Do you wish you had access to better intelligence on your customer's climate change emissions reporting? It isn't necessarily a huge market, but there is consulting and engineering business available helping industrial companies properly account for their climate change emissions.
This accounting process and the results matter because most industrial companies take tracking and reporting climate-related emissions seriously.
GHG Emissions Tracking and Reporting
Why does accurate emissions accounting and reporting matter? First, there is substantial public interest, among certain segments of the population, in emissions. In the year 2017 investors remained committed to holding boards, and themselves, to higher levels of accountability, transparency and engagement. This year's proxy season's narrative is potentially more powerful than that of 2017. This year’s narrative is more subtle, but potentially more powerful. Investors are operating from a position of strength. This year, i.e. 2018, of the twenty 2-degree scenario analysis proposals that were filed, 12 have been withdrawn as companies, including DTE Energy, Dominion Energy, and Southwestern Energy have committed to conduct the analysis.
Next, regulatory uncertainty involving climate-related emissions requires that organizations constantly re-evaluate their compliance strategies. One of the examples is Clean Power Plan, an Obama administration policy aimed at combating global warming. The plan has been put on hold by President Trump. The state rule will go beyond the EPA Clean Power Plan's limits and result in even more reductions of carbon pollution.
Finally, and most-importantly, climate emissions may represent operational inefficiencies where emitted gas could be saleable products. For example, every ton of methane gas emitted could potentially have been natural gas sold to a customer.
Segment the US Climate Emissions Market
If you care about your customer's climate-related emissions, there is great opportunity to apply Business Intelligence (BI) to better-understand their situation. In the 7 years of mandatory climate change reporting from 2010 to 2016, here are some interesting statistics:
- Total of 22 billion tonnes of CO2e were reported, averaging about 3B tonnes per year
- nearly 10,000 sites reported, average about 2.5 sites across
- more than 5500 organizations
- The largest emitters by tonnes are, not surprisingly, fossil-fueled electric power generators. Electricity generation contributed more than 1.8 billion tonnes, more than 60%, of the total.
- The most-burdened reporters by site count include the country's largest municipal waste management companies, as well as pipeline, and upstream / midstream oil and gas companies. The top 50 reporting organizations range from a high of 216 to a low of 25 sites.
In terms of site count, Texas tops the charts as the state with the largest number of sites, and greatest variety of industry types reporting.
Optimize Your Go-to-Market
There's an opportunity to benchmark within geographic boundaries such as oil and gas production basins, or otherwise comparable peer groups. Companies such as Huco Consulting are starting to offer these services to existing customers with similar types of operations.
The GHGRP is dynamic, in that there have been at least minor revisions each year since reporting started in 2010. This can make multi-year comparisons interesting, since many emission values are calculated and not directly measured. For example, the rules governing “emissions potential” reported by suppliers of materials such as petroleum products, have changed such that reported amounts increased dramatically in 2012.
Companies that deploy an Environmental Management Information System (EMIS), such as the software-as-a-service (SaaS) offering from Enviance can enjoy a significant benefit when it comes to reporting time each year. These systems can also provide advantages when it comes to change management, particularly for organizations that have a lot of M&A activity, since asset data is time and date-stamped along with inevitably changing calculation methodologies.
There is much more knowledge to be gleaned from this data in combination with other data sets.
Please refer to our previous blog: US Greenhouse Gas Emissions -Data and What We Can Learn From It
Business Intelligence (BI) Solutions Can Help
FirmoGraphs curates a normalized version of climate change reporting data. This way, you can leverage this Data Mart along with others (think financial, site permitting) to generate your own unique observations for the US industrial market. Our favored BI solution, Qlik Sense™ Enterprise, makes mashing-up multiple data sets fun and easy.
The climate market needs to be approached strategically. Emitters want to know where they stand, and companies that serve industry want to help them in the best possible way. With a ready-to-go BI solution, you can have better relationships with your customers, who will appreciate your insight-driven approach.
Click here to learn how to develop better relationships with your US Utility Market customers. Link to Pillar Page.
Click here to download our E-Book with 5 Critical Actions for Insight-Driven Marketing.
You might also want to read our blog US Greenhouse Gas Emissions - Data and What We Can Learn From It.
Disclaimer
None of the information we provide may be taken as legal advice. Please consult an attorney if you require a legal interpretation of this information.
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