How does the methodology used to measure our emissions compare to what Emitwise might offer direct customers?

While Emitwise typically uses a range of calculation methodologies to increase accuracy, the spend-based method is part of our standard corporate carbon accounting approach.

The approach that will be used here differs from our full approach in two main ways:

1. It only uses spend data: For this approach, Emitwise will estimate your total Scope 1, 2 and 3 GHG emissions using only your company’s spend data. While the spend-based method is used to estimate companies’ GHG emissions from purchased goods and services (Scope 3 Category 1), we use a variety of more accurate calculation methods to estimate GHG emissions for other activities in our standard offering. The spend-based calculation method is useful for calculating directionally-accurate GHG data, but it is generally considered as being the least specific and accurate calculation method available for this purpose. Furthermore, this method is not recommended for estimating Scope 1 or 2 emissions, where primary, facility-specific data on a company’s activities is preferred. Emitwise addresses this here by converting data on the amount spent on products and services related to Scope 1 and 2 activities into physical quantities, as far as possible.
2. It’s simpler: The approach that we will use here for spend-based calculations is simplified compared to our standard customer offering. Emitwise uses a combination of supplier/vendor information, line item description and spend category to more accurately estimate the type of good or service purchased. Where available, Emitwise will use supplier-specific emission factors, the most specific and accurate method of calculating GHG emissions from spend data. Emitwise has developed a large database of supplier information and product-specific emission factors that we use to improve the quality of our spend-based calculations. Here, the approach used will only allow for calculations at the spend category level; i.e. we will not be using supplier- or product-specific emission factors in our calculations, as per our standard offering.