Green Accounting Terminology and User Help Sheet

This section provides educational information on general terminology and concepts related to Green Accounting. It is intended to help users understand these foundational ideas but does not offer technical guidance for using Wisefish Green Accounting in Business Central.

CO2e calculations include the 6 main greenhouse gases mentioned under the Kyoto Protocol.

These include:

• Carbon dioxide

• Methane

• Nitrous oxide

• Hydrofluorocarbons

• Perfluorocarbons

• Sulphur hexafluoride

CO2e is a combination of these gases global warming potential in reference to carbon dioxide. It provides a single unit of measurement of gases that contribute to global warming. A single unit of measurement makes it easier to manage your emissions and is a more accurate representation of heat trapping gases.

An emission factor acts like a multiplier per unit of each activity. For example, the emission factor for marine gas oil is 743.84 kgCO2e per liter. So, for 1,000 liters of fuel you would multiply by 743.84 which equals 743,835.24 kgCO2e.

• It is generally recommended to report emissions using the metric system.

• Electricity emission factors can vary significantly by region, and selecting the appropriate methodology is crucial for accurate reporting. The location-based approach uses average regional emission factors based on the grid mix, reflecting the typical emissions intensity of electricity generation in your area. This method is suitable when specific provider data is not available. It is highly recommended to use electricity emission factors provided by your provider. Alternatively, the market-based approach considers the emissions associated with electricity that companies have actively chosen through contracts or the purchase of Renewable Energy Attribute Certificates (RECs). The best practice is to first obtain the specific emission factor from your electricity provider or use emission factors associated with purchased RECs. This approach allows you to reflect the actual emissions from the electricity you are responsible for, based on your market choices. If neither provider-specific data nor REC-adjusted data is available, the location-based average regional emission factors should be used as a default.

What are scopes? Scopes are the practice of grouping emissions into 3 categories. This is a necessary step for managing an organization´s emissions.

• Scope 1: Direct emissions from owned or controlled sources.

• Scope 2: Emissions from purchased heat, steam, or electricity.

• Scope 3: Indirect emissions that are a part of a company´s value chain. Typically, everything else that doesn´t fall under Scope 1 or 2. For example, this includes business travel, purchased goods, but can also include extraction and distribution for energy resources.

More and more emphasis is being placed on scope 3 emissions or activities associated with a company´s value chain. The Corporate Sustainability Reporting Directive is requiring certain companies to look into the environmental impacts of their supply chains. Once an organization looks at their scope 3 emissions, they may realize that it plays a large part in their environmental impact.

TTW Tank to Wheel are the emissions associated directly with the burning of fuel in the vehicle. It can also be categorized as Scope 1 emissions.

WTT Well to Tank are the emissions associated with the extraction and distribution of the oil. It can also be categorized as Scope 3 emissions.

A carbon footprint measures the total amount of greenhouse gases emitted throughout a product's life cycle or a specific process, reflecting its overall environmental impact. Life Cycle Assessment (LCA) is a common method used to evaluate these emissions and understand the broader environmental effects.

Q: What fuel emission factor do I use for fuel?

Choosing the right emission factor can feel like a daunting task. For example, in connection to fishing vessels, the emission factor would depend on engine type or vessel size. You may ask do I use the emission factor for marine gas oil, marine diesel, marine gas oil, or marine fuel oil? Some emission factors can be used interchangeably. The term marine fuel oil encompasses both heavy fuel oil (HFO) and marine diesel oil (MFO).

Here are some key differences between different fuel types used in marine vessels:

Brief Notes on Unit Conversion and the Importance of Comparing Data that is in same Unit of Measure:

The first rule of thumb, when managing and analyzing emission data as a whole or through time is to make sure that emissions are being compared in the same unit.

Unit conversion is the process of converting one unit into another unit. For example, converting kilograms to metrics tons or vice versa converting metric tons into kilograms.