Global Energy &
Commodities Firm

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Overview

Our client is a global energy, environmental products and commodities firm providing expertise across North America, Europe, Asia, and Latin America.
 
The customer needed support digitizing and confirming their internally developed carbon footprint calculations and methodology to deliver a robust and auditable GHG footprint. The client worked with SINAI to deliver a quantified Scope 1 and 2 emissions footprint. Part of this was also incorporated in the UK SECR energy consumption and emissions report. SINAI delivered all results in an automated and cloud-based solution to make their GHG management capabilities repeatable, transparent, and efficient.

The client had two core challenges: 

Their diversified business structure and varied assets made their initial task of data gathering quite complicated.

The data the client had consolidated to date had been in spreadsheets. This format normally causes version control issues, exacerbate manual errors, and drive delays from difficulties in obtaining reliable data.

Finally, these challenges seemed even more daunting when considering that the process would have to be repeated yearly, at a minimum, with increasing stakeholder pressure to deliver more frequent and specific reporting. 

A Global Commodities Leader Prepares for Emissions Reporting

01

Delivering an inventory management plan

The client worked with SINAI’s customer success and sustainability experts in order to establish a GHG inventory. This process helped determine boundary conditions, methodology, and emissions factors as well as identify relevant data sources and collection processes.  

At the end of this exercise, the client had a clear map of how the data was needed to be collected in order to easily feed SINAI’s tool and the data sources that could be applied to complete the measurement.

Zooming in on emissions boundaries :

The Client’s scope 1 and 2 carbon footprint includes emissions from operating international offices, as well as emissions from a diverse set of energy assets, such as refineries and energy storage facilities. Because of its diverse operating structure, the Client had challenges establishing organizational boundaries. SINAI worked with the client to define the best boundary selection that was both SECR compliant and optimal for building a decarbonization strategy. In defining these boundaries, the Client had proceeded with the equity share approach to appropriately account for assets with partial ownership, as was SINAI’s recommendation in order to align the Company’s GHG inventory with GHG protocol.

Who needs to comply with SECR?

Streamlined Energy and Carbon Reporting (SECR) makes it mandatory for large businesses in the UK to annually report on their energy and carbon emissions as well as any efficiency measures in place. It applies to all quoted companies (those whose shares are listed on the stock exchange) and large UK companies with over 250 employees or an annual turnover of more than £36m or an annual balance sheet of over £18m.
Equity share approach:

Under the equity share approach, a company accounts for GHG emissions from operations according to its share of equity in the operation. The equity share reflects economic interest, which is the extent of rights a company has to the risks and rewards flowing from an operation. Typically, the share of economic risks and rewards in an operation is aligned with the company’s percentage ownership of that operation, and equity share will normally be the same as the ownership percentage.
02

From Spreadsheets to Software


Once establishing the boundaries for the Client’s emissions, SINAI’s climate experts aided their sustainability team in connecting emissions data to the SINAI platform.

First, SINAI’s customer success team mapped the information gathered for the GHG inventory to the corresponding system set up in the SINAI platform. Next, SINAI’s customer success team fed the client emissions data into the platform, while SINAI’s software provided automated calculations. From there, it was easy for the Client to see exactly what additional emissions data needed to be gathered for auditing and data completion.

Using the principles of the GHG Protocol, SINAI’s experts and software delivered a complete emissions inventory of the Client’s scope 1 and 2 emissions, within one month - making the building and managing of their carbon inventories easily repeatable and auditable, in addition to saving time. This, in addition to the emissions data being easily exportable, made it simple for the Client to be prepared for their audit with SGS, a leading service for inspection, verification, testing, and certification.  

3

Kicking Off the Decarbonization Journey


With SINAI, the Client has moved away from a manual emissions tracking process to a manageable and automated carbon accounting system. With the completion of a successful audit, the Client is now able to easily comply with SGS reporting requirements. However, their decarbonization journey doesn’t stop there.  

Data is the foundation for business decision-making; The Client prioritized the quality, usability, and robustness of their emissions inventory data in order to be able to make informed, confident, and data-driven decisions on their decarbonization strategy down the road.  Looking forward, the Client is working with SINAI to continuously build on its emissions data and climate intelligence, enabling communication between all stakeholders around climate risks and opportunities.    

SINAI Decarbonization Platform

Inventories
Measure and report Scope 1-3 emissions
Baselines    
Forecast future
emissions
Low-Carbon Scenarios
Explore emission reduction opportunities
Carbon Pricing
Quantify targets, emissions gaps, prices, & budgets
Value Chain Management
Work with your value chain to decarbonize products

Join the low-carbon revolution

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