Avoiding the Pitfalls: Data Collection Challenges and Fixes for Accurate GHG Emissions Inventories

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Greenhouse gas (GHG) emissions inventories are foundational to emission reduction strategies. They help organizations understand their carbon footprint, comply with regulations, and build credibility in environmental, social, and governance (ESG) reporting. However, the data behind these inventories, especially across Scope 1, 2, and 3 emissions, can be difficult to find, gather, and accurately collect. Poor data quality or quantity leads to flawed emissions reporting, which can result in greenwashing allegations, regulatory penalties, and misdirected mitigation efforts.

Here’s a breakdown of the most common and critical pitfalls in data collection for GHG inventories and what to do about them.

Scope 1: Direct Emissions

Scope 1 emissions cover direct GHG emissions from owned or controlled sources. This scope consists of stationary combustion (fuel used in stationary equipment) and mobile combustion (fuel used in company-owned vehicles). Although straightforward in theory, the data is often harder to find than one may think.

Incomplete Asset Tracking

Companies often miss emission sources because they don’t have a full picture of what assets they control. This is especially true in decentralized operations, where facilities, equipment, or vehicles may be added or retired without centralized records being updated.

Solution: Build and maintain a dynamic asset inventory. Integrate emissions data tracking into asset procurement and decommissioning workflows.

Misuse of Emission Factors

Emissions are often estimated using standard emission factors; however, using the wrong emission factor, or one that is outdated, skews results. For example, assuming diesel fuel for all trucks, when some may be gasoline-powered, will lead to much higher estimated emissions. Using the diesel emission factor instead of the gasoline emission factor will overestimate the company’s total Scope 1 mobile emissions.

Solution: The EPA releases updated emission factors annually for mobile combustion, so it is essential to use the most granular and up-to-date emission factors available. Match fuel types accurately, and default to direct measurement of fuel consumption where feasible.

Manual Data Entry Errors

Data collection often relies on large spreadsheets and manual logs, which are prone to human error. One misplaced decimal, one extra zero, or a unit conversion mistake can throw off the entire Scope 1 calculations.

Solution: Automate data collection where possible (e.g., via IoT sensors or fleet telematics) and use validation rules to flag anomalies.

Scope 2: Indirect Emissions from Energy Use

Scope 2 emissions result from the generation of purchased electricity, steam, heating, and cooling. The main challenge here is capturing the actual emissions profile of the energy consumed.

Lack of Granular Utility Data

Electricity bills often provide kWh totals, but not detailed breakdowns of the grid energy mix (e.g., coal, hydro, wind, solar, etc.). Without knowing the energy mix, companies often default to regional grid averages, which may not reflect their true footprint.

Solution: Work with utility providers to access supplier-specific emissions factors. Where unavailable, use location-based and market-based methods to report both.

Ignoring Time-of-Use and Location Impacts

Grid emissions intensity fluctuates based on demand and generation sources. Using static annual averages fails to reflect emissions spikes during peak demand or regional differences.

Solution: Use time-based or location-specific grid data where possible. Consider investing in energy management systems that track real-time usage.

Double Counting in Leased Spaces

In shared or leased facilities, tenants may double-count emissions if both the landlord and the tenant report full electricity use.

Solution: Clarify boundaries (operational vs. financial). Establish clear contracts and data-sharing agreements with landlords and tenants to avoid overlap.

Scope 3: All Other Indirect Emissions

Scope 3 emissions are the monster within GHG inventories. Scope 3 includes upstream and downstream emissions across 15 different categories, ranging from purchased goods and services to waste, all the way to business travel and employee commuting.

Lack of Supplier Data

Most organizations struggle to retrieve reliable data from suppliers, especially small or international vendors that may lack reporting systems or encounter international barriers.

Solution: Prioritize high-impact suppliers and build long-term engagement strategies. Use supplier portals, training, and incentives to improve data quality.

Over-Reliance on Spend-Based Estimates

When actual supplier data is unavailable, companies default to spend-based models, which estimate emissions based on dollars spent. While globally acceptable, this approach is raw and underdeveloped and does not reflect efficiency differences or product-specific emissions.

Solution: Use spend-based estimates only as a last resort. Gradually move toward activity-based data (e.g., kg of materials purchased) or supplier-specific emissions disclosures.

Missing Categories Entirely

Scope 3 has 15 categories, many of which are applicable to all organizations. Each category comes with its own complexities, leading organizations to skip the latter or more difficult-to-capture categories.

Solution: Conduct a comprehensive materiality assessment. Even if data is lacking, acknowledge all relevant categories and use proxy data if needed.

Poor Collaboration Across Departments

Scope 3 data often lives in silos (procurement, logistics, HR, finance) and these departments do not communicate frequently or effectively enough to track the data or understand the data’s purpose.

Solution: Set up cross-functional teams with clear roles in emissions data collection. Embed carbon accounting into everyday business processes.

Cross-Cutting Pitfalls

Some challenges apply across all scopes and are worth addressing at the system level.

Lack of Standardization

Inconsistent data formats, units, and definitions across systems and vendors make consolidation and comparison a headache.

Solution: Adopt standardized reporting frameworks like the GHG Protocol or ISO 14064. Use software that supports these formats and trains users accordingly.

No Audit Trail

Without traceability, it's impossible to validate data sources or track changes, leading to trust issues and limited auditability. With the surging regulations surrounding GHG inventories, it is becoming increasingly important to have all emissions and calculations auditable and prepared for third-party verification.

Solution: Maintain metadata alongside emissions entries, including source, method, timestamp, and person responsible. This builds transparency and accountability internally, across all divisions.

Data Gaps During Mergers, Acquisitions, and Divestitures

Organizational boundaries may change fast, and emissions inventories often lag when this happens. Integrating or removing entities can cause duplication or loss of data.

Solution: Treat emissions inventories like financial accounts and update them with every structural change. Define control boundaries clearly and update them on an annual basis.

Misalignment Between Financial and Operational Boundaries

Financial control and operational control are not the same, but emissions data is often aligned with financial reporting structures.

Solution: Define boundary-setting approaches upfront, such as financial, operational, or equity share, and apply consistently across all scopes.

Underinvesting in Tools and Talent

Many companies still treat carbon accounting as a side job, with under-resourced teams and outdated tools.

Solution: Invest in skilled sustainability professionals and modern emissions tracking platforms to instill sustainable practices into everyday operations. Carbon accounting is becoming as important as financial accounting and should be treated as such.

Final Thoughts

Getting emissions data right is tough, but the cost of getting it wrong is higher. Regulators, investors, customers, and the general public are increasingly demanding credible, transparent climate disclosures. Avoiding the pitfalls above won't just improve regulatory compliance, it will give your company a clearer view of its real climate impact and a stronger foundation for taking action.

Start small if necessary, but start deliberately, focusing on your biggest emission sources first. Build relationships with key data providers inside and outside your organization and treat your GHG inventory as a living system that gets better with every iteration.

KERAMIDA’s professionals assist companies with their GHG Emissions Inventories for voluntary disclosures and regulatory reporting, in addition to third-party verification services. Our team excels not only in helping clients improve their GHG data collection processes but also in utilizing that data to project future emissions, set science-based targets, and determine effective emissions reduction strategies. For personalized assistance, contact us or call (800) 508-8034 to speak with one of our GHG professionals today.

Author

Maddy Osswald, MBA
Vice President of Operations, Sustainability
KERAMIDA Inc.

Contact Maddy at mosswald@keramida.com

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