/climate-reporting section 2026-03-05T16:49:31+01:00 # Climate Reporting Find useful information about our climate reporting tool for your ERP or accounting system. /climate-reporting/introduction section Find useful information about our climate reporting tool for your ERP or accounting system. 2026-03-06T07:52:37+01:00 # Introduction to climate- and sustainability reporting Find useful information about our climate reporting tool for your ERP or accounting system. Ducky and Visma Software simplifies climate and sustainability reporting for businesses through ERP integration /climate-reporting/introduction/short-intro page A brief introduction to how Ducky and Visma Software simplify climate and sustainability reporting for businesses through ERP system integration. 2026-03-06T07:52:37+01:00 # Getting started with Climate Reporting A brief introduction to how Ducky and Visma Software simplify climate and sustainability reporting for businesses through ERP system integration. ## Easier sustainability reporting for small and medium-sized enterprises Ducky develops, in collaboration with Visma, a tool specially designed to help small and medium-sized companies get started with sustainability management and reporting in their business. The product will be launched at the Visma tech festival on 12 September, and will be made available to all Visma Software customers. ## What is included at launch? The tool is launched with a sustainability reporting module, which gives you as a customer an automatic overview of emissions from your business, by connecting you to your accounting system (available with Business NXT integration at launch). A detailed overview of money spent in the business (also called the spend method) is used to calculate the emissions from various accounts in the accounting system using the SAF-T ID. In addition, you as a customer will be able to increase the precision of the data by adding activity data with integration such as Visma Expense and Elhub. The sustainability reporting module gives you as a customer an automatic overview of climate emissions from your business in a dashboard, and the option to download your climate report to be shared or further worked on in Excel. The climate report that is downloaded is structured in GHG protocol format, with emissions divided into Scope 1, 2 and 3. ## What about other sustainability information? Functionality will be launched continuously, which you as a customer will have access to. During 2025, Climate Reporting will offer a full sustainability management system that covers the reporting needs that small and medium-sized businesses have from customers, financial partners, owners, banks or certifications, by extracting data that exists in your ERP system (A-message , Expense, Electric hub etc.) and little manual inputs. ## How can I test this already? There is a few available spots for pilot testing, please contact us at [support@ducky.eco](mailto:support@ducky.eco) if you are interested in testing before it becomes available on the market. --- /climate-reporting/introduction/what-are-the-drivers page Explore the key drivers and motivations for climate and sustainability reporting in the Norwegian SME market, including legal requirements, market access, and competitive advantages. 2026-03-06T07:52:37+01:00 # Overview of the Primary Drivers for Climate Reporting in the Norwegian SME Market Explore the key drivers and motivations for climate and sustainability reporting in the Norwegian SME market, including legal requirements, market access, and competitive advantages. ## Get an Overview of the Primary Drivers for Climate and Sustainability Reporting in the Norwegian SME Market ## Introduction **Why climate and sustainability reporting – what is the long-term goal?** Small and medium-sized enterprises (SMEs) play a vital role in the transition to a more sustainable and inclusive economy. By addressing environmental, social, and governance (ESG) challenges—such as greenhouse gas emissions—these companies can strengthen their competitiveness and better prepare for the future. Climate and sustainability reporting helps businesses meet the requirements of investors and lenders, while simultaneously providing necessary data to larger corporations requesting sustainability information from their suppliers. This makes it easier for SMEs to access financing and compete in an increasingly challenging market that often favors large corporations. ### What is Sustainability Reporting? Sustainability reporting involves documenting and sharing standardized information about how a company impacts the environment, society, and how it is governed (often referred to as **ESG** – Environmental, Social, and Governance). Companies that report transparently provide customers, investors, and other stakeholders with a better understanding of the company's impact, risks, opportunities, and performance. ### What is Climate Reporting? Climate reporting involves mapping greenhouse gas emissions across the company’s entire operations. While it is just one part of sustainability reporting, it is often time-consuming and complex. Climate reporting is typically divided into "Scopes," which categorize direct and indirect emissions: * **Scope 1** covers the company's **direct emissions** from production and transport. This can include fuel combustion in factories to produce energy, production and process emissions, refrigerant leaks, and the use of company-owned vehicles. * **Scope 2** covers the company's **indirect emissions from purchased energy**, including electricity consumption, district heating, steam, and cooling. * **Scope 3** addresses **indirect emissions from the company's value chain**. This includes all emissions from business travel, events, and the purchase and sale of goods and services (both up- and downstream). In most cases, climate reporting requires robust management of all areas affecting emissions—such as energy consumption, fuel use, and procurement. Historically, this has involved significant manual labor, often requiring full-time resources that only the largest companies could afford. ### Why is Climate and Sustainability Reporting Important for SMEs? Climate and sustainability reporting is becoming increasingly essential for the survival of SMEs. It helps them compete against larger firms with better sustainability scores, win tenders, retain key contracts with major customers, reduce risk for partners, and protect their reputation. By working systematically with climate and sustainability, businesses contribute to solving global problems while becoming more resilient. Here are the primary reasons why SMEs should report: * **Requirements from Partners and Customers:** Large corporations are already mandated to report on sustainability, which affects smaller businesses in their value chain. SMEs may be asked to demonstrate how they reduce sustainability risks to maintain these partnerships. * **Access to Financing:** Banks and investors increasingly set sustainability criteria for loans and investments. SMEs that document their efforts have a better chance of securing capital and obtaining favorable terms. * **Consumer and Employee Expectations:** Today’s consumers and employees expect companies to take responsibility for environmental and social issues. Transparency builds trust and a strong brand. * **Legal Requirements:** The EU and Norway have passed laws requiring sustainability considerations in business, such as in public procurement. Even if an SME is not directly mandated to report, they will be affected as large companies must collect data from their suppliers. * **Climate Change Impacts:** Extreme weather, supply chain disruptions, and damaged infrastructure pose real risks. Systematic sustainability work helps SMEs prepare for these risks while uncovering new opportunities for innovation. --- ## How Does Sustainability Reporting Work? Sustainability reporting consists of three main components: **frameworks, standards, and protocols.** * **Frameworks:** High-level guidelines that help companies identify what to report (e.g., **GRI** or **CSRD**). They aim to improve transparency and accountability. * **Standards:** Detailed instructions on *what* must be reported, such as specific metrics for emissions or water use. The most prominent today is the **ESRS** (European Sustainability Reporting Standards). * **Protocols:** Practical methods or tools for *how* to collect and calculate data consistently. The most well-known is the **GHG Protocol**. In short: Frameworks explain **why** (principles), standards tell you **what** (requirements), and protocols show you **how** (methods). --- ## Who Must Report Today? The largest listed companies have included sustainability in their annual reports for years. The scope of the EU's **CSRD** is expanding; from January 1, 2024, all companies with more than 250 employees, high turnover, and/or significant equity are included. These firms must submit reports for the 2024 fiscal year in 2025. This affects approximately 2,000 companies in Norway, plus all their subsidiaries. There are over 650,000 SMEs in Norway. While it is uncertain exactly how many are indirectly affected by these mandates today, the number is growing. We expect most businesses will encounter reporting requirements by the end of 2027. --- ## Practical Implications for Norwegian SMEs ### 1. Applying for Bank Loans Banks face regulatory requirements to collect sustainability data from customers. * **EU Taxonomy & GAR:** Banks must report their "Green Asset Ratio" (GAR). It is cheaper for banks to lend to "green" projects, which can translate into better interest rates for you. * **Green Loans:** Many banks now offer differentiated terms for projects that reduce emissions or energy use. * **Risk Assessment:** As large corporations, banks must report on their own value chains, meaning they will request climate accounts from borrowers to assess risk. ### 2. Reporting to Owners Financial investors are also subject to the EU Taxonomy. SMEs with professional investors will encounter demands for both direct (Scope 1 and 2) and indirect (Scope 3) climate data. Within corporate groups, the **CSRD** is the strongest driver, as parent companies must account for all subsidiaries in detail. ### 3. Winning Contracts and Retaining Large Customers This is where most SMEs meet reporting demands today. * **Value Chain Accountability:** Large customers are legally obliged (via CSRD, the Norwegian Transparency Act, or CSDDD) to account for risks in their supply chain. * **Code of Conduct:** Most large companies bake "Code of Conduct" clauses into contracts. Some require certifications like **Eco-Lighthouse (Miljøfyrtårn)**, **ISO 14001**, or **SBTi**. * **The Transparency Act:** Companies with 50+ employees may be directly covered, but all are affected indirectly as customers seek to identify risks regarding human rights and working conditions. ### 4. Public Procurement and Tenders Public entities in Norway are now mandated to weigh climate and environment at **30%** in most tenders. While certifications are often used as qualification requirements, a specific **climate budget** for a project can earn you points and win you the contract. --- ## The Role of the ERP Provider ERP systems already contain much of the data needed for sustainability reporting. Data in these systems is traceable and standardized, which is a major advantage for auditors and banks. * **Accounting Data as a Starting Point:** The general ledger provides a standardized overview of spending, which is an excellent basis for estimating emissions. Using audited financial data significantly reduces the risk of error compared to manual spreadsheets. * **Integration and Automation:** The next step involves integrating smart power meters and expense systems for business travel. This replaces estimates with actual **activity data** (kWh, kilometers). The ERP provider is an expert in their own system and serves as a vital partner in guiding customers toward accurate sustainability accounting. The potential for efficiency and increased competitiveness for SMEs is enormous. ## Summary It is vital for SMEs to prepare for the requirements coming from various stakeholders. These challenges are already here: lack of security for "green" loans, lack of capacity to apply for grants, and losing tenders to larger competitors with established management systems. **Ducky Climate Reporting** aims to help small and medium-sized enterprises maintain their competitiveness and simplify the transition to becoming a greener business. --- /climate-reporting/introduction/common-abbreviations page An overview of commonly-used abbreviations and acronyms in climate and sustainability reporting, with short descriptions of what they mean. 2026-03-06T07:52:37+01:00 # Commonly-used abbreviations An overview of commonly-used abbreviations and acronyms in climate and sustainability reporting, with short descriptions of what they mean. ## Commonly-used abbreviations In this article you can find the most commonly-used abbreviations in the context of climate and sustainability reporting, including acronyms and short descriptions. * **EFRAG (European Financial Reporting Advisory Group):** The EU organisation responsible for standardising financial and sustainability reporting. * **CSRD (Corporate Sustainability Reporting Directive):** EU regulation which requires large companies to do sustainability reporting. In Norway this affects about 1200 companies. Put into effect through a recent update for the [Norwegian Accounting Act.](https://lovdata.no/dokument/NL/lov/2024-06-21-42) * **LSME (Sustainability Reporting for Listed SMEs):** The upcoming EU regulation which requires listed small and medium sized companies to do sustainability reporting (only about 70 in Norway). * **VSME (Voluntary Reporting Standard for SMEs):** The upcoming EU standard for voluntary and simpler reporting for all non-listed small and medium sized companies (tens of thousands in Norway). [See the EFRAG website](https://www.efrag.org/en/projects/voluntary-reporting-standard-for-smes-vsme/concluded) for the concluded project details. In the most recent updates autumn 2024 the draft standard was simplified substantially, postponing the business partner reporting module. * **ESRS (European Sustainability Reporting Standards):** Set of reporting standards and guidelines that companies must follow to meet the requirements of the CSRD. * **ESRS-LSME (ESRS for Listed SMEs):** The EU standard for simplified sustainability reporting for small and medium sized companies that are listed on the stock exchange. Might be useful for daughter company reporting to mother/consolidated group reporting. * **ESEF (European Single Electronic Format):** An established EU standard format for both financial and sustainability reporting. It serves many purposes, including the standardisation of XBRL. * **XBRL/iXBRL ((inline) eXtensible Business Reporting Language):** Global standard for digital reporting. It is the standardized file format for electronically communicating financial and business data. Used for, among other things, CSRD reporting. Exists in both a purely machine-readable XML format and an inline-format which can also be viewed in a browser. XBRL-software (e.g., Arelle, CoreFiling) can allow us to experiment and create draft files. * **ESRS XBRL Taxonomy:** Enables companies to digitally tag their sustainability reports in compliance with ESRS. Tagging rules will be adopted later but meanwhile we can apply provisional tags from ESRS. [See the EFRAG website](https://www.efrag.org/en/projects/voluntary-reporting-standard-for-smes-vsme/concluded) for current developments. Currently being implemented by Altinn for CSRD reporting file upload in 2025. * **SAF-T (Standard Audit File-Tax):** An electronic exchange standard in XML file format to report business transactional data between companies and external parties such as tax administrations, auditing systems and others. Luckily, it can be exported from any accounting system. The new [v1.3 standard valid from 2025 can be found on Skatteetaten.](https://www.skatteetaten.no/en/business-and-organisation/start-and-run/best-practices-accounting-and-cash-register-systems/saf-t-financial/) * **CSDDD (Corporate Sustainability Due Diligence Directive):** Upcoming EU legislation requiring due diligence from large companies to prevent adverse human rights and environmental impacts from their value chain (like the Norwegian Transparency Act but stricter). Will be a powerful driver for sustainability reporting from small suppliers to large purchasers. * **SMEs (Small and Medium Enterprises):** Companies that are NEITHER defined as micro or large in the [Accounting Act.](https://lovdata.no/dokument/NL/lov/1998-07-17-56/KAPITTEL_1#%C2%A71-5) Meaning they fulfill none or just one of these three criteria for large companies (yes it's hard to wrap your head around): * balance sheet total: NOK 290 million * sales revenue: NOK 580 million * average number of employees in the financial year: 250 full-time equivalents * **GHG Protocol (Greenhouse Gas Protocol):** Provides tools, standards and guidance to measure and track greenhouse gas emissions. * **ERP system (Enterprise Resource Planning system):** Any IT system used by companies to keep control of their resources, like accounts and inventories. * **NACE (European Classification of Economic Activities):** European Union’s industry standard classification system for economic activities. It is a four-digit classification providing the framework for classifying economic activities in the EU. /climate-reporting/introduction/vsme page Learn about the VSME standard for sustainability reporting, designed to simplify reporting for small and medium-sized enterprises and help them meet stakeholder requirements. 