For users with a connected financial accounting platform.
Introduction
Sage Earth Carbon Accounting is built to help small and medium-sized businesses measure their carbon footprint - whether you're just starting out or working toward compliance with the Greenhouse Gas Protocol (GHGP).
Sage Earth Carbon Accounting can generate carbon estimates using limited data, which is helpful when you're beginning your sustainability journey. However, estimates based on incomplete or generic data may not meet GHG Protocol standards.
If you're aiming for a GHG Protocol compliant footprint for Scopes 1, 2, and upstream Scope 3, this guide walks you through the extra steps you need to take. By following these steps, you'll improve data quality and generate a carbon footprint you can confidently share with customers, investors, or suppliers.
If you get stuck along the way, you can contact our Customer Support team. We will get back to you as quickly as possible.
Step 1: Categorise your transactions
Match every transaction to a compliant category
When you connect your accounting software, Sage Earth Carbon Accounting automatically imports your financial transactions and uses AI to match them to emissions categories.
To meet GHG Protocol standards, every transaction must be matched to a category - nothing can be left uncategorised.
The GHG Protocol requires emissions categories to be specific. Generic or broad categories are not compliant. Check your transactions and avoid using any non-compliant categories. These are:
• Any category with Unknown at the beginning of the name.
• The category Other purchased goods
• The category Other manufacturing
A full list of non-compliant categories is available at the end of this page. Within the Transactions page you can filter transactions by category, to aid with identifying and amending any spends that are currently categorised in a non-compliant category.
Where you find transactions categorised to these categories, choose more detailed options—for example, use "Meat" instead of "Unknown Food & drink".
Step 2: Add required manual data
To improve accuracy, and ensure GHG Protocol compliance, you must add manual usage data for certain emissions. This overrides any estimated values based on spend.
How to add manual usage data
When you add manual usage data via the Module pages, it replaces any spend-based estimates for that category that occurred in the same quarter.
To avoid double-counting:
When entering manual usage data, make sure to use the same category for the usage and for any spends relating to the same real-world activity.
When entering manual usage data for a category, ensure the usage you add covers all transactions within that category for that quarter.
Example: Waste
Two financial transactions have been automatically categorised as 'Waste > Waste'. Both transactions occurred in the same quarter and you know that together they account for 40 tonnes of commercial waste disposed of in landfill. To replace the spend estimate with usage data:
1. In the Transactions page ensure both financial transactions use the same category. In this case, edit the category of both transactions to 'Waste > Refuse > Commercial & industrial waste > Commercial & industrial waste (landfill)'.
2. In the Modules page, choose the quarter in question and the Waste module. Manually add the usage of '40 tonnes' using the category 'Refuse > Commercial & industrial waste > Commercial & industrial waste (landfill)'
This means that we are now going to over ride your financial data with the usage data allowing us to calculate a more accurate footprint.
Data required per module
The following table shows the data that is required to be entered into the modules to ensure GHG Protocol compliance:
Module | Data Required |
Energy type, payment method and quantity purchased for all your Energy Emissions.
If you have any transactions which are categorised as Dual Fuel, please reach out to our customer support team. | |
Carbon dioxide equivalent (CO2e) value for all your Process Emissions. | |
Gas type and weight for all of your fugitive emissions. | |
Fuel type, vehicle ownership, and fuel amount purchased for all of your Vehicle Emissions. | |
No manual data required.
If you enter any purchased goods data using the total weight of purchase option, you must also make sure you add distinct data to account for the transportation emissions of this item in the Upstream distribution module.
If you use the total cost of purchase option for purchased goods, you do not need to enter any data to account for transportation, as the total cost of purchase calculation includes an estimate of transport emissions. | |
Council Tax Band if the workplace address is in Scotland. Otherwise you do not need to add any manual data for this module.
Entering an Unknown council tax band is not compliant. | |
No manual data required. | |
Waste type and weight for all of your waste emissions. | |
No manual data required. | |
Workplace address, employee count, and how often they work from this address information. |
Note: According to the GHG Protocol, it isn't mandatory to manually collect usage data for modules such as Purchased Goods, Travel and Hotels, Water, and Upstream Distribution. However, providing these details - particularly for organisations with significant expenses or activities in these areas - can contribute to a more accurate footprint calculation.
GHGP non-compliant generic categories
These categories are available to select if more specific detail isn't available, however they are not compliant under the Greenhouse Gas Protocol.
Energy
Unknown Gaseous fuels
Unknown Solid fuels
Unknown Liquid fuels
Unknown Biofuels
Unknown Biomass
Unknown Biogas
Dual fuel
Vehicles
Unknown Vehicle Fuel
Purchased goods
Unknown Compost
Unknown Food & drink
Unknown Food processing
Unknown Construction materials
Unknown Wood & timber products
Unknown Metals
Unknown Rubber & plastics
Unknown Paper & board
Unknown Packaging
Unknown Clothing
Unknown Glass, ceramics & stone
Unknown Stationery & books
Unknown Chemicals & cleaning
Unknown Electrical goods
Unknown Machinery & equipment
Other manufacturing
Other purchased goods
Purchased services
Unknown Repair & maintenance
Unknown Professional services
Unknown IT, media & telecom
Unknown Mining & extraction
Unknown Construction & real estate
Unknown Education & health
Unknown Culture & sport
Unknown Food & Beverage services
Unknown Other services
Waste
Unknown Waste
Travel and Hotels
Unknown Travel
Conclusion
By following these steps - carefully categorising your transactions and entering the required manual data - you will have created a GHG Protocol compliant carbon footprint for Scopes 1, 2, and upstream Scope 3.
If you're ready to share your results, check out our guide How to Share Your Carbon Footprint for tips on sharing your footprint with customers, suppliers, or other stakeholders.
Find out more: The Sage Carbon Accounting Methodology