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?
Estimate	Based on environmentally extended input output tables (EEIO) to give you a high level spend-based estimate	Provides a high level estimate of what your emissions might look like	Based on broad economic assumptions Cannot be used to submit emissions data for most ESG frameworks	Not included in in KEY ESG specific metrics Can be used when you configure your carbon metrics
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 mnethod you choose will depend on the data that is avialable 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.

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