they are used by different types of stakeholders to fulfill different purposes.
Most of the information found in the CDP report will be the same as that found in a TCFD report. However many companies, like Colgate-Palmolive, choose to prepare a TCFD report even when they already have a CDP report.
TCFD reports are typically used by investors, asset managers, and banks. Although they can get TCFD information from a company's CDP report, CDP reports are very lengthy (easily 50 pages and above). Hence, they may request a standalone TCFD report (usually 10–20 pages).
Although CDP is popular, it is not mandatory, thus many companies do not disclose their information to CDP. However, investors and regulators possess the authority to mandate that companies prepare a TCFD report.
For more on understanding the differences between TCFD and CDP, readhere.
What role does carbon credits play in achieving a company's Net zero and other climate goals?
While carbon credits can play a role in offsetting unavoidable emissions over the long term, it is crucial for companies to prioritize reduction efforts through a holistic approach, guided by the mitigation hierarchy.
The use of carbon credits should not come before reduction initiatives SBTi acknowledges that purchasing high-quality carbon credits, in addition to reducing emissions along a science-based trajectory, can significantly accelerate the transition to Net zero emissions at the global level.
Carbon credits serve two primary roles:
In the transition to Net zero: Companies may choose to buy carbon credits as they move towards achieving Net zero emissions (in addition to science-based mitigation efforts targeting value chain emissions) to contribute to society's goal of reaching Net zero emissions by 2050.
At Net zero: Companies with residual emissions within their value chain are expected to neutralize those emissions with an equivalent amount of carbon dioxide removals by their Net zero target date, and these removals can be obtained through carbon credits.
Fast and accurateCorporate Carbon Footprinting
Complete a comprehensive Scope 1,2,3 footprint in weeks, instead of months
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