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Five Early Steps to Prepare for Your Carbon Report

Prepare your carbon report with 5 key steps: frameworks, emissions inventory, reduction targets, and tools for sustainability success.

Ava Montini

Jan 21, 2025

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Preparing a carbon report is a powerful opportunity to align your organization with forward-thinking strategies, meet stakeholder expectations, and uncover new ways to enhance operational efficiency. As sustainability continues to shape the business landscape, reporting on carbon emissions has evolved beyond compliance to become a cornerstone of long-term value creation.


The reality is clear: over 66% of the world's largest companies now disclose climate-related data through frameworks like CDP, reflecting the growing demand for transparency. In the U.S., buildings alone account for approximately 31% of total greenhouse gas emissions, making industries like real estate and property management key players in addressing climate challenges.


While the process can seem complex, it is entirely manageable with the right approach. From understanding reporting frameworks to streamlining data collection, this journey is about building a clear, actionable plan that sets your organization up for success. By focusing on key priorities and leveraging proven strategies, you can take confident steps toward creating a carbon report that reflects your commitment to innovation and leadership.


Here's how to begin:

1. Understand the Frameworks and Requirements

Carbon reporting begins with understanding the frameworks and regulations that apply to your organization. These frameworks are essentially the rulebooks that guide how you measure, calculate, and present emissions data. Choosing the right one depends on your industry, geographic location, and specific requirements from stakeholders, investors, or regulators.


For example, the Greenhouse Gas Protocol (GHGP) is a foundational standard that categorizes emissions into three scopes: Scope 1 (direct emissions), Scope 2 (indirect emissions from purchased energy), and Scope 3 (all other indirect emissions across your value chain). Meanwhile, platforms like CDP and frameworks like TCFD focus on how companies disclose emissions to investors and other audiences.


The first step is identifying which frameworks are required or preferred for your organization. U.S.-based companies should pay particular attention to the SEC’s proposed rules for climate disclosures, which could require public companies to report more detailed emissions data. Additionally, consulting with sustainability professionals or using resources like the Greenhouse Gas Protocol’s Corporate Standard can provide clarity and structure.



Scopes 1, 2 and 3 Emissions Inventorying and Guidance | US EPA

2. Build a Comprehensive Emissions Inventory

Your emissions inventory is the foundation of your carbon report. It involves identifying and quantifying all emissions across your organization. This inventory will include direct emissions from owned assets, indirect emissions from energy use, and, if applicable, emissions from your value chain.


To start, define your organizational boundaries. Will you report emissions based on operational control (activities you oversee directly) or equity share (based on your ownership percentage)? Next, gather data from utility bills, fuel logs, procurement records, and any other relevant sources. If collecting this data feels overwhelming, prioritize high-impact emissions sources first, such as energy use or transportation, and expand from there.


Digital tools can simplify this process. Platforms like EPA’s Simplified GHG Emissions Calculator or specialized carbon accounting software can help centralize and automate data collection. Partnering with teams across your organization—such as facilities management and procurement—can also ensure data is accurate and complete.


Other Resources to Leverage:



3. Focus on High-Impact Emissions Sources

Not all emissions are equally significant, and prioritizing high-impact areas can make your efforts more effective. By focusing on emissions sources that account for the largest share of your footprint or are most relevant to stakeholders, you can direct resources where they’ll have the greatest impact.


To prioritize effectively, consider conducting a materiality assessment. This process involves evaluating which emissions sources are most relevant to your business and stakeholders. Engaging with investors, clients, and regulators can provide additional insights into what matters most. Benchmarking your data against industry peers can also help you identify areas where your organization may be lagging or leading.


Visualizing emissions through heatmaps or similar tools can further clarify where to focus your efforts. These insights can guide decisions on upgrades, retrofits, or supply chain adjustments, ensuring your carbon reporting efforts translate into meaningful action.


Resources to Leverage:



4. Set Clear Reduction Targets and Timelines

Once you have a clear picture of your emissions, the next step is setting reduction targets that align with your organizational goals. These targets provide direction and accountability, signalling to stakeholders that you’re serious about sustainability.


