Spend-based calculation estimates from the amount paid and sector averages. Physical calculation, such as Xain’s in line with ISO 14067 and verified by LRQA, estimates from the product’s real materials, processes and transport, with recognised physical emission factors. Both are estimates; the physical one gets closer to the reality of the product.
Glossary
Estimate
Every product carbon footprint is an estimate: no methodology knows the exact CO2 of each concrete unit. The difference is the method used to estimate.
Keep reading
Physical vs spend factors
Differences between spend-based and physical emission factors: how they are calculated, what errors they cause and when each fits for products and Scope 3.
Methodology
How Xain calculates the product carbon footprint: physical factors, process tree, most conservative factor and primary data. An ISO 14067 methodology by LRQA.
Physical factor
A physical, or activity-based, factor expresses emissions per physical unit: kgCO2e per kilo of material, per kWh of energy or per tonne-kilometre of transport.
Spend-based factor
A spend-based, or economic, factor estimates emissions by multiplying the amount of a purchase by a sector-average kgCO2e per euro.
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