/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!