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A list of all frequently asked questions about carbmee's carbon management solution with the answers.

All questions about carbmee's carbon management solution

Frequently asked questions and their answers about EIS carbon management solution of carbmee.

Our product can be used by customers interested in measuring and reporting their carbon emissions. However, it goes beyond that. It was designed for reduction – helping customers to make data-driven decisions based on factual information about their value chain emissions and achieve net-zero targets in a cost-efficient way.

Most of our competitors’ platforms use spend-based calculation alone, which isn’t precise enough to include primary, operations data or provide results that can help companies identify actionable hotspots. Our approach is to use both spend-based and activity-based calculations for the most thorough and precise results possible. 

We provide spend-based calculation to set a baseline for Scope 1 and 2 as well as to identify hotspots if needed. At the same time, we guide our users towards collecting and growing their emissions data within the organization and increasing activity-based data coverage. 

We provide activity-based calculation to tackle emissions that can be the most difficult to measure throughout the value chain, i.e. Scope 3. While many competitors avoid using activity-based calculations due to their complexity, carbmee has streamlined the process, to deliver on results that are 30% more accurate and actionable insights for carbon reduction strategies. 

What makes carbmee different from its competitors?

We have developed our own categorization for how we break down all of your company’s emissions, which are:

      Company Carbon Footprint...

calculates CO2e emissions across your entire company, i.e. all suppliers, internal processes and products;

covers all phases of the company, i.e. Scope 1, 2, and 3;

fulfills regulatory and sustainability reporting requirements;

enables identification of strategic reduction opportunities.

Product Carbon Footprint...


enables carbon reduction along the product development process;

commonly required to win tenders, report on progress, and comply with regulations.

Supplier Carbon Footprint...


calculates climate impact across all suppliers;

covers all phases of the supply chain, i.e. Scope;

identifies cross-supplier/category reduction opportunities;

enables collaboration with suppliers for joint carbon reduction.

What kind of carbon footprints do you calculate?

Yes, our solution is system-agnostic and can integrate with any ERP system.

Can we integrate our ERP system data directly into carbmee’s EIS™ platform?

Yes, our solution provides precise information for compliance with major sustainability reporting standards like GRI, CDP, and GHG Protocol.

Can I use international reporting frameworks?

While Excel is the classic solution for formatting, organizing and calculating data, it is also entirely manual – not at all optimized for the complexity of corporate carbon management. 

Carbmee’s EIS™ Carbon Management Solution automates carbon management, not only making carbon management easier but also delivering on: 

calculations 80-90% faster than with Excel;

the opportunity to collaborate on data collection – streamlining data from multiple sources (e.g. suppliers, various internal teams, etc.);

a variety of features built for reduction like analytics for easy hotspot identification, an initiative planner for planning reduction path and high ROI initiatives, as well as automated reporting.

Why is carbmee better than my company’s internal excel solutions?

We use a variety of databases, including comprehensive activity-based databases such as ecoinvent, as well as industry specific ones such as carbon minds and Exiobase for clients in need of spend-based carbon calculations.

Which database do you use for emission calculations?

Yes, all of our 3rd party database partners provide transparent and auditable data on request.

We have different packages that can be set-up based on customer’s needs and value chain complexity. Talk to one of our decarbonization experts to get a quote for your company.

FAQ about our product and solution

All answers about carbeem's carbon managemnt software and how we help organisations decarbonize.

Carbmee sits at the nexus of technology, digitization, and sustainability, with the vision of driving the sustainable transformation of businesses with environmental intelligence in order to achieve net-zero by 2050. Carbmee’s Environmental Intelligence System ™ (EIS) is an enterprise software solution for value chain carbon management, specializing in Scope 3 emissions analysis and reduction potential.

Carbmee’s EIS™ Carbon Management Solution is not just a reporting tool or an offsetting platform – our Solution is about integrating operational ERP data to identify where to abate emissions at their source and managing carbon reduction initiatives as effectively as possible. By linking emissions from materials, transactions, logistics, and supplier data to globally recognized standards and methodologies, our Solution calculates carbon footprints down to a supplier-specific level. 

