UNDERSTANDING INTERNAL EMISSIONS DATA AND
EMPOWERING CUSTOMERS TO TRACK AND REPORT
CARBON ACCOUNTING
In a world where managing energy for sustainability is no longer optional but imperative,
utility companies face a significant challenge: the vast and complex task of managing the
use of this energy data (and therefore carbon emissions) efficiently on behalf of their
customers and for internal reporting. Utilities, as the main power distributors, have a large
role to play in the orderly transition to cleaner energy by optimizing grid infrastructure
and assisting their customers by helping them manage (and ultimately, reduce) their
carbon emissions and energy consumption. More than 80% of U.S. investor-owned
utilities have committed to reducing their carbon emissions as nearly every state has
adopted or is considering green energy legislation, compelling businesses to reassess
their energy strategies to remain compliant. This legislation includes building
benchmarking mandates, climate disclosure, and transparency mandates through
building performance standard legislation such as New York's Local Law 97, Boston's
BERDO, and Denver's Energize Denver, mandatory GHG reduction bills, and goals to
transition to low-carbon electricity. Such measures emphasize the urgency for in-depth
energy reporting and strategic energy management.
As critical participants in these mandates, utility companies will need to: 1) Track and
reduce their internal carbon emissions for disclosure and 2) Engage with customers
to help them reduce their energy usage, provide avenues for them to procure cleaner
options, and manage GHG emissions data to remain competitive. With the increasing
emphasis on environmental sustainability, many customers are concerned about the
impact of their energy use. Providers unable to demonstrate a commitment to renewable
energy sources or sustainable practices, as well as to credibly talk about them and enable
their customers to enact emissions reductions, may find it more difficult to retain
customers.
What is Carbon Accounting?
Carbon or GreenHouse Gas (GHG) Accounting is the process by which organizations
quantify and track their direct and indirect GHG emissions to understand climate
impacts, set goals, reduce emissions, and report to external entities. Corporations may
experience increasing pressure from consumers, investors, and policymakers to disclose
their direct greenhouse gas (GHG) emissions and supply chain (Scope 3) emissions.
Sustainability reporting regulations that require companies to disclose their GHG
Emissions and show that they are reducing their environmental impact are on the
rise. To adapt, utility companies must adopt new ways of interacting with customers,
streamlining operations, and improving efficiency.
