Adding a Purchased Goods and Services card
Continia Sustainability features a default emission source for Purchased Goods and Services within the Environmental Account module, enabling companies to monitor GHG emissions associated with operational and capital expenses. The specific items to be included in this module depend on the company's type, industry, and sector. The environmental account for purchased goods and services encompasses all direct and indirect purchases related to own production, such as raw materials, or operational requirements, including office supplies, services, and water consumption.
Scope
Distinguishing between operational and capital goods is a process that involves careful consideration of financial classifications specific to each company. In general, the following classification applies:
- Capital goods (CapEx) - assets such as machinery, buildings, electrical equipment, and furniture that have longer lifespans are typically categorized as capital goods. CapEx-related emissions are allocated to Scope 3, Category 2 – Capital Goods.
- Operational goods (OpEx) - items such as office supplies, food, raw materials, water consumption, and services that have an immediate use or shorter lifespan are typically regarded as operational goods. OpEx emissions are allocated to Scope 3, Category 1 – Goods and Services. Notably, Category 1 emissions often have a significant impact on the overall footprint of most companies. Hence, meticulous data collection and efforts to reduce their impact entail extensive collaboration with suppliers.
To gather the data
When measuring emissions associated with Purchased Goods and Services, it is common to obtain data from receipts or purchase records. Ideally, this data should be expressed in physical units such as the number of items, volumes, weight, and so on. However, when this type of data is not available, collecting data on the value spent is also acceptable. This method is the least preferred as it is subject to cost fluctuations and influenced by location, inflation, currency, and markets.
To add a purchased goods and services card
After understanding how you can gather data to track emissions sources, you can implement Purchased Goods and Services cards. You have the flexibility to categorize the expenses as granularly as you want. For instance, you can create a broad category encompassing all emissions related to a category type (food, metals, electrical items) or opt for individual cards dedicated to each item.
To add a Purchased Goods and Services card:
Use the
icon, enter Purchased Goods and Services, and select the related link.On the action bar, select New.
On the Purchased Goods and Services card, you can now enter information for, for example, the account type and the Emission Factor Set that you want to connect your data to.
On the General FastTab, go to the Type field to specify the expense type. The options are:
- Purchase Good or Service - use this option when the expense is related to the procurement of goods or services that are consumed during operations or for short-term use.
- Capital Good - select this option when the expense is for the acquisition of assets that will be used over a longer term.
Once in use, the card also shows you the total accumulated carbon dioxide equivalent (CO2e) emissions balance, the last data modified, and so on. For more information on how to fill out these fields, refer to The Fields on the Environmental Account Card article.
After adding the relevant categories of Purchased Goods and Services, the main page will provide an overview of the types and emissions balance, among other details. This page can be particularly useful for analyzing how various item types or suppliers impact your company’s footprint and help you better manage each of them.