Empowering SaaS Companies in Their Greenhouse Gas Emission Journey
In our rapidly evolving world, climate change has become an undeniable reality that affects every corner of the globe. As humanity grapples with the consequences of its actions, the responsibility to halt and reverse climate change rests on our shoulders. Businesses, spanning all sectors, are stepping up to the plate, recognizing the urgent need to measure their carbon footprints.
This endeavor, known as greenhouse gas accounting (GHG accounting), or carbon accounting, is fundamental to understanding a company's position on the path to decarbonization. For Software as a Service (SaaS) companies, navigating this terrain can be complex.
In this article, we delve into the essential ways Schellman can assist SaaS companies in accurately computing their greenhouse gas emissions, encompassing Scope 1, 2, and 3 emissions, and how to channel these insights toward a sustainable future.
What are Scope 1, 2, and 3 Emissions?
Before delving into Schellman's invaluable role in the journey of SaaS companies toward sustainability, let's take a closer look at the three distinct categories of emissions:
- Scope 1 Emissions:
These are the direct emissions originating from sources owned and controlled by the company, such as a fleet of vehicles or onsite gas boilers. For SaaS enterprises, Scope 1 emissions typically represent a minor fraction.
- Scope 2 Emissions:
In contrast, Scope 2 emissions encompass indirect emissions stemming from purchased sources like electricity, heat, and steam. The energy consumption within SaaS offices constitutes a significant portion of Scope 2 emissions.
- Scope 3 Emissions:
This category extends to all other indirect emissions along the supply chain, incorporating facets like business travel, employee commuting, and waste disposal. For SaaS companies, Scope 3 emissions often tower above the others, becoming the predominant source of carbon emissions.
Read further: What are Greenhouse Gas (GHG) Scope 3 Emissions?
How We Can Help With Your GHG Emissions
Schellman brings a holistic approach to GHG emissions verification, revolutionizing the way SaaS companies calculate their carbon footprint and chart their course toward sustainability.
Here's a glimpse of how a partnership with Schellman can be a game-changer:
- Validation of Emission Sources:
Schellman would analyze the potential sources of GHG emissions for SaaS companies. The team would grasp the intricacies of a SaaS company's operational framework and hone in on the pertinent emission categories.
- Data Tracking Proficiency:
Schellman excels in the art of data collection. By posing insightful questions, delving into the inner workings of a SaaS company's software platform, and collaborating across various departments, Schellman acquires a wealth of information. This encompasses finance and P&L data, employee surveys, and invaluable insights from field teams.
- Recalculation of Emissions:
Armed with this comprehensive dataset, Schellman verifies emissions across all three scopes with unparalleled precision. The result? A granular view of a SaaS company's carbon footprint, rich in insights and devoid of guesswork.
Insights for GHG Verification Success
Schellman offers a treasure trove of insights to streamline GHG accounting for verification success:
- Consistent Data Tracking:
Maintaining a regular data-tracking regimen is pivotal. Monthly records are especially advantageous for areas with numerous unique data points, such as business travel.
- Stakeholder Engagement:
Schellman recommends early communication of GHG calculation objectives to key value chain stakeholders. Involving facility management teams, employees, and suppliers facilitates the collaborative design of robust data collection procedures.
- Integration into Business Processes:
Integrating data collection into regular business processes is a savvy move. It eases the burden on employees and ensures proactive data collection. For instance, updating internal expense and reimbursement systems to include relevant travel information can expedite data collection.
Setting the Path to Net-Zero: Schellman empowers companies to set credible net-zero targets, aligning their sustainability ambitions with global initiatives like the UN Paris Agreement. These targets are not mere aspirations but validated goals, often endorsed by organizations like the Science-Based Targets Initiative (SBTi).
Next Steps for Your ESG Initiatives
Greenhouse gas emissions verification is an indispensable step in the journey of SaaS companies towards global environmental responsibility. Schellman's extensive experience, dedication to accuracy, and commitment to transparency make them the ultimate partner for SaaS enterprises looking to fathom, assure, and subsequently reduce their carbon footprint.
By aligning with Schellman, SaaS companies can take confident strides towards a greener future, benefitting both their bottom line and the planet. If your SaaS organization is contemplating GHG assurance, Schellman can be the guiding beacon on your sustainability voyage—contact us today!
About AVANI DESAI
Avani Desai is the CEO at Schellman. Avani has more than 15 years of experience in IT attestation, risk management, compliance and privacy. Avani’s primary focus is on emerging healthcare issues and privacy concerns for organizations. Named as one of the 2017 Global Leaders in Consulting by Consulting Magazine she has also been featured and published in the ISSA Journal, ITSP Magazine, ISACA Journal, Information Security Buzz, Healthcare Tech Outlook, and many more. Avani also sits on the board of Catalist, a not for profit that empowers women by supporting the creation, development and expansion of collective giving through informed grantmaking. In addition, she is co-chair of 100 Women Strong, a female only venture philanthropic fund to solve problems related to women and children in the community.