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Earlier, our spend-based algorithm only estimated production of your transactions, by including emissions in all stages upstream from the supplier in question. This method is standard in the industry but has some limitations, as usage stage and downstream industries are not a part of the estimation.
For example, when purchasing fuel, we previously only estimated the emissions of producing the fuel (in the upstream industries of petroleum extraction, refining and transportation) but not the emissions occurring when you combust the fuel. According to the GHG protocol, these two emissions should also be placed in different categories (Scope 1 for combustion and Scope 3.3 for production). We have solved this with linked transactions, so you only need to account for it once, we fix the rest! And the best part? When you add activity data on a transaction, this will also be synced to Scope 3, so you only need to add the activity data once!
The sources of the calculation are available in the transactions overview, by clicking the question mark.With this improvement, we set a new standard for spend-based estimations and further automate compliance with the GHG Protocol.
This improvement will cause emissions to be somewhat higher (but more correct) than earlier estimated, so we recommend that you accept this recalculation of historic inventories with this new approach.
You are free to not accept, but that would create inconsistencies between historic inventories and new ones.
You can change your mind later on, in the inventory settings.