What is carbmee’s EIS™ Carbon Management solution?

We’re trying to make the biggest impact we can and that means working with some of the world’s largest companies, which also have complex supply chains (i.e. companies with significant Scope 3 emissions). We also work directly with suppliers to analyze and verify their carbon footprint.

What kind of companies does carbmee work with?

The climate crisis is intensifying and with it so is the need for companies to comply with regulations, but also to develop more resilient supply chains, lower their climate risk, and continually make their operations more sustainable overall. Our Solution gives companies the chance to not only fulfill their emissions reductions pledges, but to truly operate carbon-aware now and far into the future.

Why should my company decarbonize its value chain?

Scope 1 emissions are direct emissions from owned or controlled sources.
Scope 2 emissions are indirect emissions from the generation of purchased energy. 
Scope 3 emissions are all indirect emissions (not included in scope 2) that occur in the value chain of the reporting company, including both upstream and downstream emissions.

About carbmee & decarbonization

Details about how carbmee can help you in your decarbonization journey and how our EIS carbon management software can help reduce your carbon footprint.

Our team is composed of industry experts specialized in procurement, business consulting, technology, and more. This means we have the domain knowledge to understand our customers’ challenges and needs – and the know-how to solve them.

To ensure our customers are able to have the greatest impact on their net-zero journey, we also provide:

one-on-one guidance and recommendations on how customers can start and level-up their decarbonization;

online courses that explain what net-zero is and how to use our product from end-to-end of your enterprise;

webinars and events with industry experts, focused on net-zero for both the planet and your company’s sustainable business performance.

How does carbmee support teams from end-to-end of your enterprise?

Yes, our Consultancy Partners are key in supporting our joint customers to eliminate implementation barriers, maximize low-carbon capacity, and achieve breakthroughs in sustainable business performance. 

We are a consultancy firm interested in EIS™ Carbon Management for our clients’ projects. Can we partner with carbmee?

Yes, carbmee provides both personal support from our Customer Success Managers but also through our interactive learning platform, carbmee Academy. Customer Success Managers ensure that every customer is guided through:

their decarbonization journey, i.e align use of Carbmee with business goals and strategy;

how to leverage EIS Carbon Management to achieve meaningful carbon reduction goals;

mapping challenges to match for solutions, i.e. product discovery and co-development.

Is there support available when using EIS™ Carbon Management?

How carbmee can support you in meeting Net-Zero goals

Preparing for  CBAM: Strategies and Insights for businesses in the age of carbon pricing

Initiated on July 14th, 2021, CBAM is the world's first carbon border tax, a significant step towards achieving the EU's ambitious goal of net-zero greenhouse gas emissions by 2050. For businesses importing into the EU, CBAM means a paradigm shift in managing carbon emissions – a critical component now extends beyond EU borders.

In simple terms, CBAM is an import tariff linked to the carbon dioxide emitted during the production of specific goods. Starting January 2023, impacted importers must comply with new carbon reporting requirements. By January 2026, carbon import permits will be introduced, directly influenced by the EU's domestic carbon price.

Industries directly impacted include steel, aluminum, cement, electricity, and fertilizers, putting the automotive, construction, and packaging sectors under the spotlight. Chinese and Indian imports, for example, could see substantial price hikes. This is a wake-up call for businesses to evaluate their supply chains and ensure compliance with EU climate standards.

The phased implementation of CBAM provides businesses with time to adapt. Initial taxation will focus on direct emissions, with discussions for the inclusion of more goods and indirect emissions in the second phase starting in 2026. Proactive steps now can prevent businesses from facing substantial costs later.

EU importers must match the corresponding EU carbon price for their goods by purchasing CBAM certificates. These certificates, purchased from the EU country of trade, offset the carbon impact of imported goods. Annual declarations of emissions and corresponding CBAM certificates become mandatory, ensuring transparency and accountability.

CBAM aligns with the EU's Emissions Trading System (ETS), holding companies accountable for exceeding emission caps. For carbon-intensive EU manufacturers, CBAM levels the playing field against competitors without EU green standards, fostering fair competition and driving environmental standards higher.

