With the entry into force of the Paris Agreement on 4 November 2016, the international community seeks to provide a global and effective response to limit the increase in the global average temperature to 1.5°C (relative to pre-industrial levels) and thereby reduce the impact of greenhouse gas (GHG) emissions on the climate.

The Three Scopes of GHG Emissions

The calculation of a company's GHG emissions considers the activities that result in the release of GHG, from energy generation and the use of fossil fuels to industrial, transport and waste management processes. GHGs include gases such as carbon dioxide (CO2), methane (CH4), nitrogen oxides (NOx) and others. All are measured in terms of CO2 equivalent to enable aggregated calculation, analysis over time and benchmarking. The GHG Protocol (https://ghgprotocol.org/) is a document that establishes guidelines for calculating GHG emissions by defining their categorisation into three areas:

Scope 1 (Direct Emissions): Direct GHG emissions from sources that are owned or controlled by the company. This covers the combustion of fuels in own plants (e.g.: own car fleet), emissions from chemical processes (e.g.: Volatile Organic Compounds) and fugitive emissions (e.g.: fluorinated gases).

Scope 2 (Indirect Energy Emissions): Indirect GHG emissions from the purchase of electrical or other energy for the development of the company’s processes. Although the company does not directly control the generation of these energies, their consumption contributes to the GHG emissions in the plants that produce these energies and companies can have direct influence on their use.

Scope 3 (Other indirect emissions): Includes all other indirect emissions occurring in the company’s value chain. These can cover a wide range of activities, such as the production and transport of raw materials, business travel, employee travel, use of sold products and waste treatment. In the case of the leather goods industry, scope 3 emissions are the most impactful. The complexity of their assessment and the limited control of companies over these emissions means that their measurement is carried out under assumptions and often after obtaining the scope 1 + 2 emissions assessment.

Start with Scope 1+2 GHG emissions assessment

In a first phase, it is advisable that companies focus on GHG emissions of scope 1 + 2 because these are the emissions in which the company has control and greater influence and can act in the short term to reduce them. This assessment involves carrying out the GHG Emissions Inventory. This inventory includes direct and indirect (scope 2) emissions and therefore data needs to be collected: · Electric power: Consumption of electricity generated from fossil sources. Data can be obtained from electricity bills and consumption records.
· Fossil fuels: Use of gasoline, diesel, natural gas and other fuels in vehicles, generators and other equipment. Data can be collected from fuel bills, maintenance records and other records.
· Industrial processes: emissions from production processes. They require production data and direct emissions measurements like data on fluorinated gases (e.g. air conditioning, refrigeration rooms) and solvents (e.g. gluing and finishing processes).

With the GHG emissions inventory, the company can define an action plan to reduce its emissions, reducing the environmental impact of its operations, improving its reputation and enhancing opportunities and meeting the targets set by the Paris Agreement and European legislation. 1. Improving energy efficiency: Optimising industrial processes to consume less energy, installing equipment with lower energy consumption, and optimising maintenance practices.
2. Introduction of renewable energy: Replacing fossil fuel-based energy sources with renewables such as solar photovoltaics.
3. Electrification of processes: Replacing fossil fuel processes with electricity from renewable sources is a viable alternative to reduce emissions, notably in the case of Scope 1 emissions (e.g. car fleet).
4. Replacement of organic solvents: Acting at the level of the industrial process with replacement of organic solvents by aqueous base in adhesion and finishing operations.

Conclusions

By measuring GHG emissions, it is possible to identify their main sources and implement strategies to reduce them. A company that measures and reduces its GHG emissions can improve its reputation on the market by attracting conscious consumers and investors interested in sustainable practices.

In addition, the company may have economic benefits, since part of the reduction comes from actions to increase the energy efficiency of processes, reducing these costs.

Another crucial aspect is compliance with environmental laws and regulations. European Union and National governments are implementing GHG reduction targets and policies to control these emissions – companies that do not adhere to these regulations may face fines, sanctions and other penalties. Measuring and reducing GHG emissions helps companies stay in line with legislation, avoiding penalties and strengthening their market position.