During data import you may need to review the emission factors assigned by the system – this short guide will help, even if you are not a sustainability expert.
Overall process
For each transaction type, select the most appropriate Category and Emission factor in columns B and C.
Every Category links to a predefined set of emission factors. You can find the complete list of Category–Emission factor combinations on the second tab of the file.
🛠️ Step-by-step: how to review automatically assigned emission factors
Select an appropriate category
There are 6 possible Categories to select:
Purchased goods & services – Emissions from production of purchased materials and services
Capital goods – Emissions from the production of capital assets such as buildings or equipment
Upstream transportation & distribution – Emissions from transporting purchased products
Waste generated in operations – Emissions from waste disposal and treatment.
Business travel – Emissions from employee travel such as flights, hotels
Non-Emitting Activity – Transactions that do not cause emissions. Learn more in this article on expenditures to exclude from your emissions calculations
💡 Tip: Purchase goods and services or Capital goods?
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. These expenditures are generally financially accounted for as operational expenditure (OPEX).
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 capital expenditure (CAPEX).
Rule of thumb: Raw materials = Purchased Goods; complex tools or systems = possibly Capital Goods.
Example:
A $1,000 tape roll likely belongs to Purchased Goods and Services, while a $50,000 printer belongs to Capital Goods, because it is bought once and used for years.
Select an appropriate emission factor
1. Option 1. Understand what the transaction is about based on description
Description, supplier name, additional description and Notes can help to understand what the transaction is about
2. Option 2. Search for the NACE Code
Use any search engine to find the appropriate NACE code. For example, type: “NACE code for [transaction description]”, or refer to the official NACE classification system. Read the core content note of the selected category to ensure the NACE code matches the item and is the best fit.
Once you’ve found a relevant code, use the following article to find the appropriate emission factor: Finding appropriate emission factor based on NACE code.
Example:
Item description: “terminal box”. It’s a wiring device, and the corresponding NACE code is 27.33: Manufacture of wiring devices. The article suggests that the corresponding emission factor is "Electrical machinery and apparatus".
3. Option 3. Search for the supplier
If the item description is vague, research the supplier’s offerings to confirm what product or service was purchased.
Example: a charge from “Delta Airlines” clearly points to air travel, so the appropriate emission factor would be "Air transport services".
Advance cases
Some purchases may need a closer look to make sure the emission factor reflects what was actually bought. Here are some examples and how to handle them:
Situation | Example | Which emission factor to assign |
A product purchase might appear similar to a service depending on the description | A cement purchase might be described in a way that resembles construction services | If it’s a material purchase, choose a product-related emission factor such as "Cement, lime and plaster" |
Raw materials may resemble processed goods in naming or classification | Raw iron or steel might be interpreted as "Fabricated metal products" | If the purchase is for unprocessed materials, choose raw material emission factor, such as "Basic iron and steel and ferro-alloys and first products thereof" |
Software licenses | An annual Microsoft Office subscription | If it’s a recurring or short-term license, remap as a Purchased goods and services if labelled as Capital goods |
Fuel purchases | Coal, natural gas | If you already accounted for the fuel used in "Heating and Fuel" business activity, select emission category "Non-Emitting Activity" or delete the entry from you file |