2026-03-06T07:52:37+01:00 # The VSME standard: simpler sustainability reporting for small enterprises Learn about the VSME standard for sustainability reporting, designed to simplify reporting for small and medium-sized enterprises and help them meet stakeholder requirements. **See what the newly launched VSME standard includes and how it can help your small or medium-sized business save money, strengthen your brand, and give investors, customers, and lenders exactly what they’re looking for.** Requirements for transparency around how companies treat the environment and their employees are becoming increasingly stringent. It is no longer only large corporations that are scrutinised – small and medium-sized enterprises (SMEs) must also demonstrate what they stand for. Investors, customers, lenders, and large clients expect facts to be put on the table. This is where the voluntary standard for sustainability reporting for small and medium-sized enterprises (VSME) comes into play. It is designed to help smaller businesses communicate their sustainability efforts – without drowning in paperwork or complex technical language. The VSME standard was submitted by the EU’s standard-setting body EFRAG to the European Commission on December 17, 2024. We expect the standard to be formally adopted by the Commission in the near future and to be implemented in Norway in a similar way to CSRD, which has already been incorporated into the Accounting Act. VSME is also compatible with the data standard underpinning CSRD, ensuring that information is as comparable as possible across companies. In this article, we explain the VSME standard in a clear and accessible way. We take a closer look at one of the most important areas in particular – B3: Energy and Greenhouse Gas Emissions. You do not need a team of consultants or weeks of heavy work to get started. There are tools available (such as NSRS and Ducky Climate Reporting) that help you collect data, perform calculations, and publish a report that is both robust and easy to understand – without costing a fortune. --- ## Why the VSME Standard? The VSME standard has been developed to give smaller businesses a clear path to high-quality sustainability reporting, turn sustainability into a competitive advantage, and reduce the burden created by today’s situation where different stakeholders demand different information. It is about demonstrating that your supply chain does not harm the environment, that employees are treated fairly, and that your business is not driven solely by short-term profit. For small companies, time and money are often scarce resources. Large, expensive ESG reports are simply not feasible. The VSME standard strips away unnecessary complexity and helps you focus on what truly matters. This makes it easier to meet the expectations of larger customers and lenders who are increasingly asking for more transparency. --- ### How is the Standard Structured? The VSME standard consists of two modules: **Basic Module:** A good starting point for the smallest companies or for the first reporting year. It covers essential topics such as energy consumption and working conditions. **Comprehensive Module:** For companies that want to go further. This module provides a more detailed picture of the company’s environmental and social footprint. All information must be relevant, honest, comparable, understandable, and verifiable. The goal is to provide an open and transparent view of how your business operates. --- ### What Does the Basic Module Contain? The basic module covers a range of topics, each with its own code: **B1 – Basis for Reporting:** How the report is structured. **B2 – Policies, Practices, and Future Plans:** Current sustainability measures and plans going forward. **Environmental Topics:** **B3 – Energy and Greenhouse Gas Emissions:** The main focus of this article. **B4 – Pollution:** Emissions to air, water, and soil. **B5 – Biodiversity:** Your impact on plants and wildlife. **B6 – Water:** Consumption and management. **B7 – Resource Use and Waste:** How materials and waste are handled. **Social Topics:** **B8 – Workforce:** Who works for you, employment types, and diversity. **B9 – Health and Safety:** Measures to protect employees. **B10 – Pay, Negotiations, and Training:** How employees are developed and rewarded. **Governance and Ethics:** **B11 – Corruption and Bribery:** Ensuring business is conducted with integrity. --- ### Focus on B3: Energy and Greenhouse Gas Emissions Why is B3 so important? Because climate change is a major global challenge, and energy use and greenhouse gas emissions are at the core of the problem. Even small businesses contribute. B3 helps you understand how much energy you use, how large your emissions are, and where improvements can be made. With these figures, you can make smarter decisions, reduce costs, and document that you take climate responsibility seriously. **What is Measured?** - **Total Energy Consumption:** Electricity, fuel for production, and transport, including a breakdown of renewable versus fossil energy. - **Direct Greenhouse Gas Emissions (Scope 1):** Emissions from sources you own or control, such as a gas-fired oven in production or a diesel-powered delivery van. - **Indirect Greenhouse Gas Emissions from Purchased Energy (Scope 2):** Emissions from purchased electricity and district heating, where the emissions occur outside your own operations. - **Emission Intensity:** Emissions per unit (for example, per million NOK in revenue) to track improvements over time and compare performance. --- ### An Example: From Nut Roasting to Energy Savings Imagine you run a small snack company that roasts nuts. You have electric ovens, one gas oven, and a delivery van. **Total Energy Consumption:** - Electricity: 100 MWh (100% renewable with guarantees of origin) - Natural gas: 50 MWh - Diesel: 10 MWh **Greenhouse Gas Emissions:** - You calculate emissions from gas and diesel and end up with 50 tonnes of CO₂ equivalents. - In this case, electricity results in zero emissions. **Emission Intensity:** - If your turnover is NOK 10 million, your emission intensity is 5 tonnes of CO₂e per million. - Next year, you might choose greener energy sources or a more fuel-efficient vehicle. The number should then decrease, demonstrating real improvement. --- ### Why Working with B3 Pays Off Measuring energy use and emissions is not just about pleasing environmentally conscious customers. It can also reduce costs. You might switch to LED lighting, adjust production schedules, or upgrade transport solutions. The result? Lower bills, reduced emissions, and a stronger brand. Your customers are not naïve – they recognise greenwashing when they see it. Quantified targets and real results build credibility. This makes it easier to secure loans, win larger contracts, and stay ahead of new requirements and regulations. --- ### No Need to Panic – Tools are Available Reporting can seem complicated, but there is no need to worry. Tools – including ours – guide you through the entire process. You do not need to dig out every electricity bill or perform manual calculations. Simply follow the instructions, enter the figures, and, just like that, you have a report that complies with the VSME standard. With the right tools, reporting does not become a repetitive annual burden. Instead, it becomes a useful management tool. You can track progress, identify inefficiencies, and plan effective improvement measures. It becomes more than just a report – it becomes your roadmap to a smarter, greener business. --- ### Other Topics: A Brief Overview B3 is important, but the rest of the standard also matters. Each section contributes to the overall picture: - **B4 – Pollution:** Understanding harmful emissions makes it easier to take action. - **B5 – Biodiversity:** Can small steps help protect local nature? - **B6 – Water:** Water is a limited resource. Insight today can prevent problems tomorrow. - **B7 – Resources and Waste:** Waste costs money. Less waste equals a stronger bottom line. - **B8–B10 – Workforce:** A good working environment creates loyal and motivated employees. - **B11 – Corruption:** Ethical business builds trust with investors, customers, and society. Over time, you can expand your reporting, explore more topics in depth, and become a true sustainability frontrunner within your niche. We should also mention NSRS.eu, a free tool that supports holistic sustainability work, including key processes such as materiality assessments. It is an excellent place to start. A special thanks goes to Regnskap Norge for leading the way and contributing valuable input and experience from the development of this tool to EU regulation. --- ### Why This Matters The VSME standard exists because the world is changing. Ignoring sustainability can cost you customers, financing, and, in the worst case, your business itself. This standard gives SMEs a simple, step-by-step way to meet new expectations. It also helps prevent greenwashing. With a shared standard, everyone knows what counts and what does not. This builds trust – with lenders, investors, large customers, and all other stakeholders you need to convince. At the same time, it is an opportunity to run a better business. If you have never measured energy use and emissions before, you may be missing easy wins. Perhaps warehouse lights are left on all night for no reason. Perhaps valuable materials are being discarded instead of reused or recycled. The data you collect can highlight improvements that strengthen competitiveness and deliver real savings. --- ### From Insight to Action Once you know the numbers, you can set targets. Should you cut emissions by 10%, increase the share of renewable energy, or reduce water consumption? Track progress and let next year’s report demonstrate improvement. That is the essence of sustainability reporting. --- ### Use a Tool That Makes it Easier We know time is limited. That is why we have developed a tool that simplifies the process. Enter the figures, and we take care of calculations, formatting, and guidance. This removes the headache and gives you a clear, credible report. Over time, you will see the benefits in the form of reduced costs, a stronger reputation, and better relationships with stakeholders who value transparency and genuine effort. --- ### Ready to Get Started? You have a choice: wait until reporting is imposed on you under time pressure, or start now on your own terms. By adopting the VSME standard, you show that you understand where things are heading and that you are keeping pace in a world where sustainability and business performance go hand in hand. **Your Next Steps:** 1. Review the basic module and identify which data you already have. 2. Start with B3 – this is the area everyone is watching. Gather energy and fuel data and enter them into a tool. 3. Gradually expand to other areas and aim to cover the full basic module within a defined timeframe. 4. Implement improvements based on your findings – reduce energy use, cut waste, and take care of your people. 5. Share the results to show customers, investors, and others what kind of business you run. Now is the time to show that you’re not just talking about sustainability, but actually doing something about it. The VSME standard makes the task manageable, and with the right tool, you can create positive change without losing sleep. /climate-reporting/introduction/climate-reporting-2025 page An overview of sustainability reporting in 2025, including the EU's Omnibus proposal, the VSME standard, and how SMEs can get started with climate reporting. 2026-03-06T07:52:37+01:00 # Climate reporting in 2025 An overview of sustainability reporting in 2025, including the EU's Omnibus proposal, the VSME standard, and how SMEs can get started with climate reporting. ## Omnibus, Competitiveness, and Why It Matters Stay updated on the EU's new sustainability reporting, including "Omnibus" and VSME. Find out how simplified requirements affect SMEs and how you can easily get started in Tripletex. Sustainability has long been a topic for large corporations, but today, small and medium-sized enterprises (SMEs) are also feeling increasing pressure. Not necessarily because they are directly required to report by law—but because their customers, banks, and public procurers are. The EU's sustainability directive (**CSRD**) marks a shift in how companies in Europe must document their work regarding climate, environment, and social conditions. For large companies, the requirements are direct; for SMEs, they come indirectly. The consequences are real: reduced competitiveness, lost tenders, and harder access to capital if they cannot document their emissions and sustainability efforts. --- ## What Is Sustainability Reporting, and Why Does It Also Apply to SMEs? Sustainability reporting is about highlighting how a business affects—and is affected by—climate, environment, and social conditions. This can include everything from greenhouse gas emissions and energy use to waste and gender equality. The purpose is to provide better insight into risk factors, areas for improvement, and opportunities. Even though CSRD primarily applies to the largest companies, the requirements ripple down the value chain. Large companies must collect data from their suppliers to fulfill their own requirements—which in turn means that smaller companies may also be asked to deliver on sustainability. This is often called "indirect reporting obligation," and it can appear from several directions: * **Large Customers and Value Chain Pressure:** Larger companies are covered by CSRD and will increasingly demand climate data from their suppliers and sub-suppliers. More SMEs will therefore have to report to retain existing customers or win new contracts. * **Banks and Financial Actors:** Banks are now assessing sustainability risk when lending. This results in better terms for companies with a clear overview and climate goals, while those without reporting may be considered riskier. * **Investors and Owners:** ESG data is becoming increasingly important for securing investments, raising capital, and maintaining a position within a corporate group. Documenting sustainability work can therefore be crucial for showing value and reducing risk. * **Public Tenders and Procurement:** Authorities have introduced requirements stating that at least 30% of the weighting in public tenders must be based on sustainability. For SMEs wanting to deliver to the public sector, good reporting can be the deciding factor in whether you win—or lose—the tender. --- ## Simplifications in 2025: The EU's "Omnibus" Proposal – But Still a Need for Control Over the Numbers In February 2025, the EU proposed significant simplifications to climate and sustainability reporting requirements, often referred to as "Omnibus." The goal is for smaller companies to avoid the most extensive requirements, while larger companies get more time to prepare. Even if the bureaucracy decreases for some, it is still crucial to have good control over emission figures. Investors, banks, insurance companies, and parent companies will still ask for documentation, even if you are not directly required to report. --- ## VSME – A Simple Way to Get Started For most SMEs, creating extensive reports with hundreds of indicators is not practical. Therefore, the EU has developed a voluntary standard for small and medium-sized companies—**VSME (Voluntary Standard for SMEs)**—which covers approximately 50 key sustainability topics. The standard covers the most important requirements you may encounter and provides a practical entry point into sustainability work. It is based on the principle of double materiality, meaning both: 1. How the company affects climate, environment, and people. 