ESG Emissions Inventory Support

What is an ESG Emissions Inventory?

An ESG Emissions Inventory is a structured, verifiable accounting of an organization’s greenhouse gas (GHG) emissions over a defined reporting period, typically including Scope 1, 2, and 3 emissions. It forms the foundation of environmental, social, and governance (ESG) reporting by:

• • Measuring environmental impact
  • Tracking progress toward sustainability targets
  • Supporting climate risk assessments
  • Highlighting the largest contributors to CO2e emissions
  • Identifying emissions reduction opportunities
  • Enhancing transparency for stakeholders and regulators

The reports typically include Scope 1, 2, 3, and GHG emissions, quantified using recognized protocols such as the GHG Protocol Corporate Standard, EPA methodologies, or international sustainability frameworks.

Key Components of an ESG Emissions Inventory

A complete and compliant ESG emissions inventory includes:

1. 1. Greenhouse Gases (GHG) Tracked – CO₂, CH₄, N₂O, HFCs, PFCs, SF₆, and NF₃, among others
   2. Emission Sources, such as clear identification of:
      1. Fuel combustion, either stationary or mobile
      2. Purchased electricity, steam, heat, and cooling
      3. Industrial processes
      4. Transportation and logistics
      5. Waste and wastewater
      6. Supply chain and purchased goods
      7. Employee commuting and business travel
   3. Reporting Period
   4. Scope Definition
      1. Scope 1 – Direct Emissions from owned/controlled sources
      2. Scope 2 – Indirect Emissions from purchased electricity, steam, heating, etc.
      3. Scope 3 – All other indirect emissions across the value chain inventories
   5. Methodology & Calculation Approach

Development of ESG Emissions Inventory 

The general development of an ESG Emissions Inventory process follows:

1. 1. Data Collection & Verification
      1. Gather activity data from energy usage, production metrics, fuels, water, waste, and suppliers.
   2. Emission Calculation Methods
      1. Direct emissions monitoring (continuous or periodic)
      2. Short-term stack testing extrapolation
      3. Use of EPA-approved emissions factors
      4. Supply chain and secondary emission factors where primary data is unavailable
   3. Integration with Existing Environmental Programs, such as
      1. Air Emissions Inventories
      2. Title V Permitting
      3. Greenhouse Gas Reporting Program (GHGRP)
      4. Sustainability or Low-Carbon Transition Initiatives
   4. Documentation & Reporting
      1. Detailed recordkeeping of assumptions, methodologies, and calculations
      2. Preparation of reports for internal stakeholders, regulators, and ESG disclosures

Why ESG Emissions Inventory Matters

A well-maintained ESG Emissions Inventory is essential for:

• • Organizations seeking to understand and manage their environmental impact
  • Establishing a clear baseline for GHG emissions
  • Tracking sustainability initiatives over time
  • Supporting compliance with emerging regulatory requirements
  • Enhancing credibility with investors and stakeholders
  • Reinforcing a company’s broader climate and ESG commitments