Reporting Scope 1 Emissions
- Roger Pay
- 2 days ago
- 7 min read
Scope 1 emissions are the direct greenhouse gas (GHG) emissions from sources that a company owns or controls. These emissions are a critical component of a company's carbon footprint and are often the first to be addressed in decarbonization efforts because they're directly within a company's control.
Sources of Scope 1 Emissions
There are four main categories of Scope 1 emissions:
Stationary Combustion: Emissions from burning fuels in boilers, furnaces, and generators at company facilities for heating, manufacturing, or on-site electricity generation.
Mobile Combustion: Emissions from fuel consumed by company-owned or controlled vehicles, such as a corporate car fleet, delivery trucks, aircraft, or construction machinery.
Fugitive Emissions: Unintentional leaks or releases of gases. This commonly includes refrigerants from air conditioning and refrigeration systems, as well as methane from oil and gas operations.
Process Emissions: Emissions released during industrial processes and chemical reactions. Examples include the CO₂ released during cement manufacturing or metal smelting.
How to Report Scope 1 Emissions
Reporting Scope 1 emissions is a structured process that typically follows the Greenhouse Gas (GHG) Protocol Corporate Standard, the most widely used international framework for accounting and reporting GHG emissions. Here's a general breakdown of the steps:
Establish Organizational and Operational Boundaries: Define the scope of your company's reporting. This involves deciding which entities and facilities to include in the inventory based on operational control or equity share.
Collect Activity Data: Gather data on the activities that generate emissions. This is the raw information needed to calculate emissions. Examples include:
Gallons of diesel or cubic meters of natural gas consumed.
Kilograms of refrigerant leaked or topped up.
Production data for processes that release GHGs.
Apply Emission Factors: Convert the activity data into GHG emissions (usually measured in metric tons of CO₂ equivalent, or tCO₂e) using emission factors. An emission factor is a coefficient that relates an activity to the amount of GHG emitted. For example, a specific amount of CO₂ is emitted for every gallon of fuel burned. The GHG Protocol and environmental agencies like the U.S. EPA provide these factors.
Calculate and Report: Calculate the total emissions for each source and consolidate them into a comprehensive report. The report should be transparent, consistent, and accurate. Companies can use carbon accounting software or third-party experts to help automate calculations and ensure adherence to reporting standards. Some jurisdictions, like Singapore for listed companies, have mandatory reporting requirements for Scope 1 emissions.
In order to calculate Scope 1 emissions, a company must first establish its organizational and operational boundaries. The most widely used framework for this is the Greenhouse Gas (GHG) Protocol Corporate Standard, which defines direct emissions as those from sources a company owns or controls.
Steps to Calculate Scope 1 Emissions
Identify Emission Sources: The first step is to create a complete inventory of all the company's direct emission sources. This includes the four main categories of Scope 1 emissions:
Stationary combustion: Emissions from burning fuel on-site for heat or power, such as natural gas boilers or backup generators.
Mobile combustion: Emissions from company-owned or controlled vehicles, including cars, trucks, and machinery.
Fugitive emissions: Unintentional leaks of gases, most commonly refrigerants from air conditioning and refrigeration systems or methane from oil and gas operations.
Process emissions: Emissions from industrial processes and chemical reactions, like the CO₂ released during cement production.
Collect Activity Data: For each emission source, you must collect the relevant "activity data." This is the raw data on the scale of the activity that generates emissions. For example:
For stationary combustion: gallons of fuel oil, cubic meters of natural gas, or tons of coal consumed.
For mobile combustion: gallons of gasoline or diesel used by the vehicle fleet, or miles traveled.
For fugitive emissions: kilograms of refrigerant topped up to replace a leak.
For process emissions: tons of product manufactured.
Apply Emission Factors: Once you have the activity data, the next step is to convert it into greenhouse gas emissions (typically measured in metric tons of carbon dioxide equivalent, or tCO₂e). This is done by multiplying the activity data by an emission factor. An emission factor is a standard coefficient that links a unit of activity to the amount of GHG emitted. For instance, the EPA provides an emission factor for a gallon of gasoline that tells you how many kilograms of CO₂e are released when it's burned.
Aggregate and Report: Finally, sum up the emissions from all sources to get the total Scope 1 emissions for the reporting period. The report should detail the calculation methodology, sources of emission factors, and the final emissions data. Many companies use specialized software or calculators to streamline this process and ensure accuracy and compliance with standards.
A Guide to Calculating Scope 1 Emissions - Using the Greenhouse Gas Protocol This video is a great resource that walks you through the process of calculating Scope 1 emissions using the Greenhouse Gas Protocol.
Bestar Professional Fees
Understanding fees for reporting Scope 1 emissions requires looking at the professional services and software that companies use to fulfill this task. The cost isn't for the emissions themselves but for the services that measure, report, and verify them.
Here's a breakdown of our rates for these services:
1. Carbon Accounting and ESG Reporting Software
Many companies now use dedicated software platforms to automate the data collection and calculation of their emissions, including Scope 1. These platforms are often subscription-based, with pricing that varies based on the company's size, complexity, and the number of emissions sources.
