Today, I’m diving into the fascinating world of emission factors and how we at Tool Zero calculate them.. Grab your eco-friendly coffee mug, and let’s get technical!
Emissions factors are essentially the secret sauce that helps us quantify the amount of greenhouse gases (GHGs) emitted per unit of activity or expenditure. Think of them as the conversion rates in our sustainability currency exchange. Now, there are two main types: activity-based and spend-based factors. Activity-based factors measure emissions per unit of physical activity, such as kilograms of CO2 per mile driven. On the other hand, spend-based factors calculate emissions based on the monetary value of goods or services, like dollars spent on electricity. When it comes to calculating GHG emissions, we use these factors to translate our everyday business activities and expenses into a common language of carbon footprints.
The choice of emission factor hinges on the type of activity and the data at hand. Activity-based emissions factors are ideal for calculating your direct emissions (Scope 1), while spend-based factors excel at estimating emissions from your value chain.
At Tool Zero we use activity based emission factors for Scope 1 emissions, a combination of activity based and spend based factors for Scope 2 and spend based emissions factors for Scope 3.
Scope 1 and 2 emissions factors are sourced from government sources and include emissions for fuel per unit volume, mass or energy and emissions for electricity per kWh.
For Scope 3 we calculate emissions factors specific to each of our supported regions using environmentally extended input output tables. Below I dive into how we calculate our spend based emission factors for Scope 3.
First off, let’s talk about environmentally extended input-output (EEIO) tables. These aren’t your average spreadsheets. EEIO tables are like the Swiss Army knives of environmental accounting. They help us understand the life cycle impact of products and services across various industries by mapping the capital flows between all industries in an economy. Imagine a giant matrix that not only tells you who buys what from whom but also how this affects the environment. It’s like having a bird’s-eye view of the economic ecosystem and its environmental footprints.
Using EEIO tables, we can estimate the environmental impacts of entire supply chains. This means we can see the ripple effects of production and consumption decisions across different sectors. For instance, when a car manufacturer buys steel, the EEIO table helps us trace the environmental impact of mining the iron ore, making the steel, and delivering it to the car plant. This holistic view is crucial for understanding the true environmental cost of products and services.
At Tool Zero Software Inc., we take these EEIO tables to the next level. We don’t just use one table; oh no, we combine multiple EEIO tables from various authoritative sources like the EPA (Environmental Protection Agency) for the U.S., STATCAN (Statistics Canada) for Canada, and EXIOBASE, which covers 49 of the largest economies globally. This diverse data pool allows us to create a more accurate and comprehensive picture of global industrial activities and their environmental impacts.
We focus on calculating emission factors for six groups of greenhouse gases (GHGs): CO2 (carbon dioxide), CH4 (methane), N2O (nitrous oxide), SF6 (sulfur hexafluoride), HFCs (hydrofluorocarbons), and PFCs (perfluorocarbons) as well as the of all these gases. These gases are the main culprits behind climate change, and understanding their emission sources helps you strategize better ways to reduce our carbon footprints. If you are interested in learning more about global warming potential check out our article “What is Global Warming Potential”.
You might wonder, "Why go through all this trouble?" Well, in today’s world, being environmentally conscious is not just about corporate responsibility; it’s a business imperative. By accurately calculating emission factors, we can provide targeted insights into reducing GHG emissions, ultimately leading to cost savings, improved sustainability, and enhanced corporate reputation. Plus, let’s face it, it’s always better to be part of the solution rather than the problem, right?
So, there you have it—a peek into the complex yet utterly fascinating process of calculating emission factors. By leveraging advanced EEIO tables and combining data from across the globe, we ensure that our sustainability efforts are as precise and effective as possible. It’s not just about making software; it’s about making a difference.
If you are interested in brushing off your linear algebra skills and getting into the math of emission factor calculations you can reach out to us directly through our contact us page.
Stay green, and see you in the next post. Until next time,
Cofounder and CEO at Tool Zero
Chris Walton
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