In carbon accounting, two main methods are used to estimate the emissions from products and activities: activity-based and spend-based data. While both approaches offer valuable insights, they differ in the type of information they use and the level of accuracy they provide.
What is Activity-Based Emissions Data?
Activity-based emissions are calculated using specific, non-financial data, such as energy consumption, materials used, or distance travelled. This approach provides highly accurate and detailed insights into the emissions associated with specific activities or processes. However, collecting activity-based data can be more involved, especially for companies tracking emissions across multiple operations.
At My Emissions, we prioritise the activity-based approach because it allows us to deliver more precise and actionable data to our clients. By focusing on direct measurements, we help businesses gain a clearer understanding of their true carbon footprint, enabling more effective emission reduction strategies.
What is Spend-Based Emissions Data?
Spend-based emissions, on the other hand, are estimated using financial data—looking at how much money is spent on goods or services, and calculating the associated emissions based on industry averages. While this method is easier to apply, particularly for companies without detailed data on resource consumption, it tends to be less accurate than activity-based calculations as it relies on broad estimates rather than specific measurements.
The Benefits of Activity-Based Data
While spend-based data is useful for initial assessments, the activity-based method offers distinct advantages, including:
By focusing on the actual resources used, activity-based data provides a more precise picture of a company’s emissions.
With clearer insights, businesses can target the most impactful areas for emissions reductions.
Since activity-based data reflects specific processes, it allows for more customised strategies for sustainability.
At My Emissions, we believe that the extra effort involved in collecting activity-based data leads to more meaningful and effective outcomes for businesses committed to reducing their carbon footprint.