Entry-Level/Small Business: For small companies with a simple carbon footprint, software costs can range from a few thousand to $10,000 per year. These packages typically handle basic Scope 1 and 2 calculations and generate a report.
Mid-Market/Enterprise: Larger companies with more complex operations, international offices, and extensive data needs may pay anywhere from $25,000 to over $100,000 per year. These platforms offer advanced features like real-time dashboards, integration with enterprise systems, and tools for Scope 3 emissions.
2. Consulting and Professional Services
Bestar manages the entire process, especially if they lack in-house expertise. This is where professional fees come into play, and the rates can vary significantly.
Initial Assessment and Setup: For a company's first-time carbon footprint calculation, Bestar charges a project-based fee ranging from $5,000 to $50,000, depending on the size and complexity. This includes a one-time service to identify all emission sources, collect data, and generate the initial report.
Ongoing Reporting and Strategy: Bestar offers ongoing services on a retainer basis. These fees can range from $15,000 to over $100,000 per year, providing continued support for data collection, annual reporting, and developing a decarbonization strategy.
Third-Party Verification: As regulations and stakeholder expectations rise, many companies opt for third-party verification of their emissions data to ensure accuracy and build trust. This is a critical service, especially for companies subject to regulations like the Carbon Pricing Act in Singapore.
The cost of verification is highly dependent on the complexity and size of the company's operations.
A small to mid-sized company might pay $5,000 to $20,000 for verification.
For large, multi-national corporations, our fees can cost $50,000 or more.
3. Training and Certification
Some companies choose to build in-house expertise instead of relying solely on external consultants. In this case, the fees are for training and certification programs.
Courses on carbon accounting and GHG management are offered by Bestar. The fees for these courses can range from $500 to $3,000 or more per participant, often with government subsidies available in places like Singapore. These courses equip employees with the knowledge to manage the reporting process internally.
Summary of Our Rates:
Software: $10,000 - $100,000+ per year
Consulting (Initial): $5,000 - $50,000+ per project
Consulting (Ongoing): $15,000 - $100,000+ per year
Third-Party Verification: $5,000 - $50,000+ per audit
Training: $500 - $3,000+ per person
The fees are an investment in transparency, risk management, and compliance with the evolving global landscape of climate regulation.
How Bestar can Help
Engaging Bestar for carbon accounting and ESG (Environmental, Social, and Governance) reporting can be a game-changer for businesses. While it might seem like a significant expense, professional help provides a range of benefits, from ensuring accuracy and compliance to identifying new business opportunities.
Here's how Bestar helps with reporting Scope 1 emissions:
1. Expertise and Compliance
Navigating Complex Standards: Bestar is experts in international frameworks like the GHG Protocol Corporate Standard, which is the leading methodology for carbon accounting. We ensure your Scope 1 emissions inventory is calculated correctly, avoiding common errors that could lead to greenwashing accusations or regulatory penalties. In Singapore, for instance, professionals can help companies comply with the phased implementation of mandatory climate reporting for listed companies, which starts with Scope 1 and 2 emissions.
Ensuring Audit-Readiness: Bestar offers third-party verification services. This involves an independent review of your emissions data, methodology, and processes. This verification is crucial for building trust with investors, regulators, and customers, and it's a step toward securing "investor-grade" metrics that are held to the same high standard as financial data.
2. Efficiency and Cost-Effectiveness
Time and Resource Savings: Carbon accounting can be a complex and time-consuming process for a company's internal team, especially without prior experience. Bestar has the tools and expertise to collect and process data efficiently, freeing up your internal resources to focus on core business activities.
Optimizing Data Collection: Bestar can help you set up robust data collection systems. This can involve integrating with your existing enterprise resource planning (ERP) systems, or helping you identify and fill data gaps. By using software and a standardized approach, we streamline the process for future reporting cycles.
3. Strategy and Value Creation
Identifying Opportunities for Reduction: Bestar does't just calculate your emissions; we analyze the data to identify your company's "emissions hotspots." By pinpointing the largest sources of your Scope 1 emissions—for example, a particular manufacturing process or a fleet of vehicles—we can help you develop a targeted and cost-effective decarbonization strategy. This moves your company from mere compliance to active value creation.
Strategic Reporting: A good professional service helps you go beyond basic reporting. We can assist in creating a compelling narrative that tells your sustainability story, highlights your progress, and demonstrates your commitment to stakeholders. This can enhance your brand reputation and even attract "green" investors and conscious consumers.
4. Risk Management
Mitigating Reputational and Financial Risk: By ensuring accurate and transparent reporting, Bestar helps you mitigate the risks of non-compliance and reputational damage. In a world where climate-related disclosures are becoming more scrutinized, a faulty report can have serious consequences.
Staying Ahead of Regulations: The regulatory landscape is constantly evolving. Bestar stays up-to-date on new and upcoming regulations, such as those from the International Sustainability Standards Board (ISSB) or local government initiatives. This foresight allows you to prepare in advance, turning a compliance burden into a competitive advantage.
In summary, professional fees for carbon accounting and ESG services are an investment in the accuracy, efficiency, and credibility of a company's sustainability efforts. We provide not only the technical expertise to calculate and report emissions correctly but also the strategic guidance to turn sustainability reporting from a mere obligation into a powerful tool for business growth.
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