2. How climate change and societal developments affect the company's operations and risks. VSME provides a structured approach and reduces the risk of greenwashing or misreporting. It also makes it easier to communicate with customers, financial actors, and public authorities in a common language—and you are better prepared when requirements tighten. --- ## Easier Climate Reporting, Integrated into Tripletex Even though the overall requirements have been somewhat eased, the need for robust emission figures and documentation remains. By having a robust and simple reporting tool, you can save significant time and money while meeting the demands and expectations of your stakeholders. This is where **Ducky** can be a good solution. Integrated into Tripletex, the tool is simple, automatic, and provides a solid foundation for meeting requirements from investors, customers, tenders, CSRD, and the VSME standard. > **Our Tip:** Start small. Find a tool that provides concrete numbers and build from there. This makes the transition much easier as requirements increase. > Good luck! --- ## A Brief Summary * The EU's new sustainability requirements apply first to the largest companies but have ripple effects for SMEs. * The "Omnibus" proposal in 2025 provides simplifications and more time, but in many cases, you must still document emissions and sustainability work. * The VSME standard makes it easier for smaller companies to report on around 50 key sustainability topics. * Good documentation provides better competitive conditions—whether you are competing for customers, tenders, loans, or investors. * Climate reporting by Ducky, integrated into Tripletex, helps you maintain an overview and fulfill requirements—quickly, affordably, and easily. --- /climate-reporting/introduction/csrd page An introduction to the Corporate Sustainability Reporting Directive (CSRD), what it requires of companies, and how it impacts sustainability reporting. 2026-03-06T07:52:37+01:00 # An introduction to CSRD An introduction to the Corporate Sustainability Reporting Directive (CSRD), what it requires of companies, and how it impacts sustainability reporting. ## CSRD Learn about the Corporate Sustainability Reporting Directive (CSRD) and what it requires of companies. The Corporate Sustainability Reporting Directive (CSRD) is a European Union regulation that significantly expands non-financial reporting requirements for companies operating within or doing business in the EU. It replaces the earlier Non-Financial Reporting Directive (NFRD) and was officially adopted on November 28, 2022, coming into effect on January 5, 2023. The CSRD aims to improve transparency and comparability of corporate sustainability information by standardising how companies disclose environmental, social, and governance (ESG) data. It ensures stakeholders receive reliable insights into a company’s sustainability performance and risks, builds consumer trust, enhances reputation and access to capital. As of 2025, the CSRD is being significantly [revised through the Omnibus package](https://finance.ec.europa.eu/news/omnibus-package-2025-04-01_en). The European Commission has agreed to a two-year postponement of reporting requirements. This delay means large companies with more than 250 employees must report in 2028 instead of in 2026 as was expected. Some proposed changes include simplifications to the European Sustainability Reporting Standards (ESRS) by reducing the number of disclosures and datapoints, and significant changes to eligibility thresholds. The criteria for reporting is expected to increase from 250 to 1,000 employees for EU companies, and from €150 million to €450 million in net turnover for non-EU companies. If adopted, these amendments will substantially narrow the CSRD’s scope, and make it irrelevant in markets where small and medium-sized enterprises (SMEs) prevail. Companies affected from delayed applicability or exemption should consider the Voluntary Sustainability Reporting Standards for SMEs (VSME) as an alternative. [For more information, consult our article on VSME here](https://www.ducky.eco/en/support/vsme-standard). ## Who’s required to report under the CSRD and when? Under the preceding NFDR, only large listed companies, banks and insurance companies (public interest entities) with more than 500 employees were required to report their non-financial performance. The CSRD expands this criteria by making it mandatory for a larger number of companies to comply with sustainability reporting. As of today, EU companies that meet two of the following criteria will have to comply with the CSRD: * € 50 million or more in annual revenue * € 25 million or more in assets * 250 or more employees (expected to increase to 1,000 employees) These requirements are expected to be significantly raised by the Omnibus proposal mentioned above. Non-EU companies with more than € 150 million turnover (expected to increase to € 450 million) and operations in the EU will also have to comply with the CSRD. CSRD compliance is structured around a phased timeline, with different company types required to begin reporting in stages from 2024 through 2028, but the recent regulatory updates mentioned above have delayed some deadlines for large companies and SMEs. ## Which sustainability metrics are required to report under CSRD? The CSRD requires companies to report a broad set of sustainability metrics organised under the European Sustainability Reporting Standards (ESRS), spread across environmental, social, and governance dimensions. These metrics are designed to provide transparent, comparable, and comprehensive sustainability data for stakeholders and regulatory compliance purposes. In practice, companies must conduct a thorough double materiality assessment to identify which metrics are relevant for them. Double materiality requires companies to evaluate sustainability topics from two perspectives: how their business activities impact society and the environment (impact materiality), and how societal and environmental impacts can affect their own financial performance and business prospects (financial materiality). It ensures that sustainability reporting addresses both the company's role in broader societal and environmental contexts and its exposure to societal and environmental risks. A typical report covers hundreds of individual data points: such as total water use, emissions per sector, workforce diversity statistics, and board oversight practice; with the full ESRS including more than 1,000 data points. Below you can find some commonly reported data points. ### Environmental metrics (ESRS E1-E5) * **GHG Emissions:** Total Scope 1, 2, and 3 greenhouse gas emissions with breakdowns by category, GHG emissions intensity per net revenue. * **Energy consumption:** Total energy consumption, with the breakdown of different energy sources. * **Water usage:** Total water consumption, intensity of operations, mitigation actions in water risk areas. * **Biodiversity:** Number and area of sites affecting biodiversity-sensitive areas, financial impact of biodiversity offsets. * **Waste:** Total waste generation, percentage recycled, hazardous/radioactive waste levels. * **Circular economy:** recycling rates, product lifespan vs. average, secondary material consumption. * **Pollution:** air emissions, soil and water impacts. ### Social metrics (ESRS S1-S4) * **Own workforce:** Employee count, diversity, gender pay gap, working conditions, occupational health and safety rates, training hours. * **Supply chain workforce:** Metrics on contractors and supply chain employees, including labor rights and working conditions. * **Affected communities:** Community engagement, impact assessments, and mitigation actions regarding local populations. * **Consumers and end-users:** Customer satisfaction, product safety, responsible marketing, access to products/services. ### Governance metrics (ESRS G1) * **Business conduct:** Anti-corruption measures, bribery prevention, whistleblower statistics, board diversity, executive compensation structure. * **Transparency:** Disclosure of stakeholder engagement practices and management process transparency. * **Oversight of sustainability strategy:** roles, responsibilities, organizational structures for ESG management. ## How can a company ensure compliance with the CSRD? A company must have performed all the steps mentioned below to be CSRD compliant: * **Reporting standards:** Report according to the European Sustainability Reporting Standards (ESRS), covering environmental, social, and governance topic. * **Double materiality assessment:** Evaluate and disclose both financial and impact materiality. * **Value chain coverage:** Include material sustainability impacts across the value chain (e.g., supply chain Scope 3 GHG emissions, social and human labor impacts). * **Assurance:** Report must be externally audited for reliability. * **Digital reporting format:** Report should be delivered in the European Single Electronic Format (ESEF) and disclosures should be tagged for machine readability and comparability. * **Integration with management report:** Companies must report sustainability information as an integrated part of their management reports, not separately. * **Governance and strategy:** Report on their governance, strategy, and long-term objectives related to sustainability. * **Transparency of process:** Well documented and transparent processes for data collection and internal controls. These requirements, even though rigorous, combine to create a high bar for transparency, completeness, and accountability in corporate sustainability reporting. /climate-reporting/introduction/climate-gases page An overview of various greenhouse gas reporting schemes, including the GHG Protocol, EU ETS, and other standards used in sustainability reporting. 2026-03-06T07:52:37+01:00 # Greenhouse gas reporting schemes An overview of various greenhouse gas reporting schemes, including the GHG Protocol, EU ETS, and other standards used in sustainability reporting. ## Greenhouse gas reporting schemes Learn about the various greenhouse gas reporting schemes popular in the market today. A greenhouse gas reporting scheme is a framework or program established to require businesses, or countries to measure, document, and report their greenhouse gas (GHG) emissions. These schemes are designed to provide transparency, accountability, and systematic data collection about emissions of different greenhouse gases such as carbon dioxide, methane, nitrous oxide etc. The reported data helps inform climate policy, supports emission reduction strategies, and can be used for compliance with regulations or participation in emissions trading schemes. Greenhouse gas reporting schemes vary widely in their methodologies, meaning they are often incomparable. They are also often open to subjective interpretation (or misinterpretation), leaving some of the most impactful decisions completely up to the reporter. ## Overview of GHG reporting schemes | Name | Scope of reporting | Regulatory nature | Coverage | | --- | --- | --- | --- | | US EPA Greenhouse Gas Reporting Program (GHGRP) | Mandatory reporting of large point sources and suppliers | Mandatory | Facilities in the United States emitting ≥25,000 metric tonnes CO2e | | Greenhouse Gas Protocol (GHG Protocol) | Comprehensive guidance for corporate GHG accounting | Mandated in ESRS (CSRD) and VSME | Companies, governments, NGOs | | European Union Emissions Trading Scheme (EU ETS) | Trading and reporting of emissions from certain sectors | Mandatory | Power plants, industries, airlines in the European Union | | Global Reporting Initiative (GRI): 305 | Report and disclose greenhouse gas emissions | Voluntary | Organisations globally | | ISO 14064 Standard | International standard for GHG quantification and reporting | Mandated in ESRS (CSRD) | Organisations globally | ## Relationship between GHG reporting and sustainability reporting ### Global sustainability reporting standards Many sustainability reporting frameworks mandate or recommend specific GHG reporting standards for emissions disclosures. For instance, if reporting to fulfill the Corporate Sustainability Reporting Directive (CSRD), entities must align with ESRS, which requires following the GHG Protocol or ISO 14064 for greenhouse gas accounting. Similarly, the Voluntary SME (VSME) standard requires mandatory Scope 1 and 2, and voluntary Scope 3 emissions reporting following the GHG Protocol. For details, see our articles on [CSRD requirements](https://www.ducky.eco/en/support/csrd-requirements) and the [VSME standard](https://www.ducky.eco/en/support/vsme-standard). ### Nordic sustainability reporting standards NSRS and Eco-Lighthouse (Miljøfyrtårn) are voluntary sustainability reporting frameworks originating in the Nordics, both in line with VSME. | Name | Scope of reporting | Regulatory nature | Coverage | | --- | --- | --- | --- | | Eco-Lighthouse (Miljøfyrtårn) | Reporting on various ESG metrics | Voluntary | Municipalities, counties, companies in the Nordics | | Nordic Sustainability Reporting Standard (NSRS) | Reporting on various ESG metrics | Voluntary | Small and medium-sized companies in the Nordics | /climate-reporting/introduction/scope1 page An introduction to Scope 1 greenhouse gas emissions, how they are defined, calculated, and reported according to the GHG Protocol. 2026-03-06T07:52:37+01:00 # An introduction to Scope 1 greenhouse gas emissions An introduction to Scope 1 greenhouse gas emissions, how they are defined, calculated, and reported according to the GHG Protocol. ## An introduction to Scope 1 greenhouse gas emissions Learn how the Greenhouse Gas (GHG) Protocol defines Scope 1 emissions, how they are calculated and the requirements an organisation needs to follow when reporting their Scope 1 emissions. ## How are Scope 1 emissions defined in the GHG Protocol? As per the GHG Protocol, all reporting organisations must disclose GHG emissions associated with their operations and categorise them as direct or indirect. Direct emissions are emissions from sources that are owned or controlled by the company. Indirect emissions occur as a consequence of the activities performed by the reporting company but the actual emissions of greenhouse gases occur at sources owned or controlled by another company. Emissions are further divided into three scopes. Direct emissions are included in scope 1, meanwhile indirect emissions are included in scope 2 and scope 3. While a company has control over its direct emissions, it has influence over its indirect emissions. Scope 1 includes emissions resulting from activities such as the generation of electricity, heat, or steam; the manufacture or processing of chemicals and materials; the transportation of materials, products, and waste; and the uncontrolled release of gases or vapors from industrial equipment. There are four different types of Scope 1 emissions: * **Stationary combustion:** Emissions from burning fuels in stationary equipment such as boilers, furnaces, and generators used to produce electricity, heat or steam. Example: Burning natural gas in a factory boiler to generate steam for an industrial process. * **Mobile combustion:** Emissions from fuel burned in company-owned vehicles, such as cars, trucks, and vans. Example: A company car used for business travel. * **Fugitive emissions:** Emissions from unintentional leaks or release of gases, often from industrial equipment. Example: A refrigerant leak from an air conditioning unit. * **Process emissions:** Emissions released directly from on-site chemical or industrial processes during manufacturing, excluding emissions resulting from fuel combustion. Example: Carbon dioxide generated during cement production or metal smelting. ## What are the requirements to be followed when reporting Scope 1 GHG emissions? The [GHG Corporate Standard](https://ghgprotocol.org/corporate-standard) provides a set of requirements that organisations must follow when calculating and reporting their Scope 1 emissions: * Consider the principles, requirements and guidance provided by the [GHG Protocol Corporate Standard](https://ghgprotocol.org/corporate-standard) and [GRI 305](https://www.globalreporting.org/publications/documents/english/gri-305-emissions-2016/) (Emissions 2016) * Follow the European Sustainability Reporting Standards [(ESRS 1)](https://xbrl.efrag.org/e-esrs/esrs-set1-2023.html) and define any reporting boundaries as per the standard , disclosing and explaining any exclusions. To know about the different reporting boundaries, [refer to our article on the GHG Protocol](https://www.ducky.eco/en/support/climate-reporting/the-ghg-protocol) * Companies must use emission factors that include the emissions of all greenhouse gases defined in the [Kyoto Protocol](https://ec.europa.eu/eurostat/statistics-explained/index.php?title=Glossary:Kyoto_basket). In Ducky, we use emission factors compliant with this requirement * Companies need to disclose the choice of method(s) and emission factors used for calculating Scope 1 emissions. * Companies should report Scope 1 emissions in tonnes of carbon dioxide equivalent (t CO₂e). ## How does the GHG Protocol recommend calculating Scope 1 emissions? The GHG Protocol recommends the following approach to calculate Scope 1 emissions: 1. **Identify direct emission sources:** Begin by identifying all company-owned or controlled sources that emit greenhouse gases directly by referring to the four source categories listed above. Process emissions are usually only relevant to certain industry sectors like oil and gas, aluminum, cement, etc. Manufacturing companies will likely have direct emissions from all the main source categories. Office-based organisations may have direct GHG emissions if they own or operate a vehicle, combustion, refrigeration and air-conditioning equipment. 