Emitwise requests your company's total revenue figures as part of our emissions calculation and reporting process. While this may seem unrelated to carbon emissions at first glance, revenue data plays an important role in our methodology. Here's why:
1. Calculating Emissions Intensity
Revenue allows us to calculate your company's emissions intensity - the amount of emissions produced per unit of economic output. This metric helps contextualize emissions data and enables comparisons across companies of different sizes within an industry.Example: Company A emits 1,000 tonnes of CO2e and has £10 million in revenue, while Company B emits 2,000 tonnes of CO2e with £30 million in revenue. Although Company B has higher total emissions, its emissions intensity (66.7 tonnes per £1 million) is actually lower than Company A's (100 tonnes per £1 million).
2. Estimating Supply Chain Emissions
For suppliers participating in customer engagement programs, we use revenue data to estimate what portion of your total emissions should be attributed to a particular customer. By understanding what percentage of your revenue comes from that customer, we can allocate a proportional share of your emissions to their supply chain footprint.Example: If your company's total emissions are 10,000 tonnes CO2e and a specific customer accounts for 20% of your revenue, we would attribute 2,000 tonnes of your emissions to that customer's supply chain emissions.
3. Benchmarking Performance
Revenue data enables more meaningful benchmarking of emissions performance against industry peers and standards. It allows us to assess efficiency and identify improvement opportunities while accounting for differences in company size and output.Example: In the automotive industry, Company X might emit 50 tonnes CO2e per £1 million revenue, while the industry average is 70 tonnes CO2e per £1 million. This shows Company X is performing better than average in terms of carbon efficiency.
4. Tracking Progress Over Time
As your company grows or changes over time, revenue provides context for emissions trends. It helps distinguish between emissions increases due to business growth versus reduced efficiency.Example: Your company's emissions increase from 5,000 to 6,000 tonnes CO2e in a year, but your revenue also grew from £50 million to £70 million. This actually represents an improvement in emissions intensity from 100 to 85.7 tonnes CO2e per £1 million revenue.
5. Reporting to Stakeholders
Many reporting frameworks and stakeholders request emissions intensity metrics. Having revenue data allows us to provide these important contextual figures.Example: When reporting to CDP (formerly Carbon Disclosure Project), you might need to disclose your emissions intensity. If your company emits 15,000 tonnes CO2e with £100 million in revenue, you would report an intensity of 150 tonnes CO2e per £1 million revenue.
Rest assured, Emitwise treats revenue data as confidential information. We use it solely for emissions calculations and reporting, and do not share raw financial figures with other parties.
By providing your revenue data, you enable more accurate, meaningful, and actionable insights from your emissions profile. This supports both your company's sustainability journey and broader decarbonization efforts across supply chains.