Data Quality in Carbon Accounting

How reliable is your carbon accounting data?   In a world where over 92% of Fortune 500 companies publish sustainability reports, the pressure to deliver accurate and transparent emissions data has never been higher. However, the integrity of these reports hinges on the quality of the underlying data. Inaccuracies can undermine stakeholder trust and impede effective climate action. Ensuring high-quality data in carbon accounting is essential for transparent and reliable emissions reporting.  Data quality isn’t just a technical detail—it’s the backbone of credible carbon accounting. Without accurate, complete, and consistent data, even the most ambitious net-zero targets risk being little more than empty promises.   This blog explores why data quality matters in carbon accounting, the challenges businesses face, and how to ensure your emissions reporting is as robust as your climate commitments.  Let's dive in with the basics! 

Key Takeaways 

• High-quality data ensures accurate carbon emissions reporting and compliance with the GHG Protocol. 
• Reliable data enhances Scope 3 emissions transparency and fosters supplier collaboration. 
• Robust data quality simplifies alignment with regulations like CSRD and TCFD. 
• Real-time monitoring and automation improve efficiency and reduce errors in emissions calculations. 
• Accurate data supports realistic net zero targets and drives impactful climate action. 

What is Data Quality in Carbon Accounting? 

Data quality in carbon accounting ensures that the information used to measure and report greenhouse gas emissions is accurate, complete, and reliable. It underpins credible carbon reporting and supports compliance with frameworks like the GHG Protocol.   High-quality data helps businesses confidently set net zero targets, improve supply chain transparency, and demonstrate meaningful climate action. Without it, emissions reporting risks inaccuracy, undermining trust and slowing progress toward sustainability goals.  For a deeper understanding of how data quality intersects with broader sustainability efforts, read our blog on ESG and its impact on carbon reporting to explore strategies for aligning your reporting with robust environmental, social, and governance frameworks.  Did you know?  A study examining oil and gas companies' emission reports from 2010 to 2019 found that approximately 38.9% failed a basic consistency check, indicating substantial data quality issues.   This shows how critical data quality is in carbon accounting. Inconsistent or unreliable data can lead to flawed emissions calculations, misaligned carbon footprint assessments, and compromised sustainability reporting. High-quality data isn’t just about compliance—it’s the foundation for achieving net zero targets, enhancing supply chain transparency, and driving impactful environmental change. 

Why is Data Quality in Carbon Accounting Important?

Without high-quality data, carbon accounting loses its purpose—accurate reporting, compliance, and impactful climate action. Let's take a closer look at why data quality is the foundation of effective carbon accounting and sustainability reporting. 

• Accurate Emissions Reporting: Ensures precise calculations for Scope 1, 2, and 3 emissions and aligns with the GHG Protocol. 
• Regulatory Compliance: Meets standards for sustainability reporting and global frameworks like the Paris Agreement. 
• Carbon Management: Identifies high-emission hotspots and supports effective carbon footprint reduction strategies. 
• Reliable Decision-Making: Provides trustworthy data for setting realistic emission reduction targets. 
• Supply Chain Transparency: Improves reporting of Scope 3 emissions and fosters collaboration with suppliers. Read our blog on supplier engagement to learn how to strengthen partnerships and drive sustainability across your supply chain. 

 

Key Benefits of High-Quality Data in Carbon Accounting 

1. Accuracy That Builds Confidence 

High-quality data eliminates guesswork, giving businesses a clear picture of their carbon emissions. Accurate data ensures compliance with frameworks like the GHG Protocol, boosting trust with stakeholders and regulators alike. 

2. Smarter Decisions, Faster Action 

Reliable data drives smarter decision-making and empowers businesses to achieve their net zero targets efficiently. With tools like Mavarick’s carbon accounting software, you can make sense of your data and take climate action with confidence. 

3. Streamlined Scope 3 Reporting 

Let’s face it—Scope 3 emissions can be a headache. But with high-quality data and Mavarick’s intuitive solutions, managing complex supply chain emissions becomes much easier. Don’t miss our blog on supplier engagement strategies to streamline this process. 

4. Enhanced Transparency and Trust 

Transparent reporting with consistent and high-quality data earns the trust of investors, consumers, and partners. It shows that your sustainability commitments are more than just words—they’re backed by solid action. 

5. Regulatory Compliance Made Simple 

With ever-evolving climate regulations, maintaining data quality ensures you stay compliant. Reliable data helps you avoid penalties and aligns your organisation with global standards like CSRD and TCFD. Check out our blog on organisational boundaries in carbon reporting to navigate these complexities. 

6. Cost Efficiency with Better Insights 

Precise data highlights inefficiencies in operations, enabling businesses to cut costs while reducing their carbon footprint. It’s a win-win: better sustainability, and lower expenses.   

Challenges of Maintaining Data Quality in Carbon Reporting?

Maintaining data quality in carbon accounting is no small feat, with challenges ranging from incomplete emissions data to ever-changing regulatory requirements. Mentioned below are a few of the challenges most organisations incur while maintaining data quality for carbon reporting. 

