ESG Analytics: Case study 1

This case study examines Canada's federal greenhouse gas emissions in the context of climate change, providing data-derived insights and potential solutions to address this pressing environmental challenge at the national level.

Canada GHG Scope - Visualization

Some quick insights that can be gathered from the charts are:

• There was a huge amount of emissions in 2005, peaking at 1,794 kilotonnes of CO2 equivalent. A notable reduction in emissions has been observed since that time.

• Canadian federal organizations' greenhouse gas (GHG) emissions have shown variability over the past 13 years (2010 to 2022), ranging from a low of approximately 1,034 kilotonnes of CO2 equivalent in 2016 to a high of 1,279 kilotonnes in 2010, with an average of about 1,128 kilotonnes during this period.

• Two consecutive years, 2015 and 2016, saw emissions drop below the average rate. Additionally, during the COVID-19 pandemic (2020), emission levels also fell below average.

• Electricity and natural gas are the primary energy sources for federal organizations in Canada.

• Most emissions are direct emissions (Scope 1) at approximately 63% and indirect emissions (Scope 2) at approximately 37%. There are no Scope 3 data provided in the database at this time.

• During this period, the Department of National Defence was the largest GHG emitter among federal organizations, followed by Public Services and Procurement Canada.

• Agriculture and Agri-Food Canada, Correctional Service Canada, and Transport Canada each produced less than 1,000 kilotonnes of CO2 equivalent during this period.

• The scatter plot examines the relationships between two quantitative variables: emissions and energy usage. It can be seen that there is a positive correlation between the amount of energy usage and emission levels.

Some possible suggestions to counter emissions:

  • Set ambitious reduction targets: Given the significant reduction in emissions since 2005, encourage federal organizations to set more ambitious targets for further reductions, aligning with Canada's national climate goals.

  • Focus on high-impact organizations: Prioritize efforts on the largest emitters, such as the Department of National Defence and Public Services and Procurement Canada, as they have the most potential for significant reductions.

  • Energy efficiency improvements: Since electricity and natural gas are the primary energy sources, would recommend comprehensive energy audits and efficiency upgrades across federal buildings and facilities. Suggestions for the use of renewable energy for power generation, such as the installation of solar panels on rooftops or the use of LED bulbs in buildings for more efficient energy consumption, are provided as examples.

  • Innovation incentives: Propose incentive programs for departments that develop innovative solutions for reducing emissions.

  • Life-cycle assessments: Recommend conducting life-cycle assessments of major projects and procurements to account for embedded emissions.

  • Climate risk assessments: Advise conducting climate risk assessments for each federal organization to identify vulnerabilities and adaptation strategies.

  • Carbon offsetting: For hard-to-abate emissions, suggest investing in high-quality carbon offset projects.

  • Remote work policies: Given the emission reductions during the COVID-19 pandemic, explore the potential for more flexible work arrangements to reduce emissions related to commuting and office energy use. For employee flights, suggest flying with energy-efficient aircraft that have a lower environmental footprint or utilizing online communication when preferred.

  • Regular monitoring and reporting: Implement more frequent monitoring and reporting of emissions data to allow for quicker interventions when emissions start to rise.

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