2. **Collect activity data:** For each source, gather data that quantifies the activity responsible for emissions. Examples include: * Fuel consumption (e.g., liters of diesel used in boilers or vehicles) * Distance traveled (e.g., kilometers driven by company-owned vehicles) * Quantities of gases released during industrial processes This data can typically be obtained from fuel purchase records, metering and monitoring systems, financial accounts, or other operational logs. 3. **Apply emission factors:** Multiply the activity data for each source by the appropriate emission factor, which represents the amount of greenhouse gas emitted per unit of activity (e.g., kg CO₂-equivalents per liter of diesel burned). 4. **Aggregate:** Sum the emissions from all identified sources to calculate total Scope 1 emissions. Report the results in tonnes of carbon dioxide equivalent (t CO₂e). ## How are Scope 1 emissions calculated in Climate Reporting? As per the GHG Protocol, Scope 1 emissions should be calculated using the activity-data method. This involves collecting activity data (fuel consumption, distance travelled, fuel spend) and applying appropriate activity-based emission factors to determine emissions. There are several ways to collect activity data: * **Direct consumption data:** Use direct measurements of fuel consumption, typically in physical units such as kWh or MWh, obtained from meter readings or fuel bills (High accuracy). * **Estimates based on fuel spend:** If measured fuel consumption data is unavailable, one can estimate fuel use by dividing the total fuel spend (from fuel bills or financial accounts) by the average price of that fuel (Medium accuracy). * **Estimates based on distance traveled:** Estimate fuel use by multiplying total distance travelled (extracted from vehicle use logs or odometer readings) with the fuel efficiency of the vehicle (Medium accuracy). This is only applicable for mobile combustion sources (Please note that this method is not currently available in Climate Reporting). Climate reporting currently supports Scope 1 emission calculations for stationary and mobile combustion sources only. Scope 1 emissions are calculated using the activity-based method using one of the following activity data types: * **Fuel use from direct measurement:** Directly measured fuel consumption data in physical units (e.g., liters, or m³ of fuel consumed). This data must be manually entered by the user. (High accuracy) * **Fuel use from fuel spend:** If directly measured fuel consumption data is unavailable, fuel use is estimated from spending on fuels (using energy bills or financial accounts). To estimate fuel use from fuel spend, the total spending on each fuel type is divided by the average fuel price of that fuel. (Medium accuracy) After determining fuel use, the tool calculates Scope 1 emissions by multiplying the fuel use by relevant emission factors. Since the tool assumes the operational control approach for all companies, emissions from the operation of the owned or leased assets always come under Scope 1. ## Who can skip this category? Companies may exclude this category if they do not own or operate assets that can cause emissions. All other companies are required to report Scope 1 emissions, preferably using the activity-based method. /climate-reporting/introduction/scope2 page An introduction to Scope 2 greenhouse gas emissions, how they are defined, calculated, and reported according to the GHG Protocol. 2026-03-06T07:52:37+01:00 # An introduction to Scope 2 greenhouse gas emissions An introduction to Scope 2 greenhouse gas emissions, how they are defined, calculated, and reported according to the GHG Protocol. ## An introduction to Scope 2 greenhouse gas emissions Learn how the greenhouse gas (GHG) protocol defines Scope 2 emissions, how they are calculated and the requirements an organisation needs to follow when reporting their Scope 2 emissions. ### How are Scope 2 emissions defined in the GHG protocol? As per the GHG Protocol, all reporting organisations must disclose GHG emissions associated with their operations and categorise them as direct or indirect. Direct emissions are emissions from sources that are owned or controlled by the company. Indirect emissions occur as a consequence of the activities performed by the reporting company but the actual emissions of greenhouse gases occur at sources owned or controlled by another company. Emissions are further divided into three scopes. Direct emissions are included in scope 1, meanwhile indirect emissions are included in scope 2 and scope 3. While a company has control over its direct emissions, it has influence over its indirect emissions. Scope 2 encompasses emissions related to the consumption of purchased energy in the form of electricity, steam, heat or cooling. Emissions related to the production, extraction and transportation of purchased energy are included under Scope 3 category 3: Fuel and energy related activities. For accurate Scope 2 GHG accounting, the company should use total (or gross) energy purchases from the grid rather than “net” purchases. This means it should include the total energy purchased from the grid for Scope 2 (and not should subtract any electricity it sold to the grid). On-site generation should be counted as Scope 1. Head over to our support page for a general intro to the GHG Protocol and how it’s used for climate reporting. ### What are the requirements to be followed when reporting Scope 2 GHG emissions? The Scope 2 Guidance provides a set of requirements that organisations must follow when calculating and reporting their Scope 2 emissions: * Companies with operations in markets providing product or supplier-specific data or contractual instruments should account for Scope 2 emissions using both location-based and marked-based methods. * Companies must use emission factors that include the emissions of all greenhouse gases included in the [Kyoto Protocol](https://ec.europa.eu/eurostat/statistics-explained/index.php?title=Glossary:Kyoto_basket). In Ducky, we use emission factors compliant with this requirement. * Companies need to disclose the choice of method(s) and emission factors used for Scope 2 accounting. * Contractual instruments in the market-based method must meet a set of quality criteria to ensure that instruments are legitimate and no double counting of emissions between consumers takes place. * Companies must disclose the year chosen as the base year for Scope 2 emissions calculation. ### How does the GHG Protocol recommend calculating Scope 2 emissions? There are two main approaches for calculating GHG emissions from energy purchased by the reporting company. These are location-based and market-based methods. In short, the location-based method allocates emissions based on the average emissions intensity of the grid where energy is consumed, while the marked-based method allocates emissions based on active choices that the consumer has made with regards to its purchased energy, for instance by buying energy from specific suppliers or by buying contractual instruments. **Market-based method** The market-based method allocates GHG emissions from purchased energy based on the contractual instruments purchased by the consumer (such as energy attribute certificates, direct contracts or supplier specific emission rates). A consumer’s market-based emissions will be significantly lower if they’ve purchased contractual instruments. Through contractual instruments, consumers can claim that their electricity comes from a specific generator or supplier and apply the associated emissions factor (most often 0 g CO2e/kWh) in their Scope 2 calculations. By contrast, consumers that haven’t purchased any contractual instruments are mandated to use a residual mix in their Scope 2 reporting, which represents all energy for which the energy source is not verified by contractual instruments. In the European market, contractual instruments are only issued for renewable energy. As a result, the residual mix typically contains carbon intensive fuels like coal and gas, and has a high emissions intensity (535 g CO2e/kWh for Norway in 2024). In the EU and Norway, electricity suppliers are obliged by the revised Electricity Market Directive (2009/72/EC) to disclose the origin of their deliveries of electrical energy in the previous year through product declarations to consumers: * In cases where guarantees of origin have been purchased, the CO2e-intensity reported by a specific power plant can be used. * This number is often close to zero or even set to 0 g CO2e/kWh (omitting the life cycle impact of the power plant and electricity grid). * Electricity suppliers who do not purchase guarantees of origin must use a defined residual mix in their marketing materials and on electricity bills. * In Norway, [The Norwegian Energy Regulatory Authority (NVE)](https://lovdata.no/dokument/SF/forskrift/1999-03-11-301/KAPITTEL_8#%C2%A78-5) has the authority to define the residual mix. [The NVE electricity disclosure for 2024](https://www.nve.no/energi/energisystem/energibruk/stroemdeklarasjoner/) is calculated from a European residual mix, ending up at 535 g CO2e/kWh. * In Sweden, [Energimarknadsinspektionen (Ei)](https://ei.se/download/18.5b0e2a2a176843ef8f5b66/1615302978868/EIFS-om-ursprungsm%C3%A4rkning-av-el-EIFS-2013-6.pdf) has this authority. [The Ei electricity disclosure for 2024](https://ei.se/bransch/ursprungsmarkning-av-el/residualmix) is calculated from a Nordic residual mix and therefore is slightly lower, at 465 g CO2e/kWh. **Location-based method** The location-based method allocates GHG emissions from purchased energy based on the average emissions intensity of the energy generation within a defined geographic area and time period. Under this method, companies cannot lower their Scope 2 emissions by purchasing “clean” electricity - the only ways to reduce the electricity emissions are for the grid as a whole to grow cleaner or for consumer’s electricity use to be reduced. For location-based reporting, there are several interpretations of the grid on which electricity consumption occurs, ranging from local to global. All the alternatives have different trade-offs and use cases, and each option can have a significant effect on your organisation's calculated Scope 2 emissions. The GHG Protocol recommends using regional or sub-national grid average emission factors, with national level factors as a fallback when more granular data is unavailable. In Norway, national level emission factors are most commonly applied. For instance, [NVE’s physical electricity disclosure at 11.9 g CO2e/kWh](https://www.nve.no/energi/energisystem/energibruk/stroemdeklarasjoner/) (2024) is a commonly used emission factor for reporting location-based Scope 2 emissions. It includes emissions from Norwegian electricity production, while also factoring for imported and exported electricity. Broader ranges, such as the Nordic or European mix are usually not used in GHG reporting. These are more relevant for calculating the effect of an individual reducing their personal electricity consumption. ### How are Scope 2 emissions calculated in Climate Reporting? As per the GHG Protocol, Scope 2 emissions should be calculated using the activity-data method. This involves collecting activity data (meter readings, energy bills or energy spend) and applying appropriate activity-based emission factors to determine emissions. There are several ways to collect activity data: * **Direct meter readings or utility bills:** Use direct measurements of energy consumption, typically in physical units such as kWh or MWh, obtained from meter readings or energy bills. (High accuracy) * **Estimates based on energy spend:** If measured energy data is unavailable, one can estimate energy use by dividing the total energy spend (from utility bills or financial accounts) by the average price of that energy type. (Medium accuracy) * **Secondary estimation methods (e.g., Area method):** In cases where consumption data is not explicitly available, such as in shared spaces without individual meters, secondary estimation methods may be used, like the Area method. This allocates the building’s total electricity usage to tenants based on their occupied square footage and the building’s occupancy rate (Please note the Area method is not currently available in Climate Reporting). In Climate Reporting, Scope 2 emissions are calculated using the activity-based method using one of the following activity data types: * **Direct meter readings or utility bills:** Users manually enter directly measured energy consumption data in kWh or MWh based on meter readings or energy bills. (High accuracy) * **Estimates based on energy spend:** If directly measured data isn’t available, the tool estimates energy use from reported energy spending. The estimation divides total spending on energy by the average unit price of the energy. (Medium accuracy) After determining energy use, the tool calculates Scope 2 emissions by multiplying the energy use by relevant emission factors (see previous section for details). Since the tool assumes the operational control approach for all companies, emissions from purchased energy are always categorised as Scope 2, whether the assets using the energy are company-owned or leased. **Note:** If the reporting company rents or leases an asset (e.g., a building) and the energy bill is included in the lease or rental payment, the associated emissions will not be reported under Scope 2. Instead, they are accounted for under category 3.8 (upstream leased assets). ### Who can skip this category? Nearly all businesses will have Scope 2 emissions because they purchase energy to power their processes or services, unless they generate all the energy they need themselves. Therefore, companies should not exclude this category from their greenhouse gas reporting. ### Why do we need two different methods for calculating for Scope 2 GHG emissions? The two Scope 2 calculating methods each provide a different decision-making value. Both highlight different opportunities to reduce emissions and reduce risks. The ultimate goal should be system-wide emission reduction over time in order to limit global warming. Achieving this requires clarity on what kinds of decisions individual consumers can make to reduce both their own emissions as well as how they can contribute to emission reductions towards the grid as a whole. There are three types of decisions companies can make that impact overall electricity grid emissions: **Site of operations** A company’s choice of where to locate its office buildings, industrial facilities, distribution centers, or data centers directly affects its GHG emissions, as well as the grid on which its energy use is based. For instance, locating new facilities on a GHG-intensive grid means that energy demand will be met with higher GHG emissions. By contrast, locating operations in areas with low-carbon energy generation, or additional benefits such as natural ambient cooling or heat, can lead to lower GHG emissions and costs. Therefore, from a location-based perspective, a company’s shift in site of operations will result in use of a different grid average emission factor, and possibly a shift in energy supply overall. From a market-based perspective, a relocation could result in changes in suppliers (new utility service areas), changes in which contractual instruments are available, actions of other consumers in the market, or the residual mix used in that location. **Focus on energy efficiency** Once a company has established a location for its operations, it can reduce its emissions through lowering its own energy demands. A company can reduce energy consumption through measures such as choosing an energy-efficient building, carrying out energy-efficient retrofits, using more efficient electronics or lighting, and making behavioral decisions such as switching off appliances when not in use. Therefore, a company’s shift