BRSR Core Calculator
Powered by StepChange
The BRSR Core reporting standards have ushered in an exciting opportunity for companies in India to simplify their ESG and sustainability disclosures. However, there are meaningful complexities associated with calculating their energy and carbon footprints due to a lack of detailed quantity-based data on fuel, refrigerant, and electricity consumption. While improving data collection is essential for precise carbon accounting, a short-term solution is needed to enable immediate compliance.
The Spend-Based Carbon & Energy Proxy Accounting (CEPA) Method
To address this challenge, in consultation with the Industry Standards Forum (ISF), the StepChange team has developed an accessible, and flexible spend-based methodology for estimating Scope 1 and Scope 2 GHG emissions and energy consumption. This approach leverages readily available financial data on fuel and electricity expenses, making the calculations simple and quick.
Our methodology is inspired by similar practices in international standards, which allow for spend-based calculations when quantity-based data is limited. By using average emission factors based on credible public sources, companies can estimate their carbon footprint in a manner that allows for external benchmarking and comparisons.
Important Considerations:
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Uncertainties: Spend-based methods are meaningfully less precise than quantity-based calculations. It is highly recommended that companies use this approach as a temporary measure and transition to a quantity-based approach.
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Data Quality: Reliable financial data is essential for accurate results. While the spend-based factors in the CEPA model endeavour to provide a representative estimate, spend-based factors will differ meaningfully on the basis of the underlying data sources and surveys.
The CEPA tool is aimed at (1) supporting Indian enterprises in their effort to meet BRSR Core disclosure obligations in a consistent and standardized manner, and (2) highlighting the specific types of data that companies need to collect to transition to a more accurate method of carbon accounting.
Disclaimer: This spend-based tool is provisional and provided free of cost, with the explicit goal of supporting the Indian sustainability ecosystem. We strongly recommend consulting with a sustainability expert for specific guidance around sustainability disclosures.