Why is data the foundation of emission reduction?

Emission reduction is not about declarations – it is about business decisions. To make those decisions, companies need:

• a complete view of emission sources,
• a clear understanding of Scope 1–3 structures,
• information on processes, units and locations,
• visibility into supply chain emissions,
• a methodology aligned with the GHG Protocol and ISO 14064/14067.

Without reliable data, a reduction strategy becomes a collection of ad-hoc initiatives that are challenging to measure and even harder to justify during an audit.

Data enables companies to move from “we need to do something” to “we know exactly what to do, in what order and with what effect.”

Step 1 – Organizing data across Scope 1, 2 and 3

The first stage is to structure all source data. In practice, this means:

• defining organizational and operational boundaries,
• gathering a complete set of activity data,
• automating data collection from suppliers (e.g., through questionnaires),
• standardizing data sources,
• validating data and detecting errors,
• creating a centralized environmental data repository.

In many companies, the greatest challenge is Scope 3, where supplier emissions account for 70–90% of the total footprint.

This is why implementing tools that automate this process is essential.

Step 2 – Analyzing the data and identifying key areas

Once the data is complete, companies can begin analysis to understand structural emission sources.

In practice, this includes:

• Sensitivity analysis – Which variables have the strongest influence on total emissions?
• Emission segmentation – Breakdown by processes, locations, products and suppliers.
• Reduction scenario modeling – What impact would changes in the energy mix, technology or materials have?
• Cost-risk analysis – Which initiatives are feasible, cost-effective and measurable?

This analysis helps identify hotspots — areas with the highest reduction potential.

Step 3 – Prioritizing reduction initiatives

Data enables companies to move from analysis to decision-making.

Reduction initiatives can be prioritized based on:

• reduction potential (t CO₂e),
• investment cost,
• implementation time,
• impact on technological processes,
• implementation risk,
• influence on production efficiency and quality.

The outcome is a clear priority map and a measurable reduction pathway.

Step 4 – Monitoring progress and managing performance

An effective emission reduction strategy requires ongoing monitoring of:

• changes in activity data,
• results of reduction projects,
• deviations between plan and actual performance,
• environmental KPIs,
• variations in processes and schedules.

Regular monitoring enables companies to assess effectiveness and react quickly to any issues.

Organizations that work with up-to-date data can correct the course faster and maintain reduction progress at the expected level.

Step 5 – Continuous improvement of the strategy

An emission reduction strategy is a dynamic process. Over time, factors such as the following evolve:

• production structure,
• supply chain configurations,
• energy mix,
• raw material prices,
• regulatory obligations,
• ESG reporting methods.

For this reason, companies should build a strategy that “lives” — one that is updated, refined and adapted to new conditions.

How NEOGAGE Carbon Footprint supports companies in building a data-driven strategy

NEOGAGE provides the tools necessary to transform emission data into actionable reduction initiatives:

• Supplier data collection module – Automated questionnaires, reminders, data validation, full audit trail.
• Centralized environmental data repository – All emission data in one consistent system.
• Sensitivity analysis and scenario modeling – Assessment of the impact of technological or process changes.
• Reduction project management – Targets, schedules, costs and reduction potential — everything in one place.
• Reporting aligned with GHG Protocol, ISO 14064/14067 – Audit readiness and complete transparency for investors.

NEOGAGE enables companies to move from simply calculating emissions to achieving real, data-driven reductions.

Summary

Effective emission reduction does not begin with actions — it begins with data.

Companies that build strategies based on robust analysis:

• identify key impact areas faster,
• make better decisions,
• achieve greater reduction results,
• reduce operational costs,
• strengthen competitiveness and regulatory readiness.

This is the direction in which the entire European market is moving.

Want to see how NEOGAGE supports emission reduction?

Join us for a short demo where we will show:

• how to collect data,
• how to analyze emissions,
• how to build reduction projects,
• how to report outcomes.