Begin by establishing a baseline year—a starting point against which future progress will be measured. From there, set short- and long-term goals. For example, you might aim to reduce Scope 2 emissions by 25% over five years through renewable energy procurement or energy efficiency upgrades. Aligning your targets with global initiatives like the Science-Based Targets Initiative (SBTi) can further demonstrate your commitment to climate goals.


Regularly communicating progress toward these goals can help build trust with investors, tenants, and other stakeholders. Transparency about challenges and adjustments also demonstrates your commitment to continuous improvement.


Resources to Leverage:



5. Invest in Infrastructure and Expertise

Successful carbon reporting requires robust infrastructure and a knowledgeable team. Whether it’s tools for data collection or employee training, these investments can streamline the process and ensure accuracy.


Many companies start by adopting carbon accounting software, which automates data management and reporting. Platforms like Sphera, Envizi, or Ecovadis offer features that track emissions across scopes, analyze trends, and generate reports tailored to specific frameworks. For organizations with complex operations, these tools can save significant time and effort.


Equipping your team with the right expertise is equally important. Training employees on reporting frameworks, data collection methodologies, and compliance requirements can reduce reliance on external consultants over time. Partnering with third-party verification bodies can also enhance the credibility of your reports, especially if they’ll be shared with investors or regulators.


Resources to Leverage:


Preparing for your carbon report is about more than compliance—it’s a strategic opportunity to lead on sustainability, improve operations, and strengthen stakeholder relationships. While the process may seem complex, following these five steps will provide a clear roadmap to get started.


As you embark on this journey, remember that every organization’s path will look a little different. What matters most is taking the first step and building momentum. By investing in education, planning, and collaboration, you can turn the challenge of carbon reporting into an opportunity to create lasting value for your business and the environment.

Carbon Neutral vs Net Zero – What’s the Difference?

Writer's picture: Jennifer CrowleyJennifer Crowley
Wodden cube cloks with various sustainability imaged stamped in green on the face of each, stacked into a pyramid
Carbon neutrality achieves a balance between carbon emissions and carbon offsets, while net zero aims to completely eliminate carbon emissions by generating renewable energy on-site.

Buildings play a critical role in our daily lives, providing us with shelter, workspaces, and places to gather. However, they also significantly impact the environment, accounting for a staggering 40% of global energy consumption and 33% of greenhouse gas emissions.


With the impacts of climate change becoming increasingly severe, it’s more important than ever to transition to green energy sources and green building practices. This is where the concepts of carbon neutrality vs net zero emissions come in. By achieving these goals, we can significantly reduce the carbon footprint of our buildings, contributing to a more sustainable future for all.


In this blog, we will dive deep into the world of carbon neutrality and net zero emissions, exploring the benefits, strategies, and challenges of achieving these goals in buildings. Join us on this journey as we discover how efficient HVAC systems can play a critical role in achieving carbon neutrality and net zero emissions in buildings.


Carbon Neutral Buildings

Illustrated chart showasing the balance of energy usage in a carbon neutral building vs typical building energy usage patterns
Carbon neutrality involves reducing energy consumption through energy efficiency measures.

A carbon-neutral building is one that has achieved net zero carbon emissions by balancing the amount of carbon emissions it produces with the amount of carbon it offsets or sequesters.


Achieving carbon neutrality typically involves reducing energy consumption through energy efficiency measures and using renewable energy sources to power the building.


Benefits of Carbon Neutral Buildings:

  1. Reduced carbon emissions and environmental impact

  2. Lower energy costs

  3. Improved indoor air quality and occupant comfort

  4. Enhanced building value and reputation


Net Zero Buildings

A net zero building is one that produces as much renewable energy on-site as it consumes over the course of a year. This means that the building produces zero net carbon emissions from energy consumption.


