Climate Impact tool methodology and standards
Sustinere methodology is aligned with Greenhouse Gas Protocol (GHG) standard, specifically „Corporate Accounting and Reporting Standard”
Methodology of calculations
Sustinere follows the GHG Protocol standard, specifically the Corporate Accounting and Reporting Standard, GHG Protocol Scope 2 Guidance, and the relevant Corporate Value Chain (Scope 3) Accounting and Reporting Standard. Sustinere’s tools are also aligned with the national guidelines for organisations on calculating climate impact, developed in Estonia at the request of the Ministry of Climate. Based on the consumption data you provide, Sustinere calculates the carbon footprint using relevant and accurate emission factors, including Estonia-specific ones where applicable.
Reasons for applying the GHG Protocol
This is an internationally recognised and most widely used methodology for calculating the climate impact of companies and organisations. The GHG Protocol standard is referenced by sustainability regulations (such as the EU Corporate Sustainability Reporting Directive, CSRD), the PCAFI standard widely used by international banks to assess the climate impact of their loans and investments, sustainability rating agencies and indices, as well as national climate impact calculation guidelines for organisations (such as those developed in Estonia at the request of the Ministry of Climate).
The Science Based Targets initiative (SBTi), the only recognised authority in the world that validates whether corporate emission reduction targets align with the Paris Agreement scenarios, also requires the use of the GHG Protocol for calculating greenhouse gas emissions.
In practice, the GHG Protocol is the only standard in use globally, forming the basis on which other guidelines are built and referenced. It is the alpha and omega for all organisations that want to calculate their footprint and report it to partners – whether large or small, in services or manufacturing, in the private or public sector.
CO2 and other key greenhouse gases covered by the model
The GHG Protocol standard requires the assessment of emissions from seven groups of greenhouse gases. Sustinere’s digital solution does the same. These greenhouse gases are carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), sulphur hexafluoride (SF6), and nitrogen trifluoride (NF3).
Each greenhouse gas has a different global warming potential, meaning its impact on climate warming. The impact of greenhouse gases other than carbon dioxide is converted to an equivalent CO2 value, and the final result is expressed as CO2 equivalent, usually in tonnes.
Boundaries and scopes of carbon footprint (climate impact) calculation
Sustinere’s carbon footprint digital solution is based on the principle of operational control. This means that greenhouse gas emissions are accounted for when they originate from sources or activities over which your organisation has control. Responsibility for emissions lies with the party best positioned to manage and reduce them, for example by selecting suppliers and the products or services purchased from them.
The GHG Protocol standard divides greenhouse gas emissions associated with an organisation’s activities into three scopes:
- Scope 1. Direct emissions from sources owned or controlled by the organisation (for example, fuel use in vehicles, stationary fuel combustion, and fugitive emissions).
- Scope 2. Indirect emissions from purchased energy, such as emissions related to the generation of purchased electricity and heat.
- Scope 3. Other indirect emissions that occur in the organisation’s value chain, either upstream or downstream. The standard divides Scope 3 emissions into 15 categories and strongly recommends organisations to assess all categories relevant to their activities. The current digital solution covers purchased goods and services, capital goods, waste, business travel, and employee commuting.*
* Scope 3 calculations can extend beyond what Sustinere’s digital solution currently covers, for example including the use and end-of-life impacts of sold products and services.
Suitability of Sustinere’s model and calculation scope for different types of organisations
Sustinere’s digital solution is suitable for all companies (except those in agriculture and mining) for assessing Scopes 1 and 2.
For professional service providers, service sector companies, as well as public sector and municipal institutions, the solution is suitable for assessing all scopes (within the scope of office and administrative activities).
For companies in other sectors, due to the specific characteristics of their activities and supply chains, we recommend requesting a tailored solution for a comprehensive Scope 3 climate impact calculation.
The Sustinere model is not suitable for agricultural companies, as their Scope 1 emissions are highly specific (for example, land-use related emissions) and require more complex calculations to ensure sufficient accuracy. We therefore recommend that agricultural companies turn to us for a tailored calculation.
Emission factors used by Sustinere
Sustinere uses reliable international emission factors for calculating the impact of emission sources where location does not play a significant role (meaning the climate impact of using the same material or product is the same in Estonia, Latvia, Lithuania, as well as in Poland, France, or Paraguay). You can be confident that Sustinere’s calculations match the quality of leading global practices.
