E - Environmental (Carbon, Energy, Resources, Climate) 5 min read

What is GHG Intensity? Definition and Context

Credibility Check & Framework Comparison

To ensure absolute regulatory accuracy and reliability, we verify definitions across leading international frameworks before presenting our synthesized SME context.

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GHG Protocol

"A ratio comparing greenhouse gas emissions to a business metric, such as revenue, production volume, or square footage."
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EFRAG / ESRS E1

"The disclosure of net emissions relative to net revenue, allowing comparison of carbon efficiency across companies."
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GRI

"A metric for reporting carbon intensity (emissions per unit of output or dollar of revenue) to track carbon efficiency over time."

ExecutESG Consolidated Definition

GHG Intensity

Greenhouse Gas (GHG) Intensity (or carbon intensity) is a relative metric that compares absolute greenhouse gas emissions to an indicator of business activity or economic output.

$$\text{GHG Intensity} = \frac{\text{Absolute GHG Emissions (tCO2e)}}{\text{Economic / Physical Indicator}}$$

Indicators Used:

  • Economic: Emissions per € million of revenue.
  • Physical: Emissions per tonne of product manufactured, per square metre of office space, or per Full-Time Equivalent (FTE) employee.

SME Relevance & B2B Inbound Action:

As a growing company, your absolute emissions might rise even as you improve efficiency. Calculating GHG intensity ratios proves to investors and buyers that your operations are becoming cleaner over time. Aura Report generates these ratios automatically for your VSME exports.

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