How an ESG Tracking Tool Can Address Scope 1, 2, and 3 Pain Points in the Philippines
- Yen Roxas
- Jan 22
- 2 min read
As businesses in the Philippines increasingly focus on sustainability and ESG compliance, addressing emissions across Scope 1, 2, and 3 presents significant challenges.
Many organizations struggle with data collection, reporting accuracy, and meeting local and international regulatory expectations. An ESG tracking tool can help solve these pain points by providing a structured, data-driven approach to sustainability management.
1. Addressing Scope 1 Emissions (Direct Emissions)
Scope 1 covers direct emissions from sources owned or controlled by the company, such as fuel combustion in company-owned facilities and vehicles.
Pain Points:
Lack of accurate tracking of fuel and energy usage.
Difficulty in real-time monitoring of emissions.
Compliance challenges with local environmental regulations like the Clean Air Act.
How an ESG Tracking Tool Helps:
Automated Data Capture: Tracks fuel consumption, refrigerants, and on-site emissions with IoT integration.
Real-Time Dashboards: Provides instant visibility into emissions, enabling proactive management.
Regulatory Compliance: Generates reports aligned with Philippine regulations and global standards like the GHG Protocol.
2. Addressing Scope 2 Emissions (Indirect Energy Emissions)
Scope 2 includes indirect emissions from purchased electricity, steam, heating, and cooling consumed by the company.
Pain Points:
Difficulty in measuring emissions from third-party utility providers.
Lack of clarity in energy efficiency initiatives.
Rising energy costs due to inefficiencies and lack of data-driven insights.
How an ESG Tracking Tool Helps:
Utility Integration: Connects directly to energy providers to track and analyze consumption patterns.
Carbon Footprint Calculations: Automatically converts energy usage into CO₂ equivalent values.
Optimization Insights: Suggests actionable steps for improving energy efficiency and reducing reliance on non-renewable sources.
3. Addressing Scope 3 Emissions (Value Chain Emissions)
Scope 3 emissions are the most complex, covering indirect emissions in the company’s supply chain, such as procurement, business travel, and waste disposal.
Pain Points:
Limited visibility and control over supplier emissions.
Challenges in collecting consistent data from various stakeholders.
Reporting complexities due to the fragmented nature of supply chains in the Philippines.
How an ESG Tracking Tool Helps:
Supplier Collaboration Modules: Enables suppliers to input their emissions data into a centralized system.
Lifecycle Assessment Tools: Tracks emissions across the entire product or service lifecycle, providing holistic insights.
Scenario Planning: Helps businesses model potential sustainability initiatives and their impact on overall emissions reduction.
Key Benefits of an ESG Tracking Tool for Philippine Businesses
Regulatory Readiness: Ensures compliance with SEC ESG reporting guidelines, Department of Energy (DOE) efficiency requirements, Bangko Sentral ng Pilipinas (BSP) and international frameworks.
Data Accuracy and Transparency: Minimizes manual errors by automating data collection and calculations.
Competitive Advantage: Positions businesses as sustainability leaders, enhancing their brand and attracting ESG-conscious investors.
Cost Efficiency: Identifies areas where emissions reductions can lead to significant operational savings.
Stakeholder Engagement: Provides clear, easy-to-understand reports for internal teams, investors, and regulatory bodies.
By leveraging an ESG tracking tool, Philippine companies can move beyond compliance and harness sustainability as a strategic differentiator, achieving long-term resilience and business growth in an evolving ESG landscape.
