Mirror the financial close cadence (monthly/quarterly) with a defined “emissions close” calendar. Establish cut-off rules for late-arriving data (e.g., estimated accruals for utilities) and require subsequent true-ups. Use finance master data (legal entities, cost centers) as controlling dimensions to reconcile activity quantities to spend and volumes.
Key practices:
- Accrual methodology: record provisional emissions using approved estimation rules when meters/invoices lag; reverse and repost upon actuals.
- Recalculation policy: when structural changes occur (M&A, baseline restatements), follow GHG Protocol recalculation guidance and maintain versioned factor sets/GWP updates.
- Controls: implement maker-checker approval, exception dashboards for missing data, and documented variance analysis against prior periods and financial drivers.
Align ledger fields to disclosure frameworks (ISSB S2/ESRS E1) so close outputs can populate management and external reports consistently. Document QA/QC procedures and retain evidence (invoices, meter logs) linked to each journal line for auditability.
Citations: GHG Protocol Corporate Standard (base year/recalculation, QA/QC); ISSB S2 (disclosure processes); EPA QA/QC guidance principles applicable to environmental data management.
Key Takeaway: Run an “emissions close” in lockstep with finance, using accruals, approved true-ups, and documented recalculation policies.