IBM Envizi ESG Suite

ESG reporting software such as the IBM Envizi ESG Suite can prepare organizations to calculate and report Scope 3 emissions and simplify what may seem like a daunting task. With over a decade of experience supporting sustainability leaders to streamline ESG reporting against all scopes, we recommend a systematic approach that’s been tried and tested by our clients. 

Step 1: Determine categories and data types

Map out all emission categories in your value chain and identify which activities and data types to include based on materiality, size, and influence.

Step 2: Establish a data capture strategy

Determine the best method to source data (activity or proxy) to achieve high levels of accuracy.

Step 3: Select emissions factors and calculate

Identify which emissions factor and calculation method are most appropriate given the data you have available. 

Step 4: Disclose progress and drive performance 

Communicate and track progress with reporting templates and custom reporting tools.

After you set your Scope 3 boundaries and determine where you will source your data, you can decide which emissions factor and calculation are most appropriate. Each category

of Scope 3 emissions demands different emissions factors and calculation methods, depending on what information is available.

• Take advantage of ESG reporting software to automate what would otherwise be a painstaking manual data collection process by using electronic data interchange (EDI) and AI technology. 
•  Be prepared to rely on manual surveys and conversations with individuals that represent your organization’s supply chain for some of the data collection. 
• Maintain flexibility in the data structure between various factors. Data files provided by various supply chain members will be formatted in different ways, and your data framework must be flexible enough to ingest, process, and analyze this data.

Every business is different, so it’s important to either build internal knowledge or engage a consultant for support. Once a strategic approach is in place, make sure your ESG reporting software can capture renewable energy certificate allocation decisions, store and manage your emissions factors, and calculate your emissions inventory, including market-based emissions. 

Many organizations run their annual GHG accounting process using spreadsheets, which leads to enhanced risk and productivity loss, especially for complex global organizations that report to multiple frameworks. ESG reporting software such as the suite offered by IBM can help you stay organized. The solution automates data capture directly from the source and maintains an emissions factor engine for nationally recognized carbon emissions factor data tables.

These include: 

The US EPA Climate Leaders Program

Emissions & Generation Resource Integrated Database (eGRID) 

Intergovernmental Panel on Climate Change (IPCC) 

International Energy Agency (IEA) National Electricity Factors 

Australian National Greenhouse Accounts (NGA) Ministry for the

The environment in New Zealand 

Department for Environment, Food and Rural Affairs (Defra) in the United Kingdom 

Significant barriers exist to reporting and reducing Scope 3 emissions. The following challenges are most cited: 

• Establishing boundaries between scopes 
• Capturing reliable data in a systematic and auditable way across numerous suppliers and locations 
• Selecting emissions factors to derive accurate calculations 
• Engaging with suppliers to both reports and reduce emissions.

• Reporting on all GHGs
• Custom emissions factors
• Factor selection algorithm
• Market-based emissions calculation

An ESG report or Sustainability report is a report published by a company or organization about environmental, social and governance (ESG) impacts. It enables the company to be more. It is a communication tool that plays an important role in convincing sceptical observers that the company’s actions are sincere.

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