Technical Documentation

Calculation Methodology

A complete technical account of how VSME OS calculates greenhouse gas emissions — the data sources used, the formulas applied, and the assumptions made. Designed to satisfy auditor enquiries and ESG due diligence.

GHG Protocol

Corporate Standard

ISO 14064-1:2018

Quantification standard

EU VSME 2025/1710

Commission Recommendation

CSRD ESRS E1

Climate disclosures

1. Core Emission Calculation Formula

All emissions in VSME OS are calculated using the standard activity-based methodology defined by the GHG Protocol:

Emissions (kgCO₂e) = Activity Data × Emission Factor

Where activity data is the quantity of a resource consumed (e.g. kWh of electricity, litres of diesel, km flown) and the emission factor converts that quantity into kg of CO₂ equivalent (kgCO₂e), accounting for all relevant greenhouse gases (CO₂, CH₄, N₂O, HFCs etc.) expressed as CO₂ equivalents using IPCC AR5 GWP100 values.

Emissions from multiple sources are summed to produce scope totals. The grand total is the sum of Scope 1 + Scope 2 (location-based) + Scope 3 emissions, expressed in kgCO₂e or tCO₂e (1 tCO₂e = 1,000 kgCO₂e).

Carbon Intensity Metrics: Where annual revenue is provided, VSME OS calculates two intensity metrics. The primary metric is kgCO₂e per million units of revenue currency (e.g. kgCO₂e / M€), aligned with ESRS E1-6 (GHG intensity of net revenues) and used for cross-supplier comparison. The secondary metric is kgCO₂e per actual EUR of revenue (4 decimal places), useful for absolute cost-of-carbon calculations. Both are shown on Page 1 of the generated report.

2. Emission Factor Databases by Country

VSME OS uses country-specific emission factor databases rather than a single global average. The correct national database is selected automatically based on the supplier's declared country of operations. This is critical for accuracy: France's electricity grid (predominantly nuclear) has a factor of 0.052 kgCO₂e/kWh, while Poland's (predominantly coal) is 0.773 kgCO₂e/kWh — a 15× difference that would produce a fundamentally misleading report if the wrong factor were applied.

Country / RegionPrimary DatabaseGrid Factor (kgCO₂e/kWh)Last Updated
FranceADEME Base Carbone 20240.0522024 Q1
United KingdomDEFRA 2025 / National Grid ESO0.1962025 Q2
GermanyUmweltbundesamt (UBA) 20230.3802024 Q1
SpainMITECO / REE 20230.1812024 Q1
ItalyGSE Italy / IEA 20230.2332024 Q1
NetherlandsCBS Netherlands / IEA 20230.3412024 Q1
BelgiumCREG Belgium / IEA 20230.1672024 Q1
SwedenEnergimyndigheten 20230.0132024 Q1
PolandURE / IEA 20230.7732024 Q1
USAUS EPA eGRID 20230.3862024 Q2
CanadaECCC NIR 20230.1302024 Q1
AustraliaAustralian NGA 2023 / Clean Energy Regulator0.6562024 Q1
South AfricaDFFE / Eskom 20220.9282023 Q4
IndiaBEE / CEA 20220.7082023 Q4
ChinaNDRC / IEA 20220.5812023 Q4
Other (default)IEA World Average 20230.4942024 Q1

60+ countries are supported. For countries where national grid operators do not publish standalone emission factors, IEA World Energy Statistics 2023 averages are applied as a conservative estimate and clearly labelled as such in the report. Factors are reviewed and updated annually, typically in Q1 following national database publication cycles.

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3. Scope 1 — Direct Emissions

Scope 1 covers emissions from sources owned or controlled by the reporting organisation. VSME OS covers three Scope 1 categories:

3.1 Stationary Combustion (Fuels for heating/energy)

Activity SourceUnitFactor (kgCO₂e)SourceNotes
Natural GaskWh0.244ADEME Base Carbone 2024Full lifecycle (combustion 0.205 + upstream 0.039). Conservative approach per GHG Protocol.
Heating Oillitres3.200ADEME Base Carbone 2024Full lifecycle. Gas oil / fuel oil.
Propane / LPGlitres1.510ADEME Base Carbone 2024Full lifecycle. Liquefied petroleum gas.

All fuel factors use ADEME Base Carbone 2024 full lifecycle methodology, which includes combustion CO₂, CH₄, N₂O (IPCC AR5 GWP100) plus upstream extraction and transport emissions. This is more conservative than DEFRA combustion-only Scope 1 factors and is the standard approach in French/EU GHG accounting.

3.2 Mobile Combustion (Company-owned vehicles)

Covers fuel used in vehicles owned or leased by the company (fleet vehicles). Employee personal vehicles reimbursed per km are reported in Scope 3.

Activity SourceUnitFactor (kgCO₂e)SourceNotes
Diesel (fleet)litres3.160ADEME Base Carbone 2024Full lifecycle incl. upstream extraction and transport.
Petrol / Gasolinelitres2.800ADEME Base Carbone 2024Full lifecycle incl. upstream extraction and transport.

