Long Lived Greenhouse Gases
Imagine you are an ESG analyst. You want to estimate the long lived greenhouse gas emissions from the electronic and electrical equipment your company buys. How would you go about it?
A typical method involves using emission factors for gases like methane (CH4) and nitrous oxide (N2O) that are associated with the production, usage, and disposal of these products. These factors are often found in databases from environmental agencies or international organizations, like the IPCC or the EPA.
We take a different approach and discourage reliance on emission factors for several reasons:
- Reliance on Secondary Data: While reports based on quantitative data are preferable to anecdotal evidence, using secondary data such as expenditure amounts or industry averages can be misleading. The cost of an item or service doesn't necessarily correlate with the type or quantity of emissions produced.
- The Problem with Averages: Utilizing industry averages obscures specific details. Scope 3 reporting is meant to differentiate among suppliers, enabling the selection of those with the lowest emissions. Applying an industry average to each supplier diminishes the ability to make such distinctions. It's more effective to use individual emissions data for calculating specific footprints, which requires primary data.
- The Value of Primary Data: Primary data is most valuable when it represents actual, not estimated, emissions. This data should be sourced directly from your supply chain or from reliable third parties. Encouraging suppliers to provide emissions data from their Life Cycle Assessments (LCAs), which consider emissions throughout a product's entire lifespan, is ideal.
- Additionally, government sources are increasingly viable for emissions data. For instance, the EPA's Greenhouse Gas Reporting Program (GHGRP) publishes data on industrial gases from major emitters, and NASA releases greenhouse gas data obtained through various observational methods.
At MobiCycle, we recommend two primary strategies:
- Use of LCA Tools: Employ Life Cycle Assessment tools to thoroughly assess emissions over a product's lifecycle. These tools are instrumental in gathering data and applying relevant emission factors.
- Leverage Artificial Intelligence: We advocate for the use of AI to analyze and interpret complex data sets. AI can offer insights into emissions trends, identify areas for improvement, and predict the environmental impact of future purchasing decisions.
By focusing on primary data and leveraging modern technology, we aim to achieve a more accurate and actionable understanding of our environmental impact, particularly in the context of Scope 3 emissions.