According to the GHG Protocol, the two primary methods for calculating value chain emissions are spend-based and activity-based.
- The spend-based method multiplies the monetary value of a purchased good or service by an emission factor - the number of emissions produced per financial unit- which estimates the emissions produced.
- The activity-based method involves the collection of more data, both internally and through suppliers. This method benefits a company's consumption or usage data on hand or that its suppliers have provided. The data, such as the litres of fuel burned by a vehicle or the kilogramme of plastic waste generated in operations, is multiplied by the emission factors of the activities to calculate the estimated emissions.
Faradai Sustain lets you decide the calculation method from the spend-based-based approaches to estimate your value chain emissions**.**