Coolset is using an hybrid approach for calculating carbon emissions by integrating financial data with activity inputs. This hybrid method not only enhances the accuracy of emissions reporting but also provides a more nuanced view of a company's environmental impact. By understanding and applying activity inputs effectively, businesses can refine their sustainability strategies.
What are activity inputs?
Activity inputs refer to specific operational data that can impact the calculation of a company's carbon emissions. Unlike financial data, which provides a broad overview of expenses related to logistics, energy consumption, and other operations, activity inputs offer a detailed breakdown of the actual activities contributing to these costs. This can include data on the amount of fuel used, distances traveled by logistics providers, or kilo's of material purchased.
Types of activity inputs
Activity inputs can vary widely depending on the nature of a business's operations but generally fall into several categories:
Logistics and transportation: This includes data on the mode of transport (e.g., air, road, sea), fuel type, distance covered (km), and load efficiency.
Energy consumption: Information on the amount of electricity, gas, or other fuels consumed by facilities and offices.
Waste management: Data on the types and volumes of waste produced, including recycling and landfill figures.
Supply chain operations: Information regarding the production processes of suppliers, focusing on energy and resource use. Examples of resources are: metals, wood, paper, plastic and more.
When to use activity input
Activity input should be used whenever detailed operational data is available and can be accurately measured. It is particularly valuable for businesses with significant operational control over their logistics, supply chain operations, energy use, and waste management processes. By providing a more granular view of emissions sources, activity inputs allow for targeted reduction strategies and more transparent reporting.
Begin collecting activity inputs early if you're aware of the categories with the highest emission impact on your business. For those without such insights, it's recommended to initially rely on the spend-based method to identify which categories merit closer examination for more precise measurements. If uncertain, feel free to contact us for guidance.
Uploading activity input data in Coolset
1. Data Preparation: Start by compiling comprehensive records of all relevant activities. This step may require collaboration with your logistics providers, facilities management teams, or supply chain partners to gather accurate and detailed information.
2. Data Formatting: Before submission, format your data according to Coolset's specifications, ensuring it's in either XLXS or CSV format. Your data should include:
Date: Information should be organized by year, month, or transaction.
Amount: Quantities should be recorded in kilograms (KG), liters (L), or kilometers (KM).
Type of Activity Input: Describe the materials or resources used, such as specific types of steel, wood, fuel, etc.
Vendor Name: The name of the company or entity providing the material or service.
Supplier Specific Emission Factor: Include this data if it's available, as it enhances the accuracy of environmental impact assessments.
3. Submission to Coolset: Once your data is prepared and properly formatted, send the files to your designated Coolset representative via email. Our team will diligently upload your data, ensuring it replaces any relevant existing expense data.