What is Carbon Accounting?
Carbon accounting measures your business's greenhouse gas emissions, similar to how financial accounting tracks finances. It quantifies the impact of business activities on the environment, providing a basis for reduction strategies.
Spend-Based Method
This method estimates emissions based on the financial value of purchases, using spend-based emission factors. It's simple and useful for large, complex supply chains but can be less accurate due to generalized data.
Activity-Based Method
This method collects detailed data on specific activities, such as energy use or production volumes, providing a more precise emissions calculation. While it requires more effort in data collection, the accuracy it offers is significantly higher.
Hybrid Approach
If complete activity data isn't available, a hybrid approach can be employed. This method supplements missing activity data with spend-based data, blending both methods to achieve a balance between accuracy and feasibility.
Benefits of Moving to Activity-Based Method
Accuracy: More precise data leads to better emissions reduction strategies.
Comprehensiveness: Covers a wider range of emissions sources.
Specificity: Tailored to your business's actual activities and operations.
How KEY ESG Can Help
KEY ESG offers an integrated carbon accounting platform that simplifies the transition to activity-based methods. With robust API integrations, intuitive data collection interfaces, and expert onboarding support, KEY ESG ensures that your business can gather and analyze high-quality data effectively. Our platform supports both activity-based and spend-based methods, allowing for a flexible hybrid approach when necessary.
Take Action Now
Get Started with KEY ESG: Reach out to our team to learn how our platform can streamline your carbon accounting process.
Optimize Your Data Collection: Utilize our tools to improve the quality and accuracy of your emissions data.
Sign Up for Our Bi-Weekly Q&A Session: Join our experts to get your questions answered. The link to sign up is here.
Reach Out Using Our In-App Chat Function: Get real-time support and guidance.
By adopting the activity-based method with the help of KEY ESG, your business can achieve more precise and effective carbon management, paving the way for significant environmental impact reductions. Start your journey towards accurate carbon accounting today with KEY ESG!