The Limitations of Standard Emission Factors in Decarbonisation Efforts

Sep 17, 2024

Polestar Emissions Decarbonisation 2

In the global crusade against climate change, decarbonisation – the vital reduction of carbon dioxide emissions – stands as a paramount goal for both companies and countries. However, the methodologies utilised to measure and diminish these emissions often spark debate. Enter standard emission factors, a common approach leveraging averages to estimate emissions from specific activities like burning fuel. While seemingly convenient, these factors harbor significant limitations that can impede decarbonisation efforts.

Understanding the Limitations of Standard Emission Factors

Standard emission factors, derived from averages, may not accurately reflect the emissions of a given activity. Rooted in national or regional data, they often overlook the nuances of local practices and technologies. For instance, electricity generation emissions can vary drastically based on energy source mix, from gas to renewables. This reliance on standard factors for electricity could result in either overestimation or underestimation of a company’s emissions, contingent upon its energy mix.

The Pitfalls of False Progress with Emission Factor Limitations

Standard emission factors can breed a deceptive sense of progress. Companies might report reduced emissions by shifting to activities with lower standard factors, sans substantive changes to their carbon footprint. This phenomenon, termed ‘carbon leakage,’ merely relocates emissions rather than truly curbing them.

The Power of Primary Activity Data

An alternative approach involves leveraging primary activity data – specific data on a company’s actual activities. This encompasses precise details like fuel type and quantity, machinery efficiency, and vehicle mileage. By employing such data, companies can compute emissions based on their real practices, yielding more accurate insights.

Embracing Innovation Through Data

Though necessitating greater effort and resources, the shift to primary activity data unlocks a trove of benefits. It not only enables companies to pinpoint effective emission reduction strategies but also fuels innovation as they strive to refine processes and technologies. Moreover, it fosters transparency and credibility in decarbonization endeavours, bolstering stakeholder confidence in reported data.

Polestar’s Exemplary Approach to Decarbonisation

Polestar, the Swedish electric performance car brand, exemplifies the power of data-driven decarbonization strategies. By prioritising transparency and accuracy in emissions data, Polestar has achieved remarkable reductions in its carbon footprint. Through data collection and analysis, Polestar has not only refined its emissions reporting but also identified avenues for further reductions.

Advancing Toward a Sustainable Future

While standard emission factors serve a preliminary purpose, they fall short in facilitating meaningful decarbonisation. The shift to primary activity data is imperative for driving real, measurable reductions in carbon emissions. Let us embrace this shift, leveraging data as a catalyst for change in the global fight against climate change.

Partnering for Success Beyond Standard Emission Factor Limitations

As companies increasingly acknowledge the limitations of standard emission factors, the need for tailored decarbonisation strategies becomes apparent. Evolveable Consulting stands ready to assist, offering specialised guidance in crafting and implementing robust decarbonisation data strategies. Partner with us to unlock the full potential of primary activity data and chart a course towards sustainable, emissions-free operations.

Share it on

Read the recent articles

Reverse Logistics: The Backbone of Circular Business Models

In today's era of sustainability and resource efficiency, circular business models have emerged as promising solutions to reduce waste and maximize value. Central to these models is reverse logistics, a critical yet often overlooked component that enables the circular...

read more

Embracing the Circular Economy: Rethinking Sustainability

Rethinking Sustainability: The Circular Economy Imperative In today's business landscape, the circular economy has emerged as a crucial model for rethinking sustainability. It emphasizes the reuse and recycling of resources to create a closed-loop system. However, a...

read more