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Beyond the inventory

Leveraging energy audits to strengthen carbon accounting

For many businesses, completing a greenhouse gas (GHG) inventory is a critical first step in their sustainability journey. But once the footprint results are finalized and the focus shifts to next steps, one of the most common questions is: “How do we actually become more efficient in our energy usage?”

Being more energy efficient doesn’t just reduce carbon emissions — it translates into real cost savings. Many general energy savings actions exist, from switching to LED lighting and installing motion sensors to programming smart thermostats and updating energy-intensive equipment. But when a business wants a more systematic assessment of savings potential and a strategic roadmap to act on it, an energy audit can be the tool needed to get there.

WHAT IS AN ENERGY AUDIT?

A systematic look at where energy goes

An energy audit is a structured review of a building’s systems with the goal of identifying efficiency opportunities in both costs and consumption. These audits vary significantly in scope. ASHRAE (American Society of Heating, Refrigerating and Air-Conditioning Engineers) defines three levels:

  • Level 1 is a high-level review of building systems to establish a baseline and identify quick, low- or no-cost improvements

  • Level 2 is a deeper analysis that produces a report with proposed Energy Efficiency Measures (EEMs) tailored to the building and its systems

  • Level 3 is the most intensive option, designed for businesses considering major infrastructure investments that account for long-term financial trends

Alternatives to the ASHRAE framework include ISO 50002, the ENERGY STAR Portfolio Manager, and the ISO 50001 energy management standard.

The ROI

Why the upfront cost pays off

Although an energy audit will mean dishing out money upfront, the goal is to see lower operational costs and reduced carbon emissions. The U.S. Department of Energy reports that energy audits typically identify savings of 10–40% on utility bills, with many improvements paying for themselves within a few years. Research from the American Council for an Energy-Efficient Economy found that commercial buildings can reduce energy use by an average of 18% through efficiency improvements. Other benefits can also include increased property value due to efficient energy systems and increased comfort in the building environment.

Energy audits also support long-term sustainability goals. For businesses working toward net zero, an audit can provide the technical roadmap needed to translate an ambitious target into concrete, sequenced actions.

Staying ahead of regulations

When an energy audit is required — or expected

Energy audits aren’t always optional. Several regulatory frameworks either require them or make them a meaningful component of compliance:

  • The UK Energy Saving Opportunity Scheme (ESOS) requires qualifying organizations to conduct an energy audit or hold ISO 50001 certification
  • While not mandatory for UK Streamlined Energy and Carbon Reporting (SECR) compliance, an energy audit strengthens the energy efficiency actions section of a SECR disclosure
  • In the U.S., several municipal laws mandate periodic energy audits for buildings above certain size thresholds—including NYC Local Law 87 and San Francisco Environment Code Chapter 20

As stakeholder expectations around environmental management continue to rise, proactive energy auditing is increasingly the norm rather than the exception.

CONNECTING THE TOOLS

From carbon accounting to decarbonization

Carbon accounting provides the essential data to quantify a business’s environmental impact. Energy audits provide the technical insight to reduce it. Together, they move a sustainability program beyond static reporting toward a dynamic strategy for decarbonization — one where sustainability goals like net zero are not just aspirational, but tangible and actionable.

Greenplaces helps businesses build GHG inventories that hold up to scrutiny and connects that data to the broader tools needed to act on it. The foundation is already here.

Report with confidence

Contact Greenplaces today for a demo and discover how we can streamline your reporting journey.

Frequently asked questions

A GHG inventory quantifies your organization’s greenhouse gas emissions across Scope 1, 2, and 3 sources, giving you a complete picture of your carbon footprint. An energy audit is a technical assessment of your building systems and operations, focused specifically on identifying where energy is being wasted and how efficiency can be improved. The two complement each other: carbon accounting tells you what you’re emitting; an energy audit tells you how to reduce it.

ASHRAE defines three audit levels by depth and cost. A Level 1 audit provides a high-level overview of building systems and flags low- or no-cost efficiency opportunities. A Level 2 audit includes a detailed analysis and a report of proposed Energy Efficiency Measures (EEMs) tailored to the building. A Level 3 audit is the most comprehensive, designed for organizations considering significant capital investment in infrastructure upgrades, with detailed financial and technical analysis to support long-term planning.

In some jurisdictions, yes. The UK’s Energy Saving Opportunity Scheme (ESOS) requires qualifying large organizations to conduct energy audits or hold ISO 50001 certification every four years. In the United States, several cities have enacted local building energy laws, including NYC Local Law 87 and San Francisco Environment Code Chapter 20, that require periodic energy audits for buildings above certain size thresholds. Regulatory requirements vary by location, industry, and company size.

Achieving net zero requires more than knowing your current emissions. It requires a credible plan to reduce them. An energy audit identifies the specific efficiency measures, infrastructure upgrades, and operational changes that can lower your energy consumption and associated Scope 1 and 2 emissions over time. For companies with science-based targets or net zero commitments, an audit provides the technical roadmap to sequence capital investments and track progress against reduction goals.

Yes. The energy consumption and efficiency data generated through an audit can strengthen multiple reporting frameworks. For SECR disclosures, audit findings support the energy efficiency actions section. For CDP and GHG Protocol-aligned reporting, detailed energy data improves the accuracy of Scope 1 and 2 calculations. For frameworks like ISSB’s IFRS S2, documented efficiency measures and reduction initiatives support the metrics and targets disclosure requirements.

Greenplaces builds the GHG inventory foundation that connects your emissions data to the broader sustainability strategies your business needs. Our carbon accounting experts help companies measure Scope 1, 2, and 3 emissions accurately, identify data gaps, and structure reporting in a way that supports both compliance and decarbonization planning, including the integration of energy efficiency findings into your overall emissions reduction roadmap.

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