Many businesses unknowingly contribute to carbon emissions through their supply chains, especially in the elusive scope 3 emissions. The key to CBAM compliance is understanding the full extent of emissions. The Environmental Intelligence System (carbmee EIS™) offers a solution to this challenge.

carbmee specializes in carbon management, offering a purpose-built platform, EIS™, designed for enterprises with complex supply chains. Recognized by Gartner as a Cool Vendor 2022 and featured in the Hype Cycle 2023 for Environmental Sustainability, carbmee EIS™ is the ideal choice for navigating CBAM compliance seamlessly. The platform has been designed to answer CBAM requirements in the easiest and fastest way possible.

Seamless Data Ingestion: Effortlessly data loading from ERP, customs, and eProcurement systems, streamlining the CBAM reporting process.

Optimization Made Easy: Identify and complete missing data with ease, eliminating the need for cumbersome questionnaires.

Precision in Calculation: Adhere to EU Commission guidelines, ensuring accurate and compliant emissions calculation.

Streamlined Reporting: Download quarterly CBAM reports in XML format, ready for submission to the EU.

carbmee EIS™: Your Trusted CBAM Compliance Partner

Andreas Schön, from Kärcher, a global leader in the cleaning technology industry, attests to the game-changing impact of carbmee EIS™. “We are deeply committed to our climate goals, and our approach is to set a realistic yet ambitious carbon reduction target that truly drives action across our entire value chain. carbmee EIS™ has provided us with the tools we need, such as measuring our emissions baseline and gaining transparency beyond our factory gates, to identify the most significant opportunities for reducing our carbon footprint.” Read the full story here. 

As the CBAM compliance journey unfolds, carbmee EIS™ stands as a reliable ally, guiding EU companies through complexities with precision and efficiency. It's not just a solution; it's an informed choice for businesses committed to sustainable trade practices.

In a world where staying competitive means staying compliant, carbmee EIS™ is your trusted partner in the CBAM compliance journey. Choose the future of sustainable trade with carbmee EIS™ and unlock your maximum carbon reduction potential.

carbmee and EY have collaborated on a whitepaper to help companies better understand CBAM's implications for business and how to best comply with the new regulations. Download the free Whitepaper 

In the ever-evolving landscape of global trade, sustainability has taken center stage, and the European Union's Carbon Border Adjustment Mechanism (CBAM) is leading the charge. As Chief Sustainability Officers, Chief Risk Officers, Chief Procurement Officers, and heads of sustainability, it's crucial to understand the implications of CBAM, its urgency, and how it reshapes the rules of international trade.

Mastering CBAM Compliance for Sustainable Trade with carbmee EIS

Navigate the complexities of CBAM compliance and sustainable trade with Carbmee EIS™. Learn how to adapt to the new carbon border tax and stay competitive in the global market.

Sustainable Trade 2.0: How businesses can keep up with CBAM Compliance?

The CSRD marks a watershed moment for corporate sustainability with far-reaching implications for how companies assess their own climate impact, as well as for the future of sustainability reporting in both Europe and globally. Organizations will need to devote significant time and resources to prepare for implementation of the directive within a short timeframe.

We’ve created a quick guide to help industry enterprises understand the most important points of the CSRD and how they can best prepare for it.

Corporate Sustainability Reporting Directive

The Corporate Sustainability Reporting Directive (CSRD) is an amendment and extension of the current Non Financial Reporting Directive (NFRD), under which large companies, banks and insurance companies with more than 500 employees are required to disclose information on their environmental and social impacts. The European Commission adopted a proposal for a CSRD in April 2021, with the aim of improving the quality of sustainability reporting and increasing transparency on the non-financial performance of companies for external stakeholders.

As the climate crisis has progressed, the EU is increasing its efforts to drive forward its transition to a sustainable economy. The CSRD strengthens the existing rules on non-financial reporting introduced in the Accounting Directive by the 2014 non-financial reporting directive (NFRD). The new regulations under the CSRD will bring important changes regarding scope and reporting requirements.