Incomplete Scope 3 Emissions Data

Collecting reliable data for Scope 3 emissions is often challenging due to the complexity of supply chains and inconsistent supplier reporting. Learn how to address this in our blog on Scope 3 emissions in carbon reporting

Lack of Standardised Data Collection Systems

Organisations often rely on fragmented systems, leading to inconsistencies in carbon accounting processes. 

Human Errors in Emissions Reporting

Manual data entry increases the risk of errors, impacting the accuracy of emissions calculations. Explore the role of automation in reducing errors by exploring our carbon accounting software.

Supplier Data Inconsistencies

Suppliers often provide incomplete or unreliable emissions data, complicating sustainability reporting. Learn how to enhance supplier collaboration in our blog on improving supplier engagement.

Dynamic Regulatory Requirements

Changing regulations make it challenging to maintain compliance in greenhouse gas (GHG) reporting. Read our blog on organisational boundaries in carbon reporting to stay ahead of evolving standards.  By addressing these challenges, businesses can ensure consistent, accurate, and reliable data in their carbon accounting processes. 

Data Quality Reporting Standards EU 

Ensuring high-quality data is essential for effective carbon accounting and sustainability reporting. The European Union (EU) has established several key standards and guidelines to uphold data quality across various sectors: 

• Single Integrated Metadata Structure (SIMS): Developed by the European Statistical System (ESS), SIMS standardises reference metadata reporting, enhancing the comparability and quality of statistical data.  
• ESS Handbook for Quality and Metadata Reports: This handbook provides comprehensive guidelines for preparing quality reports, promoting harmonised quality reporting across statistical processes and EU Member States.  
• Data.europa.eu Data Quality Guidelines: These guidelines offer recommendations for delivering high-quality data, addressing aspects such as findability, accessibility, interoperability, and reusability.  
• Eurostat Quality Reporting: Eurostat provides standardised rules and reporting structures for assessing and reporting the quality of statistical processes and outputs within the ESS.  
• Metadata Quality Assessment (MQA) Tool: Developed by data.europa.eu, the MQA tool assists data providers in evaluating and improving the quality of their metadata, ensuring better data discoverability and usability.  

Adhering to these standards and guidelines is crucial for organisations aiming to maintain high data quality in their carbon accounting and sustainability reporting efforts. 

Examples of Best Practices for Data Quality in Carbon Accounting

Complying with the increasing requirements surrounding carbon reporting will be challenging. In fact – many financial accounting companies are now offering carbon accounting services. To meet the challenges of carbon accounting, there are best practices that you can adhere to. We discuss three of them below.

1. Data Quality in Carbon Accounting - Automated Data Capture

One of the best ways to reduce risk in your carbon accounting processes is to minimise your dependence on humans. An integrated automated data collection system is one way to achieve this.

• One strategy for automated data capture is the use of integrated monitors. Monitors can be integrated with manufacturing machines, often in non-invasive ways. These monitors can directly capture carbon emissions in real-time, and relay data to a central software source via technologies like IoT.
• Another approach to automated data capture is to leverage existing data repositories. Enterprise Resource Planning (ERP) or Supervisory Control and Data Acquisition systems (SCADA) may be used for the storage of emissions reporting. Companies that already store emissions data in ERP or SCADA systems can set up automated extraction processes to port the data into purpose-built carbon accounting solutions.
• A third automated data capture solution pulls carbon emissions data from “unstructured” sources such as utility bills, emails, invoices, or spreadsheets. Technologies such as Optical Character Recognition (OCR) and AI-powered systems can pull data from these sources to be stored in purpose-built carbon reporting systems.

However you approach automated data capture, the important thing is to remove human error from the process.        

2. Automated Reporting

Another way to reduce risk of errors and maintain data quality is through the use of automated reporting.

• Robust carbon accounting software solutions can automatically account for – and translate – different factor-based emissions standards. Automating the translation of emissions factors removes human error from the process.
• The carbon accounting software can also be configured to provide data in compliance with different reporting standards. This means that reports are automatically generated to present emissions according to the Global Reporting Initiative (GRI), the European Sustainability Reporting Standards (ESRS), or any other standard you wish to adhere to. Once again, this reduces the risk of human error from the process.

3. Coverage Visibility

Manufacturers that have yet to commit to using carbon accounting software often track emissions data within spreadsheets.

• Using spreadsheets greatly increases the risk that you are missing data from one process or another (and thus under-reporting). Carbon reporting software can help you ensure visibility of carbon emissions throughout your operation.
• Centralising your carbon tracking within carbon accounting software systems helps to ensure that you don’t have any data black holes. Carbon accounting software can help you visualise your entire operation and ensure that all divisions are tracking properly.

Takeaway

High-quality data is more than a compliance necessity—it's a strategic advantage in the evolving landscape of carbon accounting and sustainability. From setting realistic net zero targets to navigating complex Scope 3 emissions, reliable data empowers businesses to make informed decisions and take decisive climate action.  By leveraging advanced tools, such as real-time software solutions, and embracing collaboration with suppliers and stakeholders, organisations can overcome data challenges and enhance their emissions reporting processes. Accurate, transparent data isn't just about ticking regulatory boxes—it’s a foundation for trust, accountability, and measurable progress toward sustainability.  Contact Mavarick today to see how our solutions can simplify your journey toward accurate carbon accounting and effective sustainability reporting.