Selecting appropriate emission factors is a critical component of credible GHG accounting and reporting. The Value Change Initiative’s (VCI) new Emission Factor for GHG Accounting and Reporting resource can help sustainability professionals in food and agriculture determine which emission factors are best suited for their GHG inventory. The resource aligns with the GHG Protocol Land Sector and Removals Standard and explains how different emission factor types are developed and applied. Organizations can improve consistency, transparency, and confidence in reporting by following the new guidance.

“Emission factors are not one-size-fits-all,” said Lisa Becker, sustainability advisor at Pinion. “Companies should look closely at what they are trying to support — whether it’s a baseline inventory, a supplier-specific project, a supply shed intervention, or a mitigation claim — and make sure the data behind the factor is traceable, transparent, and appropriate for that use.”

Emission Factor Types at a Glance

There are five core emission factor types to make note of for land-based value chains:

  • Supplier specific emission factors reflect the emission of a specific farm, land management unit, or site in the reporting company’s supply chain. It requires the highest level of accuracy as well as robust methodologies, data management, and traceability. They are best suited for project accounting to quantify project outcomes, often towards a GHG target.
  • Supply shed emission factors are a regional average of the emissions within a supply shed or sourcing region. They are used for baseline scope 3 accounting.
  • Stratified emission factors represent the emissions of a subset of farms within a supply shed that share a certain characteristic (practice, certification, farm types, etc.). They are used to quantify GHG interventions in a supply shed.
  • Residual emission factors are applied to the higher intensity emissions farms, land management units, or sites left over after calculating a stratified emissions factor. This approach helps to prevent double counting.
  • Removal factors quantify the net carbon stock increases per unit of activity. Similar to supplier specific emission factors, they require physical traceability, robust primary data, and often rely on modeling. They are used in project accounting, often tracking progress towards a GHG target.

Choosing the Right Emission Factors

As expectations for transparent GHG reporting continue to evolve, organizations should evaluate whether their current emission factor methodologies align with emerging guidance and reporting frameworks. Companies involved in supply chain GHG projects or investing in supply shed-level investments should review VCI’s valuable guidance to clarify which emission factors fit the project, inventory, reporting, or claims need.

Have questions about your reporting or sustainability strategy? Connect with our sustainability team.