ENTRNCE | Inspiring insights

Are you paying for carbon emissions you’re NOT producing?

Written by Jaron Reddy - Business Lead UK | Oct 16, 2024 10:52:35 AM

ENTRNCE has revealed that some businesses could be miscalculating their emissions – and paying the price. 

Companies are overstating their emissions by as much as 40%, according to ENTRNCE data. If you are buying carbon credits or voluntary offsets to compensate for emissions, is this taking thousands of pounds off your bottom line?

How? Current carbon accounting methods

The anomaly is down to the way that most businesses report on greenhouse gas emissions. Under the GHG Protocol, companies use a dual approach:

  • Location-based reporting – which calculates emissions based on the average emission intensity of the power grid your company is physically connected to. This is regardless of your electricity supply contract.
  • Market-based reporting – which calculates emissions based on your purchasing decisions. So, if you have a REGO-backed renewable supply contract, it will take this into account.

When average isn't good enough

Location-based reporting has commonly been held as the more accurate reporting method – as it reflects the emissions from the electricity you are physically tied to.

But, there’s a catch. First, it’s based on average grid emissions, not the specific dates and times that you are consuming electricity.

Second, in the UK, it relies on grid emission factors published by DESNZ. These figures are two years old, and yet, the fossil fuel share in the grid has been declining year on year.

Organisations using these figures may find that their reporting does not reflect the reality of today’s cleaner grid.

Case study: Oxford Brookes

Oxford Brookes University is a case in point. Using ENTRNCE’s Matcher platform (which calculates an organisation’s emissions based on half-hourly grid data), the university has discovered that it is over-estimating its emissions by nearly 40%!

Having a more accurate picture will allow Oxford Brookes to reach its carbon targets faster, taker wiser offsetting decisions, and choose technology investments that address, how, when and where it is using fossil fuels.

Find out your true emissions - and reap the rewards 

If you’re curious about whether you are over-reporting on your emissions, get in touch. ENTRNCE can help you calculate your footprint based on the half-hourly realities of the grid. Accuracy matters – and it could have a huge impact on your bottom line.

Get in touch.