in energy demand will entail changes in reported Scope 2 emissions. A decrease in energy consumption will result in a decrease in the total Scope 2 emissions, for both location and marked-based methods. From a location-based perspective, collective changes in consumption contribute to changes in the grid average emission factor over time. Shifting energy consumption to periods of low-emissions generation on the grid (often non-peak hours) can further contribute to system-wide reductions. From a market-based perspective, reducing electricity demand can minimize the additional costs associated with purchasing contractual instruments at a premium above standard electricity costs. **Actions to influence energy mix of the grid** The mix of generation technologies on any given grid depends on multiple factors, including the availability of natural resources, local policies, and current market dynamics. Energy consumers can influence these factors directly or indirectly, by sending market signals, most often through contractual purchasing agreements. When a company purchases a large volume of such instruments, their limited supply can drive up prices. Higher prices, in turn, signal the market to issue more instruments, which may be made possible by building new renewable energy capacity or importing more renewable energy from other regions. Over time, these procurement efforts can shift supply and demand patterns, influencing both consumer behavior and supplier investment decisions. As a result, the grid’s average emission factor and the cost of contractual instruments evolve, ultimately affecting both location-based and market-based emissions. ### How should emissions from energy use in leased assets be allocated? Energy use in leased buildings or from leased assets can be a significant source of emissions. To decide whether these emissions are relevant and which scope they belong to, companies need to assess who owns, operates, or controls the leased assets. According to the [GHG Corporate Standard](https://ghgprotocol.org/sites/default/files/2022-12/Categorizing%20GHG%20Emissions%20from%20Leased%20Assets.pdf), leases generally give operational control to the tenant (lessee) unless specified otherwise. This means that if a company leases space or uses a leased asset, emissions from all purchased energy should be reported under Scope 2. On the other hand, if a company owns an asset but leases it out without operating it, the related emissions may either be reported under Scope 3 or excluded from the inventory based on the [consolidation approach](https://www.ducky.eco/en/support/climate-reporting/the-ghg-protocol) chosen. For example, if your company leases an electric car, the emissions from charging the vehicle fall under your Scope 2, since operational control rests with the lessee. For the lessor, the emissions associated with the car would typically be reported under Scope 3, Category 13 (Downstream Leased Assets), or excluded from their inventory depending on the consolidation approach they follow. --- /climate-reporting/introduction/scope3 page An introduction to Scope 3 greenhouse gas emissions, how they are defined, calculated, and reported according to the GHG Protocol. 2026-03-06T07:52:37+01:00 # An introduction to Scope 3 greenhouse gas emissions An introduction to Scope 3 greenhouse gas emissions, how they are defined, calculated, and reported according to the GHG Protocol. ## An introduction to Scope 3 greenhouse gas emissions Learn how the Greenhouse Gas (GHG) Protocol defines Scope 3 emissions, how they are calculated and the requirements an organisation needs to follow when reporting their Scope 3 emissions. ## How are Scope 3 emissions defined in the GHG Protocol? As per the GHG Protocol, all reporting organisations must disclose GHG emissions associated with their operations and categorise them as direct or indirect. Direct emissions are emissions from sources that are owned or controlled by the company. Indirect emissions occur as a result of the reporting company’s activities but the actual emissions occur at sources owned or controlled by other entities. Emissions are further divided into three scopes. Direct emissions are included in scope 1, meanwhile indirect emissions are included in Scope 2 and Scope 3. Scope 2 consists solely of emissions arising from the generation of purchased energy, while Scope 3 encompasses all other indirect emissions that occur in a company’s value chain. While a company has control over its direct emissions, it has influence over its indirect emissions. The GHG Protocol divides Scope 3 emissions into 15 distinct value chain categories, which are explained in detail below. Scope 3 covers both ‘upstream’ emissions, those that occur in the supply chain before the company produces its product or service, and ‘downstream’ emissions, which occur after the product or service has been sold by the company. For instance, a clothing brand’s upstream emissions would include the farming and producing of fabric, while downstream emissions would include washing, wearing, and discarding the clothes by customers. Similarly, for an electronics company, upstream emissions come from extraction of metals and manufacturing of the product, while downstream emissions come from the use and eventual recycling or disposal of the devices. Scope 3 emissions often represent the largest share of a company's carbon emissions, sometimes around 90%, but are simultaneously the hardest to measure and reduce because they involve external actors and complex supply chains. ## What are the requirements to be followed when reporting Scope 3 GHG emissions? The [GHG Corporate Standard](https://ghgprotocol.org/corporate-standard) provides a set of requirements that organisations must follow when calculating and reporting their Scope 3 emissions: * Companies shall account for all Scope 3 emissions. If any Scope 3 category is excluded, the company must justify the reason for the exclusion. * Companies shall follow the [European Sustainability Reporting Standards (ESRS 1)](https://xbrl.efrag.org/e-esrs/esrs-set1-2023.html) and define the reporting boundaries as per the standard, disclosing and explaining any exclusions. To know about the different reporting boundaries, refer to our [article on the GHG Protocol](https://www.ducky.eco/en/support/climate-reporting/the-ghg-protocol). * Companies shall use emission factors that include the emissions of all greenhouse gases defined in the [Kyoto Protocol](https://ec.europa.eu/eurostat/statistics-explained/index.php?title=Glossary:Kyoto_basket). In Ducky, we use emission factors compliant with this requirement. * Companies shall disclose the choice of method(s) and emission factors used for calculating Scope 3 emissions. * Companies shall report Scope 3 emissions in tonnes of carbon dioxide equivalent (t CO₂-equivalent). ## How does the GHG Protocol recommend calculating Scope 3 emissions? The GHG Protocol groups Scope 3 emissions into 15 distinct value chain categories. For each category, it provides multiple calculation methods ranked by the specificity and quality of data, balancing accuracy with effort and data availability: ### Supplier-specific method * This method uses primary data from suppliers, including actual emissions related to the product or service supplied. * Data can be taken from life cycle assessments, product carbon footprints, or an environmental product declaration. * It provides the highest accuracy and reflects unique supplier-specific processes and efficiencies. However, it requires close collaboration with suppliers and significant data collection effort. * This method is preferred for Scope 3 categories where precision is critical such as Scope 3 Category 1 (Purchased goods and services) and Scope 3 Category 2 (Capital assets). ### Activity-based method * This method uses physical activity data such as litres of fuel burnt or kilometers traveled. * Emission factors correspond to these physical units (e.g., kg CO2-equivalent per km travelled). * It is suitable when companies have access to operational data but cannot obtain supplier-specific data. * It is more accurate than the spend-based method but requires collection and validation of activity data. ### Hybrid method * The hybrid approach combines use of accurate activity/supplier-specific data where available and fills remaining gaps with estimates based on secondary data (spend-based, described below). * This method balances accuracy with practicality and manages data gaps effectively. ### Spend-based method * This method estimates emissions based on the financial value of goods or services purchased. * Emission factors expressed as kilograms or tons of CO2-equivalent per unit of currency (e.g., per NOK or euro spent) are applied to the spend data. * It is a top-down approach used when physical activity data is unavailable. * The spend-based method is less precise because it assumes average emissions intensity across a sector or region. * It is primarily used for categories with limited activity data (for example: purchased services) or when conducting initial estimates. The GHG Protocol advises companies to select calculation methods based on the significance of emissions, data availability, business objectives, cost, and effort. Methods with higher specificity and accuracy are preferred for emission categories that have a greater impact. Companies may also apply different methods within a single category for various activities. The Protocol encourages the use of detailed activity data whenever possible to enhance accuracy. ## How are Scope 3 emissions calculated in Climate Reporting? The methodology used for calculating Scope 3 emissions varies across the 15 different Scope 3 categories. Each category employs specific calculation methods, which are chosen based on factors such as data availability and significance. Below, you will find brief explanations of all 15 Scope 3 categories, along with an overview of how each is calculated within Climate Reporting. ### Category 3.1: Purchased goods and services #### What is included in this category? Includes all upstream (i.e., cradle-to-gate) emissions from the production of goods and services purchased or acquired by the reporting company. #### How is this category calculated in Climate Reporting? This category is included in Climate Reporting and is calculated using the spend-based method by extracting the monetary value of purchased goods and services from a company’s financial accounts and multiplying it with relevant spend-based emission factors to calculate CO2-equivalents. #### What grounds are there to skip this category? This category accounts for the majority of emissions for most companies. Therefore, it is not recommended to skip this category. --- /climate-reporting/methods-calculations-and-data-sources section Guidelines for the GHG Protocol 2026-03-05T16:49:31+01:00 # Methods, calculations and data sources Guidelines for the GHG Protocol Here you will find guidelines for the GHG Protocol, practical guidance on documentation, and how to integrate climate data directly into your company's ERP system. We provide the tools and answers (FAQ) to ensure a transparent and accountable carbon footprint report in accordance with best accounting practices. /climate-reporting/methods-calculations-and-data-sources/documentation page A guide to greenhouse gas accounting in Climate Reporting, including methods for calculation and data sources. 2026-03-05T16:49:31+01:00 # Documentation for Climate Reporting A guide to greenhouse gas accounting in Climate Reporting, including methods for calculation and data sources. Climate Reporting helps small and medium-sized businesses meet their sustainability requirements by automating greenhouse gas accounting using data already available in their various IT systems ## What is Greenhouse gas accounting? Greenhouse gas (GHG) accounting is the process of measuring, tracking, and reporting the amount of greenhouse gases emitted by a business. It allows businesses to identify their emission sources, set reduction targets, comply with environmental regulations, and demonstrate their commitment to sustainability. As countries and corporations try to strengthen their climate policies and reduce environmental impact, standardised GHG accounting provides valuable data that supports informed decision-making and credible climate action. Various standards offer companies guidance on how to account and report GHG emissions [(see our support article for an overview)](https://www.ducky.eco/en/support/greenhouse-gas-reporting). The most widely used standard is the GHG Protocol Corporate Accounting and Reporting Standard. [Read our guide about the standard and how to use it.](https://www.ducky.eco/en/support/climate-reporting/the-ghg-protocol) More than 40 countries now legally require the reporting of GHG emissions. Large companies within the European Union (EU), as well as non-EU companies with significant business operations in the EU, must disclose their emissions as mandated by the [Corporate Sustainability Reporting Directive](https://www.ducky.eco/en/support/csrd-requirements) (CSRD). This directive was incorporated into the [Norwegian Accounting Act](https://www.wr.no/en/news/eu-corporate-sustainability-reporting-directive-csrd-implemented-into-norwegian-law) in 2024. For smaller companies, it is recommended to report under the simpler [Voluntary Standard for SMEs (VSME).](https://www.ducky.eco/en/support/vsme-standard) --- ## Greenhouse gas accounting in Climate Reporting Climate Reporting follows the principles and guidelines established by the GHG Protocol. The platform enables companies to calculate their GHG emissions, analyse synchronised emissions data in an interactive dashboard and generate greenhouse gas reports compliant with ESG frameworks that can be shared with various stakeholders. ### Methods to calculate greenhouse gas emissions There are two primary methods for calculating greenhouse gas emissions: the spend-based method and the activity-based method. The main difference between these methods is the type of input data and emission factors they use. #### Input data types * **Primary data:** includes data measured by the reporting company or provided by suppliers that directly relate to specific activities in the reporting company’s value chain. Primary activity data may be obtained through meter readings, purchase records, utility bills, engineering models, direct monitoring or mass balance. * **Secondary data:** includes industry-average-data (e.g., from published databases and government statistics), financial data, proxy data, and other generic data #### Emission factor types An emission factor quantifies the greenhouse gas emissions produced per unit of a given activity. Examples of such activities include driving a vehicle, burning fuel in a boiler, or the money spent on goods and services. * **Primary emission factors:** These factors are derived from direct measurements or primary data sources specific to a company’s own operations, suppliers, or products. They provide accurate, activity-specific information that reflects actual emissions from particular processes or supply chain entities. Examples are: product-level data from suppliers, environmental product declarations or site-specific energy use or emissions data. * **Secondary emission factors:** These factors are derived from generalised industry averages, scientific literature, databases, or proxy data. These factors are not specific to a single company’s activities but represent broader approximations based on sector-level or regional averages. * Can be of two types: activity-based (kg CO₂e per liter of fuel consumed) and spend-based (kg CO₂e per money spent). More information on activity-based secondary emission factors can be found in our API documentation. * Useful when primary data is unavailable or impractical to collect, offering a scalable, cost-effective way to estimate emissions with less accuracy. * Examples are: national and industry average emission factors, lifecycle assessment studies, Environmentally Extended Input Output (EEIO) emission factors. #### Calculation methods * **Spend-based method:** Emissions are calculated using financial data (e.g., how money spent on goods or services) multiplied by spend-based emission factors (kg CO₂e per money spent). This approach is straightforward, as it requires minimal data input from the user, yet comprehensive, since it captures emissions by drawing on all financial transactions recorded in the accounting system. However, it is less precise because it depends on generalised assumptions and emission factors. * **Activity-based methods:** Emissions are calculated using physical data (directly measured or estimated), like liters of fuel consumed or numbers of products purchased, multiplied by emission factors (kg CO₂e