The scope of companies affected by the regulations will significantly be extended to apply to: 

All large companies, that is companies fulfilling 2 out of the three following criteria:
- Revenues surpassing EUR 40 million per year
- Total assets over EUR 20 million
- More than 250 employees

All companies listed on EU-regulated markets (except listed micro-enterprises)

This nearly quadruples the number of companies required to publish reports on the environmental and social impacts of their operations from 11,700 to about 50,000. 

What are the main differences between the CSRD and the existing NFRD? 

The CSRD will include more comprehensive sustainability reporting requirements and significantly expand the number of EU and non-EU companies subject to the EU sustainability reporting framework. Enterprises will provide detailed environmental and climate change information, but will now also be held accountable for reporting on a wider range of topics such as environmental rights, social rights, human rights, and governance factors.

The CSRD is mandatory for companies that meet in-scope criteria, which include: 

EU companies with over 250 employees and a net turnover of EUR 40 million

Non-EU companies with at least one subsidiary in the EU and a net turnover of more than EUR 150 million

Reporting requirements for the CSRD will be fully phased in before the end of the decade as follows:

reporting in 2025 on the financial year 2024 for companies already subject to the NFRD

reporting in 2026 on the financial year 2025 for large companies that are not currently subject to the NFRD

reporting in 2027 on the financial year 2026 for listed SMEs (except micro undertakings)

reporting in 2029 on the financial year 2028 for third-country undertakings with net turnover above 150 million in the EU if they have at least one subsidiary or branch in the EU exceeding certain thresholds.

To comply with the CSRD, companies will need to prepare a non-financial statement that includes information on their sustainability policies, risks, and results. This statement must be auditable by an independent third-party and be included in the company’s annual financial report.The specific content of the statement will vary depending on the size and sector of the company but could include policies and performance details, such as: 

a brief description of the company’s business model, strategy and sustainability risks and opportunities; 

implementation plans as they relate to the transition to a sustainable economy, measures taken to achieve climate neutrality by 2050 ( in line with the Paris Agreement), and exposure to coal, oil and gas-related activities;

double materiality, i.e. both the sustainability matters that affect the company and the impact of the company on the environment, market, and people; 

greenhouse gas emission reduction targets; 

policies in relation to sustainability (including incentive schemes); 

and the processes the undertaking used for due diligence in relation to sustainability issues, as well as the current and future negative effects of the business' operations and value chain.

What information will need to be disclosed?

Companies will need to compile their ESG disclosure information in accordance with the CSRD with guidance from the European Reporting Sustainability Reporting Standards (ESRS). During the drafting process, the ESRS referenced various ESG reporting frameworks and standards, including CDP, GRI, SASB, and others.

The ESRS will incorporate both universal and industry-specific standards, like many other comparable frameworks. The first set of ESRS reporting standards is expected to be adopted by June 30, 2023, and publication of ESRS sector-specific standards is anticipated by June 30, 2024.

Which reporting standard applies to the CSRD?

While the full extent of sanctions is not known, as penalties are defined at a member state’s discretion, organizations found to be in violation of the CSRD can expect serious administrative sanctions, with possible penalties including significant fines.

In the case of NFRD implementation by member states, fines in Portugal ranged from €50 to €1,500, while in Germany companies are fined up to either €10M, 5% of the annual turnover, or twice the amount of the profits gained/losses avoided because of the breach.

Other consequences of CSRD non-compliance could also include damage to brand reputation, a loss of investor and stakeholder confidence, as well as legal action taken by non-governmental organizations.

Will there be penalties or sanctions for not complying with CSRD?

While some details are in development, it is clear that implementing CSRD it will require significant resources, and most crucial for multi-national enterprises, will overlap in scope and diverge in content from region to region. Regardless of size, companies should prepare for CSRD by:

ensuring that key stakeholders across your company are familiar with CSRD sustainability disclosure requirements; 

staying up-to-date on EFRAG announcements and ESRS guidance for CSRD;

assessing how your company identifies and gathers sustainability-related information;

setting targets and KPIs with planned periods to evaluate progress and relevance;

utilizing the right tools to help you quantify and report your relevant sustainability information.

