Ensuring Completeness
Completeness is a fundamental principle of robust carbon accounting. It requires that all relevant emission sources are included in the greenhouse gas (GHG) inventory, thereby preventing material omissions that could compromise the credibility and accuracy of reported results. At BeWo, we employ a methodology centered on the use of Enterprise Resource Planning (ERP) or finance system data to foster completeness and alignment with the Greenhouse Gas Protocol (GHG Protocol).
Rationale for using ERP Data
Financial records, as maintained within an ERP or finance system, serve as a comprehensive and regularly audited reflection of a company’s activities. By drawing on these records as the foundational dataset for emissions analysis, BeWo’s methodology benefits from:
- Standardization: ERP data adheres to consistent accounting principles and frameworks, ensuring that input data is structured, comparable, and of high integrity.
- Verification and Control: Financial data undergoes routine scrutiny by internal controls, auditors, and financial teams, thereby enhancing the reliability of the underlying information.
- Representation of Actual Operations: Expenses recorded in the financial statements represent a tangible record of goods, services, and resources utilized by the company, which in turn correlate with emissions sources.
In essence, ERP data provides a robust starting point for identifying and quantifying emission sources, facilitating the inclusion of a wide array of activities relevant to carbon footprint calculations.
Linking Expense Accounts to GHG Inventories
The process of ensuring completeness involves selecting expense accounts that correspond to emission-generating activities. By mapping financial accounts to emission categories, organizations create an inventory boundary that captures the full breadth of their operational emissions. Once configured, this mapping process remains stable over time, allowing for consistent annual comparisons and reducing the potential for selective inclusion or omission of certain emission sources.
For detailed guidance on financial account selection, refer to our article on Choosing Financial Accounts.
Categories Accessible Through ERP Data
Many Scope 1, Scope 2, and certain Scope 3 categories can be represented through ERP-derived data. The table below illustrates which categories can typically be addressed through expense-based analysis:
| Scope | Category | Calculated from ERP Data |
|---|---|---|
| Scope 1 | Company vehicles | ✅ |
| Scope 1 | Fuel combustion | ✅ |
| Scope 2 | Purchased electricity | ✅ |
| Scope 2 | Purchased heating | ✅ |
| Scope 2 | Purchased steam | ✅ |
| Scope 3 (Upstream) | Category 1 (Purchased goods & services) | ✅ |
| Scope 3 (Upstream) | Category 2 (Capital goods) | ✅ |
| Scope 3 (Upstream) | Category 3 (Fuel- and energy-related activities not included in Scope 1 or 2) | ✅ |
| Scope 3 (Upstream) | Category 4 (Upstream transportation & distribution) | ✅ |
| Scope 3 (Upstream) | Category 5 (Waste generated in operations) | ✅ |
| Scope 3 (Upstream) | Category 6 (Business travel) | ✅ |
| Scope 3 (Upstream) | Category 7 (Employee commuting) | ❌ |
| Scope 3 (Upstream) | Category 8 (Upstream leased assets) | ✅ |
| Scope 3 (Downstream) | Category 9 (Downstream transportation & distribution) | ❌ |
| Scope 3 (Downstream) | Category 10 (Processing of sold products) | ❌ |
| Scope 3 (Downstream) | Category 11 (Use of sold products) | ❌ |
| Scope 3 (Downstream) | Category 12 (End-of-life treatment of sold products) | ❌ |
| Scope 3 (Downstream) | Category 13 (Downstream leased assets) | ❌ |
| Scope 3 (Downstream) | Category 14 (Franchises) | ❌ |
| Scope 3 (Downstream) | Category 15 (Investments) | ❌ |
While this table demonstrates that ERP-based expense data can address a significant share of Scope 1, Scope 2, and select Scope 3 categories, certain upstream and downstream categories may not be fully represented. Categories such as employee commuting (Scope 3, Category 7) or various downstream activities often lack direct financial transaction records correlating to emissions, rendering them less accessible through ERP data alone.
Addressing Gaps Through Supplemental Data
Where ERP data falls short, organizations may enrich their inventories with additional sources. For example, commuting emissions, complex supply chain data, or other non-financial emission sources might require:
- Manual Data Input: Using the platform’s input guide, users can directly enter emissions data not captured by standard accounting records.
- Additional Document Uploads: Supplementing ERP data with detailed supplier statements or other secondary data sets can enhance accuracy.
- Transparent Disclosure: Any supplemental data or methodological adjustments should be clearly documented, ensuring that stakeholders understand the rationale behind any deviations from a purely ERP-based approach.
Maintaining Consistency and Transparency
Once the initial configuration of relevant accounts is established, BeWo preserves this selection for subsequent reporting periods. This approach fosters year-over-year consistency, enabling meaningful comparisons and trend analyses. Moreover, by disclosing any known limitations or supplementary data sources, organizations can maintain transparency and uphold reporting credibility.
Conclusion
Leveraging ERP data as the cornerstone of your emissions inventory ensures a high degree of completeness, drawing upon a well-structured, verified, and representative data set. While certain categories may be less readily captured, users have the flexibility to introduce additional inputs and documents to fill those gaps. By pairing ERP data with transparent methodological disclosures and optional manual enhancements, organizations can achieve a comprehensive and faithful representation of their emissions in accordance with the GHG Protocol’s principles.