In the second part of our Energy Transition Talks podcast series on environmental sustainability, CGI experts Nicole Zethelius, Rich Hampshire and Peter Warren discuss energy and utility companies’ need to invest in collecting relevant environmental, social and governance (ESG) data to ensure accountability, transparency and auditability and deliver business growth. This article provides a summary of the discussion.
Data is a key enabler to trace and measure environmental sustainability-related factors across Scopes 1 through 3 as defined by the Greenhouse Gas (GHG) Protocol, from energy and resource use to GHG to supply chain performance. However, while energy companies and utilities are rich in data, they aren't necessarily tracking the relevant ESG data throughout their digital value chains to take measurable, transparent and traceable actions.
The imperative to reduce Scope 3 emissions
The three scopes defined by the GHG Protocol are:
· Scope 1: Direct emissions from company-owned and controlled resources, which include a company's headquarters and purchased vehicles used to get to and from office premises.
· Scope 2: Indirect emissions from the generation of purchased energy, including heating, ventilation and air conditioning.
· Scope 3: All other indirect emissions from activities not owned or controlled.
The importance of Scope 3 emissions is growing. Nicole explains that such emissions account for anywhere between 70-90% of a business's operations. "It's their supply chain, lease assets, investments and logistics. It's everything that is relevant to what's driving ESG and what's driving negative environmental impact," she says.
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