Introduction
Sage Earth Carbon Accounting is designed to provide small and medium-sized businesses with a practical, and user-friendly way of measuring and managing their greenhouse gas emissions. We want to make carbon accounting simple and accessible to businesses without the need for specialised knowledge.
This help guide explains key elements of the Sage Earth Carbon Accounting methodology.
How our methodology works
Entering the data which becomes your business carbon footprint
Sage Earth Carbon Accounting uses data about your business, such as how much it spends on goods or energy, to calculate the greenhouse gas emissions caused by the operations of your business. The data collected is from your spend and your business activity. Manual data is all types of spend and/or business activity data that is entered by the user manually instead of being ingested automatically from the business' transactions/financial records.
Spend Data: Sage Earth Carbon Accounting can use an accountancy connection to automatically digest your business’s spend data, making data entry less time consuming. There is also an option to manually input this data - ensuring flexibility if you don't wish to connect your accountancy software, or you don't use a compatible accountancy method.
Manual Data: To calculate a complete carbon footprint some manual data entry is necessary. We also provide the option to enter manual data to increase the accuracy of your carbon footprint. Manual data entry is divided into modules:
Module | Description |
Energy | Fuel type, volume, and energy supplier data. |
Process emissions | Emissions from industrial processes, including chemical reactions. |
Fugitive emissions | Usage and leakage of cooling and refrigeration systems. |
Vehicles | Fossil-fuel and electric vehicle energy usage. |
Purchased goods | Emissions resulting from the production and transportation of goods purchased by the business. |
Purchased services | Emissions resulting from services acquired by the business. |
Water | Emissions related to business water consumption and wastewater treatment. |
Distribution (upstream) | Emissions related to the transportation and delivery of goods and raw materials before they reach the business. |
Waste | Emissions based on the type and quantity of waste generated. |
Travel and hotels | Emissions from business-related travel and hotel stays. |
Employee commuting | Emissions from employees traveling to and from work, including homeworking arrangements. |
Calculating Emissions
Data about your business, collected through Sage Earth Carbon Accounting, is multiplied by emission intensity factors (EIFs). EIFs provide an estimate of the greenhouse gas emissions released for different business activities such as the emissions per tonne of cement purchased, or the emissions per kWh of electricity purchased.
We use several data sources when calculating emissions. These sources include (but are not limited to):
UK Department of Energy Security and Net Zero
UK Office of National Statistics
European Environment Agency
Industry-specific carbon intensity factors
Our datasets are updated every six months to include new EIFs and improve calculation accuracy.
Organising emissions into a carbon footprint
Once the emissions for all your business activities have been calculated, they are organised into categories of emissions depending on where they have originated from and how much control you are considered to have over them; these categories are called Scopes. Sage Carbon Accounting currently covers the following scopes and sub-scopes as defined by the Greenhouse Gas Protocol:
Scope | Sub-scopes |
Scope 1: Direct emissions from owned or controlled sources |
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Scope 2*: Indirect emissions from the generation of purchased electricity, heating, cooling, and steam. | Emissions from energy purchased by your business; this can be electricity, heat or steam. |
Scope 3: Other indirect emissions that occur in a company's value chain |
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*There are two methods which can be used to measure Scope 2 emissions:
The location-based approach calculates electricity emissions using the average carbon intensity of the national or regional electricity grid. It does not consider any renewable energy purchases, such as electricity purchased under green tariffs, by the user.
The market-based approach includes renewable energy purchases.
The Sage Earth Carbon Accounting methodology calculates location-based emissions only and does not currently support market-based calculations due to limitations identified with this approach.
What standards is our methodology based on?
Our methodology is based on the Greenhouse Gas Protocol Standard and can be used to calculate a carbon footprint in adherence with this standard, where all required manual data is included. For more information on how to generate a Greenhouse Gas Compliant carbon footprint; look at our Compliance Advice Article.
The Sage Earth Carbon Accounting methodology has been externally approved by Small World Consulting. Their approval confirms that, with the necessary data inputs, businesses can generate Greenhouse Gas Protocol-aligned carbon footprints for Scopes 1, 2 & upstream Scope 3.
If you are unable to collect some of the required manual data, our methodology will provide a carbon footprint estimate where possible. These estimates do not meet the Greenhouse Gas Protocol Standard; however, they are the best estimate of emissions that can be calculated with the data you have provided.
What emissions do we include in your carbon footprint?
Emission sources included
Sage Earth Carbon Accounting calculates emissions for Scopes 1, 2 and upstream Scope 3; your business may have emissions from downstream activities which are not currently covered; these include the emissions released by people using and disposing of your products.
Exclusions
Some business expenses are not included in the calculation of emissions, as per the GHG Protocol framework, as they don’t result in any measurable emissions. Some examples of these are:
Employee salaries
Taxes
Pension contributions
Greenhouse gases included
Greenhouse gas emissions calculated using this methodology include the six Kyoto Protocol gasses: Carbon Dioxide (CO₂), Methane (CH₄), Nitrous Oxide (N₂O), Hydrofluorocarbons (HFCs), Perfluorocarbons (PFCs), Sulphur Hexafluoride (SF6). Additionally, Nitrogen Trifluoride (NF₃). These emissions are calculated together and output as one figure in the unit of carbon dioxide equivalent (CO₂e).
Control Approach
There are several approaches to calculating emissions under the Greenhouse Gas Protocol Standard; our methodology uses the operational control approach. This means that all emissions from operations that your business "controls" are included in the footprint. Control is defined as having the “full authority to introduce and implement operating policies at the operation.”
Who can use our methodology?
The Sage Earth Carbon Accounting methodology is suitable for most small and medium-sized businesses, however it is not yet suitable for certain sectors and use cases, due to the types of emissions involved. These include;
Businesses calculating emissions to be reported under the Carbon Border Adjustment Mechanism (CBAM)
Forest, Land and Agriculture sectors
Carbon-intensive industries including steel, mining and fossil fuel production.
We do not currently support SMEs with sites across multiple countries wishing to calculate footprint from all of their operations.
Find out more:
Scopes