Emissions factors are multipliers used to understand the impact that a given purchase or activity has on the environment.
We use two types of emissions factors in CarbonTrail. Spend-based and activity-based factors.
What Are Spend-Based Emissions Factors?
Spend-based emissions factors link the amount of money spent on a product or service to the corresponding greenhouse gas (GHG) emissions. Essentially, they provide an estimate of emissions per unit of currency spent (e.g., kg CO2e per dollar). These factors are derived from extensive industry data and help businesses translate their financial transactions into carbon footprints.
In New Zealand, we licence spend-based factors from thinkstep-anz, a trusted sustainability consultancy.