Benefits of Net Zero Buildings:

  1. Completely eliminates carbon emissions from energy consumption

  2. Lower energy costs

  3. Improved indoor air quality and occupant comfort

  4. Enhanced building value and reputation


Carbon Neutral vs. Net Zero: What is the Difference?

Carbon neutrality and net zero are two important concepts in the context of reducing carbon emissions and mitigating climate change, especially in the building sector. But what is the main difference between the two terms?

While both carbon-neutral and net-zero buildings aim to reduce carbon emissions and promote sustainable energy practices, the main difference lies in the approach.


Carbon neutrality achieves a balance between carbon emissions and carbon offsets, while net zero aims to completely eliminate carbon emissions by generating renewable energy on-site.


Efficient HVAC Systems

Heating, ventilation, and air conditioning (HVAC) systems play a critical role in maintaining comfortable indoor environments in buildings. However, HVAC systems are also one of the most significant contributors to energy consumption and carbon emissions in buildings.


Building owners and managers can implement various energy efficiency measures to reduce energy consumption and carbon emissions from HVAC systems. These measures can include the following:

1. Upgrading to more efficient equipment

Replacing outdated or inefficient HVAC equipment with newer, more efficient models can significantly reduce energy consumption and carbon emissions. For example, upgrading to a high-efficiency air conditioner or heat pump can reduce energy consumption by up to 75% compared to older models.


2. Implementing building automation systems (BAS)

BAS can help optimize HVAC system performance by automatically adjusting temperature settings based on occupancy and outdoor weather conditions. BAS can also monitor energy consumption and provide data to help building owners and managers identify opportunities for further energy savings.


3. Improving building envelope

Improving the building envelope by adding insulation, sealing air leaks, and upgrading windows can help reduce the workload on HVAC systems and improve energy efficiency.


4. Conducting regular maintenance

Regular maintenance, such as cleaning and tuning HVAC equipment, can help ensure systems operate at peak efficiency.


5. Using renewable energy sources

Integrating renewable energy sources, such as solar panels or geothermal systems, can help offset energy consumption from HVAC systems.


By implementing efficient HVAC systems, building owners and managers can significantly reduce energy consumption and carbon emissions from buildings and help contribute to achieving net zero emissions.


Achieving Net Zero Emissions in Buildings

As buildings are responsible for a significant portion of global carbon emissions, transitioning to green energy sources and sustainable building practices is crucial in mitigating the impacts of climate change.


One of the key goals in this regard is achieving net zero emissions, where a building produces as much renewable energy on-site as it consumes over the course of a year. This requires a combination of energy efficiency measures, green energy sources, energy storage systems, ongoing monitoring, and continuous improvement. Now, let’s explore the various steps involved in achieving net zero emissions in buildings.

  1. Implementing Energy Efficiency Measures: Many energy efficiency measures can be implemented in buildings, including lighting upgrades, insulation improvements, and building envelope upgrades. For HVAC systems specifically, there are several measures that can be taken to improve efficiency, such as upgrading to high-efficiency equipment, implementing building automation systems, and conducting regular maintenance and tuning of existing systems.

  2. Integrating Green Energy Sources: To achieve net zero emissions, buildings must generate as much energy as they consume. This can be achieved by integrating green energy sources such as solar panels, geothermal systems, or wind turbines. These systems can be sized and designed to meet the energy needs of the building, and any excess energy can be sold back to the grid.

  3. Utilizing Energy Storage Systems: Energy storage systems can help optimize the use of green energy sources in buildings. By storing excess energy generated by green energy systems, facilities can use this energy during high-demand or low-green energy production periods. This can help reduce the reliance on grid energy and further reduce carbon emissions.

  4. Monitoring and Continuous Improvement: Achieving net zero emissions is not a one-time event but an ongoing continuous improvement process. Monitoring energy usage and carbon emissions on an ongoing basis can help identify areas for improvement and ensure that the building remains on track toward achieving net zero emissions.

Explore expert insights, stay up to date with industry events, and gain a deeper understanding of the cutting-edge developments that are revolutionizing the indoor air quality landscape within Blade Air's comprehensive Insights Hub.

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