per kilometers travelled). Recommended by the GHG Protocol. Includes: * **Average-data:** A subset of activity-based calculations where primary (measured diesel consumption) or secondary (like diesel consumption estimated from fuel receipts) activity data is combined with activity-based emission factors (like kg CO₂e emitted per liter of diesel burnt). * **Supplier-specific:** A subset of activity-based calculations where primary activity data is combined with supplier-specific emission factors, for example an environmental product declaration compiled by a supplier or emission factors obtained directly from suppliers. * **Hybrid:** Combines supplier-specific data (where available) and compliments it with secondary data. #### Calculation method in Climate Reporting To balance accuracy and practicality, Climate Reporting uses both the spend-based and average-data methods. The process begins with extracting financial data from your company’s general ledger to generate initial emissions estimates using the spend-based method. These estimates are then refined by incorporating primary, activity-based data where available, replacing the spend-based estimates to improve accuracy. This approach allows broad, high-level coverage from utilising spend data while enhancing precision using more specific activity data when possible. --- ## Chart of accounts and general ledger Climate Reporting makes use of a company’s chart of account and general ledger to calculate emissions. A **chart of accounts (CoA)** is the structured list of all the accounts a business uses to categorise its financial transactions. Accounts are categorised by type, including assets, liabilities, equity, revenue, and expenses. For both accounting and sustainability reporting, it is important to record each transaction in the most appropriate ledger account. In Norway, most accounting softwares offer charts of account templates maintained by [Regnskap Norge or Standard Norge.](https://www.regnskapnorge.no/produkter/faglitteraturpublikasjoner/utvidet-kontoplan/) These serve as blueprints for organising company finances, though businesses retain a degree of flexibility to modify existing accounts or add new ones. Meanwhile a **general ledger (GL)** is the complete record of all financial transactions for a business. It contains every debit and credit entry across all accounts, along with running balances, so you can see the full financial picture at any point in time. All companies are required to assign a standardised [SAF-T account ID](https://github.com/Skatteetaten/saf-t) to each account in the CoA in order to generate tax reports upon request from Skatteetaten (the Norwegian Tax Administration). As a result, all Norwegian accounting systems can produce a comparable SAF-T report file which can serve as a foundation for developing simple, yet comprehensive and comparable, greenhouse gas accounting. This is done through mapping each SAF-T to appropriate spend-based emission factors. Take for example, account 7155 which (in SAF-T v1.3) contains travel-related expenses like hotel stays, travel tickets and food. In this case, the account is mapped to emission factors related to the hospitality and transport sectors. Accounting practices have a substantial effect on emissions, so make sure to read our [guide about smart accounting practices before starting reporting.](https://www.ducky.eco/en/support/climate-reporting/good-accounting-practices) ### The logic flow for calculating emissions in Climate Reporting 1. The customer’s financial data is made available to Climate Reporting. This can be done in one of two ways: * Climate Reporting fetches data directly from a supported ERP (currently Business NXT, Visma Net or Tripletex). * The customer uploads their financial report to Climate Reporting as a SAF-T file. 2. Relevant information for calculating greenhouse gas emissions is extracted. This means transactions from expense accounts, including the following fields for each transaction: * Account ID (as defined in the ERP). * SAF-T Account ID and version. * Amount (in a defined currency). * The date the purchase was made. 3. The net monthly amount per SAF-T account is calculated by summing all transactions. 4. The aggregated transactions are multiplied by the relevant emission factor to calculate greenhouse gas emissions. 5. Next, the spend-based emission estimates can be refined by supplementing with activity data. This can be done in one of three ways: * Climate Reporting fetches spending data from a supported system and converts it into consumption data (only for fuel and energy consumption). * The user inputs consumption data manually (currently available for fuel and energy). * Climate Reporting extracts detailed travel data from a supported system (kilometers travelled in a specific mode of transport). 6. Relevant information for calculating greenhouse gas emissions is extracted. 7. The activity quantities are aggregated multiplied by the relevant emission factor for that activity type. 8. Emissions calculated using activity-based data replace spend-based estimates wherever applicable. 9. Updated data is now available to get an overview and export reports:  --- ## Output report format Climate Reporting outputs a spreadsheet report with your climate emissions in a simple and readable format. The report has the following tabs with more to come in the future: * Report information * Monthly greenhouse gas emissions per SAF-T account * Monthly greenhouse gas emissions per GHG Scope * Breakdown of energy consumption by energy sources * Monthly greenhouse gas emissions from business travel * Energy consumption indicators for reporting The report is based on the GHG Protocol Corporate Accounting And Reporting Standard and is compatible with CSRD and VSME. It includes all available documentation in the app, which can be useful for auditing purposes, along with explanations and links to documentation. We continuously enhance the report with additional features and more detailed data to further strengthen transparency and usability. --- ## What Scopes have been included and excluded? ### Scope 1 | Scope 1 category | Description | Status | | --- | --- | --- | | Mobile combustion | Emissions from use of fuel in mobile assets (cars, buses, etc.) | Included (average-data) | | Stationary combustion | Emissions from use of fuel in stationary assets (boilers, etc.) | Included (average-data) | | Fugitive emissions | Direct emissions not caught by a capture system (leaks, etc.) | Coming soon | #### Calculation of Scope 1 emissions Directly measured or estimated fuel consumption is multiplied with activity-based emission factors (e.g. kg CO₂e per liter of fuel consumed). #### Estimation without manual input * In this scenario, fuel consumption is estimated from fuel spend. Fuel use is estimated by dividing the spending on different fuels by the average fuel price of the fuel. Spending on fuels is tracked using specific SAF-T accounts: For SAF-T v1.3, these are account numbers: **6200** (Power and fuel for manufacture) and **7000** (Fuel, means of transport). * A mapping has been established between SAF-T accounts and different fuel types, which determines the proportion of total spending allocated to each fuel [(based on SSB’s statistics on energy consumption in Norway).](https://www.ssb.no/en/energi-og-industri/energi/statistikk/produksjon-og-forbruk-av-energi-energibalanse-og-energiregnskap) * Once the expenditure is attributed to each fuel, it is divided with the corresponding fuel price to estimate fuel consumption. The fuel prices are updated annually. * Each fuel’s consumption is then multiplied by its corresponding activity-based emission factor to calculate CO₂e emissions. * Finally, emissions are summed for all the different fuel types and aggregated as per aggregation categories defined in the European Sustainability Reporting Standards (ESRS). #### Calculation with manual input * In this scenario, users manually enter directly measured fuel consumption in appropriate units (kWh, litres, cubic meters, or kilograms). Users must assess all fuel types that are tied to the above-mentioned SAF-T accounts, and replace spend-based estimates by measured data, in order to avoid double counting. * Each fuel’s consumption is first converted into kWh, and then multiplied by its corresponding activity-based emission factor (in CO2e per kWh) to calculate CO₂e emissions. * Finally, emissions are summed for all the different fuel types and aggregated as per aggregation categories defined in the ESRS. For a deep dive into [Scope 1 emissions, refer to our support article.](https://www.ducky.eco/en/support/scope-1-ghg-emissions) --- ### Scope 2 | Scope 2 category | Description | Status | | --- | --- | --- | | Location-based method | Emissions based on average intensity of the grid | Included (average-data) | | Market-based approach | Emissions based on contractual arrangements (certificates, etc.) | Included (average-data) | #### Calculation of Scope 2 emissions Climate Reporting can calculate Scope 2 emissions using both location-based and market-based approaches. Directly measured or estimated energy consumption is multiplied with activity-based emission factors (e.g. kg CO₂e per kWh of electricity consumed). #### Estimation without manual input (Scope 2) ##### Location-based approach * In this scenario, energy consumption is estimated from energy spend: by dividing the spending on energy by the average price of energy (updated annually). * Energy-related expenses are identified in the financial accounts. For SAF-T v1.3, the relevant accounts are: **6200** (Power and fuel for manufacture) and **6340** (Lighting and heating). These SAF-T accounts are mapped to specific energy types to determine how total spending is distributed across different forms of purchased energy. * Expenditures attributed to each energy type are then divided with the corresponding energy prices to estimate energy consumption. * Consumption is then multiplied by its corresponding location-based emission factors to calculate CO₂e emissions. Example: In Norway in 2024, emissions from purchased electricity are calculated as: total electricity consumption (with and without guarantees of origin) × 11.9 g CO₂e/kWh [(emission factor from NVE).](https://www.google.com/search?q=https://www.nve.no/en/energi/energisystem/energibruk/stroemdeklarasjoner/) * Finally, emissions are summed for all the different energy types and aggregated as per aggregation categories defined in the ESRS. ##### Market-based method * Steps 1 to 3 are the same as for the location-based method. * In the market-based approach, electricity (or other utilities) covered by guarantees of origin is assigned the emission factor specified in the contractual instrument, typically 0 g CO₂e/kWh, as guaranteed energy is renewable. Energy not covered by guarantees is assigned the residual mix emission factor (e.g., 535 g CO₂e/kWh for electricity in Norway in 2024). * Total market-based emissions are obtained by summing emissions from guaranteed and non-guaranteed portions. * **Note:** When relying on financial data, it is not possible to determine whether energy purchases include guarantees. The tool therefore assumes all energy is without guarantees and applies the residual mix emission factor. This can be overwritten by manually inputting energy consumption in the tool. * Finally, emissions are summed for all the different energy types and aggregated as per aggregation categories defined in the ESRS. #### Calculation with manual input (Scope 2) ##### Location-based approach (Manual) * Users manually enter energy consumption in units such as kWh, including any energy purchased with guarantees. * Each energy type’s consumption is multiplied by its corresponding location-based emission factor to calculate CO₂e emissions. Example: In Norway, emissions from purchased electricity are calculated as: total electricity consumption (with and without guarantees of origin) × 11.9 g CO₂e/kWh [(emission factor from NVE).](https://www.google.com/search?q=https://www.nve.no/en/energi/energisystem/energibruk/stroemdeklarasjoner/) * Finally, emissions are summed for all the different energy types and aggregated as per aggregation categories defined in the ESRS. ##### Market-based approach (Manual) * Step 1 is the same as the location-based method. * Energy covered by guarantees of origin is assigned the emission factor specified in the contractual instrument, most often 0 g CO₂e/kWh. Energy not covered by guarantees is multiplied by the residual mix emission factor (e.g., 535 g CO₂e/kWh for Norwegian electricity in 2024). * Finally, emissions are summed for all the different energy types and aggregated as per aggregation categories defined in the ESRS. For detailed information about [Scope 2 emissions and allocation methods, refer to our support article.](https://www.ducky.eco/en/support/scope-2-ghg-emissions) --- ### Scope 3 Scope 3 is broken into 15 categories by the Greenhouse Gas Protocol to help companies comprehensively assess and manage their indirect GHG emissions. The first eight categories are upstream of the company (related to purchased goods and services) and the last seven downstream (related to sold goods and services). For a deeper dive into the 15 categories, refer to our Scope 3 article here. | Scope 3 category | Description | Minimum boundary | Status | | --- | --- | --- | --- | | 1. Purchased goods | Emissions from production of goods | Cradle-to-gate emissions | Included | | 2. Capital assets | Emissions from equipment | Cradle-to-gate emissions | Coming soon | | 3. Fuel activities | Emissions from energy transport | Upstream energy emissions | Included | | 4. Upstream transport | Emissions from transport | Scope 1/2 of providers | Included | | 5. Waste operations | Emissions from treatment | Scope 1/2 of suppliers | Coming soon | | 6. Business travel | Emissions from travel | Scope 1/2 of carriers | Included | | 7. Commuting | Emissions from commuting | Scope 1/2 of employees | Excluded | | 8. Upstream leased | Emissions from leased assets | Scope 1/2 of lessors | Included | | 9. Downstream transport | Emissions from transport | Scope 1/2 of providers | Excluded | | 10. Processing | Emissions from processing | Scope 1/2 of companies | Excluded | | 11. Use of products | Emissions from use | Direct use-phase emissions | Excluded | | 12. End-of-life | Emissions from disposal | Scope 1/2 of waste companies | Excluded | | 13. Downstream leased | Emissions from owned assets | Scope 1/2 of lessees | Coming soon | | 14. Franchise | Emissions from franchises | Scope 1/2 of franchisees | Excluded | | 15. Investments | Emissions from investments | Equity/debt investments | Excluded | --- /climate-reporting/methods-calculations-and-data-sources/ghg page 2026-03-05T16:49:31+01:00 # The GHG Protocol Learn about the Greenhouse Gas Protocol in detail and how to use it for corporate greenhouse gas accounting The Greenhouse Gas Protocol (GHG Protocol) establishes standardised frameworks to measure and manage greenhouse gas emissions across businesses, governments, and products. It is the world's most widely used framework for accounting and reporting greenhouse gas emissions. The Protocol offers several complimentary standards, each tailored to address specific organisational needs: * [Corporate Accounting and Reporting (Corporate) Standard](https://ghgprotocol.org/corporate-standard): Provides requirements and guidance for companies that are preparing a corporate-level GHG emissions inventory. * [Corporate Value Chain (Scope 3) Standard](https://ghgprotocol.org/corporate-value-chain-scope-3-standard): Allows companies to assess their entire value chain emissions impact. * [GHG Protocol for Cities](https://ghgprotocol.org/ghg-protocol-cities): Provides a framework for accounting and reporting greenhouse gas emissions for cities and municipalities. * [Product Standard](https://ghgprotocol.org/corporate-standard): Provides a framework for calculating the full life cycle emissions of a product. * [Project Protocol](https://ghgprotocol.org/project-protocol): Used for quantifying emissions reductions of climate mitigation projects. * [Policy and Action Standard](https://ghgprotocol.org/policy-and-action-standard): Enables assessment of the impact of climate policies and actions, suitable for national or subnational levels. * [Mitigation Goal Standard](https://ghgprotocol.org/mitigation-goal-standard): Helps countries and cities design and report on climate mitigation goals. This article focuses on the Corporate Standard, which provides a framework for businesses to measure and report their greenhouse gas emissions. Since its introduction in 2001, it has become the de-facto international benchmark for corporate carbon accounting. The Corporate Standard is recommended for calculating emissions under key sustainability reporting regulations such as CSRD, for the disclosure requirements under ESRS E1-6: Greenhouse gas emissions, as well as voluntary standards like VSME and Environmental Lighthouse. In 2023, 97% of S&P 500 companies that reported their emissions used the GHG Protocol Corporate Standard as the basis for their corporate carbon accounting. ## Corporate Accounting and Reporting Standard The Corporate standard is designed to help businesses quantify, manage, and report their greenhouse gas emissions in a consistent, transparent, and credible manner. The standard was designed with the following objectives in mind: * Enable companies to prepare a GHG inventory that represents a true and fair account of their emissions. * Simplify and reduce the costs of compiling a GHG inventory. * Provide business with actionable information to build strategies for managing and reducing GHG emissions. * Facilitate participation in voluntary and mandatory GHG programs. * Increase consistency and transparency in GHG accounting and reporting across companies. ### What are the key principles behind this standard? The Greenhouse Gas Protocol Corporate Accounting and Reporting Standard is underpinned by five key principles that ensure credibility, transparency, and usefulness of greenhouse gas inventories prepared by companies: 1. **Relevance:** The final report should reflect the company’s actual GHG emissions profile and help support internal decision-making as well as external reporting needs. 