The use of spend-based emissions factors triggers discussion among sustainability experts. Some argue that they are an instrumental tool to quickly analyse the carbon footprint of an organization or industry. Others point out that no meaningful mitigation actions can be identified based on spend-based emission data.
In the Carbon+Alt+Delete carbon accounting software, we nudge the user to use activity-based or even better supplier-specific emission factors. Because we believe that no carbon mitigation is possible without activity-based or supplier-specific carbon accounting. However, we also have embedded Exiobase for partial spend-based carbon footprinting, as we see the use case of a first hotspot analysis.
In this blog, we zoom in on the details of spend-based emission factors, in particular the Exiobase dataset, and how they can be used in a carbon accounting platform like Carbon+Alt+Delete.
What are spend-based emission factors?
Spend-based emission factors are coefficients that express the GHG emissions per unit of money spent (e.g., euro) to a product or service. They are derived from environmentally extended input-output (EEIO) models, which allocate environmental impacts such as GHG emissions to the input-output flows of industries and products. The emission factors cover the cradle-to-gate emissions, meaning the emissions from the extraction of raw materials to the delivery of the final product, but not the emissions from the use and end-of-life phases.
The spend-based method is a secondary method by the GHG Protocol for scope 3 accounting, when primary methods (such as supplier-specific or activity-based) are not feasible or available.
The spend-based method has some advantages and disadvantages compared to other methods. On the positive side, it is relatively easy to apply, as it only requires expenditure data from the company, which is usually readily available from accounting records. It also allows for a comprehensive and consistent assessment of the entire supply chain of a product or service, avoiding double counting or gaps. On the negative side, it is less accurate and representative, as it relies on average emission factors that may not reflect the actual emissions of a specific supplier or product. As it does not account for the downstream emissions from the use and disposal of the product or service, a user should account for these emissions separately. Moreover, spend-based footprints cannot be used for setting targets and taking actions to reduce emissions, as – apart from spending less – there is not much you can do.
What is the Exiobase dataset?
EXIOBASE is a global, detailed multi-regional environmentally extended supply-use table (MR-SUT) and input-output table (MR-IOT). It was developed by harmonising and detailing supply-use tables for a large number of countries, estimating emissions and resource extraction by industry. The country supply-use tables were then linked via trade to create an MR-SUT, from which an MR-IOT was constructed. The MR-IOT can be used to analyse the environmental impacts associated with the final consumption of product groups. It covers 49 regions (including all EU countries and major trading partners), 163 industries and 200 products. It is the result of an extensive European partnership and research projects funded by the European Union. It is a widely used model by data providers and sustainability assessments, such as the Environmental Footprint initiative, the European Environment Agency, and the International Resource Panel.
The Exiobase dataset offers several features and benefits for the calculation of spend-based emission factors. First, it has a high level of detail and granularity, which allows for a more accurate and representative estimation of the emissions associated with different products and services. Second, it has a global coverage and scope, which enables a consistent and comprehensive analysis of the international trade and consumption patterns. Third, it has a rich and diverse set of environmental and social indicators, which can be used for a broader sustainability assessment beyond GHG emissions. Fourth, it has a consistent time series from 1995 to 2019, with now-casted data for 2020 and 2022, which allows for a dynamic and updated evaluation of the trends and changes over time.
How to use the Exiobase emission factors in the Carbon+Alt+Delete app?
The Carbon+Alt+Delete app is the go-to carbon accounting software for sustainability consultants in Europe. It offers a user-friendly and flexible platform to collect, calculate, report, and manage the GHG emissions of companies, following the GHG Protocol standards and best practices. The app supports multiple methods and data sources for scope 3 accounting, including supplier-specific, activity-based, and spend-based emission factors. The app also allows for the comparison and benchmarking of different methods and datasets, to help users make informed and transparent decisions.
The Exiobase emission factors are integrated in the Carbon+Alt+Delete app, as part of the emission factor library. The library includes various datasets from different providers, such as UK.gov, ADEME, IEA, AiB, Ecoinvent, and Exiobase. The app enables users to apply the Exiobase emission factors to their expenditure data, and to generate compliant and consistent reports on their scope 3 emissions.
How to learn more and get started?
If you are interested in learning more about the spend-based method, the Exiobase dataset, and the Carbon+Alt+Delete app, you can access the following resources and links:
- The recording of the webinar can be found here: https://youtu.be/2JVp7wVUVwI?si=ihjoUJ3MgT3coEtq
- The Exiobase website, where you can download the dataset, read the documentation, and contact the support team: https://www.exiobase.eu/
- The Carbon+Alt+Delete website, where you can sign up for a free trial, schedule a software demo: https://www.carbonaltdelete.eu/en/
We hope you enjoyed the webinar and this blogpost, and we look forward to hearing from you and helping you with your scope 3 carbon accounting challenges and opportunities.
If you want to learn more about our software and our uncertainty quantification feature, you can visit our website, our support pages, or our community forum, where you can find more information and resources on carbon accounting topics.
For further discussions or queries, feel free to reach out at info@carbonaltdelete.eu.