3.3 Fugitive Emissions (Refrigerants)

Refrigerant leaks are high-impact Scope 1 emissions due to the very high Global Warming Potential (GWP) of hydrofluorocarbons. Factors are GWP100 values from IPCC Fifth Assessment Report (AR5, 2013), which is the current standard required by UNFCCC and GHG Protocol.

Activity SourceUnitFactor (kgCO₂e)SourceNotes
R410Akg2,088IPCC AR5 GWP100Common AC refrigerant. 50% R32 + 50% R125.
R32kg675IPCC AR5 GWP100Newer AC refrigerant, lower GWP than R410A
R134akg1,430IPCC AR5 GWP100Vehicle and light commercial AC
R404Akg3,922IPCC AR5 GWP100Commercial refrigeration. EU F-Gas phase-out.

EU F-Gas Regulation Note: R404A is being phased out under EU Regulation 517/2014. Organisations using R404A should be planning transition to lower-GWP alternatives. Reporting refrigerant top-ups is legally required for systems ≥3 tonnes CO₂e charge under EU F-Gas Regulation.

4. Scope 2 — Indirect Energy Emissions

Scope 2 covers emissions from purchased electricity, heat, steam, and cooling. VSME OS implements both GHG Protocol Scope 2 methods as required by CSRD ESRS E1:

4.1 Location-Based Method

Uses the average emission factor for the national or regional electricity grid in the country where the energy was consumed. See Section 2 for the full country-specific factor table. This is the default method and the one most commonly required by buyers for Scope 3 Category 3 reporting.

4.2 Market-Based Method

Uses the emission factor from the specific energy contract or certificate:

  • Green tariff / Guarantee of Origin (GoO): 0.000 kgCO₂e/kWh
  • Renewable Energy Certificate (REC): 0.000 kgCO₂e/kWh
  • No contract / residual mix: Uses country residual mix factor (typically higher than average grid factor)

Both methods are reported in the generated PDF. CSRD ESRS E1-6 requires both to be disclosed. The location-based figure is typically used for Scope 3 Category 3 (buyer's upstream energy) calculations by the buyer.

4.3 District Heating and Cooling

Activity SourceUnitFactor (kgCO₂e)SourceNotes
District HeatingkWhCountry-specificEuroheat & Power 2023Derived from country grid mix and typical plant efficiency
District CoolingkWhCountry-specificIEA methodologyGrid factor ÷ Coefficient of Performance (COP 3.5)

5. Scope 3 — Value Chain Emissions

Scope 3 covers indirect emissions in a company's value chain. VSME OS currently covers Category 6 (Business Travel) and Category 7 (Employee Commuting), which together represent the most material Scope 3 sources for the majority of SME service businesses.

5.1 Business Travel — Ground (Category 6)

Activity SourceUnitFactor (kgCO₂e)SourceNotes
Employee Vehicles (Grey Fleet)km0.218DEFRA 2024Average UK car fleet (petrol+diesel mix). Total annual km across all grey fleet drivers.
Rail / Train TravelkmCountry-specificDEFRA 2024 / national rail operatorUK: 0.036 · France: 0.006 · Germany: 0.023 · Poland: 0.037. Varies by grid mix.
Hotel Staysnights28.0Cornell/Greenview CHSB 2024kgCO₂e per room-night, conservative global estimate — see disclosure below

5.2 Business Travel — Aviation (Category 6)

VSME OS splits flights into short-haul (under 3,700 km) and long-haul (3,700 km and above). This split matters because:

  • Short-haul flights are less fuel-efficient per km (more fuel consumed during takeoff and landing relative to total flight distance)
  • Long-haul flights spend more time at cruising altitude where Radiative Forcing is most significant
  • DEFRA 2025 publishes separate factors for each category, and using a blended average significantly understates emissions for frequent short-haul travellers
Activity SourceUnitFactor (kgCO₂e)SourceNotes
Short-Haul Flights (<3,700 km)pkm0.175DEFRA 2025Includes Radiative Forcing ×1.9 (IPCC, GHG Protocol recommended). Reduced 31% from 2024 due to post-COVID load factor recovery.
Long-Haul Flights (≥3,700 km)pkm0.117DEFRA 2025Economy class. Includes Radiative Forcing ×1.9. Reduced 40% from 2024 due to post-COVID load factor recovery.

Radiative Forcing (RF) Multiplier

Aviation emissions at altitude cause additional warming beyond CO₂ alone through contrail formation, cirrus cloud impacts, and NOx effects. The IPCC and GHG Protocol recommend applying a Radiative Forcing Index (RFI) of 1.9× to aviation CO₂ emissions to account for these high-altitude effects. VSME OS applies this multiplier by default, as does DEFRA 2025. This is increasingly required by CSRD auditors and science-based target frameworks. Some legacy calculators omit RF — if comparing VSME OS outputs to another tool that does not include RF, divide VSME OS flight figures by 1.9. Note: DEFRA 2025 significantly revised aviation factors (published June 2025), reducing short-haul by 31% and long-haul by 40%, reflecting post-COVID passenger load factor recovery. VSME OS uses these updated 2025 factors.

pkm = passenger-kilometre. To calculate: number of return trips × route distance × 2 (for return). Route distances can be found using flight distance calculators or IATA published city-pair distances.

