Purchased Goods and Services represent a significant part of a company's carbon footprint, encompassing emissions related to the products and services a company purchases for its operations. These can range from office supplies to manufacturing materials and components, business services, or even cleaning services. This category is crucial for businesses aiming for comprehensive carbon accounting, especially for those with substantial supply chain operations.
💡How to Tell if a purchase belongs to Purchased Good & Service or a Capital Good
Figuring out if something you bought for your business is a Purchased Good and Service or a Capital Good is all about how you use it and how long it lasts:
Purchased Goods and Services are things you buy that you use up within a year, like paper for the printer, monthly payments for internet, or what you pay for someone to clean the office.
Capital Goods are treated as assets and are significant investments that normally help your business for more than a reporting year. This includes machines for manufacturing products, company vehicles, or owned real estate. These expenditures are generally financially accounted for as CAPEX.
Where to Find the Data?
Gathering data on purchased goods and services can be achieved through following sources:
Accounting and/or ERP Systems: Companies typically store procurement information on their financial accounting and/or ERP systems.
Bills and other purchase Records: These documents often provide detailed descriptions of the goods or services purchased, along with pricing information.
Data format template
Currently, you can only account for Purchase Goods and Services emissions using the spend-based method.
For each purchased good or service the following information is needed:
Start Date
End Date
Location (use the exact name of the locations added to the platform)
Currency
Price
Supplier Name (Optional).
Description (Optional). This aids in categorizing and understanding the nature of each purchase.
Emission Factor (Optional)