The Best Educated Guess in Emission Reductions: What are Emission Factors?
At Emitwise, we often emphasise the importance of accurate data in alleviating doubts about greenwashing, facilitating regulatory compliance, and revealing business opportunities. But you may be wondering exactly what we measure and what units of measurement that data is drawn from.
Enter the Emission Factor
Emission factors are how we standardise emissions measurements across greenhouse gases (GHGs) to help businesses and regulators get on top of emissions calculations. Emission factors bring the elements of your emissions calculations, such as how much it costs to transport raw materials between factories, into greenhouse gas terms with accurate estimates based on industry standards and primary data drawn from your business.
Public emission factor databases such as the UK government’s and the IPCC’s Emission Factor Database (EFDB) exist, but they won’t be a true reflection of your business’s emissions. For that, you’ll need the kind of granular emission factors a close partner that truly knows your operations and your supply chain can provide.
The First Half: CO2 Equivalents (CO2e)
For businesses to understand their impact on global warming, they’ll have to get a holistic assessment of their greenhouse gas emissions (GHGs). Successful emissions reduction strategies are based on an understanding of what exactly businesses are emitting, where it’s coming from and what drives those emissions.
As the answers to these questions will involve many disparate sources, units of measurement and drivers, a standard is required. Carbon dioxide (CO2) is just one of many gases that a business can release into the atmosphere, and, for clarity’s sake, we measure all other GHGs emitted by businesses in terms of their equivalent for one tonne of CO2.
Carbon dioxide works well as a baseline because it accounts for about 75% of global GHG emissions. Gases like methane are measured in terms of their Global Warming Potential (GWP). As the baseline, CO2 has a GWP of 1, while emitting one tonne of methane has 25 times the effect on global warming than one tonne of CO2 over 100 years, so methane’s GWP is 25. Many defer to the International Panel on Climate Change (IPCC) for this, whose assessment reports provide GWPs for many GHGs.
The base measurements used to measure GHGs are called CO2 equivalents (CO2e). If we were to express emissions calculations in the same terms we use to determine a country’s GDP, CO2e is that country’s currency converted to US dollars, and the GWP is the exchange rate we use to get that number.
We use the following formula to calculate the CO2e for a given GHG:.
(Amount of greenhouse gas emitted) x (GWP) = CO2e
CO2es are relevant for determining emission factors as they allow us to take different GHGs, from nitrous oxide to sulphur hexafluoride and turn them into a single, clear measurement.
Once we have the CO2e for GHGs emitted, we’re ready to apply that to another formula that allows us to differentiate between several business activities and outcomes to measure their emissions with accuracy and granularity.
The Second Half: The Reference Unit
Emission factors are the weight of a carbon dioxide equivalent divided by a reference unit. The reference unit is where we need our clients to tell us exactly what it is they’re trying to calculate the emissions of. This is how emission factors become linked to products and processes, so businesses can attach an emissions value to their business activities.
Primary activity data includes emissions from company operations and information gathered from suppliers. Conventional logic says that the more primary data you have, the more accurate your emissions calculation will be, but it’s still important to use a partner with the expertise to iron out the quirks. Emitwise’s blend of AI, database cross-referencing, and supplier-friendly tools facilitating the collection of supplier data will ensure a granular emission factor selection strategy and accuracy when measuring scope 1, 2 and 3 emissions.
Every business is different. Moving from an industry-average calculation methodology to a bespoke one when calculating emission factors demands a granular approach, as there will be huge variances between businesses, suppliers, and processes. However, our customers have to know what they are and aren’t accountable for, and they need that granular data to make informed decisions on how to best reduce their emissions.
Instrumentalising Uncertainty: Getting One Number from Many
Emission factors allow businesses to turn a process, like a product’s journey between manufacturers, into tangible emissions numbers. In doing so, it makes the value of cutting those emissions evident. If businesses reduce transportation or improve the energy efficiency of their product, they’ll know the extent to which they’ve cut their emissions and can factor that into their calculations.
Emitwise is aware of the need to distil simplicity from uncertainty in order for companies to take action effectively. If you want to factor in some of the most accurate emission factors on the market into your business decision-making, look no further.
