How to Turn Your Emissions Inventory into a Value-Driven Strategy

The year 2020 marked a significant milestone for the climate agenda in Brazil. This shift reflected a combination of increased regulatory pressure, growing demands from investors and consumers, and the maturation of the corporate sustainability ecosystem. As a result, more and more companies began publishing their greenhouse gas (GHG) emissions inventories in the Public Emissions Registry—an important step towards climate management.

But the question remains: what comes next?

This article is designed to help your company go beyond the inventory—and turn it into a value-generating strategy. Here, we’ll share:

• Practical lessons on using the GHG Protocol;
• Warnings about common mistakes that undermine inventory credibility;
• Concrete strategies for generating competitive value from your data;
• A guide on how to use your inventory as a foundation for real climate transformation;
• And, of course, how Future Climate can be your partner on this journey.

This isn’t a generic technical manual. It’s a strategic roadmap for those who want to go beyond emissions reporting and turn their emissions profile into positive impact actions—for both the planet and the business.

What is the GHG Protocol?

The GHG Protocol goes far beyond a technical methodology: it is the most widely used tool worldwide for emissions accounting and management, setting the global reporting standard. Mastering its concepts means aligning with today’s discussions on the low-carbon economy and climate change.

The 5 Core Principles of the GHG Protocol:

1. Relevance: The inventory must accurately represent the company’s emissions and meet the needs of its intended users. This includes selecting inventory boundaries that reflect the company’s economic reality, considering organizational structure, operational limits, and context.
2. Completeness: All emission sources and activities within the inventory boundaries must be included. Even estimated sources should be evaluated for their impact on inventory quality.
3. Consistency: Consistency over time allows for trend analysis and performance tracking. Any changes in methods or data must be documented and justified.
4. Transparency: All information, procedures, assumptions, and limitations must be clear, well-documented, and auditable. Independent external audits are considered a best practice.
5. Accuracy: Data must be as precise as possible, minimizing uncertainty and avoiding bias. This enhances inventory credibility.

Why It Matters

The GHG Protocol is the standard adopted by companies, governments, and financial institutions. It serves as the foundation for policies like the Paris Agreement and enables comparability between companies and sectors—essential for sustainable competitiveness.

What Changed After 2020?

Corporate sustainability has evolved rapidly. In 2020, Brazil saw a surge of organizations committing to the climate agenda, with emissions inventories becoming a symbol of this commitment.

Key highlights from the current landscape include:

• A sharp increase in participation in the Brazilian GHG Protocol Program;
• Investors focusing more on reliable ESG metrics;
• Regulators and consumers demanding climate transparency;
• Global supply chains pressing for auditable emissions data.

Publishing an inventory shows where your company stands. Using that data to act shows how far it can go.

5 Common Emissions Inventory Mistakes (and How to Avoid Them)

Publishing an inventory is essential—but if done poorly, it can damage your company’s credibility. Here are the main pitfalls and how to avoid them:

Lack of Leadership Engagement
Without executive support, the inventory loses strategic impact.
→ Solution: Present climate risks and opportunities in business language.

Data Disconnected from Strategy
Standalone inventories create noise.
→ Solution: Integrate teams like planning, procurement, and operations to strengthen the sustainability culture.

Lack of Critical Review
Errors and inconsistencies hurt credibility.
→ Solution: Conduct internal or external audits, or work with specialized consultants.

Treating It as a Compliance Exercise
Seeing the inventory as mere bureaucracy weakens its potential.
→ Solution: Use it as a foundation for business decisions and innovation.

Failure to Communicate Results
Undisclosed inventories generate no value.
→ Solution: Create narratives and executive reports for stakeholders.

Avoiding these mistakes turns your inventory into a powerful management tool.

How to Turn the Inventory into Real Value

The inventory isn’t the end—it’s the start of a strategic journey. Here’s a step-by-step approach:

Identify Major Emission Sources
Separate stationary, mobile, fugitive, and indirect emissions. Analyze what most impacts your carbon profile.

Set Climate Targets
Define realistic and measurable reduction targets linked to corporate KPIs.

Reassess the Value Chain
Suppliers with high carbon footprints can jeopardize your targets. Prioritize low-impact inputs and engage partners.

Engage Teams and Build Climate Governance
Implement committees, training programs, and share indicators and results. Foster sustainability-focused innovation.

Incorporate Climate Change into Strategic Planning
Use the inventory for scenario analysis and investment decisions. Integrate sustainability into new products, markets, and processes.

→ Practical Tip: Integrate your inventory with BI tools and dashboards for real-time decision-making.

Market Data

Brazil is making progress, and the numbers show it:

• 60% growth in published inventories between 2020 and 2021;
• The manufacturing industry leading in new participants;
• Agriculture, services, and commerce increasing their involvement.

If your company wants to turn its inventory into action and drive real impact, Future Climate can be your partner on this journey.