How can your company start preparing for CSRD?

carbmee EIS™ Carbon Management solution can help you to plan for success and prepare for the CSRD. Our platform provides you with everything you need to understand your baseline, set targets for emission reduction, develop transparent benchmarks, and report your progress through:

centralized and automated data collection from your existing ERP system;

industry-specific databases of emission factors that guarantees the highest accuracy;

hotspot-assisted target setting, benchmarking, and gap analysis so you have the best data to create compliant reports;

real-time and impact-oriented insights to help you deliver on targets in good time.

Download our CSRD guide for more information.

To learn more about EIS Carbon Management and what carbmee can do for your company, get in touch with one of our industry experts. 

How carbmee can help your enterprise to report in good time and in compliance?

What is the Corporate Sustainability Reporting Directive? What will it mean for your industry? How can your enterprise prepare for compliant reporting? Check out our quick guide to find out.

Corporate Sustainability Reporting Directive (CSRD):Quick Guide

Corporate Sustainability Reporting Directive (CSRD): A Quick Guide

Streamlined Energy and Carbon Reporting is a regulatory framework designed to help UK businesses meet global energy efficiency standards and greenhouse gas (GHG) emissions. It requires companies to report information on energy usage, carbon emissions, and efforts to improve these areas. It applies to all UK-incorporated quoted companies on stock exchanges, large UK-incorporated companies not quoted on exchanges, and large limited liability partnerships (LLPs). Companies also may elect to participate in SECR voluntarily as a means to improve their energy consumption and carbon footprint.

What Is Streamlined Energy and Carbon Reporting (SECR)?

SECR is intended to encourage businesses to be environmentally responsible. It aims to achieve this by raising companies’ awareness of energy costs, providing them with data they can use to pursue greater energy efficiency, and helping them reduce carbon emissions. With respect to carbon emissions, SECR is aligned with global standards promoting net-zero emissions, where companies’ output of greenhouse gases is balanced by carbon removed from the environment. 

SECR reporting is mandatory for all companies quoted on UK stock exchanges and all companies designed as large. The latter designation currently includes companies meeting at least two of the following criteria:

Annual turnover (or gross income) of at least £36 million

Balance sheet assets of at least £18 million or more

Large companies consuming less than 40,000 kWh of energy in a reporting period are exempt.

Electricity usage, both for powering operations and transportation

Gas consumption for both mobile and stationary activities

Transportation fuel consumption is used for purposes such as fueling company vehicles and minibusses

Emissions intensity ratio, which is a metric measuring emissions from one year to the next

The methodology used to calculate the required information

A narrative explaining steps being taken to improve energy efficiency

Prior year figures for comparison, when applicable

SECR reports are submitted to Companies House. Quoted and unquoted companies should include them in their annual directors’ reports. LLPs should submit an energy and carbon report with their annual reports. Companies, where energy use and carbon emissions are of particular strategic importance should include them in their strategic reports. Charitable organizations should include them in combined directors’ and trustees’ annual reports.

There is no prescribed reporting format. However, all reports should include all required elements, namely:

Annual energy use and greenhouse gas emissions

An emissions intensity ratio, using a metric selected by the company

Methodologies used to calculate the required information

A narrative on how the company is improving energy efficiency

Prior year figures for comparison, if available

Your reporting deadline is based on your company’s financial year and should be aligned with deadlines for your annual reports, as described above.

How the SECR Framework Reporting Process Works

Participating in the SECR framework, whether out of obligation or voluntarily, offers companies a variety of benefits. Some of the most important are:

Enhanced risk management and decision-making: reviewing energy consumption and carbon emission patterns can help companies understand and avoid the impact of risks stemming from wasteful energy usage and climate-based factors

Potential cost savings: monitoring energy consumption can help businesses reduce usage and increase energy efficiency, promoting savings.

Improved transparency and accountability: greater environmental transparency can be attractive to investors and consumers

Of course, if your business is required to file an SECR report, an additional benefit is achieving regulatory compliance and avoiding penalties for non-compliance.

