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Cozero methodology

Cozero Methodology documentation

Updated over 2 months ago

The Cozero carbon management platform has three modules, Log, Act, Share. The Log module calculates the carbon emissions of a company, aligning with the Greenhouse Gas Protocol (GHG) standard. The goal of this system is to help companies convert their activity data into carbon emissions so that they are able to calculate their carbon footprint in a standardized way. The purpose of this document is to explain the logic and information behind these calculations for the company carbon footprint component of the Log module.

1. Carbon Accounting

The process of measuring the amount of greenhouse gas that is emitted by an entity – whether it be a country, corporation or individual – is referred to as carbon accounting. The practice of carbon accounting involves translating greenhouse gas emission into an internationally recognized measurement of CO2 equivalents.

The Greenhouse Gas (GHG) protocol, upon which the Cozero system is based, classifies the emissions into three scopes:

  • Scope 1, or direct emissions;

  • Scope 2, for consumption of purchased electricity, heat, cooling, and steam;

  • Scope 3, or indirect emissions;

Scope 1 and 2 are mandatory to report, whereas scope 3 is voluntary and the hardest to monitor as it depends greatly on the entire value chain of an organization.

2. The Cozero system

The Cozero Log module is made up of the following three components:

2.1 Data inputs from the user:

  1. Category and Subcategory of emissions (e.g. Purchased Logistics - Road logistics)

  2. Geolocation (e.g. Germany)

  3. Company activity data (e.g. 100 TKM driven in March 2022)

2.2 Cozero calculation methods:

2.2.1 Emission calculation logic aligning to the GHG protocol, to handle the conversion of activity data to emissions data.

2.2.2 Emission Factors - Cozero database of emission factors that translate a business activity or process data point into emissions output data. (e.g. 0.23686 kg CO2e/kWh is how we can convert Diesel in the UK for the year 2021 to kg of CO2e)

2.3 Emissions reporting and analytics:

2.3.1 Analysis and data visualization of emissions across key metrics (e.g. Emission over time, per GHG protocol scope, per location / business unit, per product, per KPI)

2.4 Cozero Categories and Subcategories

In Cozero, we have divided the corporate carbon emissions into different Categories and Subcategories of emissions to allow companies to account for emissions in ways that match their activities. Each Subcategory of emissions has a corresponding Category and GHG Scope. You can find a description of the breakdown here.

When you create a Log you must specify which category it falls within (e.g. Purchased Logistics). When you create a Log Entry in a log, you have to further specify the relevant subcategory (e.g. Road logistics).

The Cozero emission categories and subcategories are not exactly the same as the GHG protocol accounting categories. We use our own categorization to help companies better allocate their emissions into different activity streams of their business. Nonetheless, all Cozero categories and subcategories are mapped to the GHG protocol categories to facilitate external reporting.

3. Cozero Data inputs

3.1 Cozero Logs & Log entries

Cozero Logs are intended to be used as records of emissions for a determined time period and a location (which can be physical or representative of a department or business unit), or a product. Logs are associated with a single Cozero emission category (e.g. Business Travel or Electricity Purchase), which is selected as the first step to entering data in Cozero. It is not possible to create a log for more than one emission category at once.

A single Cozero category log can have one or multiple emission entries by a user, which are called Log entries. These could be seen as separate items of a single invoice or different activity data types (eg. Spend or kWh). When creating a Log entry the user must first select a subcategory, e.g. Vehicle Fleet -> Passenger Car or Production Materials -> Plastics.

After selecting the subcategory, it is then necessary to select a calculation method (the type of data you are reporting, e.g. Distance traveled), and then the scope of activity data (e.g. Passenger car - Diesel). It is from this selection that the emission calculation is defined.

Note: The calculation output of our data is always aggregated into monthly data. Although it is possible to create daily logs, in our emissions reporting and analytics, the shortest time period possible to see the data is in months.

3.2 Calculation Methods

When creating a Log entry, the user must select a calculation method. The specific calculation methods available depend on the subcategory selected. The most common calculation methods are:

  • Consumption: The user is asked to enter data in a consumption unit, such as 100 kWh. This differs depending on the category and subcategory.

