Conducting an assessment in the secondary sector
The Paris Agreement set a goal of carbon neutrality by 2050. This goal was established to combat global warming. The impact we have on our environment is significant, so we must take action to minimize it as much as possible. Whereas in the past only major institutions were concerned, today a large part of society is worried about this issue. That is why, with current regulations in place, greenhouse gas (GHG) emissions have become a primary concern for businesses.
The tool for effectively combating and reducing our emissions is the greenhouse gas inventory. Conducting a carbon inventory by sector is necessary as a first step—to measure all emissions—and, above all, as a second step—to reduce them! Not only does an inventory allow us to account for these emissions, but it also helps us identify emission sources and take action on them—for example, to improve energy efficiency.
What is a GHG assessment?
A GHG inventory is the accurate, comprehensive, and compliant identification and quantification of an organization’s greenhouse gas emissions. Its purpose is not only to account for emissions but also to identify ways to reduce them.
Once emissions have been quantified, they must be analyzed. This will allow for the identification of sources of greenhouse gas emissions, and reduction measures can then be implemented. The fight against climate change inevitably requires a reduction in emissions. Therefore, after conducting a greenhouse gas inventory, reducing emissions is a priority that must not be overlooked. Companies’ carbon emissions can be reduced if they take action. This reduction is necessary if we are to achieve the goal of becoming carbon-neutral by 2050.
A GHG assessment can be conducted in any industry and enables organizations to take action at their own level to mitigate climate change. Manufacturing industries are naturally on the front lines when it comes to reducing their greenhouse gas emissions. They have begun to respond to this demand from their customers and partners, but the path toward eco-responsible reorganization—particularly of the supply chain —is a long one.
Challenges Facing the Secondary Sector
The secondary sector encompasses all activities involving the more or less complex processing of raw materials (manufacturing, construction).
These companies—which transform raw materials, carry out complex processes, and produce manufactured goods—are at the heart of a globalized logistics system and rely on long-term investors. As such, industrial players and their financiers are directly affected by the need to prepare for climate change and build a low-carbon economy.
Reevaluating technical processes, certain suppliers, a company’s strategy, as well as its positioning and services, and its relationships with investors, customers, and civil society are all issues that must be addressed in order to align with a low-carbon strategy.
In addition, the industry is facing increasingly strict environmental regulations following the tightening of emissions quotas decided by the European Union in July 2021. Failure to comply with these quotas will force manufacturers to purchase “pollution permits” on the European carbon market, where prices are rising at an exponential rate (€300/tCO2e projected for 2040).
The benefits of a GHG inventory extend beyond environmental benefits. Conducting a carbon assessment helps reduce costs and improve a company’s economic performance. Identifying and then reducing sources of GHG emissions will result in substantial savings far exceeding the cost of a few hundred euros to conduct the assessment (see our article“Why Conduct a Carbon Assessment? ”).
As a result, tracking, analyzing, and reducing emissions have become essential for manufacturers.
Emissions in the secondary sector
Just as with other sectors, it is important to accurately account for all of an organization’s CO2 emissions. Emissions from the secondary sector are accounted for primarily at two levels:
- Production of materials; for example, the production of cement for construction.
- Energy consumption at the site; for example, the electricity required to power industrial equipment.
Emissions from these two sources must be taken into account in order to accurately measure a company’s emissions.
As part of the Paris Agreement, France, through its National Low-Carbon Strategy (SNBC), has set a target of reducing industrial emissions by 81% by 2050. This target is achievable if companies begin today to track their energy expenditures, consumption, and material costs. A resource-conservation plan will make it possible to drastically reduce emissions in order to take action and mitigate climate change.
It is therefore urgent for companies to tackle this issue head-on as soon as possible. Furthermore, it is in their best interest to work toward carbon neutrality and achieve a carbon-neutral footprint, as this generally leads to cost savings and helps limit expenses related to future carbon taxes.
It’s very easy to create and review your GHG assessment on the Decarbo’Solution® platform
The Decarbo’Solution® calculator is an online platform available 24/7 that allows you to easily and quickly calculate your complete GHG footprint in compliance with regulations.
Designed to be simple and intuitive to use, the customer journey has been optimized to guide users from start to finish as they complete an assessment.
Using the Decarbo’Solution® calculator, it’s easy to create a comprehensive assessment tailored to your specific business. With about 20 pre-designed data entry templates tailored to each sector (services, local government, real estate, manufacturing, etc.), it makes it easy to understand your GHG assessment.
The questionnaire is 100% customizable, allowing you to add or remove questions based on the company’s specific business activities. This ensures that the questionnaire is perfectly tailored to any typeofbusiness in theprimary, secondary, ortertiary sectors.
It is divided into seven emission categories to provide a more intuitive approach to preparing an emissions inventory. These categories cover all emission sources and allow emissions to be properly grouped according to the three required regulatory scopes.
This categorization allows manufacturers to easily account for emissions from incoming materials, providing them with a detailed picture of the environmental impact of their suppliers, their products, and the goods they sell. The classification also allows for the accounting of all types of energy, including that used for freight transportation.
This precise accounting of emissions will be followed by the implementation of emission reduction action plans. Emissions reductions are already well underway in the industry, but the ambitious reduction targets announced by Europe require us to redouble our efforts to deploy an increasing number of innovative solutions to achieve them.
The government’s call for more and more companies to conduct carbon assessments goes hand in hand with the goal of reducing global emissions. As such, industries play an important role in this reduction and are key players in their own energy transition.
It is important to realize that simply accounting for emissions is not enough; reducing emissions is the primary goal. Once emissions have been minimized to the point where they can no longer be reduced, it will be worthwhile to consider carbon offsetting.
Reducing Emissions Through Digital Technology
Reducing emissions is not limited to energy consumption or raw materials. Among the range of solutions available to minimize industrial emissions, digital transformation also offers its own solutions.
Effective use of data can indeed provide insights and pave the way for more responsible design and manufacturing processes, a more efficient supply chain, and better management of buildings and energy consumption.
Conducting a greenhouse gas inventory helps identify major sources of emissions and thus select targeted action plans. Certified experts can be contacted through the Decarbo’Solution® platform to assist each user in developing a comprehensive GHG inventory and implementing a decarbonization strategy. This will ensure that emissions are reduced efficiently and quickly.