Three Benefits of Participating in the SECR Framework

Failing to comply with SECR reporting regulations can trigger financial penalties. The Conduct Committee of the Financial Reporting Council can levy fines for non-compliance. Additionally, since reports are submitted with your annual reports to Companies House, that agency can reject your application and make you submit it again if you fail to include SECR information. This can trigger late filing penalties from £150 up to £7,500, depending on the size of your company and how late you end up filing.

Consequences for Non-compliance with the SECR Framework

When preparing your SECR filing, you may run into several common challenges:

Gathering accurate and complete data on energy and carbon emissions can be time-consuming and resource-intensive, especially if you don’t have an automated system in place to collect the information.

There may be discrepancies in the methods used to measure and report emissions, leading to inconsistencies in your reported data.

You may encounter difficulties in accurately accounting for emissions from complex supply chains or operations, which you’ll need to know to provide information on indirect emissions from sources you don’t own or control which aren’t energy providers (Scope 3 emissions).

The best way to overcome these challenges is to consult professional advisors and use enterprise-quality carbon management software with Scope 3 tracking capability.

Potential Challenges in Reporting Energy and Carbon Emissions

The SECR framework requires affected UK businesses to report information about energy usage, greenhouse gas emissions, energy efficiency progress, and steps to improve consumption. Staying in compliance with the framework requires access to all relevant data and an accurate methodology for analyzing data.

Using carbon management software, you can automate the process of collecting and analyzing the data you need and preparing your reports. Smart software can also help you identify opportunities to improve energy efficiency and reduce emissions. The carbmee platform is designed to help you achieve SECR compliance by automating your data collection, identifying opportunities for energy optimization, and producing reports to demonstrate your progress over time. We also provide an online knowledge base and answers to FAQs to help you find the necessary information to achieve compliance. Book a free demo to see how our solution can help you and discuss your company’s needs with our industry experts.

Improve Your SECR Compliance With carbmee

Streamlined Energy and Carbon Reporting regulations govern UK companies quoted on stock exchanges and larger non-quoted businesses. What does it mean for your business, and what do you need to do to comply? Check out our quick guide to find out.

SECR Reporting: A Quick Guide

Learn about Streamlined Energy and Carbon Reporting (SECR) regulations in the UK and how to comply with this quick guide. Stay informed

Streamlined Energy and Carbon Reporting (SECR): A Quick Guide

Estimates can vary depending on what’s included, but approximately 51% of global emissions come from the industrial sector. This figure is one that motivates our team of industry, software, and carbon experts everyday to understand the challenges of the world's largest enterprises with some of the most complex supply chains.

While corporate understanding of emissions is still relatively new, both accounting and sustainability professionals have been familiar with LCA and Carbon Accounting for many years. These approaches are both relevant to corporate sustainability but were initially designed for different use cases. Life cycle assessment (LCA) is used to assess the environmental impacts of product systems and decisions, often driven by customer requests or regulatory requirements. Meanwhile, Carbon Accounting measures how much carbon dioxide (and CO2 equivalents) an organization emits and often fulfills requirements for non-financial reporting. This form of accounting was mostly developed in the last two decades with the intent of providing a factual basis for carbon-conscious decision-making. However, it's true efficacy until recently is unclear, given that companies had often based their carbon accounting on speculative upstream and downstream emissions (Scope 3). This means that with inaccurate information – but good optics – carbon accounting has been strongly driven by publicly listed companies for reporting purposes and not for decision-making.

LCA was developed for a highly granular assessment of environmental impacts – which makes for reliable carbon footprint models. These assessments require complex data collection processes, involving a high level of manual entry as well as low level of technical innovation. Traditionally, these models were created externally through specialized consultancies or internally by LCA experts with a background in environmental engineering. Carbon Accounting has a fairly simple data collection process that can consist of information such as energy bills, vehicle mileage, or company facility needs, for example. But as this information doesn’t provide the full scope of a company’s activities or supplied goods, it is not useful when it comes to reduction planning and decision-making (beyond participating in the voluntary carbon market to buy carbon credits which is not ‘ultima’ ratio for energy-intensive industries). This is especially the case for industrial companies that rely on processes like assembly, smelting or those with extensive supply chains. Beyond that, frameworks for carbon accounting are very broad when it comes to database and methodology choices, which has often been exploited by companies that have only felt compelled to do the bare minimum in regards to time and resource allocation. 