5.3 Employee Commuting & Remote Working (Category 7)

Category 7 is the GHG Protocol's category for emissions from employees travelling between their home and their regular workplace. VSME OS covers two sub-categories:

Activity SourceUnitFactor (kgCO₂e)SourceNotes
Employee Commutingkm/year (all employees)0.141DEFRA 2024 / ADEME 2024Average mixed-mode commute. Total annual km across all commuting employees.
Remote Working DaysWFH days/year (all staff)2.840DEFRA 2024 / ADEME 2024kgCO₂e per WFH day. Covers home heating, cooling, and device energy.

Remote working note: The 2.840 kgCO₂e/day WFH factor reflects additional home energy consumption attributable to work activity (ADEME 2024, "Empreinte carbone du télétravail"). It is calculated as the marginal energy increase vs a non-working day, applied to the French/EU average residential energy mix. This factor will vary by country in a future update.

Hotel stays — CHSB 2024 disclosure: The 28.0 kgCO₂e/room-night figure is a conservative global estimate derived from the Cornell/Greenview Hotel Carbon Measurement Initiative (CHSB 2024, covering 20,000+ hotels). From CHSB 2024 onwards, Cornell and Greenview no longer publish a single "all hotels" global average, as it can misrepresent results when one segment or geography dominates the dataset. The study now provides segmented benchmarks by asset class, star rating, location type, and climate zone. The 28.0 figure used here is a conservative practitioner estimate for organisations that cannot segment by hotel type. Users with detailed hotel booking data are encouraged to apply geography- and segment-specific CHSB 2024 index values for greater precision. CHSB 2025 (covering 2023 data) is anticipated and this factor will be reviewed upon publication.

6. Reporting Boundary and Exclusions

6.1 Organisational Boundary

VSME OS uses the operational control approach (GHG Protocol, Chapter 3). This means the reporting boundary includes all facilities and vehicles over which the company has operational control — typically the company's own offices, production sites, and owned/leased fleet vehicles. It excludes joint ventures and franchise operations unless specified.

6.2 What Is Currently Covered

Scope 1

  • Natural gas
  • Heating oil
  • Propane/LPG
  • Fleet diesel
  • Fleet petrol
  • Refrigerants (R410A, R32, R134a, R404A)

Scope 2

  • Grid electricity (location-based)
  • Green electricity (market-based)
  • District heating
  • District cooling

Scope 3

  • Grey fleet (Cat. 6)
  • Rail travel (Cat. 6)
  • Short-haul flights (Cat. 6)
  • Long-haul flights (Cat. 6)
  • Hotel stays (Cat. 6)
  • Employee commuting (Cat. 7)
  • Remote working (Cat. 7)

6.3 What Is Not Currently Covered (Phase 3 Roadmap)

Scope 3 Cat. 1 — Purchased goods and services
Scope 3 Cat. 2 — Capital goods
Scope 3 Cat. 3 — Fuel & energy-related activities
Scope 3 Cat. 4 — Upstream transportation
Scope 3 Cat. 5 — Waste generated in operations
Scope 3 Cat. 11 — Use of sold products
Scope 3 Cat. 12 — End-of-life treatment
Biogenic CO₂ emissions (land use change)

These categories are planned for Phase 3 of the VSME OS roadmap. All currently excluded categories are explicitly listed as boundary exclusions in every generated PDF report (Page 4, Section 5).

7. Assurance Level and Limitations

Self-Attested (Limited Assurance)

Reports generated by VSME OS are self-attested — they reflect the activity data provided by the supplier and have not been independently verified by a third party. This constitutes "limited assurance" under ISO 14064-3. For many CSRD Scope 3 data collection purposes, self-attested supplier data is acceptable. For highest-tier reporting or where reasonable assurance is required, third-party verification should be engaged.

VSME OS does not independently verify the accuracy of activity data entered by suppliers. The calculation methodology is correct — but the output is only as accurate as the input data. This limitation is disclosed on every generated report.

Future phases will support integration with third-party verification bodies to provide independently assured reports where required.

8. Factor Update Policy

Emission factors are reviewed and updated annually, following the publication cycles of our primary source databases:

DEFRA UK (2025)

Released June 2025

Used for: UK electricity grid (0.196 combined), flights (major revision), grey fleet, commuting. Next: DEFRA 2026 expected June 2026.

ADEME Base Carbone 2024

Updated July 2025 (v23.6)

Used for: All Scope 1 fuel combustion factors (full lifecycle), French electricity, remote working factor.

IEA / EMBER

Annual, typically Q2

Used for: 40+ country grid factors where no national database is available

IPCC AR5 GWP100

Published 2013, stable

Used for: All refrigerant GWP values

Cornell/Greenview CHSB 2024

Annual

Used for: Hotel night emission factor (conservative global estimate)

When factors are updated, previously generated reports retain the factors that were current at generation time (with version noted in the report). New reports use the latest available factors. The factor version and update date are disclosed in the footer of every generated PDF.

Questions about our methodology?

We welcome technical enquiries from ESG auditors, procurement teams, and sustainability consultants.