Spend-Based Method (Carbon Accounting)

Also known as financial control or purchase-based method, spend-based carbon accounting calculates a company or product’s emissions by analyzing the money spent on goods and services that produce greenhouse gas (GHG) emissions. The method determines the carbon intensity (tonnes of CO2e per $1 USD or relevant currency) of each emission source and multiplies total spending by intensity to find the total emissions. This method can identify cost-saving and emission-reducing strategies, serving a double and triple bottom line, and can help corporations adopt climate change mitigation strategies by presenting a powerful value proposition.