If we stand a chance of decoupling economic growth from emissions we need precise data and reliable processes. While addressing Scope 1 and Scope 2 emissions has been the low-hanging fruit for many companies, Scope 3 still needs to be urgently addressed and is now re-emerging as an urgent topic. Fortunately, the U.S. Securities and Exchange Commission, European Commission, and other governing bodies understand the importance of a net-zero future and are now mandating companies to disclose the carbon footprints of their entire value chains, from end-to-end. When it comes to transforming into a net-zero enterprise, companies are finding it challenging to navigate which approaches are best for them to comply with established and new regulations – and understandably find it challenging to understand the current market stance. If that wasn’t complicated enough, there’s also the question of determining whether a Product Carbon Footprint is enough for their reporting and compliance needs, or if what they need is to have a holistic measurement of their entire Corporate Carbon Footprint, but that’s another topic for another day…

Most enterprises face similar obstacles when it comes to their net-zero transformation:

Lack of focus, with little to no clarity on emissions hotspots

Scattered data located across several different ERP and production systems

Managing massive amounts of data, especially in Scope 3 (this includes purchasing transactions, BOMs and supplier data)

Dynamic decision-making supported by forecasting and reduction tracking

Understanding the financial link between carbon optimization and ROI

Execution of SBTI Targets and Net-Zero Strategy

Knowing the ins and outs of this breakdown is crucial to understanding which methodology is right for a company’s decarbonization strategy and it’s also how carbmee supports the world's largest companies to reduce their carbon emissions with one LCA-based, end-to-end carbon management solution, that puts companies in control of their net-zero transformation. 

I’d like to dig a bit deeper into differences within LCA and Carbon Accounting:

Understanding the best carbon reduction approach for industrial enterprises

The spend-based methodology utilizes environmentally extended input-output (EEIO) databases to calculate emission factors for different materials from different regions. These factors are based on spend and have the unit kg COv2e/€. 

The activity-based methodology uses an LCA approach, where emission factors rely on LCI databases and are calculated with the method recommended in the GHG protocol to arrive at global warming potentials for different materials and services. For the activity based approach, ecoinvent models are used as they are, without further changing them. They are chosen based on their best fit to the used materials or services.

The supplier-specific approach works the same way as the activity-based one, but here generic data from the database is replaced by or enriched with primary data from the customer or supplier. This allows to not only calculate emissions more accurately, but also to recommend to-dos to achieve emission reductions. 

Spend-Based Vs. Activity-Based Calculations

A manufacturing OEM is doing a spend-based analysis of their Scope 3 Emissions, based on spend data. They purchased 500 tonnes of Aluminium for their production process on the 2nd of September 2022, from both a Chinese and a European supplier. Each time, they paid a price of 2,300 €/tonne, which amounts to 1,150,000 €.

The resulting footprint is 3,307,895 kg CO2e for the European supplier and 4,431,767 kg CO2e for the Chinese supplier, due to different energy mixes in the regions.



The same company bought the same amount of Aluminium from their European supplier on the 4th of March 2022, and paid a price of 3,516 €/tonne, which amounts to 1,758,000 €.

The resulting footprint is 5,056,764 kg CO2e.


The drawbacks of the spend-based approach are:

a. that these calculations can't be broken down into material, transport, production steps, energy consumption - so ultimately, it's not designed to identify reduction paths or go deep along the entire value-chain.
b. and the inaccuracy that can come from material price fluctuations & negotiation processes, so spend can change dramatically, even though consumption is steady.

A manufacturing OEM is doing an activity-based calculation of their Scope 3 Emissions, based on purchasing transactions (volume + material) and transport method. 500 t of Aluminium are purchased from Europe and China.  

The Best Carbon Reduction Approach for Industrial Enterprises

Decarbonization presents complex challenges for industry companies and the market of solutions, both for software and hardware, is still quite young and sometimes not clearly defined.

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Contact our Decarbonization Experts

Ready to accelerate your decarbonization journey?

Contact our Decarbonization Experts

Ready to accelerate your decarbonization journey?

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