Home Carbon 101

Carbon 101

By Ben Fisher
7 articles

How does Cogo calculate a Carbon Footprint?

Carbon Manager is built on a carbon foot-printing methodology developed by Cogo. The methodology is aligned with the Greenhouse Gas Protocol (GHGP), which is the global standard for companies and organisations to measure and manage their carbon emissions. The Carbon Manager uses a hybrid calculation that leverages both your spend and activity data. Your spending and purchases are reflected in your accounting transactions. These transactions are linked to suppliers and assigned to categories. Using country-specific economic data, we know that the average spend in these categories is associated with a certain amount of carbon emissions. By combining these averages with your spending we are able to calculate an estimate of the carbon footprint for each of your transactions. In certain important categories, we can also supplement the calculation with activity data. This means that we can improve the accuracy of your footprint estimate. To do this we ask you for specific usage information, rather than relying on just the spend-based averages e.g. kilowatt hours of electricity use for the month, in place of the spend. Is just using my spending data enough to have an accurate footprint? Most of your business activities have a cost associated with them - e.g. buying fuel for company vehicles and purchasing goods and services from your suppliers. These activities also have associated carbon emissions. Carbon footprints are always an estimate, and the Cogo footprint is no different. We use the latest and greatest data available to convert your spend data into your footprint. Whilst using spend data alone will give you a footprint estimate that’s sufficiently accurate to be useful, supplementing your spend data with activity data such as electricity and gas use will improve the accuracy of your footprint estimate. What if we purchase internationally? As a NZ based organisation using Carbon Manager, all available EFs are based on the average characteristics of supply chain spend per industry you purchase from. International and domestic supply of products & services is factored into this, but only at an average level e.g. electronics are mostly manufactured offshore, so the EF for this is based on the footprint for manufacture in those exporting countries.

Last updated on Dec 05, 2025

Why do the activities of others add to my Carbon Footprint?

Your organisation's Carbon Footprint consists of three main parts 1. Direct emissions (Scope 1): Emissions from assets you own or control directly, such as vehicles and boilers. 2. Indirect emissions from purchased energy (Scope 2): Emissions from the electricity you purchase and use. 3. Other indirect emissions (Scope 3): Emissions from all other activities, including purchased goods and services, outsourced operations, etc. These categories align with the Greenhouse Gas Protocol standard for organisational carbon foot printing. Example of Scope 3 Emissions An example of Scope 3 emissions could be those associated with purchased courier or haulage services. In Carbon Manager, the relevant supplier would be categorised under "Transport & Distribution - Haulage & Logistics". Understanding Double Counting The emissions from a haulage service would would be counted in several footprints including: 1. In your organisation's footprint (as part of your indirect, Scope 3 emissions) 2. In the truck owner/operator's footprint (as part of their direct, Scope 1 emissions) While this may seem like double counting, it is standard industry practice for calculating organisational footprints. The rationale is that any footprint-generating activity over which an organisation has influence should be included in that organisation's footprint. As the purchaser of freight services, you have influence over how that freight is transported, so the activity is included in your footprint. Further Information For more detailed information on carbon foot printing, you may find these resources helpful: - Carbon Trust: What are Scope 3 emissions and why do they matter? - GHG Protocol: Scope 3 Detailed FAQ (Note: This resource provides in-depth technical information)

Last updated on Dec 05, 2025