Carrying out an assessment in the secondary sector

The Paris Agreement has defined a carbon neutrality objective for 2050. This objective has been set in order to fight against global warming. The impact we have on our environment is not negligible, so we must act to limit it as much as possible. If before, only the big authorities were concerned, today a large part of the society is worried about it. This is why, with the regulations in force, greenhouse gas emissions (GHG) are becoming the main concern of companies.

The tool to fight effectively and reduce our emissions is the greenhouse gas assessment. The realization of a carbon assessment by sector of activity is necessary for a first step, to measure all its emissions, and especially a second step, to reduce them! Not only does a balance sheet make it possible to account for these emissions, but it also makes it possible to identify the points that emit them and to act on them, for example to improve energy efficiency.

What is a GHG assessment? 

A GHG assessment is rather a " GHG Inventory ", as our Anglo-Saxon friends translate it so well: GHG Inventory. It is in fact, like an accounting inventory, the identification and quantification of an organization's greenhouse gas emissions in a precise, complete and consistent manner. Its purpose is not only to account for the emissions but also to define the ways to reduce them. 

Once the emissions have been accounted for, they must be analyzed. The greenhouse gas emitting points can then be identified and reduction actions can then be implemented. The fight against climate change inevitably requires a reduction of its emissions. Thus, when carrying out a greenhouse gas assessment, the reduction of emissions is the point not to be neglected. The carbon emissions of companies can be reduced if the entities get involved. The reduction is necessary to reach the goal of being carbon neutral by 2050.

Manufacturing industries are naturally on the front line in reducing their greenhouse gas emissions. They have begun to respond to this demand from their customers and partners, but the road to eco-responsible reorganization, particularly of the supply chain, is very long.

Secondary sector issues

The secondary sector includes all activities consisting of a more or less elaborate transformation of raw materials (manufacturing industry, construction). 

These companies, which transform materials, operate complex processes, produce manufactured goods, are at the heart of a globalized logistics system, and rely on long-term investors. Thus, industrial players and their financiers are directly concerned by the anticipation of climate change and the construction of a low-carbon economy. 

The questioning of technical processes, of some of its suppliers, of a company's strategy, as well as its positioning and services, its relationship with investors, customers and civil society, are all issues to be resolved in order to respond to a low-carbon strategy. 

In addition, the industry is facing increasingly strict environmental regulations with the strengthening of emission quotas decided in July 2021 by the European Union. These quotas, if not respected, force manufacturers to buy "rights to pollute" on the European carbon market, whose prices are growing exponentially (300€/tCo2e expected in 2040). 

The benefits of a GHG assessment are not limited to the environment. The realization of a carbon footprint makes it possible to reduce costs and improve the economic performance of a company. The detection and reduction of GHG emitting items will result in substantial savings well above the cost of a few hundred euros for the realization of an assessment (see our article " Why do an assessment? ").

The accounting, analysis and reduction of emissions has therefore become necessary for industry. 

Emissions in the secondary sector

As with other industries, it is important to properly account for all of an organization's CO2 emissions. Accounting for secondary sector emissions is primarily done at two levels:

• Production of materials; for example the production of cement for the building industry. 
• Energy consumption on site; for example, electricity for industrial equipment.

Emissions from these two sources must be taken into account in order to correctly measure a company's emissions.

As part of the Paris Agreement, France, through the National Low-Carbon Strategy (SN BC) has set a target of reducing emissions in industry by 81% by 2050. This objective is achievable if companies start today to account for their energy, consumption and material expenses. A sobriety plan will allow to drastically reduce emissions to act and reduce climate change.

It is therefore urgent for companies to take this issue on board as soon as possible. It is moreover interesting for them to act in the direction of carbon neutrality and to obtain a neutral carbon balance since this generally allows to make savings and to limit the expenses which will be related to the future carbon taxes.

Carrying out and appropriating your GHG assessment is very easy on the GCI platform 

The GCI calculator is an online platform that is accessible 24/7 and allows you to easily, quickly and in accordance with regulations, carry out your complete GHG assessment.

Designed to be simple and intuitive to use, the client path has been optimized and allows the user to be accompanied from the beginning to the end of the assessment process.

With the help of the GCI calculator, it is easy to create a complete balance sheet specific to your activity. Thanks to twenty or so suggested input masks specific to each activity (services, local authorities, real estate, industry, etc.), it makes it easy to understand the GHG balance sheet. 

The questionnaire is 100% customizable and allows you to add or remove questions according to the company's particular activity. It allows you to have a questionnaire perfectly adapted to any type ofcompany in the primary sector, secondary sector andtertiary sector.

It is divided into seven emission categories in order to have a more intuitive approach in the realization of an assessment. These categories cover all the emission items and allow the emissions to be correctly grouped according to the 3 regulatory scopes requested.

This categorization allows manufacturers to easily take into account the emissions of incoming materials, which will show them the detailed impact of their suppliers, their product and also that of the productions sold. The classification also allows for the inclusion of all types of energy, including that for freight transport. 

This precise accounting of emissions will be followed by the implementation of reduction action plans. The reduction of emissions is already well underway in industry, but the importance of the reduction targets announced by Europe should make us redouble our efforts to deploy more and more innovative solutions to achieve them.

The government's demand for more and more companies to carry out carbon assessments goes hand in hand with the desire to reduce global emissions. Thus, industries have an important role in this reduction and are actors of their energy transition.

It is important to realize that accounting is not enough, reducing emissions is the primary goal. Once emissions have been minimized to the point of non-reducible emissions, it will be useful to look at carbon offsetting.

Reducing emissions through digital technology

Reducing emissions is not limited to energy consumption or input materials. In the range of solutions available to reduce industrial emissions as much as possible, digital transformation also brings its solutions. 

The right use of data can indeed provide keys and pave the way for more responsible design and manufacturing processes, a more efficient supply chain, better building management and energy consumption. 

The realization of a GHG assessment allows to highlight the important emission points and to choose targeted action plans. Accredited experts can be contacted through the GCI platform in order to assist each user in the elaboration of a complete GHG assessment and the implementation of a decarbonization strategy. Emissions reduction will thus be achieved in an efficient and rapid manner.