At FRDM, we are dedicated to helping our clients manage risks across their supply chains. In addition to our extensive work on human rights risk management, we are pleased to offer tools to help monitor and report greenhouse gas emissions. Our Spend-Based Factored Emissions (EEIO) methodology allows businesses to accurately calculate the emissions associated with their spending on suppliers, enhancing their sustainability efforts and contributing to a greener future.
How It Works
- Industry Code Linkage:
- Each supplier's industry code is linked to an equivalent emission factor within the FRDM system.
- These emission factors calculate the emissions associated with each dollar spent on the supplier annually.
- Emission Factors:
- Emission factors are expressed in kilograms of CO2 per 2023 dollar (USD) spent.
- These factors are adjusted for inflation from 2018 calculations and are sourced directly from the EPA.
- Calculating Emissions:
- Determine the total dollars (USD) spent on each supplier.
- Multiply the dollars spent per industry code by the associated emission factor.
- This calculation yields the kilograms of CO2, which are then converted into metric tonnes of CO2.
- Viewing Emissions Data:
- Factored emissions can be found inside each supplier’s profile.
- Total aggregated emissions are displayed on the impact page.
- Reporting:
- FRDM enables you to directly report spend-based factored emissions into external reporting frameworks, streamlining compliance and transparency efforts.
By integrating Spend-Based Factored Emissions into your supplier management and reporting processes, you gain valuable insights into your supply chain's environmental impact and contribute to more sustainable business practices.
