GHG Inventory: An Untapped Way to Cut Costs and Build Your Brand

GHG Inventory: An Opportunity to Cut Costs and Elevate Your Brand That Businesses Have Yet to Leverage!

A GHG inventory is becoming a critical requirement for businesses across many different sectors. Not only heavy industries, but even companies in services and finance can benefit from measuring and managing their emissions. This article analyzes the industries required by regulation to conduct a GHG inventory, the real-world benefits businesses gain, and concrete examples of companies that have optimized costs & improved their brand through conducting an inventory.

What is a GHG inventory?

A GHG inventory is the process of measuring, reporting, and verifying the amount of CO₂ and other greenhouse gases generated by a company's operations. This is an important step in a sustainable development strategy, helping businesses clearly understand their environmental impact and find ways to reduce emissions effectively.

According to the IPCC (Intergovernmental Panel on Climate Change), a GHG inventory is based on three main scopes:

• Scope 1: Direct emissions from a company's operations (e.g., the use of fossil fuels in production).
• Scope 2: Indirect emissions from electricity and heat consumed by the company.
• Scope 3: Emissions across the supply chain, including transportation, raw material purchasing, and product use.

Industries required to conduct an inventory by regulation

Under Decree 06/2022/ND-CP and Circular 13/2024/TT-BXD, businesses in the following industries are required to conduct a GHG inventory:

• Energy: Power plants, oil and gas extraction companies, coal production.
• Heavy industry: Cement, steel, chemical, and fertilizer production.
• Transportation: Airlines, maritime shipping, logistics.
• Agriculture: Large-scale livestock farming and crop cultivation.
• Construction: Projects with high energy consumption.
• Commerce & services: Businesses with high energy consumption, such as shopping malls, hotels, and office buildings.

In addition, businesses that export or participate in global supply chains also face pressure to inventory their emissions, as partners require compliance with sustainability standards (CDP, SBTi, ISO 14064).

Benefits of a GHG inventory for businesses in every sector

Although at present only 6 sectors are required by the state to conduct a GHG inventory, with the whole world moving toward Net Zero, even when not mandated by regulation, a GHG inventory still brings many benefits to businesses in every industry:

• Optimizing operating costs: According to the Carbon Trust Report (2023), businesses with an emissions management strategy can reduce energy costs by up to 20% through optimizing production processes and using energy efficiently.
• Enhancing brand & competitiveness: A Nielsen survey (2023) found that 73% of consumers are willing to pay more for products from companies committed to sustainability. Companies with transparent emissions reporting will have an advantage when working with international partners.
• Easier access to green capital: According to HSBC (2024), businesses with a clear Net-Zero plan can obtain loans at interest rates 15% lower than businesses without a sustainability strategy.

Case Study: Binh Minh Plastics optimizes costs through a GHG inventory

Binh Minh Plastics, one of the leading businesses in the plastics industry in Vietnam, has implemented a GHG inventory since 2022 to meet ESG requirements and optimize its production processes. According to Binh Minh Plastics' report, the company achieved highly positive results:

An 18% reduction in electricity costs through optimizing the lighting system and using solar energy.

A cut of 12,000 tonnes of CO₂ per year by switching to recycled plastic materials and improving production technology.

A 25% increase in export revenue thanks to achieving ISO 14064 certification and meeting sustainability requirements from international partners.

According to a representative of Binh Minh Plastics, a GHG inventory not only helps the business comply with regulations but also creates a clear competitive advantage in the market, helping them access demanding markets such as the EU and the US. (Source: Binh Minh Plastics 2023 ESG Report).

Conclusion: Which businesses should prioritize an inventory now?

A GHG inventory is not just a legal requirement but also a smart business strategy. Businesses in heavy industry, energy, transportation, construction, and agriculture must comply with the inventory requirements under Decree 06/2022/ND-CP. At the same time, commercial, service, and export companies also need to conduct an inventory to meet partner requirements and strengthen their competitive advantage.

Conducting an inventory not only helps businesses reduce operating costs and access green capital but also enhances brand reputation in the eyes of customers and investors. In the context of a global economy moving toward Net-Zero, a GHG inventory is an important step to help businesses prepare for a sustainable future.

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