  • Spend-based: The user is asked to enter money spent on the activity in a given currency, such as 100 EUR

  • Direct emissions: The user is asked to enter CO2e emissions coming from said activity, such as 100 Tonnes

Note: In the case of spend-based calculations, we accept user data in several currencies. We then convert the inputs to the currency of the emission factor available so that we are able to make calculations in the same unit. For conversion rates, we use the fixer.io API.

3.3 Activity Data Sources

After a user selects a calculation method, they must select the source where their data comes from. In the Cozero platform, it’s called the Activity Data Source (ADS). ADS are a qualitative measure of an emission generating source. The following are some ADS examples associated with different subcategories:

  • Flights: Long-haul, short-haul, domestic

  • Plastics: PET, HDPE, Polyurethane foam

  • Passenger Car: Petrol, Diesel

  • Large Stationary Air Conditioning (Chillers): HFCs, CFCs

The ADS selection determines the emission factor used for a calculation.. For example, the emissions associated with different types of production materials can be dramatically different such as when you compare the emissions coming from using the same amount of steel with the same amount of wod (steel is much more carbon intensive than wood).

Depending on the ADS selected, the user will be asked to enter values in specific units. For example, if “Diesel” is selected as the ADS, the input data will be in liters, while if “Wood pellets” is selected, the request would be to enter data in kg. Furthermore, the units displayed also depend on the Calculation Method. For example if “Spend” is selected as a calculation method, the input will be required in a currency such as EUR or USD rather than liters or kgs.

3.4 Units

Once both a Calculation Method and ADS have been selected, the appropriate unit(s) are associated and then data can be input. For example, if “Fuel consumption” and “Diesel” are selected, the input will be in Liters, kWh or m3, while if “Spend” and “Diesel” are selected, the units will be EUR or USD.

3.5 Data Ingestion

To account for a company's carbon footprint, it is possible to enter data in the Cozero system in the following ways:


3.5.1 Dashboard: Users use the platform at app.cozero.io and go through the data entry process by creating logs.

3.5.2 Excel bulk import: Users use the platform at app.cozero.io and instead of creating individual logs they can download an excel template to then fill out and upload to accommodate larger quantities of data.

3.5.3 API: Companies with available IT personnel and resources can integrate with the Cozero API and connect their own systems with Cozero to automatically account for their emissions. Documentation about the Cozero API can be found here.

4. The Emission calculation

4.1 Emission Factors

Emission factors are numbers that convert activity data into GHG emissions in CO2 equivalents. They ensure that the correct scope of emissions is calculated for a given activity, aligned with carbon accounting principles.

As an example, PET plastic has an emission factor of 4032 kg CO2e/tonne. This means that for every tonne of PET plastic produced, 4032 kg of CO2e is released into the atmosphere.

Each Emission Factor (EF) has the following properties:

  • Value: the actual numeric value of the EF such as 0.5

  • Activity Data Source (ADS): each emission factor has one ADS it is associated with, such as Wood or PET Plastic.

  • Unit: the unit of the emission factor is relational to CO2e such as kg CO2e/kWh or kg CO2e/tonne.

  • Territory: the country, continent, or region the EF is associated with such as Germany, Europe or Global

  • Validity period: the dates of the log between which the factor can be applied. If the validity period is 01-01-2021 to 31-12-2021, it means that this EF will only be used for Logs created within these dates.

  • Origin: the source for the EF, which could be for example, GLEC. The emission factors can change depending on the database origin.

  • Supplier: An EF can be specific to a supplier, so they will only be used when the user specifies that supplier in the log entry.

For each subcategory and methodology, the emission factor selection occurs by first matching the activity data source and feasible units, then looks for the territory match or closest fit, and then the validity period or closest fit. This means a user could be operating in Germany however there is only an emission factor originating from the UK so this will be used as the closest fit.

4.2 Emission factor sources

The areas where we obtain our emission factors grows and changes with time, we are always looking to further expand it to increase the accuracy and coverage within our categories and ensure we have the most up-to-date information. An overview can be found on the Wiki, under “Emission Factor Sources”.

