Visualization of CO2 emissions for industrial customers

Knowledge Base

GHG Accounting Software for industrial companies

Being able to accurately measure the direct greenhouse gas emissions of each production process has become increasingly important for the success of companies. From a single production step to the complex activities of a multinational company, it is necessary to know how to measure, report and verify the CO2 emissions associated with these activities, as they influence the way a company works, develops and adapts.

Currently, the most common reporting tools rely on manual input based on estimates that provide a snapshot of a company's carbon footprint at a given point in time, usually on an annual basis. Large companies covered by the EU Emissions Trading Scheme (ETS) directives are required to collect this data more frequently and have usually developed more sophisticated IT tools to ensure consistent reporting. However, there is still much room for improvement. For example, instead of estimates and manual calculations, it is now possible to integrate sensors that feed the data directly into the data collection software. Data granularity and awareness of small and short-term changes can thus be greatly improved, making it possible to know the origin of emissions at a given facility at any given time. Furthermore, the visualization of greenhouse gas emissions, main sources and expected reduction effects can and should be made more direct, intuitive and user-friendly.

Currently used reporting systems and methods at Uniper

At Uniper, we have relied on a standardized reporting system for years to ensure compliance with the EU ETS obligations. This system requires us to record and report our CO2 emissions each year and then purchase a corresponding number of emission allowances on the market. Since the introduction of the EU ETS in 2005, we have successfully achieved compliance.

During implementation, a group of experts calculates and collects GHG data for each legal entity (not asset) subject to ETS reporting obligations. For a power plant, CO2 emissions are calculated using data on fuel quantities, measurement data, various conversion factors (different for coal, natural gas, etc.) and plant efficiency. If a legal entity is not 100 percent owned by Uniper, special accounting rules apply. To meet the annual non-financial disclosure requirements for listed companies, the data is also aggregated and published in our annual sustainability report at Group level in accordance with the accounting rules of the GHG Protocol.

All these activities, even if standardized in familiar formulas and spreadsheets, are time-consuming and can lead to errors or omissions. For example, outdated information can lead to significant discrepancies: in 2018, an audit revealed that the calculation of CO2 emissions from our Cottam Development Centre power plant in the UK was incorrect. At the end of 2014, we changed the meters used to monitor gas consumption at the power plant and an error was made in applying a temperature correction factor to our emissions calculations. This meant that we had understated our annual emissions by around five percent each year in 2015 and 2016. The error was completely unintentional; it was not easy to identify and was not detected by our external expert auditors during any of their audits in 2015 or 2016. There are significant penalties for non-compliance with EU ETS rules, and we originally thought we could be fined up to £5 million. Nevertheless, we have taken the decision to voluntarily report the matter to the Environment Agency, the government body that oversees this in the UK.

This example shows how much the system is exposed to human error and how useful an intuitive visualization of the different data sets would be.

The current system is not very adaptable to the development of the business. For example, changes in corporate structures, company spin-offs or acquisitions cannot be mapped without inconsistencies or complicated manual work.

There is therefore a unique opportunity to define a more adaptable, less vulnerable monitoring, reporting and verification tool that could even become a valuable product for third parties if its design and interface were intuitive and easily customizable.

GHG accounting for our customers?

The problems and limitations seen above are found in many other companies, regardless of industry. In addition, European regulations are becoming increasingly strict and require more detailed data than before. Even outside Europe, energy- and CO2-intensive activities, such as steel production, are increasingly subject to GHG reporting requirements, either to comply with cap-and-trade mechanisms or local CO2 taxes.

Providing our customers with a service where their expected and actual emissions are visible at plant level would be a great help and added value to other activities we already offer our customers, such as engineering services, maintenance and energy management for industrial customers.

Existing solutions

Large IT companies like SAP or DNV GL have already developed software for GHG accounting. However, their design and architecture still resemble the old solutions, as their customers tend to prefer incremental improvements rather than radical changes. Moreover, these services are content-neutral, can work for any type of data, provided that manual input is done. Examples: DNV SynergiLife.

Other smaller players focus on the "user experience" and are more interested in attracting the attention of small and medium-sized companies, which are usually not subject to the strict GHG accounting regulations and are also less complex in terms of the data collection process. A good example is the Plan-A software for emission monitoring.

Finally, some innovative start-ups have attempted to monitor CO2 emissions directly at the sources using intelligent sensors.

GHG Accounting requirements

Relevant regulatory developments

EU Emission Trading Scheme (EUETS)
EU Taxonomy on Sustainable Finance

CO2 data and reporting by companies

Communal Utilities - See the CO2 Balance Report of StadtwerkeNordersted

Industry - in consultation with the participants and finalists