For emission sources where location is important for achieving accurate results (such as electricity and heat), Sustinere applies precise and up-to-date country-specific emission factors for Estonia, Latvia, and Lithuania. In using local emission factors, we have been as precise as data availability allows. You can be assured that Sustinere’s calculations do not rely on global averages, which may differ significantly from your location-specific factors.
Methodologies for calculating the climate impact of electricity – location-based and market-based
According to the Greenhouse Gas Protocol standard, emissions from energy consumption (Scope 2) must be reported using two calculation methods: a) market-based and b) location-based.
- The market-based method reflects the emissions associated with the organisation’s choices on the electricity market (for example, whether a renewable energy package has been selected or standard electricity is purchased).
- The location-based method reflects the emissions from electricity generation in a specific region, regardless of which energy package the organisation has chosen and whether electricity consumption is offset with renewable energy certificates (Guarantees of Origin) or not.
The purpose of dual reporting is to ensure consistency and comparability in greenhouse gas reporting. It helps reveal trends and changes in a company’s carbon footprint more clearly. The two results are not added together but presented separately. For the final consolidated result, the outcome of the market-based calculation method is used.
Methodology for calculating the climate impact of employee commuting
To assess the impact of employees’ daily commuting between home and work, we help you conduct an online survey among staff, where employees are asked:
what mode of transport they typically use on a working day
how many kilometres they usually travel from home to work
The online survey has been pre-designed by Sustinere and is ready for you to send to employees. The collected responses are automatically compiled alongside your organisation’s other data in Sustinere’s form, so you do not need to carry out separate interim calculations. Based on all responses, the average carbon footprint of one employee’s commute is calculated and then scaled to the entire organisation according to the average number of employees.
Methodology for calculating the climate impact of home office use
To assess emissions from home office use, we help conduct an online survey among employees (the same survey as for commuting, meaning only one questionnaire needs to be sent). Employees are asked:
how often they worked from home,
which IT devices they used,
whether the home was heated or cooled more than usual during home office use.
Only additional energy consumption directly caused by home office use is included in the calculation, compared with normal household energy use. This means that background energy consumption from household appliances (such as a refrigerator) is not included. Inputs for energy use and emissions are also drawn from scientific literature, international databases, and relevant reports.
The collected responses are automatically compiled alongside your organisation’s other data in Sustinere’s form, so you do not need to make interim calculations. Based on all responses, the average carbon footprint of one employee’s home office use is calculated and then scaled to the entire organisation according to the average number of employees.
Key concepts
Greenhouse gases (GHG) – gases in the atmosphere that absorb heat radiation and cause the greenhouse effect.
Greenhouse effect – a phenomenon caused by greenhouse gases that warms the atmosphere close to the Earth’s surface (the troposphere). Without the natural greenhouse effect, temperatures would fall below zero. Human activity has significantly amplified the greenhouse effect, leading to global warming and climate change.
Carbon footprint – the total quantity of greenhouse gas emissions (measured in CO2 equivalents) resulting from the activities of a company, organisation, or other unit. Also referred to as “climate impact,” and colloquially as “CO2 footprint” (although it covers all greenhouse gases).
CO2 equivalent (CO2e) – a universal unit of measurement for greenhouse gases, reflecting their different global warming potential expressed as the equivalent amount of CO2.
Emission factor – a ratio expressing the amount of greenhouse gas emitted per unit of activity in a given human activity (for example, 0.173 kg CO2e per kilometre driven by a diesel car).
Global warming potential (GWP) – indicates how many times stronger a single molecule of a given greenhouse gas is in absorbing heat energy compared to a molecule of carbon dioxide (CO2). The global warming potentials used in Sustinere’s model are based on those presented in the IPCC Sixth Assessment Report (AR6), using a 100-year time horizon.
| Greenhouse gas | GWP |
|---|---|
| CO2 | 1 |
| CH4 | 27,9 |
| N2O | 273 |
| HFCs | 124 – 16 200 |
| PFCs | 7 390 – 17 700 |
| SF6 | 25 200 |
| NF3 | 17 400 |