Carbon Accounting: Recommendation for Data Management in UK Manufacturing

AI Data Team, Digital CatapultMarch 2025 Document User Guide Summary of recommendations4 Section 1 Introduction and background8The Cross-Catapult Carbon Accounting programme9 Data management in carbon accounting12The value of data in carbon accounting12Why the carbon accounting process is important13Why a framework is needed13How this report can help manufacturing organisations14 Section 2 Observing regulatory requirements20Aligning with relevant scopes and categories20Evaluating accessibility of data20Understanding the data needs of all stakeholders20Identifying hotspots21Reviewing and improving the process over a period of time21Automate data collection21 Data architecture22 Data strategy and governance23Metadata management24 Data types and requirements25 Data sources34Identify contributors34Scope 1, 2 and 3 sources36Life cycle assessment and carbon accounting45 Data collection47Responsibility for carbon data collection47Technology and data collection48Automating data collection50Data analysis and carbon footprint calculation55Data cleaning56Value of data cleaning56Data normalisation57Data validation57Technology and data cleaning59Data quality60Improving data quality64Technology and data quality65Data validation and verification66Data validation processes67Data lineage68Data verification/validation and technology69e-liability70Data sharing and interoperability72Financial reporting and XBRL74Energy and the digital spine75Product carbon data exchange initiatives76Data calculation78Activity data-based calculations78Spend data-based calculations79Average data-based calculations79Data privacy and security82Data privacy and security technology83Cyberthreats85ConclusionLeveraging advanced digital technologies88Next steps and further work89AppendixSupporting workflows91 SUMMARY OF RECOMMENDATIONS No trusted data-sharing system Automation of data collection andprocessing processes in a commondata storage so that the processbecomes seamless in the future. Thismay be applicable in scenarios wherean organisation has an advanced levelof carbon reporting. This section provides context forthe recommendations in Section 2,including an introduction to carbondata accounting and the datamanagement framework INTRODUCTION AND BACKGROUND A robust carbon data management system is essentialfor all organisations aiming to effectively managecarbon emissions within their supply chains to mitigateenvironmental impact. Accurately collecting carbon dataand managing its quality and integrity is fundamental toachieving the objectives set by UK Government. As the importance of environmental awareness and regulatory scrutinyincreases, organisations are expected to reduce their carbon footprintand demonstrate their commitment to sustainability. The UK has alignedwith international climate agreements, and our domestic climate targetsplace an emphasis on reducing carbon emissions, making carbonaccounting a critical discipline. To enable the UK manufacturing industry and its supply chains to managecarbon emissions data effectively and efficiently, a comprehensive carbonaccounting framework needs to be designed, built and implemented. This will enable organisations to: •Monitor, report and verify carbon data•Account for their carbon footprint accurately•Make informed decisions that support reductionsin greenhouse gas emissions Technology solutions will help to automate repetitive processes thatare currently being completed manually, and will help to streamlinethe data and make it fit for use. This will reduce the time and effortinvolved, resulting in a more efficient and effective carbon emissionsdata management process. Implementing the recommendations in this report will only delivereffective carbon accounting when the management and standardisationof data are aligned to effective regulatory frameworks, and supported bya carbon regulator. The Cross-Catapult Carbon Accounting programme The Cross-Catapult Carbon Accounting programme (CCCA) began in2022. Funded by Innovate UK, it is led by High-Value ManufacturingCatapult, collaborating with Connected Places Catapult, Digital Catapult,Energy Catapult and Satellite Applications Catapult. It focuses on the need for a carbon accounting data managementsystem for manufacturing and supply chains that will: •Accurately calculate the scope 1, 2 and 3 upstream emissionsthat comprise most of the carbon footprints of manufacturingand supplier businesses. •Support the creation of a comprehensive UK framework for carbonemissions, with agreed standards and tools that can be used foraccounting, tracking and reporting carbon emissions throughout entiresupply chains. This will inform decision-making, enabling businesses totake timely and appropriate actions to accelerate their decarbonisation. •Unlock investment, creating an environment where manufacturers canexcel on the global stage, making the UK stand out as a destination forlow-carbon manufacturing. As part of the CCCA, Digit