In the fight against climate change, carbon credits have become a crucial tool to reduce and offset greenhouse gas emissions. However, the real challenge for companies is to ensure that carbon credits are measured correctly, accurately and verifiably. Measurement is not just a technical aspect, but an essential part of ensuring the credibility and effectiveness of these sustainability practices.
What is a Carbon Credit?
A carbon credit represents the offsetting of one tonne of CO2 or greenhouse gas equivalent avoided or removed from the atmosphere. Companies can acquire these credits to balance their emissions and accelerate the process towards carbon neutrality. However, the effectiveness of carbon credits depends largely on the ability to accurately measure the emissions produced or saved, on the one hand, and the credits obtained, on the other.
The importance of accurate measurement cannot be underestimated. An inaccurate calculation could compromise the credibility of a company’s sustainability efforts and undermine stakeholder trust. For this reason, carbon credits must be supported by reliable data confirming emission reductions in a transparent and verifiable manner.
Measuring to reduce: how to deal with the complexity of corporate emissions
Measuring carbon credits involves a detailed and continuous analysis of emissions along the entire value chain. According to the Greenhouse Gas Protocol – an international standard for measuring carbon emissions – a company’s emissions fall into three main categories:
- Direct emissions (Scope 1), produced directly by the company, such as those resulting from the use of fossil fuels in production processes.
- Indirect emissions (Scope 2), related to the consumption of electrical and thermal energy purchased.
- Indirect emissions along the supply chain (Scope 3), which include all emissions from the activities of suppliers, logistics and transport, up to the final use of the product by the customer.
The main challenge for companies is not only to track direct and indirect emissions, but also to accurately calculate the impact along the entire supply chain. Scope 3 emissions, in particular, can include dozens or hundreds of partners, greatly increasing the complexity of measurement.
To effectively monitor carbon credits, it is essential to have advanced systems that can collect and analyse data from multiple sources.
In order to ensure an accurate estimation of emissions, business processes must be monitored without interruption. This allows companies to take immediate action to reduce emissions when necessary.
Furthermore, the standardisation of data along the entire supply chain is essential to ensure integration between the different actors involved. For this, data must be homogeneous and easily interpretable.
We must also remember that in order to certify the credibility of the carbon credits acquired or generated, emission reductions must be verified by independent bodies. This ensures that the credits comply with international standards and really contribute to the fight against climate change.
The use of advanced digital platforms greatly simplifies this process. These tools can automate much of the monitoring, reduce the risk of errors and ensure the traceability of emissions and carbon credits generated.
From monitoring to action: turning emissions management into a competitive advantage
A centralised approach to data management is therefore essential to monitor emissions effectively. Data must be collected in real time, correlated and continuously updated to ensure that measurements are always accurate and aligned with operational practices.
A centralised system allows companies to have a clear view of emissions throughout the supply chain and quickly identify areas in need of improvement. This approach also facilitates adaptation to any regulatory or operational changes, minimising the risk of discrepancies or errors.
Furthermore, the ability to visualise the status of emissions in a clear and immediate way allows business managers to make informed decisions. Emission reduction strategies can be implemented in a more targeted manner, ensuring that each action has a positive and measurable impact.
Thus, measuring carbon credits is not a simple accounting exercise, but a process that requires technical precision and accurate data management. Companies that adopt advanced platforms for collecting, analysing and tracking emissions are better equipped to ensure that each carbon credit is verifiable and reliable.
In a global context where sustainability is becoming a competitive factor, having digital tools and an integrated view of corporate emissions is crucial. Not only to comply with regulatory obligations, but also to demonstrate a real commitment to reducing environmental impact. Adopting innovative solutions today can make the difference tomorrow, giving companies a sustainable and lasting competitive advantage.
Request an iChain demo today and find out how we can help you turn emissions management into an asset for your business!
CEO of Wiseside Srl, thanks to his solid experience in the IT sector and consulting for multinational companies, she has been contributing for over 10 years to the development of innovative and collaborative Supply Chain models, always respecting the principles of sustainability.
