5 things to consider when reporting chartering emissions 

March 17, 2022

Chaotic mailboxes, missing attachments, reports in different formats and constant status meetings to regain control. If any of the above describes your current CO2 reporting process, you will probably benefit from implementing a managed emissions reporting service.

A good emissions reporting solution can automate manual tasks, provide insights to environmental performance, and will allow you to spend valuable time on what really matters – analyzing and decision making. In this guide, we share 5 things to consider when looking at different emissions reporting solutions for chartering activities.

1. Do I need to measure CO2 emissions from spot chartering?

Let’s start with this one first. Today, cargo owners are not obligated to measure and report CO2 emissions from spot chartering. As these are categorized as scope 3 emissions, no public regulations are in place. However, measuring emissions from chartering is rapidly becoming an industry standard and the data collected can provide valuable insights.

Here are the three main motivations from our current clients to measure emissions:

  • Understand and mitigate carbon cost exposure under new EU ETS regulations.
  • Ensure transparency in value chain emissions to strengthen position with both existing and new partners and customers
  • Comply with internal and external reporting requirements, like Sea Cargo Charter

2. What reporting framework should I follow?

Our recommendation is to ensure that your solution covers multiple reporting needs, to avoid time and cost of managing multiple systems. While there are several industry initiatives and reporting frameworks, the majority build on the principles established by the International Maritime Organization (IMO).

Siglar comply with the reporting principles established by IMO and followed by the EU, covering both Sea Cargo Charter, Poseidon Principles and GLEC reporting among others.

Do you have company specific reporting requirements? Our data is detailed and flexible, allowing for reports to be tailored according to individual needs.

3. In-house reporting vs. third party solutions?

A common question raised is can't we just do this ourselves? The short answer is yes, it is possible, however there are a few points to consider before going for an internal solution.

While emissions calculations and trajectory alignments can be straight forward, data collection and validation are often time consuming. Like much else in shipping, emissions reporting relies heavily on manual input, hence the need for quality assurance is crucial.  

At Siglar, we apply a two-step validation process, using both modern machine learning techniques and our experienced operations team to ensure high quality data input. Adding to that, we provide independent third-party verification on voyage level, allowing you to comply with the requirements of Sea Cargo Charter’s recommended path.

4. Managed service vs. pure data platforms?

How much available time does your team really have to handle the day-to-day reporting process? While data platforms can improve efficiency in our daily work, not all tasks can be automated. However, manual tasks can very often be done in a smarter way.

Siglar Carbon Monitoring & Reporting is a managed reporting service, with an experienced operations team dedicated to support our clients in the day-to-day reporting. Our promise is that you don't have to worry about emissions reporting, because we handle it.

Where is your time best spent – administrating data or analysing CO2 performance?

5. Static reports or insightful analytics?

Why are you collecting CO2 emissions data? Different motivations require different levels of data granularity. In our opinion, CO2 emissions data should provide a level of insights that allows you to reduce your CO2 footprint from shipping. Therefore, we collect data every day at noon, giving a detailed and factual foundation for you to evaluate key emissions drivers and identify areas of improvement.

Our emissions dashboard gives users a good overview of environmental performance and it serves reporting and analysing purposes. We also offer APIs and flexible export options so that you can use the data as you see fit.

How can Siglar Carbon help?

At Siglar we have monitored and reported carbon emissions for cargo owners since 2019, and we currently monitor over 20% of global tanker voyages. Our Monitoring & Reporting service collects detailed emissions data daily, giving a factual foundation for you to evaluate your environmental performance and reduce your CO2 emissions and cost exposure.

If you’d like to know more about Siglar Carbon Monitoring & Reporting, or simply would like a free trail, connect with our sales team.

The pannellists