New regulations and changing demands make managing your greenhouse gas (GHG) data with spreadsheets nearly unmanageable. Evolve your carbon management and GHG reporting from Excel and Outlook to a robust, persistent solution. Digital technology and tools enhance a carbon management program through:

• Improved recording keeping and transparent reporting to strengthen regulatory compliance
• Proactive performance management of carbon to improve operational excellence
• Board- and investor-grade communications to inform targets and investments
• Automation and standardization to reduce cost of reporting and improve quality of data

Many companies have either outsourced this work and/or are working without being aware of their blindspots. With the increasing scrutiny and demand on carbon data and emissions reporting, this is no longer best practice for leading energy companies. 

Investment in digital solutions for carbon data, calculation, and reporting can be daunting - especially when just getting started. When embarking on your digital transformation journey for carbon management, we outline 5 ways to make sure your GHG management program supports a successful implementation:

1. Identify the right protocols and frameworks
2. Define reporting boundaries
3. Identify emission sources
4. Identify available activity and measurement data
5. Document, document, document

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1️⃣ Identify The Right Protocols and Frameworks

When reviewing reporting protocols, always prioritize regulatory compliance because non-compliance can result in hefty fines or even criminal charges! Start by understanding what regulations your company is subject to as well as when and how reports are submitted. Many in the energy industry will be subject to US EPA’s Greenhouse Gas Reporting Program (GHGRP or “Subpart W”), OOOOa regulations, and other federal regulations promulgated by EPA, PHMSA, FERC and BOEM.

Going beyond regulatory compliance and participating in voluntary frameworks and disclosures requires some deliberation to determine what makes sense for your company. Ask yourself the following:

• What initiatives are our peers participating in?
• Are there regional initiatives where our operations are located?
• Have investor or shareholder inquiries centered around specific disclosure frameworks?
• What are our key emission reduction drivers?

Next, break down which voluntary framework or disclosure helps address the questions above. Reach out to your peers and experts in the industry to understand what is involved in participating in these framework or disclosure programs and the benefits observed. You will want a digital solution that can help you with reporting under applicable regulations and selected voluntary frameworks.

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2️⃣ Define Reporting Boundaries

With regulatory frameworks, operators have little to no leeway in defining their reporting boundaries. For these boundaries, it’s critical to have controls in place to manage and communicate changes.

For other frameworks and disclosures, the reporting boundaries may be flexible. Focus on what’s important to you and your stakeholders. 

Organizational boundaries are often determined by one of two approaches. Just like choosing a framework, you may need to keep track of both. 

1. Equity share approach - account for GHG emissions from operations according to your company’s equity share or working interest. This includes non-operated joint ventures, no matter how small.
2. Control approach - account for 100% of GHG emissions from operations over which you have control. Control can be defined as either operational or financial. 

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3️⃣ Identify Emission Sources

Make an inventory of all equipment that generate GHG emissions based on the boundary conditions you are working within. Maybe you have an existing asset management system that can be utilized. If you do, review the data in the asset management system to ensure that it is complete and current – changes happen often in operations and, without a robust management of change (MOC) process, changes to assets may not have been documented.

Even without an asset management system, you can document your equipment and emission sources. Look for software products in the market that can provide you functionality to manage your emission sources while supporting your carbon emission data, calculations, and reporting.

While compiling the equipment information for your emission sources, be detailed and thorough. Record such information as:

• Manufacturer
• Model
• Serial Number
• Operating condition
• OEM specification such as capacity, horsepower, etc
• Location

Some of this information will be needed for GHG reporting, while other details will help support your carbon emissions management within your operations, including tracking of projects that will reduce your company’s emissions. 

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4️⃣ Identify Available Activity and Measurement Data

Compile a list of all your data sources from which calculation and reporting emissions will be sourced. These could be digital tools used for tracking production or fuel use, logs, emails or invoices and may not be in an electronic format.

For some sources, there can be multiple places to get similar information. For example, fuel use could come from a frequently-calculated facility utility meter, individual equipment process meter, or a calculation based on run time. In general, measured data is more accurate than calculated, which is still better than a “best engineering estimate,” but the most accurate data may not be at the right granularity.

Know how to access the data, who owns the data, and how often the data is updated. This will inform the level of resolution you can track in your digital carbon management solution. 

Many companies are deploying technology to directly measure methane and other emissions. Identify the technology used and how to get the data from these measurement devices. You will have a mix of continuous monitoring data with periodic surveillance data in many instances.

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5️⃣ Document, document, document

As decisions are discussed and reached, create a record that other stakeholders can reference in the future. Some of the documentation will have implications toward regulatory compliance, so records must be readily accessible and auditable.  

Understand your current position and determine your best approach for carbon management and then document your decisions. Best practice suggests your organization reevaluate periodically as regulations, operations and data sources change over time. 

• Use collaboration tools like Teams or Slack
• Store documentation where it can be accessed like Teams, Box, or Google Drive
• Make sure documentation is version controlled and restricted to just those that can make updates
• Get a consultant or contractor to help you through this if needed

Documentation and record-keeping are fundamental to a robust carbon management program. Not only do energy companies continue to comply with increasing regulatory burden, they face internal and third-party assurance and verification of their carbon data. Without complete, current, and transparent documentation, companies can find themselves falling behind quickly.

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