4.3 The calculation

The sections below explain the various elements which take part in our emissions calculations.

4.3.1 The emissions calculation

In order to obtain the resulting emissions in kg CO2e, a calculation must be done. In the most simple scenarios, the calculation is the emission factor * activity data.

Example: A user wants to calculate the carbon emission related to business travel by plane. They would select “Business Travel” as the category, and “Flights” as the subcategory. The methodology they select is “Employee distance traveled”, the activity data source is “Domestic (<500km)” -> this activity data along with where the data was procured from dictates the emission factor selected. Therefore when they enter the distance flown the calculation is as follows:

100 km * 0.24kg CO2e/km = 0. 024 T CO2e

4.3.2 Conversion Factors

Depending on the methodology selected and the available data, there may need to be a conversion of the data input to match the emission factor unit.

Example: A user would like to calculate the emissions for combusting 10 L of diesel fuel. The emission factor is 0.23686 kg CO2e per kWh of diesel, therefore the amount of diesel must be converted from L to kWh in order to carry out the emissions calculation. The conversion factor for liters to kWh of diesel is 10.96.

Conversion:

10L x 10.96 kWh/L = 109.6 kWh

4.3.3 Modeled Impacts

In defined circumstances, one or multiple modeled calculation impacts are triggered. Modeled impacts are also known as Upstream Impacts. The trigger of a modeled calculation can be a Subcategory, a selected calculation methodology, or a specific activity data source. The impact of this is an additional emission calculation - where the entry of data within one category triggers the calculation of emissions within another. This automatic calculation means that the user only needs to enter their activity data once to get a complete carbon footprint.

In Cozero, the modeled impact calculation is used to account for upstream fuel and energy-related activities (reported in scope 3.3) and biogenic carbon emissions (reported outside the scopes). Modeled impacts are always accounted for in the following Cozero categories: Company vehicles, Facility fuel use, Purchased electricity, Purchased heat, steam & cooling.

Example: Log selection Scope 2 → Category Electricity Purchase → Subcategory Electricity Consumption. For the electricity consumption data added by the user, there are 3 calculations:

  1. Main calculation: Consumption Emission factor from the combustion of fuels to generate electricity applied and Emissions are reported in scope 2, Indirect, Electricity Purchase

  2. Modeled impact 1: Emission Factor from the upstream emissions from purchased electricity (Extraction, production, and transportation of fuels consumed in the generation of electricity) applied and reported in 3.3 Fuel and energy-related activities

  3. Modeled impact 2: Emission Factor from the generation of purchased electricity that is lost through transmission and distribution reported in 3.3 Fuel and energy-related activities

5. Emission reporting and Analytics

Once a user has entered Logs, the Cozero platform also offers the opportunity to view, analyze and export the data. There are two areas to view this data, either in the Dashboard or under Reports.

In the Dashboard, there are a wide variety of graphs but in general the reports are built on defined desired outputs. For instance, if the user selects the report “Total emissions breakdown by scope 1, 2, 3” the data is selected and displayed relevant to that specific criteria. There is also the option to filter the dashboard to certain criteria, i.e. time period, business unit, location, category, supplier etc.

In the reports sections, sets of graphs based on a certain focus area have been bundled together.

Within the KPI section the user can input the values to calculate emission intensities. There is the opportunity to enter full-time equivalents (FTEs), revenue, and floor space, among others. By adding organization specific KPI’s, once there are emissions calculated the user can not only see the total CO2e results but also CO2e per FTE, per revenue, or per m2 of floor space. This allows flexibility for comparison of results between different time frames and/or locations. The calculation will take the total carbon emission for the defined time and location and divide it by the associated KPI.

Example: To produce an emission intensity of CO2e/€ revenue, the total emissions would be divided by the total revenue.

6. Integrations

Cozero also offers integrations to several systems that can automate data collection for several emission categories. Currently, we offer an integration with TravelPerk for automation of Business Travel emissions. We also work with the HERE Routing API. This integration allows us to calculate the distance between two points. Further information about the HERE Routing API v8 can be found directly on their website, link here.

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