4 mins read
Published Sep 10, 2024
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How Real-Time Carbon Accounting Can Help Your Business
Carbon accounting is the process of calculating an organisation’s greenhouse gas emissions (GHG emissions). It is a crucial part of any carbon management plan that needs to be done rigorously, transparently and frequently, following best practices and standards that are accepted universally.
Most organisations perform carbon accounting in a ‘reactive’ manner, where the frequency of regulatory or voluntary reporting requirements dictate when and how often does the GHG emissions get calculated and reported. Due to this, many organisations, often with fewer resources dedicated to this task, struggle to retrieve important activity data required to complete accurate and comprehensive emissions calculations. As a result, reported emissions are often based on averages and assumptions which may not necessarily reflect actual emissions and hence, lose trust from important stakeholders. Moreover, the emissions targets that are based on these reported emissions are undermined by the inaccuracy and lack of transparency of the reported figures, further leading to consequences that are not in the best interest of the business.
Real-time carbon accounting solves this problem by monitoring and calculating emissions in real-time through various integrations that deliver continuously updated data about key sources of emissions. Sources can include energy consumption, fuel usage, and process emissions, providing precise and up-to-date data on carbon emissions. This is mainly possible through integrations with meters and devices on site with IoT (Internet of Things) capabilities.
NoviqTech’s Carbon Central platform is a holistic carbon management solution that allows businesses to calculate carbon intensities as well as actual emissions in real time. This is possible through a direct integration with site meters and the creation of digital twins of a site’s operations to precisely calculate emissions from any data source. Some of the other benefits of real-time carbon accounting include:
Accurate and Continuous Data Collection and Processing
As the site’s meters represent physical flow of a source of energy such as electricity or natural gas, the meter readings provide precise and continuous data with enhanced granularity for further processing. With real-time data on carbon intensities of a specific unit in operation, decision-makers can respond immediately to changes in emissions, identify inefficiencies, and implement corrective actions without needing to wait for manual reports. This, in contrast to reactive carbon accounting, can be considered ‘proactive’ carbon management that also allows for reduction of emissions soon as an unprecedented increase in carbon intensity is detected.
Enhanced Compliance and Ease of Reporting
Real-time emissions monitoring ensures that your site remains compliant with environmental regulations through continuous monitoring of emissions levels. Continuous monitoring also helps avoid potential penalties related to non-compliance with emissions regulations. All data that is monitored and collected can be processed in real-time into outputs required for reporting according to emissions accounting and reporting standards that the site follows (for example, GHG Protocol Corporate Accounting and Reporting Standard or the International Sustainability and Carbon Certification).
Carbon Central makes emissions accounting and reporting effortless by allowing users to create reports using on-chain data in a format or template that is in accordance to global emissions reporting standards.
Unmatched Transparency and Accountability
Real-time data provides transparency, which is increasingly sought after by stakeholders, including customers, investors and regulatory bodies. Moreover, continuous data streams from IoT meters or devices make both internal and external auditing straightforward, quick and reliable, often resulting in cost savings and a traceable record of emissions over time.
Carbon Central takes transparency one step further by managing emissions-related data on blockchain, as well as tokenising every unit of carbon emissions. This way, auditing reported emissions becomes incredibly easier as activities relating to each tonne of carbon emission is available for verification in real time.
In conclusion, real-time carbon accounting offers a range of benefits, from more accurate data collection and cost savings to improved regulatory compliance and enhanced sustainability reporting. By providing continuous insights and enabling proactive management, this can significantly enhance an organization’s ability to meet its carbon reduction goals and operate more efficiently.
