Part 3: From inventory to action: how to get more out of your GHG inventory

Executive summary 

• Utilize your GHG inventory year-round to turn emissions hotspots into a clear action plan and resourcing roadmap.  
• Improve scope 3 by moving from spend-based estimates to supplier-specific and activity-based data.  
• Set targets, track progress with simple tools, and strengthen controls and recalculation policies to stay assurance ready.  
• Drive outcomes that lower costs, reduce risk, and strengthen customer wins. 

As sustainability disclosure requirements tighten and expectations rise, many companies are failing to leverage their greenhouse gas (GHG) inventories to their full potential. A well-designed inventory supports climate risk management, informs decarbonization planning, and enables companies to continuously adapt to meet growing regulatory and customer expectations. When treated as a living decision tool, rather than a “check the box” exercise, a GHG inventory can contribute to a company’s long-term competitiveness and resilience. 

This is the third and final part of Trio’s three-part guide to GHG inventories. Part 1 established the fundamentals, covering the factors needed for audit-ready disclosures. Part 2 looked at the shift from voluntary reporting to compliance, looking at some of the disclosure regimes emerging in alignment with the GHG Protocol.  

Part 3 is about how to turn a record of your annual sources of emissions into an action plan, select and implement projects that cut energy costs, plan smarter energy purchases, and collaborate with value chain partners to reduce scope 3 emissions. We explain how to use your inventory as a tool to inform business decisions, all year long. 

A GHG inventory as a tool for climate strategy 

Many companies consider GHG accounting as a once-a-year exercise to get a snapshot of their previous year’s emissions. While this may satisfy basic disclosure requirements, it leaves operations teams and executive leadership without the strategic insights needed to identify hotspots and future emissions reduction opportunities. 

While many companies began conducting GHG inventories in response to growing reporting requirements, the ones who get the most out of their inventories use it as a decision tool to influence strategy and identify improvement areas. 

A well-designed inventory enables teams to: 

• Prioritize cost-savings and efficiency investments 
• Enhance energy management objectives, such as reducing spend and consumption and switching to lower carbon alternatives 
• Meet internal and external clean energy requirements 
• Evaluate product and supply chain redesign options 
• Engage and prioritize supply chain partners 

Your inventory is the foundation of your decarbonization roadmap. It shows you where your corporate hot spots are and where emission reduction efforts and subsequent investments should be directed. 

Diving into the deep end with scope 3  

Trio has specialized in helping organizations navigate their scope 3 emissions, as these tend to be the largest and most complex aspect of their footprint. A scope 3 relevance assessment is a great starting point for those calculating scope 3 for the first time, as it will identify which categories are relevant and therefore should be reported.  

For those with a more mature scope 3 practice, a methodology assessment can help to identify opportunities for improvement with data collection and calculation methodology, outlining a data maturity pathway to consistently improve over time. As your organization looks to reduce its value chain emissions, the data you are collecting has to be set up to reflect reductions and communicate successes. 

Feeling stuck on the spend-based methodology? Trio can help explore how you can improve precision and collect supplier-specific data to begin the journey of de-coupling scope 3 emissions from spend. Collecting scope 3 emissions based on supplier-specific data is critical for accurately tracking and reporting progress on your emissions reduction goals. Equipped with supplier-specific data, companies can make informed procurement decisions and prioritize supply chain partners who are committed to emissions reduction. Trio helps clients embed data-sharing provisions in supplier contracts and RFPs, helping to calibrate the right mix of incentives and requirements for your suppliers.   

From data to decision making: a scope 3 success story 

Trio recently partnered with a Fortune 500 global pharmaceutical company to complete a GHG inventory, and to develop a strategy for supply chain emissions reductions. The company has both near-term and net-zero targets under the Science Based Targets initiative but had historically used the spend-based approach for scope 3 category 1 emissions. This made it difficult to show progress against the target because the inventory didn’t capture suppliers’ emission reduction efforts. Trio supported the company in transitioning to a hybrid methodology, prioritizing emissions and emission intensities reported through CDP Supply Chain, and only resorting to spend data when supplier-specific data was unavailable. This enabled the company to prioritize business with suppliers who were committed to sharing emissions data with their customers.  

How Trio leverages your inventory to support climate strategy 

As emphasized in Part 1 of this guide, your GHG inventory doesn’t have to be perfect, but it does need to be built for action. It should evolve year over year as your organization and external requirements change. Trio designs and builds inventories as dynamic planning tools that inform day-to-day decisions and long-term planning.  

Trio has helped numerous organizations build their inventory and data collection process to support supplier engagement programs, climate risk assessments, and target-setting metrics by: 

1. Strengthening internal data controls and accuracy to ensure that your source data and emissions factors are credible and consistent 
2. Highlighting projects with good payback and emissions reductions to guide decision making on capital investments 
3. Identifying a data maturity pathway for each scope 3 category to iterate and improve on the data that informs business decisions  

Trio’s energy and sustainability experts have in-depth experience and knowledge in building inventories for companies in a wide range of industries, from consumer-packaged goods, to aerospace, retail and more. Whether your organization is just starting its GHG inventory journey, or looking to strengthen an existing inventory’s data quality and decision-making capabilities, Trio establishes clear processes and dependable baselines. Once the inventory is complete, Trio supports organizations with further steps like climate risk assessments, meeting customer requirements, and practical decarbonization planning. 

Next steps:  

• Join our GHG Inventory Office Hours for a 1:1 discussion on your inventory, covering key challenges and ways you may be able to improve your reporting practice. 
• Alternatively, share a few details or questions about your GHG inventory, and our team will follow up to provide initial guidance.  

Partner with Trio today to start converting emissions data into action, resilience, and growth.