Companies in numerous sectors around the world are actively working to reduce their impact on the environment. From tech companies to manufacturing facilities, there's a large collective effort to reduce greenhouse gas emissions and improve the environment. But how do businesses understand their impact, and what is effective emissions data management?

Understanding Emissions Data

Emissions data refers to the greenhouse gas emissions produced during operations. Generally, organizations split emissions up into three categories.

The first is "Scope 1 Emissions," referring to direct emissions from sources owned or controlled by a company. The second is "Scope 2 Emissions." This category covers indirect emissions from electricity, steam, heat and cooling purchased by the company. Finally, "Scope 3 Emissions" covers everything else associated with a company's operations.

Why is Emissions Data Important?

With climate change at the forefront of political and industry discussions, tracking emissions data is paramount. Understanding direct and indirect emissions provides insight into a company's carbon footprint. Analyzing that data can uncover risks and opportunities, allowing businesses to take steps to reduce their impact on the environment.

It also helps organizations understand their operations on a more granular level. That paves the way for more strategic decision-making concerning operational efficiency and capital deployment. That data can highlight ways to reduce operating costs while uncovering emission-heavy activities.

Companies also need to track emissions data to comply with evolving regulatory standards. Failing to report emissions data accurately can lead to steep penalties and substantial reputational damage. That data is also crucial for sharpening decarbonization strategies.

What is Effective Emissions Data Management?

Effective emissions data management is efficiently tracking carbon data throughout the company. For decarbonization strategies and regulatory compliance to be successful, companies need ongoing data collection and monitoring.

It requires the ability to access disparate data sources while tracking trading activity and reporting. Efficient management also involves data modeling, estimation and risk calculation. These practices all play a critical role in modern decarbonization efforts but are also crucial for regulatory duties.

Fortunately, there are business-focused platforms to do all that and more, making the otherwise complex task of emissions data management more streamlined than ever.

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Emily Clarke is providing info about a single platform for your oil and gas software solutions. You can find her thoughts at AI-powered energy software blog.