GHG Accounting (Scope 1, 2 and 3) with CBAM
Reporting for a Steel Industry
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Background

CSCI Steel Corporation India Pvt Ltd, is a leading manufacturer and supplier of high-quality electrical steel sheets. They approached NEPRA Environmental Solutions Technologies Private Limited (NEPRA) for Greenhouse Gas (GHG) accounting, covering scope 1, 2 and 3 emissions. Their scope of work also included mapping of the product carbon footprint in accordance with the EU Carbon Border Adjustment Mechanism (CBAM). NEPRA also provided pre-audit support to prepare CSCI for their audit under ISO 14064-1

Challenge

The client required a comprehensive GHG inventory and report that included Scope 1, 2, and 3 emissions, covering all applicable categories, along with a trend analysis of GHG emission patterns over the past three years. For Scope 3, the inventory needed to account for all indirect emissions occurring both upstream (cradle-to-gate) and downstream of the organization, as outlined in ISO 14064-1 and GHG Protocol. This includes upstream activities such as purchased goods and services, capital goods, business travel, employee commuting etc as well as downstream activities like product transportation and distribution, end-of-life treatment of sold products etc. The objective was to effectively map the emissions factors for all applicable categories using well-established database of emission factors such as ECOINVNET, IPCC, GHG India, DEFRA, EXIOBASE etc.

Our Approach

NEPRA employed a systematic approach to deliver comprehensive GHG accounting
inventory report, GHG Dashboard, CBAM emission inventory 

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1. IEC Engagement :

  • We organized training sessions on GHG accounting (covering standards such as GHG Protocol, ISO 14064) and Carbon Border Adjustment Mechanism (CBAM) to assess product carbon footprint
  • We conducted a capacity-building session on global sustainability, ESG and latest international developments, with an emphasis on future strategies for ESG reporting 

2. Stakeholder Engagement :

  • Discussed and understand the operation of the company to define organizational and operational boundaries with relevant categories of reporting 
  • Engaged with key stakeholders including EHS heads, HR heads, plant managers, sales and procurement managers, sustainability officers, and technical experts to understand the product manufacturing process, fuel and electricity usage and bills, supply chain mechanisms, transportation details and related data maintenance on their own server
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3. Identifying Key Areas :

  • Identified critical areas of focus such as raw material procurement and usage, downstream and upstream emissions, energy consumption, and renewable energy sources
  • Assessed specific implemented/ongoing projects like the fuel usage optimization and energy conservative initiatives in CSCI’s production line.

4. GHG data Collation :

  • Calculated GHG emissions using appropriate emissions factors by referring to relevant databases.
  • Evaluated emissions/energy intensities and avoided GHG emissions due to renewable energy integration 
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5. Report Preparation :

  • Compiled findings into a comprehensive GHG accounting report as per boundary finalization, highlighting the GHG inventory, GHG emission reduction initiatives and their sustainable practices 
  • Prepared CBAM emission inventory to map product carbon footprint as per EU CBAM guidelines. 

6. Advisory Support :

  • Assisted and prepared CSCI for assurance of GHG reporting.
  • Accompanied CSCI during non-financial audit of GHG and resolved auditor’s queries. 
  • Guided CSCI on way forward to carbon neutrality and ESG reporting 
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Results

The final GHG report successfully met the client’s objectives by : 

  • CSCI Obtained the ISO 14064 Standard GHG verification audit certificate: This audit was conducted by a third party auditor and covered the entire GHG inventory for scope 1, scope 2 and scope 3 
  • Enhancing credibility and transparency: The audited GHG inventory increases transparency and credibility with investors, customers, and regulators, showcasing client’s commitment to environmental responsibility
  • Future roadmap: The report provided the client with a basis to explore opportunities for GHG mitigation within their supply chain and to develop an action plan for achieving carbon neutrality 
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