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What Is an Emissions Inventory?

A Greenhouse Gas (GHG) Emissions Inventory is a detailed assessment of all GHG emission sources from an organization over a defined period (usually annually). Official definitions compare the inventory to an “X-ray” of the company’s emissions, as it reveals which activities generate greenhouse gases and how much is released into the atmosphere.

In other words, the inventory quantifies and organizes emissions data according to established standards and protocols, accurately attributing each emission to a specific business unit, operation, or organizational process. This is the fundamental first step in organizational climate management, providing the foundational information on the company’s carbon footprint.

To develop a reliable corporate inventory, it’s essential to adopt internationally recognized methodologies such as the GHG Protocol (Greenhouse Gas Protocol) or ISO 14064-1, adapted to the local context. These methodologies offer clear guidelines for emissions accounting and require that the work follows quality principles such as relevance, completeness, consistency, transparency, and accuracy.

In Brazil, the Brazilian GHG Protocol Program (managed by FGVces in partnership with WRI) offers tools and support for adapting the GHG Protocol methodology to the Brazilian reality, in addition to maintaining the Public Emissions Registry, a platform for voluntary corporate GHG inventory publication.

Scopes 1, 2, and 3: Emission Categories

When preparing an inventory, emissions are classified into three scopes as defined by the GHG Protocol (also adopted by ISO 14064). This classification helps identify the source of emissions and the organization’s level of responsibility for them:

Scope 1 (Direct emissions):
Covers direct GHG emissions from sources owned or controlled by the company. Typically includes emissions from fuel combustion in boilers, furnaces, company-owned vehicles, or industrial processes, as well as fugitive emissions from controlled equipment (e.g., refrigerant gas leaks).

Scope 2 (Indirect emissions from purchased energy):
Refers to indirect emissions associated with the generation of electricity, steam, or heat consumed by the company. Although these emissions physically occur at the energy provider’s facilities, they are accounted for in the organization’s inventory since the production is linked to its consumption needs. For many companies, purchased electricity represents one of the largest emission sources and a key reduction opportunity through energy efficiency or renewable energy adoption.

Scope 3 (Other indirect emissions):
Includes all other indirect emissions resulting from the company’s activities but occurring from sources not owned or controlled by the organization. This scope covers the entire value chain—both upstream (before the product or service reaches the company) and downstream (after it leaves the company). Examples include emissions from the production of purchased materials, third-party logistics (supplier transport or product distribution), employee business travel, product use-phase emissions, and waste treatment, among others. Depending on the sector, Scope 3 often represents a significant share of the organization’s total carbon footprint. Although optional in some programs, including Scope 3 is recommended for a comprehensive view of the value chain.

Strategic Importance of the Emissions Inventory

Conducting a GHG inventory is more than a voluntary environmental requirement—it’s a strategic management tool. Below are key reasons why this “emissions X-ray” is so important for organizations:

Identifying Risks and Opportunities:
Understanding the emissions profile allows companies to identify their largest GHG sources, reduce costs, and improve efficiency by optimizing processes and saving energy. The inventory can also highlight climate risks and reveal innovation opportunities, such as investing in clean technologies or creating new business models. Moreover, it guides impactful mitigation actions and can enable carbon credit generation. In short, it’s a strategic tool for risk management, performance improvement, and enhanced competitiveness.

Alignment with Climate Regulations:
Proactive companies can anticipate future GHG regulations by quantifying their emission sources and volumes, enabling them to develop mitigation plans aligned with emerging policies. In Brazil, it’s worth noting the December 2024 approval of Law No. 15,042/2024, which established the Brazilian GHG Emissions Trading System (SBCE)—marking the creation of a regulated carbon market in the country.

Stakeholder Engagement and Transparency:
By disclosing their emissions, companies demonstrate climate responsibility, strengthen their reputation, and meet stakeholder demands for clear information on risks and opportunities. This practice enhances relationships with investors, clients, employees, and society and serves as a competitive advantage in markets that value strong environmental practices.

In short: measuring is the first step toward managing and acting on climate change.

After the Inventory: Targets, Action Plan, and Expected Benefits

Conducting a GHG inventory is only the beginning of the climate journey. After completing this comprehensive emissions diagnosis, organizations should move on to the next phases—turning data into action. The main next steps include:

1. Setting Reduction Targets (Short-Term and Net Zero):
Based on inventory results, the company should establish clear emission reduction targets. It is recommended to set both short/mid-term goals (e.g., for 2030 or 2035) and long-term goals aligned with the global Net Zero target by 2050.

2. Developing a Climate Action Plan:
Targets without a plan lead nowhere. The next step is to develop a concrete action plan to meet the established reduction goals. This plan should include a set of decarbonization initiatives, prioritizing the most significant emission sources identified in the inventory.

3. Reaping the Benefits and Ensuring Continuous Improvement:
Implementing a successful climate action plan brings several organizational benefits beyond meeting the targets. From a risk management perspective, reducing emissions also means lowering the company’s contribution to climate change and, therefore, mitigating future physical risks (such as extreme weather events affecting operations and supply chains).

After implementing the plan, the GHG inventory should be updated annually to monitor progress, make course corrections, and ensure continuous improvement. Leading companies validate their data through independent audits and participate in global initiatives like the CDP and UN campaigns, strengthening their credibility.

More than an obligation, the inventory becomes a strategic pillar of climate management—enabling emission reductions, fostering innovation, cutting costs, and standing out in an increasingly sustainability-driven market.

Measuring is the first step toward transformation—and being future-ready.

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