10 adjustment screws: Implementing a CO₂ balance in a way that is friendly to SMEs

|  August 6, 2024

🕓 Reading time 9 minutes

Table of contents

1. Establishment of an internal contact person
2. Involvement of external experts
3. Building experience instead of striving for perfection
4. Becoming aware of your own goals
5. Adjust the scope of the balance sheet (Scope 1-3) to your own objectives
6. Screening with less specific data in the first financial year
7. Narrow down the Scope 3 categories with a materiality analysis
8. Summarize and group data meaningfully
9. Use of auxiliary values and estimates in less relevant areas
10. Focus on key emission sources

1. Establishment of an internal contact person

The establishment of a internal sustainability contact is central to successful greenhouse gas accounting in medium-sized companies. This contact person should be responsible for carrying out the accounting and act as an interface.

The main task is to Communication and coordination between departments and with external partners such as accounting service providers. The contact person collects and consolidates the necessary data and ensures that it is forwarded to external experts correctly and in a timely manner.

In small companies, there is often someone from management or accounting particularly suited to this role. This person has access to cash inflows and outflows, which often represent the most important raw data for financial reporting.

2. Involvement of external experts

The involvement of external experts or accounting service providers can significantly improve greenhouse gas accounting. facilitate and directly the requirement for a Cover certification.

As a service, the service provider accepts the company's raw data and calculates the greenhouse gas emissions using specific factors from recognized emissions databases.

With our medium-sized business-oriented Software and service solution At Green Vision Solutions, we offer not only user-friendly data capture software, but also a direct project contact. This support helps medium-sized companies quickly and efficiently familiarize themselves with the complex subject matter and avoid errors. The combination of technical support and personal consultation ensures that the accounting process is carried out both thoroughly and practically.

Learn more about CO₂ accounting for your company

3. Building experience instead of striving for perfection

In the first year of greenhouse gas accounting, it is more important to gain experience, than perfection. It is perfectly fine to make mistakes and learn from them. Excessive demands for perfection can lead to companies get lost in the details and lose the overall picture.

Instead, companies should Focus on continuous improvement Learn from the experiences of the first year and document them transparently and comprehensibly in order to be able to prepare more precise and efficient balance sheets in the following years.

4. Becoming aware of your own goals

Before you start with your greenhouse gas accounting, you should be clear about your goals. Is it about meeting legal requirements again CSRDto answer specific requests from business partners or do you just want voluntarily report on your emissions?

Depending on the objective, it may be sufficient to initially focus on the Scope 1 and 2 emissions to focus. A clear definition of objectives helps you determine the scope of accounting and use your resources effectively.

5. Adjust the scope of the balance sheet (Scope 1-3) to your own objectives

Adapt the scope of your greenhouse gas accounting to your specific objectives. Scope 1 and 2 emissions are generally easier to measure and represent a solid foundation. Scope 3 emissions however, more complex and require more effort.

If your objectives allow, start with a detailed recording of Scope 1 and 2 emissions and expand the scope gradually. This way, you can ensure that your accounting meets your desired requirements without overloading your resources.

6. Screening with less specific data in the first financial year

In the first financial year, it may be useful to carry out a screening with less specific data Use cost and statistical values to get an initial overview of your emissions and the conditions of the Scope 3 to receive categories.

Learn more about the screening in the following video:

7. Narrow down the Scope 3 categories with a materiality analysis

Conduct a materiality analysis to determine the relevant Scope 3 categories to identify and narrow down. Scope 3 Emissions include a variety of indirect emission sources, not all of which are equally important and not all need to be recorded, nor for the CSRD report. By focusing on the key categories, you can use your resources more effectively and make your accounting more efficient.

Learn more about materiality analysis in the following video:

8. Summarize and group data meaningfully

Collect and group your data sensibly to reduce the complexity of accounting. Similar emission sources can be summarized and be viewed as a unit.

This simplifies data collection and analysis and allows you to maintain a clear overview. By structuring the data sensibly, you can also more easily identify patterns and trends and develop targeted measures to reduce emissions.

Examples and methods for bundling goods can be found in this article: Include every single product in the carbon footprint? | Requirements and methods

9. Use of auxiliary values and estimates in less relevant areas

In areas that less relevant for your total emissions (justified by the materiality analysis), you can Auxiliary values and estimates are a practical solution This method saves time and resources without significantly impacting the overall balance.

For example, the average statistical commute in Germany for employee commuting, instead of recording the exact routes of individual commuters. 

It is important, transparent and comprehensible methods for these estimates to ensure the credibility of your accounting. However, in more relevant areas, accurate data should be preferred.

10. Focus on key emission sources

Focus on the major emission sources and only go into specific detail there. These emission hotspots have the greatest impact on your overall emissions and at the same time offer the greatest potential for reductions. Minor emission sources can be aggregated and accounted for less specifically.

Detailed analysis and accurate data collection in the hotspot areas is crucial to effective measures to reduce emissions develop and implement them. By focusing on the most important areas, you can structure your accounting efficiently and effectively.