Our methodology

Developed for New Zealand, aligned with global best practice.

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Measurement

Our thorough methodology ensures your organisation’s carbon footprint has been independently calculated in line with international greenhouse gas (GHG) reporting standards.

Understanding a carbon footprint

An organisation’s carbon footprint is determined by its activities. Keeping the lights on in an office, running a manufacturing plant powered by diesel, staff travelling in cars or on planes, and purchasing materials to build products are just a few examples of activities that generate emissions.

A flowchart illustrating the life cycle emissions of a product, showing upstream activities like purchasing goods, fuel, and transportation; company operations such as leased assets and facilities; and downstream activities including transportation, use of products, and end-of-life treatment. Arrows indicate direct and indirect scopes, with a color-coded legend for upstream, reporting, and downstream activities.

GHG Protocol scopes and emissions across the value chain

Scope 1 emissions

Direct GHG emissions from sources controlled or owned by an organisation (e.g. from fuel combustion in boilers, plants, or vehicles).

Scope 2 emissions

Indirect GHG emissions from the buying of electricity, gas, or steam. While these physically occur at the source of generation, they need to be accounted for as a result of the organisation’s energy use.

Scope 3 emissions

Scope 3 encompasses emissions that are not produced by the company itself and are not the result of activities from assets owned or controlled by them, but by those that it's indirectly responsible for up and down its value chain.

Methodology calculate emissions

How carbon emissions are calculated

We can measure these emission sources, such as the litres of petrol or diesel used, the kWh of electricity used, the distance a freight truck travelled, or the weight of steel used in construction.

Carbon emissions are calculated by applying Emission Factors to the amount of activity, for example:

100 litres of petrol* 2.46 (kgCO2e/ litre) emission factor = 246 kgCO2e

Emission Factors are nationally (and globally) derived factors representing the amount of CO2e from that source, for example, 1 litre of petrol burnt produces 2.46 kgs of CO2e.

carbon footprint include emission sources

What do I include in my carbon footprint?

Here’s a summary of what to include when mapping your carbon footprint:

  • Fuel sources where you directly burn or use the fuel, for example, petrol in fleet cars, diesel in machinery.

  • Energy sources where you use energy from a third-party energy provider, for example, your electricity and gas from your supplier.

  • Supply chain sources where you have purchased from a third-party supplier (significant sources only).

fuel emission sources

Fuel sources

where you directly burn or use the fuel, for example, petrol in fleet cars, diesel in machinery.

Electricity emission sources

Energy sources

where you use energy from a third-party energy provider, for example, your electricity and gas from your supplier.

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Supply chain sources

where you have purchased from a third-party supplier (significant sources only).

What is a significant activity?

What do I include in my carbon footprint?

Here’s a summary of what to include when mapping your carbon footprint:

Emission Scopes

The following categories based on ISO 14064-1:2018

  • Direct GHG Emissions and Removals

    Examples:

    • Fuel Use

    • Refrigerant Leakages

    • Direct Emissions and Removals from Land Use

  • Indirect Emissions from Imported Energy

    Examples:

    • Purchased Energy

    • Purchased Heat

    • Purchased Steam

  • Indirect Emissions from Transportation

    Examples:

    • Business Travel

    • Staff Commute

    • Freight Transport

    • Transport Clients and Visitors

    • Downstream Transport and Distribution Losses

    • Refrigerant Use (from chilled transport or air conditioner)

    • Upstream Emissions from Fuel Manufacture and Distribution – well to tank)

  • Indirect Emissions from Products and Services used by the Organisation

    Examples:

    • Electricity Transmission and Distribution Losses

    • Working from Home

    • Water Supply and Wastewater Treatment

    • Materials and Waste

    • Emissions generated through Leased Assets

    • General services used e.g. cleaning, consulting, maintenance, mail delivery, bank etc

    • Upstream Leased Assets

  • Indirect Emissions Associated with the Use of Products and Services from the Organisation

    Examples:

    • Total Expected Lifetime Emissions from the Product Sold

    • End of Life Stage Emissions

    • Downstream Franchises/Leased Assets

    • Emissions from Investments (Targeting Private or Public Financial Institutions)

  • Indirect GHG Emissions

    Examples:

    • Specific Emissions or Removals can’t fit into another Category

Reduction

As part of gaining your Climate Action Label, we will develop a Carbon Emissions Reduction Plan, to identify practical opportunities to reduce emissions, and set a reduction target.

Carbon Emission Reduction Plan

A carbon emissions reduction plan (CER) is used as a roadmap for making decisions and prioritising actions. Your CER will contain:

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Emission inventory

An overview of your current GHG emissions.

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Timeline

A schedule outlining the sequence of actions and milestones to be achieved.

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Goals and targets

Clearly defined objectives and targets for reducing GHG emissions, based on a specific time frame, such as reducing emissions by a certain percentage by a particular year.

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Monitoring

Mechanisms for tracking progress towards emission reduction goals, as well as regular reporting on achieved outcomes.

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Reduction activities

The actions needed to reduce emissions. This can include energy efficiency enhancements, renewable energy adoption, transport changes, waste management improvements, and more.

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Financial and resource allocation

A consideration of the financial resources required to implement the plan, including budgetary allocations, potential funding sources, and cost-saving opportunities.

Setting science based targets to reduce your emissions

We’ll help you understand what a Science Based Target is, and how your business can create a reduction target aligned to global best practice, aiming to limit global warming to 1.5°C.

setting science based target  sbti 1.5 degree

Setting science based targets to reduce your emissions.

We’ll help you understand what a Science Based Target is, and how your business can create a reduction target aligned to global best practice, aiming to limit global warming to 1.5°C.

Offsetting

If your organisation chooses to offset some or all your emissions by buying carbon credits as well as reducing them, we’ll guide you to find the options that fit your values, budget, and objectives.

Take climate action.

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