There's a calculation method associated with each GHG category to calculate carbon footprints.
The two calculation methods defined for scope 2 emissions are: Location-based method and market-based method.
- Location-based method: This method is used to quantify scope 2 GHG emissions based on average energy generation emission factors for defined geographic locations, including local, subnational, or national boundaries.
- Market-based method: This method is used to quantify the scope 2 GHG emissions of the reporting organization based on GHG emissions emitted by the generators. Generators are those from whom the organization contractually purchases electricity bundled with other contractual instruments.
You know that you can directly enter data about business activities, such as waste, into the system by filling out forms. You can also input the CO2e emission data for different waste types and treatment methods. This data, varying by location and time, is utilized to calculate the associated GHG emissions based on waste quantity.
There are three calculation methods available:
- Average-Data: This method utilizes average emission factors and quantities of waste. You can use this method when the preferred footprint type is quantity-based.
- Waste-Type-Specific: This method applies emission factors specific to waste types and treatment methods.
- Spend-Based: This method focuses on the amount of money spent on waste disposal methods rather than waste quantities. This is the latest method that can be used in addition to the activity-based approach to calculate carbon footprints. You can use this method to map spend-based emission factors of purchased products, capital goods, upstream transport and distribution, business travel, employee commute, upstream leased assets, and downstream transport and distribution.
Note
You can use spend-based proxies if actual fuel consumption data is not available. This involves converting the amount spent on fuel into a mass or volume measure using appropriate emission factors.
Regardless of the chosen method, the basic calculation remains consistent, comprising a quantity or amount and an emission factor.
Note
You can select emission factors either from the Life Cycle Assessment (LCA) data maintained in the system or from the default content accessible from the U.S. Environmental Protection Agency (EPA). Alternatively, the directly entered data on CO2e amount can be also used to select emission factors.
After you decide the calculation method based, you start the GHG data collection process followed by recording GHG data and finally reviewing the results.
To read more about the supported calculation methods for each GHG scope category, follow the linkhttps://help.sap.com/docs/sustainability-footprint-management/application-help-for-corporate-and-products/calculation-methods-by-ghg-category