Why Accurate Emissions Data is Crucial for Impactful Decarbonization Efforts

Energy and heavy industrial companies are at the forefront of the monumental global challenge to reduce carbon emissions. Today, they are facing more disruption than ever before for numerous reasons, including ever-growing energy needs, the shift towards sustainable and clean energy, evolving regulatory requirements, and technological innovations.

These sectors are among the largest contributors to greenhouse gas emissions, making their decarbonization efforts crucial for achieving global emissions reduction goals. Furthermore, many energy and industrial organizations have made net-zero targets that vary between 2030-2050. A critical component in this effort is the accurate measurement and reporting of emissions data. Improved emissions data can significantly enhance the effectiveness of net-zero strategies, maximize their impact, and track progress to reaching targets.

Here are the top five reasons we experience where stronger data confidence can significantly impact decarbonization efforts in hard-to-abate industries.

Improved accuracy in collecting emissions data allows companies to confidently pinpoint inefficiencies within their operations that contribute to high carbon emissions. By identifying the specific processes, machinery, or practices that are the largest sources of emissions, companies can target these areas for improvement. This could involve upgrading equipment, enhancing energy efficiency, or changing operational practices. Optimizing operational efficiency not only helps reduce emissions but also may lower operational costs, providing a dual benefit for companies.

Additionally, reliable and detailed emissions data allows for precise tracking of progress towards net-zero goals. Improved data collection and analysis enables stakeholders to monitor reductions in real-time, identify trends, and adjust strategies accordingly. This precision ensures that efforts are not wasted and that resources are allocated efficiently.

Energy and heavy industrial companies operate under stringent environmental regulations in certain countries. Better accuracy in emissions data allows companies to reliably measure and report their emissions, helping them to comply with regulations. As more countries implement requirements or initiatives change within existing regulations, companies must keep a pulse on expectations. Non-compliance can result in fines, legal challenges, and reputational damage. By maintaining precise and transparent emissions records, companies can mitigate these pitfalls and better demonstrate their commitment to environmental stewardship.

For energy and heavy industrial companies, investing in new technologies and processes is essential to decarbonize. Greater trust in emissions data helps in measuring the impact and performance of existing abatement programs. It also helps leadership make informed abatement decisions by highlighting the most effective areas for investment. Whether it’s adopting renewable energy sources, implementing carbon capture and storage technologies, or upgrading to more efficient machinery, greater data precision on carbon intensity allows companies to prioritize investments that will deliver the highest emissions reductions and financial returns.

Stakeholders, including senior leadership, employees, boards of directors, investors, customers, and regulatory bodies, are increasingly demanding transparency and accountability regarding environmental performance. Measuring and monitoring carbon emissions data provides a foundation for sustainability teams for transparent reporting and accountability, encouraging companies to clearly communicate their decarbonization progress across various value streams and adjust if needed. Reports derived from validated data, highlights leaders and laggards in sustainability efforts. This transparency builds trust and strengthens relationships with stakeholders.

More precise data is a catalyst for innovation in the energy and heavy industrial sectors. By revealing the specific areas where emissions are highest, data can drive the development of new technologies and practices aimed at reducing these emissions. Improving the accuracy of emissions data can also influence brand reputation and buyer preference.

For the heavy industrials market, there is also evidence that consumer preference for low-carbon products is influencing market dynamics and corporate strategies. Reports and studies indicate that as consumer awareness and demand for sustainable products increase, industries are adapting by developing and promoting low-carbon alternatives.

The growing demand for sustainable products presents significant opportunities for early adopters in the industrial sector. As technology advances and government policies support sustainable practices, the cost premiums associated with low-carbon products are expected to decrease, making these products more competitive in the market.

Moreover, industrial companies are increasingly focusing on sustainability due to both regulatory pressures and market demands. The report suggests that industries adopting sustainable practices can achieve competitive advantages and meet the growing expectations of environmentally conscious buyers.

Improved emissions data is a cornerstone of the global effort to achieve net-zero emissions. For heavy industrials and the energy industry, precise tracking, monitoring, and more accurately measuring emissions data is indispensable for effectively managing decarbonization efforts and reaching carbon neutral commitments. Companies can make significant strides towards net-zero by optimizing operational efficiency, enhancing regulatory compliance, improving investment decisions, enhancing stakeholder engagement, and driving innovation. As these industries continue to play a critical role in the global economy, their ability to leverage more accurate data for decarbonization will be key to achieving broader climate goals and driving sustainable growth.

GE Vernova’s CERius™ is an emissions management solution engineered to help confidently measure, manage, and operationalize your decarbonization strategy using the power of AI-validated emissions data. As the carbon accounting system of record, CERius provides energy and heavy industrial companies the ability to measure the impact of their current decarbonization programs and unlock meaningful investment strategies.

CERius aims to help align an efficient approach to emissions management through data automation, deeper visibility, and precision into carbon intensity – freeing valuable resources to channel efforts into effective decarbonization strategies. The near-real-time insights and reporting capabilities empower companies to make impactful, data-driven decisions to help achieve their lower-carbon commitment goals.