A Comprehensive Guide to Environmental Reporting for Companies

Alfred Tang

Hatched by Alfred Tang

Apr 19, 2024

4 min read


A Comprehensive Guide to Environmental Reporting for Companies


Environmental reporting has become a crucial aspect of corporate responsibility, with companies being increasingly held accountable for their impact on the environment. In order to effectively measure and manage their environmental performance, companies need to understand and report on various aspects, including packaging reporting and emissions. This article aims to provide a comprehensive guide to environmental reporting, highlighting the importance of reporting packaging and understanding scope 1, 2, and 3 emissions.

Packaging Reporting:

One important aspect of environmental reporting is packaging reporting. Companies that are producers themselves are obligated to report their packaging, as stated in section 19(2) of the RSA. This means that if your company, such as Company A, produces packaging materials, you are required to report them. Reporting packaging helps in assessing the impact of packaging waste on the environment and enables companies to take necessary measures to reduce waste and promote sustainable practices.

Scope 1 Emissions:

Scope 1 emissions refer to direct emissions from company-owned sources or sources under its direct control. These emissions are generated by activities that are directly carried out by the company, such as its own factory or manufacturing facility. It is essential for companies to measure and report their scope 1 emissions as they provide valuable insights into the environmental impact of their core operations. By understanding their scope 1 emissions, companies can identify areas where emission reduction strategies can be implemented, leading to a more sustainable business model.

Scope 2 Emissions:

In addition to scope 1 emissions, companies also need to consider scope 2 emissions. Scope 2 emissions are indirect emissions that result from the generation of purchased energy. These emissions are not generated directly by the company but are associated with the energy it consumes. For example, if a company purchases electricity from a power station, the emissions generated by that power station would be considered scope 2 emissions for the company. By reporting scope 2 emissions, companies can gain insights into the carbon footprint associated with their energy consumption and explore renewable energy options to reduce their environmental impact.

Scope 3 Emissions:

Scope 3 emissions encompass all indirect emissions that occur in the value chain of the reporting company, both upstream and downstream. These emissions are not included in scope 2 emissions and are often the most challenging to measure and report. However, understanding scope 3 emissions is crucial as they provide a comprehensive picture of a company's environmental impact. Scope 3 emissions can include emissions generated by suppliers during the production of raw materials, as well as emissions from transportation and distribution activities. By reporting scope 3 emissions, companies can identify opportunities for collaboration with suppliers and implement sustainable practices throughout their value chain.

Common Points and Insights:

When considering both packaging reporting and emissions reporting, it becomes evident that these aspects are interconnected. Packaging materials play a significant role in the generation of scope 1, 2, and 3 emissions. By reducing packaging waste and implementing sustainable packaging practices, companies can effectively reduce their overall emissions. Furthermore, understanding scope 3 emissions can help companies identify areas where packaging materials are being wasted or where more sustainable transportation methods can be employed.

Actionable Advice:

  • 1. Implement a comprehensive packaging reporting system: Companies should develop a robust system for reporting their packaging materials, ensuring compliance with relevant regulations. This will enable them to accurately measure their impact on the environment and identify areas for improvement.
  • 2. Conduct a thorough emissions assessment: Companies should conduct a thorough assessment of their scope 1, 2, and 3 emissions to gain a comprehensive understanding of their environmental impact. This assessment should include an evaluation of packaging-related emissions and identify strategies for emission reduction.
  • 3. Collaborate with suppliers and stakeholders: To effectively address scope 3 emissions and packaging waste, companies should collaborate with suppliers and stakeholders throughout their value chain. By working together, companies can implement sustainable practices, reduce waste, and achieve collective environmental goals.


Environmental reporting is an essential tool for companies to measure, manage, and improve their environmental performance. By reporting packaging and understanding scope 1, 2, and 3 emissions, companies can identify areas for improvement, implement sustainable practices, and contribute to a greener future. By taking action and integrating these insights into their business strategies, companies can not only reduce their environmental impact but also enhance their reputation and contribute to a more sustainable economy.

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