2. **Completeness:** All relevant emission sources within the chosen organisational and operational boundaries must be included. 3. **Consistency:** The methodologies, data sources, and calculation approaches should be consistent across accounting periods to enable comparison over time. 4. **Transparency:** The company must clearly disclose assumptions, estimations, methodologies, and any exclusions or uncertainties. 5. **Accuracy:** Emissions should be quantified as closely to actual emissions as possible, minimizing uncertainties and biases. ### Who should use this standard? While the Corporate Standard is primarily designed for businesses developing a greenhouse gas (GHG) inventory, it is equally applicable to any organisation whose operations result in GHG emissions; including NGOs, government agencies, and universities. ## How to use this standard? ### 1. Organisational boundaries The first step is to define the organisational boundaries, a concept that is used to determine which parts of the organisation (subsidiaries, business units, joint ventures) are included in the GHG inventory. The Standard provides two approaches for setting these boundaries: * **Equity share:** The company reports GHG emissions based on its ownership percentage in each operation, reflecting its economic interest and exposure to associated risks and rewards. Example: If an organisation owns 70% of a power plant, it reports 70% of the plant’s emission in its GHG inventory. * **Control share:** The company reports 100% of emissions from operations where it has control (either financial or operational), but does not report emissions for operations where it only holds an interest. There are two types of control: * **Financial control:** The company can direct financial and operating policies to benefit economically. * **Operational control:** The company has full authority to implement operating policies, directly or through subsidiaries. **Here is an example scenario to help understand how the different approaches work in practice:** An investor (lets name it SunVest) partners with another company (lets call it RayOps) to run a solar farm (aptly named BrightField). SunVest owns 70% of BrightField and can direct its financial and operating policies, giving it financial control. RayOps manages day-to-day operations, giving it operational control. BrightField emits 1,000 tonnes of CO₂ annually. * Under the **equity share approach**, SunVest reports 700 tonnes of CO₂ emissions (proportional to its stake) and RayOps reports 300 tonnes of CO₂ emissions (proportional to its stake) * Under the **operational control approach**, SunVest does not report any emissions (since it does not control operations) and RayOps reports 1000 tonnes of CO₂ emissions (as it controls operations) * Under the **financial control approach**, SunVest reports 1000 tonnes of CO₂ emissions (as it has financial control) and RayOps does not report any emissions (since it does not have financial control) Climate Reporting uses the **operational control approach** as it is the most relevant for SMEs and aligns with their typical business practices. However, this approach is less suitable for investors or financial institutions. ### 2. Operational boundaries After organisational boundaries are set, the company must determine its operational boundaries by identifying all emissions related to its activities and categorising them as direct or indirect, based on its relationship to the sources. To help distinguish between direct and indirect emission sources and improve transparency in value chains, the GHG Protocol further divides emissions into three scopes: * **Scope 1:** Direct emissions from sources owned or controlled by the reporting company. For a detailed explanation of Scope 1 emissions, please [see our dedicated article here](https://www.ducky.eco/en/support/scope-1-ghg-emissions). * **Scope 2:** Indirect emissions from purchased energy (electricity, steam, heating, or cooling) consumed by the reporting company. For a detailed explanation of Scope 2 emissions, please [see our dedicated article here](https://www.ducky.eco/en/support/scope-2-ghg-emissions). * **Scope 3:** Other indirect emissions occurring in the reporting company’s value chain, including upstream and downstream activities such as supply chain emissions, business travel, or the use of sold products. For a detailed explanation of Scope 3 emissions, please [see our dedicated article here](https://www.ducky.eco/en/support/scope-3-ghg-emissions). ### 3. Collect data and quantify emissions After setting boundaries, collect relevant data (such as fuel usage, electricity consumption, or money spent on products and services). Combine this data with appropriate emission factors to calculate emissions for each source and allocate them to the correct scopes. Climate Reporting enables the **automatic collection** of relevant data from your IT systems, allowing you to **quantify emissions accurately**. ### 4. Prepare report Compile a GHG inventory report, detailing your emissions by scope, organisational boundaries, methodologies, and any exclusions. Climate Reporting provides an **exportable spreadsheet** with your company's emission that can be used to **compile a GHG inventory report**. ### 5. Third-party verification While not mandatory under the Corporate Standard, third-party verification is recommended to increase the credibility of the report. Results can be used to comply with regulatory requirements, and identify opportunities for emission and cost reductions. ## Why should you use this standard? Using the Corporate Standard enables organisations to reliably measure, manage and report their greenhouse gas emissions. Key benefits include: * **Facilitating effective emission management:** Accurate emissions accounting helps organisations identify emissions and cost reduction opportunities, set meaningful targets, and track progress to improve their sustainability performance. * **Supporting regulatory and voluntary reporting:** Helps companies comply with mandatory and voluntary reporting requirements. * **Enabling participation in GHG markets:** A robust GHG inventory is essential for engaging in carbon markets or trading schemes, where verified emissions data are needed for credits or allowances. * **Ensuring standardization and credibility:** It provides a globally recognized and consistent framework to measure and report greenhouse gas emissions, ensuring credibility and comparability across organisations and industries. /climate-reporting/methods-calculations-and-data-sources/faq page 2026-03-05T16:49:31+01:00 # Frequently asked questions ## The Climate Reporting Tool In this article, we have compiled questions for the climate reporting tool, divided into methodology, roadmap, and user access. --- ## 📊 Data Quality and Method ### How are emissions calculated? Is there a conversion factor at the account level? Greenhouse gas emissions are calculated based on transactions on various **SAF-T accounts** in the accounting system. * Each SAF-T account is assigned one or a combination of several emission factors based on what is normally recorded as expenses on various accounts. * For some accounts, we use a weighting of emission factors where there are life cycle analyses and consumption statistics. * Transactions are aggregated monthly per account and adjusted for consumer price index and energy prices. ### Why are SAF-T accounts used for emissions categorization? [SAF-T accounts](https://www.skatteetaten.no/en/business-and-organisation/start-and-run/best-practices-accounting-and-cash-register-systems/saf-t-financial/) must be available in the accounting records if requested by the Norwegian Tax Administration. Thus, all Norwegian accounting software can export a standardized SAF-T report file (XML format). * SAF-T accounts can be used as the basis for a simple yet complete and comparable greenhouse gas reporting. * Each accounting system is responsible for the SAF-T ID categorization in its system, and the accountant or finance manager can easily activate automatic categorization of the SAF-T account ID. ### Which SAF-T version do you use? We use the new **SAF-T version 1.3**, with 4 digits. This is the latest standard and must legally be implemented in all accounting systems to report tax in 2025. ### What databases do you use? We use **Exiobase 4** for spend-based emissions calculations. ### Do you use a product or sector-based approach to estimate emissions? In Exiobase 4, there are two available sets of input-output models and emission factors: * **Transactions between industries (IXI):** Provides information on how much one industry delivers to or buys from another industry. Classified into 163 NACE categories (industry codes). * **Transactions between products (PXP):** Provides information on how much of a product is used to make other products. Classified into 200 CPA product categories. Ducky uses the **IXI version** of the model to calculate emissions at the account level in the climate reporting tool. ### Do you adjust emissions in category 3.1, goods and services? We do not offer any adjustments for category 3.1 yet. We see that it is possible to differentiate by sector and are in dialogue with ERP systems to produce consistent information about suppliers. This is a good step towards capturing information at the line item level on invoices. The accounts in the accounting system are divided for accounting and tax purposes (VAT etc.). The purchased goods category cannot be differentiated based on the current account setup, although more detailed data exists for various services. --- ## 🗺️ Roadmap and Future Opportunities ### Will the tool focus on tracking changes over time? Issues with the spend method (e.g., where an expensive train trip might seem to have higher emissions than a cheap flight) can be addressed by separating travel modes in different accounts or using information from travel expense reports. Our top priority is to increase precision in data collection. We are developing functionality that allows companies to set up indicators and measure them over time (e.g., number of flights or liters of fuel). Users will be able to override spend data with more accurate **activity data** (kWh, liters) and move from generic emissions data to product-specific data (e.g., from Environmental Product Declarations). ### When will new functionality with indicators be released? Functionality will be rolled out continuously throughout **Q1 2025**. The package will include indicators for energy and greenhouse gases (**ESRS E1-5 and E1-6**), as well as a selection of S- and G-indicators. ### Will the new functionality be adapted to CSRD regarding ESRS tagging (ESEF)? **Yes.** The sustainability reporting file format is **XBRL** (eXtensible Business Reporting Language). Once the Brønnøysund Register Center has defined the final formats for ESRS, LSME, and VSME, we will support them for direct upload to Altinn. ### Can this tool be used to report to Eco-Lighthouse or CSRD? **Yes.** The tool is designed to help SME companies address both direct and indirect requirements. The data is compiled for the appropriate purpose and format, whether it's EU directives or certification schemes like Eco-Lighthouse. --- ## 👥 Who can use the tool? * **Do you need to have Visma?** No. We offer SAF-T file upload for all customers. Contact `mads@ducky.eco` for setup. * **Municipalities and county councils?** Yes, we are working to ensure that the tool is also useful for the public sector. * **Large companies?** Yes. Even though we focus on SMEs, the functionality is equally applicable for large companies as a supplement to address specific topics in sustainability reporting in a simple and affordable way. --- ## ❓ Other Questions ### How is double reporting handled in the tool? Financial data is already recorded in such a way that nothing is counted twice internally. When using activity data (e.g., liters of fuel), the system runs a check against accounts where this is usually recorded. Either the spend data is overridden, or the user is notified of discrepancies. Double entries *between* companies are a natural part of the GHG Protocol (one company's Scope 1 is another's Scope 3). The tool follows these international standards. /climate-reporting/methods-calculations-and-data-sources/accounting-practice page Guide to improving climate accounting accuracy in ERP systems using SAF-T IDs, detailed G/L mapping, and GHG Protocol categorization for Scopes 1, 2, and 3. 2026-03-05T16:49:31+01:00 # Smart accounting practices that strengthen your climate report Guide to improving climate accounting accuracy in ERP systems using SAF-T IDs, detailed G/L mapping, and GHG Protocol categorization for Scopes 1, 2, and 3. ## Guide to Adjusting Your Accounting Practices for More Accurate Climate Accounting ## Introduction The Climate Reporting Tool calculates emissions automatically based on accounting data (spend method). For better accuracy, you can input activity data, such as energy and fuel consumption. This guide provides best practices for how to conduct accounting most accurately. It covers the use of general ledger accounts and SAF-T ID, how accounts are linked to the GHG Protocol (Scopes 1, 2, and 3), and special considerations such as VAT, accruals, and leasing. ## How the Climate Reporting Tool Works in Practice The tool connects to the accounting system by mapping general ledger accounts to SAF-T IDs. Each SAF-T ID determines the emission factor applied to transactions. To get started, you only need to activate SAF-T ID in the ERP system. It will then automatically link to your general ledger accounts. Some accounts are mapped 1:1 with SAF-T ID, while others are combined. **Example:** If a company purchases fuel, it must be recorded on a general ledger account that is mapped with a SAF-T ID associated with Scope 1 emissions to ensure the correct emission factor is used. ## Fundamental Principles for Good Accounting Practices Accounting for accurate climate accounting will represent a new perspective for many in their accounting practices. To ensure detailed and reliable climate accounting, we recommend the following principles when recording your financial accounts: * Consistently record accounts monthly to ensure comparable data over time. * Breakdown transactions into multiple accounts for more detailed emission data. * Record physical assets with different energy sources separately for more precise calculations. * Avoid using general accounts like “Miscellaneous,” as these provide poorer accuracy. * Record leasing costs and financial leases as assets so they can be included in Scope 3 reporting. Following these principles will give you a better overview of the company's emissions and facilitate future improvements. ## How Emissions Are Allocated in Climate Accounting The Greenhouse Gas Protocol (GHG Protocol) is the most widely used framework for defining which emissions should be reported where in the climate accounts, aligning with EU and accounting law requirements (CSRD/VSME). To ensure emissions are categorized correctly, we have compiled some practical recommendations here: ### Assets and Equipment Activating assets provides a better data basis for emission calculations. This functionality is coming in 2025, and we recommend establishing good accounting practices now: * **Register assets