Carbon audit vs energy audit vs ESG audit: which one does my company need?

Question

Senseible · Accepted Answer

An energy audit finds where you waste energy and money, and is mandatory for BEE designated consumers. A carbon audit measures and checks your greenhouse gas emissions, which buyers, lenders and CBAM ask for. An ESG audit reviews environmental, social and governance practices, usually because a buyer or listing rule demands it. Energy audit: question answered, where can we cut energy use and cost. Output, a list of savings measures with payback. Basis, ISO 50002 and, for designated consumers, the BEE energy audit regulations of 2010, carried out by an accredited energy auditor. Carbon audit: question answered, how many tonnes of greenhouse gas we emit and whether that figure holds up. Output, a GHG inventory and, if verified, a verification statement. Basis, the GHG Protocol and ISO 14064-1, with verification under ISO 14064-3. ESG audit: question answered, do our practices on environment, labour, safety and governance meet a buyer's or regulator's code. Output, findings against that code. Basis, the buyer's supplier code or a disclosure framework such as BRSR; there is no single ESG audit standard. Notified as a BEE designated consumer: energy audit, on the mandated cycle. A buyer asks for emissions, a product footprint or CBAM data: carbon audit. A bank asks for impact figures for a green loan: carbon audit, often with energy data. High energy bills and no outside request: energy audit first; the savings pay for it. A brand's supplier code of conduct or a listed customer's BRSR value chain request: ESG audit or questionnaire. The same electricity and fuel bills underpin all three. An energy audit tells you where kWh and litres go; the carbon audit turns the same kWh and litres into tonnes; the ESG audit's environment section usually asks for both. Do the data collection once and keep it in one place. A carbon audit is not a carbon credit. An energy audit report is not a verified emissions statement. An ESG audit is not a credit rating. Each answers a different question, so be clear which one the person asking actually needs before you hire anyone.