What are the different calculation methods in KEY ESG?
Below is a table and a diagram that show descriptions, advantages, and disadvantages of the various calculation methods available to you in the KEY ESG platform, in order of increasing accuracy.
Method | Definition | Advantages | Limitations | KEY ESG metrics? |
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Spend-based | The monetary value of a purchased good or service | Easy to acquire data
Easy to implement | Based on industry averages
Lower accuracy | Scope 3.1 Purchased Goods & Services
Scope 3.2 Capital Goods |
Activity-based | Uses data to quantify the number of units of specific products or materials purchased (e.g. fuel, distance travelled) | More granular data acquired
Increased accuracy | Difficult to acquire all data, especially for Scope 3
| All metrics
Note: activity-based method includes fuel-based and distance-based method |
Hybrid | Uses a combination of spend and activity-based data | Enhanced flexibility | Reliant on averages | Automatically calculated, categorised as Hybrid method in Reports |
Supplier-specific | A a value provided by a supplier that shows the amount of carbon emissions generated per unit of product or material | Accurate | Data not readily available | All metrics in Scopes 1 & 2 |
Which method should I choose?
This will vary for every organisation. However, some key questions to ask yourself before you begin your carbon accounting include:
What is your goal - what do you want to achieve as part of your carbon accounting?
How large is your supply chain?
What data and resources do you have at your disposal?
What frameworks and regulations is your company aligning with?
You only need to choose one method!
You only need to choose one method, as entering the same data for two or more methods is considered double counting. The method you choose will depend on the data that is available to you in your organisation.
Conclusion
There are a variety of data collection methods available within the KEY ESG platform, which cater to a wide range of customer needs, from spend-based to supplier-specific. The method that your organization chooses will depend on a variety of factors, including resources and data availability, specific framework and regulatory requirements, and the size of your supply chain.
If you require further information about selecting the correct data collection method, please contact support@keyesg.com or reach out to our carbon experts via the in-app chat.
