Calculation

A company’s carbon footprint indicates the greenhouse gas emissions caused by its operations, that is, its negative climate impact. The calculation of the company’s greenhouse gas emissions is a standardised method to determine the greenhouse gas emissions from its operations and value chain. The calculation, definition of its scope and reporting are guided by the internationally best-known and most used calculation guideline, the Greenhouse Gas Protocol (GHG), as well as its various standards.

The company’s emissions calculation must include mandatory scope 1 and scope 2 emissions under the GHG protocol, which arise from operations such as the use of fuel and the production of purchased energy. While optional, it is also recommended to assess those scope 3 indirect emissions that have been identified as the most significant, depending on the industry. The GHG protocol also defines calculation guidelines for the scope 3 emission categories, including raw material sourcing, logistics, waste, business travel and investments.

The company’s carbon footprint is typically calculated over a period of one year, and the result of the calculation is presented in carbon dioxide equivalents (CO2e), which means that different greenhouse gases are expressed in the same reporting unit. The calculation is typically repeated annually to monitor the development of greenhouse gas emissions.

The calculation of greenhouse gas emissions is mandatory for some industries, and voluntary for others for the time being. However, tightening legislation and new regulations are driving all companies to increasingly adopt climate-responsible activities. The new EU Corporate Sustainability Reporting Directive (CSRD) will soon require not only listed companies but also large companies and SMEs to report on their sustainability in accordance with the directive. As a result, the reporting requirements will also apply to increasingly smaller companies in subcontracting chains. It is therefore worthwhile for smaller companies as well to start preparing for the requirements, regardless of the industry in which they operate.

Nordic Impact’s carbon footprint calculation complies with the calculation standards of the GHG protocol, which means the results are directly in line with the reporting obligations (E1–6) of the CSRD. Based on our carbon footprint calculation service, we can identify emission reduction measures and prepare related proposals for reducing emissions (a climate roadmap). We also plan emission reduction targets in accordance with the Science Based Targets initiative and the Paris Agreement, ensuring that your company’s climate responsibility efforts are in line with requirements E1–4 under the CSRD.

The calculation and reporting of greenhouse gas emissions complies with the following standards and guidelines, among others:

• Greenhouse Gas Protocol (GHG): A Corporate Accounting and Reporting Standard
• Greenhouse Gas Protocol (GHG): The Corporate Value Chain (Scope 3) Accounting and Reporting Standard
• Corporate Sustainability Reporting Directive (CSRD, EU directive 2022/2464)
• GRI Standards (GRI 305: Emissions 2016)
• Industry specific guidelines

The report resulting from the calculation of greenhouse gas emissions includes all important information from the analysis of the input data to the comprehensive results for direct scope 1 and 2 and indirect scope 3 emissions. The report serves as a basis for the next phases of responsible climate action, meaning the planning of emission reduction measures and targets.

Using the Nordic Impact ESG Platform, we calculate your organisation’s greenhouse gas emissions in a proficient, accurate and high-quality manner in accordance with the relevant standards.

The ESG Platform is designed to facilitate the calculation and management of companies’ greenhouse gas emissions in line with the requirements of the new EU Corporate Sustainability Reporting Directive. The ESG Platform provides an easy and efficient way to calculate and report companies’ scope 1–3 greenhouse gas emissions. The new service enables our customers to meet the requirements set by the CSRD regarding the ESRS E1 standard’s climate change data points. In the future, the calculation platform will also be developed to cover other types of sustainability reporting based on ESRS data points.

The key benefits of the Nordic Impact ESG Platform for the customer:

• The cost of the annual update calculation is about 50 to 60% of the cost of the first year, and the solution makes the calculation and reporting process easier, especially in repeated annual calculations.
• The risk of errors is reduced when the data are stored in one place, and different users carry out the calculation on the same platform.
• Our customers always have access to the information and updates when they want. They can retrieve the CSRD emissions calculation indicator data from the platform at any time.
• The Nordic Impact ESG Platform differs from other tools on the market in that it always includes an expert approval process for the data used in the calculation.
• The calculation solutions of the Nordic Impact ESG Platform not only meet current requirements but also anticipate future needs and help customers improve operational efficiency.

The calculation solution follows a model of continuous improvement, in which the level of precision of the input data and emission factors is improved year after year.

The web-based, SaaS-powered Nordic Impact Platform brings all the data together in one place and enables real-time viewing of data and results. The Nordic Impact ESG Platform’s annual comparison of greenhouse gas emissions supports the monitoring of emissions development.

The results of the greenhouse gas emissions calculation carried out by Nordic Impact can be used as such in the company’s sustainability reporting. The reporting of results is in line with both the CSRD and GRI reporting practices. The company can use the content of the report directly in its communications. Our greenhouse gas emissions calculation service always includes communication support. Our experienced experts are also at your disposal throughout the project.

We also carry out third-party assessments of companies’ greenhouse gas emissions calculations.

Want to find out your company’s greenhouse gas emissions? Get in touch with our experienced specialists to discuss the right solutions for your business.

Discover examples of our carbon footprint calculation services.

The calculation of the carbon footprint of a product is a method of examining the climate impact generated by the various stages of the product’s life cycle. The calculation of the carbon footprint of a product helps identify the emissions from the company’s processes and supply chain. It serves as a relevant metric for developing the value chain and operational efficiency, as well as providing useful information for product design to develop an increasingly low-emission product. This often leads to cost savings as well. When the carbon footprint of a product is known, its climate benefits can also be communicated to stakeholders reliably and transparently.

A broader version of the product’s carbon footprint calculation is the Life Cycle Assessment (LCA). In addition to the carbon footprint, the LCA produces results from several environmental indicators such as acidification, eutrophication, water use and depletion of natural resources. The Life Cycle Assessment is a standardised method based on ISO 14040 and ISO 14044 standards.  The assessment can consider either all stages of the product’s life cycle (cradle-to-grave LCA) or only the production stage of the product (cradle-to-gate LCA).

The results of the Life Cycle Assessment can be reported in the Environmental Product Declaration (EPD) if desired. The Environmental Product Declaration is a standard document guided by the ISO 14025 standard. In addition, it must be drafted taking industry-specific standards (e.g. EN 15804 for construction products) and product-specific guidelines (Product Category Rules, PCR) into account.  The environmental product description can be verified and subsequently published in various emission databases.

Nordic Offset has carried out several carbon footprint calculations, Life Cycle assessments and Environmental Product Declarations. We also act as an official Rakennustietosäätiö-approved EPD verifier.

Our product-specific service package includes modelling and reporting in accordance with the chosen standard, as well as client communication support. We also carry out third-party verifications of the product’s carbon footprint calculation, Life Cycle Assessment and Environmental Product Descriptions.

Do you want to know which method is best for your product, or how to start developing the product’s climate responsibility? Get in touch with our experienced professionals to discuss the right solutions for your business.