Setting the scene: Human activity over the last two centuries has released millions of tonnes of greenhouse gases (GHG) into the atmosphere. Because the climate system is global, the impacts of these emissions are not confined to the source region, nation or continent. The effects of climate change are felt worldwide, though not equally: some regions are experiencing hotter, colder, wetter, drier, windier, or calmer conditions than historical norms.

Climate responses fall into two broad categories: adaptation (responses to limit the effects of climate change) and mitigation (action to reduce emissions). Both require coordinated global action.

Recognising the need for a global response, the Paris Agreement was adopted in 2015. This legally binding, international treaty aims to limit global warming to well below 2°C above pre-industrial levels, with efforts to restrict warming to 1.5°C. The Paris Agreement requires all participating countries to submit nationally determined contributions (NDCs) which are updated every five years to reflect increasing ambition over time. NDCs outline countries targets for adapting to climate change and reducing GHG emissions.

Defining the task: The saying, “you can’t manage what you can’t measure”, certainly applies at every level of GHG emissions reporting, be it global, national or corporate. While multiple reporting approaches exist, the GHG Protocol is a globally recognized framework which consists of standards and guidance to measure, manage, and report organisations’ GHG emissions. To ensure comprehensive and consistent accounting, emissions are categorised in the GHG protocol into three scopes—direct emissions (Scope 1), indirect emissions from purchased energy (Scope 2), and all other indirect emissions across the range of activities undertaken to deliver a product or service to the market (i.e. the value chain; Scope 3).

By way of illustration, the operator of an offshore oil and gas asset that is electrified with power from shore and has a zero flaring policy may categorise emissions as follows:

• Scope 1: GHGs from the combustion of any fuel offshore e.g. supplementary diesel generators;
• Scope 2: GHGs associated with purchased electricity from the national grid
• Scope 3: GHGs arising from contracted vessels, leased offices, from transportation and distribution upstream and downstream of the asset and from use of the sold product.

An offshore windfarm developer deploying multiple wind turbines and cables to an offshore site which is subsequently operated using the developer’s dedicated support vessels may categorise emissions as follows:

• Scope 1: GHGs from the combustion of any fuel offshore e.g. owned vessels
• Scope 2: not applicable
• Scope 3: GHGs arising from purchased goods e.g. turbines, nacelles, monopiles and their transportation

Putting theory into practice: At Xodus we support clients in embedding data-driven climate action through:

• Our Carbon Assessment Tool supports quantification of carbon emissions across project lifecycles, identifying carbon “hotspots” at an early stage in the project lifecycle to inform minimisation strategies;
• Sustainability-linked finance: we support clients in delivering carbon accounting that satisfies the requirements of sustainability linked loans;
• Regulatory expertise: with a deep understanding of regulatory requirements, we’ve operationalised legislation relating to “green” investment as it applies to sectors servicing traditional and emerging energy sectors;
• Materiality assessments: Our experts have conducted assessments to support clients focus on their most significant GHG reduction opportunities;
• Climate risk & adaptation: we’ve established future environmental baselines and assessed climate risks facing major infrastructure projects, developing adaptation measures to reduce the identified risks.

Each of these services helps enable data driven climate action, helping make the process as intuitive as “mirrors, signal, manoeuvre”.

We’d love to hear from you, do get in touch to explore how we can support your climate goals.