separately:** Equipment and fixed assets that use different sources of fuel or electricity should be recorded as separate assets. It provides more precise calculations since two vehicles worth 800,000 NOK will have higher emissions than one of the same value. * **Connect energy data to the asset:** By recording each asset individually, energy meters or fuel accounts can later be linked to the specific asset, automatically recording energy usage to the correct asset and scope. * **Retain assets after depreciation:** This enables energy consumption to still be linked to the correct asset without manual effort. * **Activate leasing:** Leased assets that are critical for operations should be activated. This enables reporting in Scope 3, category 8: Upstream leased assets – and provides more accurate Scope 3 data. * **Register rentals:** Leased out assets should also be activated. This allows emissions to be reported in Scope 3, category 13: Downstream leased assets. ### Fuel and Energy Use (Scope 1 and 2 - Direct Emissions from the Company) Fuel and energy purchases result in direct greenhouse gas emissions. If these entries are low or zero, it is often because the costs are hidden in other accounts. To ensure correct reporting, such expenses should be separated out and recorded correctly – this way they are assigned the correct emission factor and placed in the correct emission category (Scope 1 or 2). It also makes it easier to avoid double counting when you input consumption data or connect to integrations like mileage logs and electricity meters. **Production (energy, fuel, cooling, and heating)** Separate all consumption related to production in owned or leased buildings and equipment. Record refrigerants on a separate account – this will soon be supported in the tool. **Vehicles (fuel and electricity)** Record all fuel and electricity used for owned vehicles separately. Differentiate fuel for employee travel where practically possible. **Electricity and Heating** Use dedicated accounts for electricity and heating. If you are a tenant, request separate energy statements – this ensures that consumption can be booked correctly and included in Scope 2 emissions. ### Goods, Services, Transport, and Employee Travel (Scope 3 - Indirect Emissions from the Company's Supply Chain) Scope 3 is indirect emissions from the company's supply chain and is voluntarily reported for small and medium-sized enterprises. However, this is often where the largest emissions for many are found – and opportunities for improvement. If you wish to work on your Scope 3 emissions, we recommend detailing as much as possible in the accounts within each emission category: **Purchases of raw materials** Record only the raw materials themselves. Freight and transport should be recorded separately (see below). The raw material account currently has an average emission factor, but we are working to provide industry-specific factors based on NACE code. **Freight of sold goods** Record transport and freight of raw materials and products separately. This provides an overview of emissions from transport (Scope 3, category 4). **Purchases of goods and services** Use relevant accounts to differentiate various types of purchases. Avoid “miscellaneous” accounts. More detail provides a better data basis and more precise emission calculations. **Employee travel** Record employee travel separately – it enables measuring the effects of initiatives over time. It also provides a clearer picture of purchased services and makes it easier to avoid double reporting when using automatic data sources for travel expenses and disbursements. For further details regarding the categories in the GHG Protocol, you can read this article. ## Conduct a Quality Check of Accounting Practices with Our Comprehensive Table Overview of the GHG Protocol categories and relevant general ledger accounts mapped against which SAF-T ID. Download the table (Excel format) for your ERP solution and conduct a quality check of your accounting practices: * [Business NXT](https://docs.google.com/spreadsheets/d/1fNyzjmTY2ZBjNUuBjPveciOqFPSCqleS/edit?gid=1917206083#gid=1917206083) * Visma.net * Tripletex Contact [support@ducky.eco](mailto:support@ducky.eco) for a walkthrough if you are using file uploads. ## Special Considerations in Climate Accounting ### Value-Added Tax (VAT) The Climate Reporting Tool calculates emissions based on transactions without VAT. Therefore, VAT accounts are not included in the climate accounts. ### Accruals By accruing costs associated with emissions, these will be picked up on the expense accounts, providing a more accurate picture of when emissions occur. For example, a quarterly electricity bill should be accrued over each month so that electricity consumption is distributed throughout the year and reflected in the climate accounts. ### Leasing of Assets Leasing assets, such as vehicles and machinery, should be activated as assets in the accounts. This allows them to be included in the company's indirect emissions (Scope 3, category 8: upstream leased assets). **Example:** A company leasing electric vans should activate these in the accounts to ensure the emissions are correctly categorized. ## Future Opportunities – How to Prepare? Throughout 2025, new functionality is planned to increase the level of detail in data from the financial accounts, so you automatically get better climate accounting from your ERP system. We therefore recommend that you already now: * Use available tags, often referred to as cost bearers, responsibility units, or dimensions, in the ERP system for more detailed categorization of transactions where available. Examples include cost centers to divide into areas within the company, or project accounting where possible to link emissions to activities, services, or products you purchase. * Differentiate energy use, fuel, and transport costs on relevant accounts to avoid double counting. This is crucial when you overwrite accounting data with activity data (consumption of kWh, liters of diesel, etc.) or connect to external data sources like disbursement data, mileage logs, or electricity meters. * Activate leasing and physical assets now, so they can be automatically captured when the asset functionality is available. ## Summary – 5 Smart Steps You Can Take Now for Better Climate Accounting 1. ✅ Activate SAF-T ID and ensure the ID has 4 digits. 2. ✅ Record transactions on relevant accounts to increase accuracy in emission categorization. 3. ✅ Differentiate energy use, fuel, and transport from other costs. 4. ✅ Prepare for new functions in 2025 by establishing good routines now. 5. ✅ Use responsibility units and dimensions in the ERP system for more detailed reporting. By implementing these measures, you ensure that climate accounting becomes both more accurate and more valuable as a decision-making basis. Do you have questions? Contact [support@ducky.eco](mailto:support@ducky.eco) for guidance! /climate-reporting/functionality-and-updates section Focusing on ESRS indicators for enhanced climate reporting accuracy 2026-03-05T16:49:31+01:00 # Functionality and Updates Focusing on ESRS indicators for enhanced climate reporting accuracy An informative overview of new features and updates, focusing on ESRS indicators and the integration of activity data for enhanced climate reporting accuracy. /climate-reporting/functionality-and-updates/activity-data page Guide to overwriting financial estimates with actual consumption (activity data) for more precise climate reporting and ESRS compliance. 2026-03-05T16:49:31+01:00 # Activity Data in Climate Reporting Guide to overwriting financial estimates with actual consumption (activity data) for more precise climate reporting and ESRS compliance. Get an overview of how the feature for inputting activity data works in climate reporting. The function to overwrite accounting data with consumption data, often referred to as activity data, is now available in the climate reporting tool. The functionality is initially available for energy consumption, so buckle up and gather your energy receipts! ## What Can You Do with This Feature? This feature allows you to replace financial estimates with actual consumption per month. The data is structured as energy indicators or measurement points defined in the ESRS framework, and these energy indicators fall under E1-5 energy. The same data is used for emission calculations. When you update data with actual energy consumption, your emissions figure becomes more precise. You can select which units to use (kWh, liters, currency) and choose whether to override some estimates with manual entries for the selected year while keeping others estimated. If you decide to overwrite data, you must do so for the entire year. ### Unit Each type of energy can use one unit per year. Changing the unit will delete manual entries for the selected energy type and year. Other energy types and years are not affected. Choose units that best match your raw data. Economic estimates are in kWh, but if you override them with manual entries, you are free to choose another unit. ### Overwriting Overwriting means that all transactions related to the selected energy type for the chosen year will be ignored, as indicated by a red status indicator. You can now freely adjust estimates or change the unit and enter new monthly quantities (activity data). You can revert to financial estimates before publishing, but not after manual entries are published. ### In Summary, Here’s What You Can Do - Enter energy consumption for different energy types. - Record actual consumption per month. - Select units, such as kWh, liters, or kg, where relevant. - Publish and see your data change from "estimated" to "manual." - Report activity data on energy. ### How to Find the Function for Overwriting Estimates with Consumption Data? 1. Select the year you want to update with consumption data for energy in the top filter on the homepage. This filtering changes data for all visualization cards. 2. Find the overview of ESRS indicators and select an energy indicator (read more about ESRS indicators here). All energy types can be found under the top "E1-5_01 - Total Energy Consumption," which might be a natural starting point. 3. Click on the indicator to be taken to the "overwrite data" page. Under this indicator, you will find all energy types. Entering data here will reflect on all indicators where this energy type is included. 4. Choose the energy type and click on the three dots to the right. You will see two options, one of which is active: You can choose to "enable data overwriting." 5. Select "enable data overwriting." This activates the line for the energy type you have chosen, allowing unit changes and manual data entry. 6. Use the arrow buttons displayed next to each input field to navigate between months. Both estimates and activity data cannot be used in the same year, meaning the months you leave blank will be calculated as 0. You can publish and add months later. 7. Click "Publish Changes" to make your changes active. You’ll be taken back to the home screen where new data is saved. 8. You will see changes as energy types marked as "estimated," "manual," or “mixed.” When you export reports, this will be reflected in the list of energy types. You can now report your activity data for energy! ### How Will This Work for File Upload Customers? For customers uploading SAF-T accounting files, activity data will not be used in emissions reporting, but this feature is coming soon. /climate-reporting/functionality-and-updates/esrs page An introduction to ESRS indicators for CSRD compliance, focusing on energy metrics (E1-5) and practical sustainability reporting. 2026-03-05T16:49:31+01:00 # ESRS indicators in climate reporting An introduction to ESRS indicators for CSRD compliance, focusing on energy metrics (E1-5) and practical sustainability reporting. ## What are ESRS Indicators? European Sustainability Reporting Standards (ESRS) contain a list of specific metrics that companies should use to monitor their sustainability efforts. This standard is required for those who need to report in accordance with the EU's Corporate Sustainability Reporting Directive (CSRD), but it is relevant for most companies. These indicators help your company measure and document how you impact the environment, society, and governance (ESG). To determine which ESRS indicators are relevant for your company, you (or your parent company) can start by conducting a double materiality analysis. In this analysis, you assess two areas: - **Impact** – How the company impacts the environment and society. - **Financial Risk** – How sustainability issues affect the company's finances and operations. Once the materiality analysis is completed, you choose the indicators that are most important for the company to monitor. The complexity of this analysis depends on how complex your company's operations and value chain are. For some, it might be enough to select key topics and then find relevant metrics, while others may need to delve deeper into all topics before determining what's essential to monitor over time. ### What Can You Use ESRS Indicators For? ESRS indicators provide insights into how your company is performing in terms of sustainability and help you to: - ✅ **Comply with Legal Requirements** – Ensure the company meets CSRD requirements and delivers reporting in accordance with regulations. - ✅ **Measure Development Over Time** – See how efforts to reduce climate footprints or improve social conditions actually yield results. - ✅ **Reduce Risk** – Identify potential sustainability risks that could impact the company’s finances or reputation. - ✅ **Communicate with Stakeholders** – Provide investors, customers, and employees with a transparent and credible overview of sustainability work. In short, ESRS indicators give you control over sustainability reporting and help you make informed decisions for more responsible and forward-thinking operations. ### Available ESRS Indicators in Climate Reporting To assist companies in reporting on climate in accordance with CSRD, we have made the energy and energy type indicators (ESRS E1-5: 1-17) available in our climate reporting tool. These indicators are specifically developed to measure and monitor the company's energy use and to measure reductions in consumption and emissions from energy over time. They provide a structured way to track progress and ensure that climate measures have a lasting impact. Here is an overview of the available ESRS E1-5 indicators related to energy and energy types: - ✅ E1-5_01: Total energy consumption (MWh) - ✅ E1-5_02: Fossil energy consumption (MWh) - ✅ E1-5_03: Nuclear energy consumption (MWh) - ✅ E1-5_04: Fossil energy consumption (%) - ✅ E1-5_05: Renewable energy consumption (MWh) - ✅ E1-5_06: Purchased renewable fuels (MWh) - ✅ E1-5_07: Purchased renewable energy (electricity, etc.) (MWh) - ✅ E1-5_08: Self-generated non-fuel renewable energy (MWh) - ✅ E1-5_09: Renewable energy consumption (%) - ✅ E1-5_10: Coal and coal products (MWh) - ✅ E1-5_11: Crude oil and petroleum products (MWh) - ✅ E1-5_12: Natural gas (MWh) - ✅ E1-5_13: Other fossil fuels (MWh) - ✅ E1-5_14: Purchased fossil energy (electricity, etc.) (MWh) - ✅ E1-5_15: Nuclear energy consumption (%) - ✅ E1-5_16: Nuclear energy consumption (%) - ✅ E1-5_17: Non-renewable energy production (MWh) These indicators are defined by the EU to be measured and reported in MWh or %. The climate reporting tool has made the indicators available based on both estimated values from where energy consumption is recorded in accounts and with the ability to overwrite and adjust with actual consumption (kWh), thus fulfilling the requirement for reporting energy consumption in CSRD. [Read more about the feature for inputting and overwriting with consumption data (activity data) in this article.](https://www.ducky.eco/no-no/support/klimarapportering/aktivitetsdata-i-klimarapportering) These indicators provide a comprehensive picture of the company's energy consumption and a quick overview of changes compared to the previous year. [Here is a link to the ESRS standard,](https://xbrl.efrag.org/e-esrs/esrs-set1-2023.html#936) for those who wish to delve deeper into the various indicators. ### More ESRS Indicators in Climate Reporting Throughout 2025, new indicators will be released, allowing us to cover all indicators that help you measure the 'E' in ESRS. In addition, we will release a selection of 'S' and 'G' indicators, relevant to most companies. Indicators for climate emissions Scope 1, 2, and 3 are already planned and expected to be delivered during Q2 2025. By following these indicators over time, companies can ensure that their climate strategy has a real effect. **Do you need to understand how to use these indicators in practice?** Feel free to contact us – we’ll help you get started! 😊