Regulation and customer demands are increasing the need for reliable emissions data. Companies already collect vast amounts of financial data – why should the same data be collected separately for emissions accounting? The solution is to integrate emissions accounting and expert-validated emission factors directly into the ERP system. This makes carbon footprint calculation real-time, accurate, and transparent. This is the new normal in emissions calculation, made possible by the OpenCO2 emissions database.
Real-time emission data alongside economic data
Companies have traditionally managed their business operations, profitability, and growth in euros. Now, in addition to financial data, real-time emissions data is needed for companies to monitor their climate impact and plan their operations based on data.
A modern ERP system combines financial management and emissions accounting into a single entity. It utilizes the following data, among other things:
- Purchases and acquisitions
- Sales and invoicing
- Warehouse management and production
- Financial management
- Transportation and supply chain management
- Travel management
ERP systems often contain accurate quantity data on purchases, which provides a much better basis for emissions calculations compared to the accounting data alone, on which euro-based emissions calculations are based.
When emissions calculations are integrated into the ERP system alongside financial figures, companies can monitor their climate impact as seamlessly as they do their cash flows. As Svante Suominen of Avoin.Systems points out (in Finnish), at best, climate impact is visible alongside euros within the same view, and this information can be utilized, for example, in setting targets and comparing suppliers.
This enables the close integration of economic and environmental responsibility management, reduces silo mentality and duplication of work, and prevents errors between different systems.
ERP system streamlines the automation of carbon footprint calculation
In our previous blog post, we discussed the automation of carbon footprint calculation and its different stages. [link to previous blog]. Automation becomes significantly more straightforward when a modern ERP system is used by the company.
For example, the ESG module of Odoo ERP offered by Avoin.Systems utilizes other operational data alongside accounting data and can thus automatically calculate the emissions of, for example:
- Energy consumption
- Purchased products and services
- Transportation
- Business travel
The ESG module brings reliable emission factors to the ERP system from high-quality emission factor databases, such as the OpenCO2 emissios database. This gives the company a continuous, real-time view of the emissions caused by its operations – without any separate manual calculation steps.
“Purchase data is no longer solely the basis for financial accounting; together with a reliable emissions database, it enables real-time emissions accounting. Emissions data is becoming a constant source of guidance in everyday decision-making, alongside financial data.”
Svante Suominen, Avoin.Systems
Where can reliable emission factors for ERP systems be found?
The reliability of emissions calculations depends on the quality of the emission factors used. When using better emission factors in calculations, more accurate results can be obtained. In emissions calculation standards, emission factors are ranked based on the following criteria:
- Technological representation – does the factor describe the technology under review?
- Temporal representation – how up-to-date is the factor?
- Geographical representation – does the factor originate from the same region?
- Completeness – does the factor cover all essential functions for a sufficient time period?
- Reliability – is the factor based on verified, measurement-based data?
The best emission factors are based on primary data and physical quantities and are verified by a third party. Outdated Euro-based emission factors, on the other hand, are the last resort for emission calculations.
When emissions are calculated in an ERP system, the calculation is significantly faster than manual calculation. However, during the specification phase, it is worth taking the time to find reliable emission factors and integrate them into the system. Reliable sources for emission factors include validated emission databases such as OpenCO2net and ecoinvent, as well as companies’ own third-party verified EPD documents. Up-to-date national average data is often produced by national statistical offices, ministries, and research institutes, such as Statistics Finland and GOV.UK.
Reliable emission factors – OpenCO2net’s solution
The OpenCO2 emissions database contains nearly 8,000 up-to-date emission factors. OpenCO2 API offers companies the opportunity to utilize selected emission factors both from this extensive OpenCO2 database and from the ecoinvent database.
OpenCO2net experts have developed a quality rating for emission factors that takes, among other things, the publication date of the emission factor, the quality criteria of emission calculation standards, and the greenhouse gases included in the emission factor into account.
This classification helps companies select the most reliable data for carbon footprint calculations and ensures that the calculations meet both stakeholder expectations and regulatory requirements.
Together, Avoin.Systems and OpenCO2net can offer an ERP system that utilizes the reliable and up-to-date emission factors in the OpenCO2 emissions database.
