The Importance of Emission Factors: How Accurate Data Drives Climate Action

What are emission factors?

Emission factors are conversion tools that quantify the greenhouse gas emissions generated by specific activities, like burning fuel or manufacturing products. They account for differences in fuel type, equipment efficiency, and energy grid mix.

For example, a brewery using electricity in Scotland (powered mostly by wind) will have a different emissions profile than a brewery in a coal-dependent region. Without accurate emission factors, these variations are impossible to track, making it difficult to compare environmental impacts across industries or regions.

Consistent emission factors create a common framework for comparison, enabling organisations to evaluate:

• Different energy sources (coal vs. natural gas vs. wind)
• Transportation methods (air freight vs. rail vs. shipping)
• Manufacturing processes (traditional vs. low-carbon)
• Agricultural practices (conventional vs. regenerative)

A winery in California, for instance, can’t meaningfully compare its emissions to a vineyard in Chile unless they use consistent emission factors. Regulators also rely on these factors to set industry-wide emissions targets.

And emission factors aren’t static. Fifteen years ago, the UK’s electricity emissions factor was much higher than it is today, reflecting the shift toward renewable energy. This real-world progress is reflected in updated emission factors—reinforcing the importance of using the most current data.

Why do emission factors matter?

Accurate data is the difference between meaningful climate action and wasted effort. If your emission factors are outdated or inaccurate, you could be targeting the wrong areas for improvement—or investing in initiatives that deliver minimal impact.

The quality of emission factors directly shapes the accuracy of climate reporting. Emerging technologies, like AI-driven emission engines are helping businesses refine their data and uncover hidden drivers of emissions more effectively. Using global average emission factors when country-specific values are available can misrepresent an organisation's carbon footprint, especially in regions with particularly clean or carbon-intensive energy grids.

The business impact of accurate emissions data

Precision matters because resources for climate action are finite. Investing in ineffective initiatives wastes both time and capital. Accurate data helps businesses target the most impactful opportunities, maximising environmental benefit per pound invested.

The financial stakes are rising as climate regulations tighten. The EU's Carbon Border Adjustment Mechanism (CBAM), for example, taxes imports based on their carbon content. Companies with unreliable emissions data risk border penalties, reputational damage, and exclusion from lucrative markets.

Meanwhile, organisations with rigorous measurement systems gain a competitive edge. They can identify efficiency opportunities others miss, anticipate regulatory changes, and build trust with climate-conscious consumers and investors. Reliable data transforms sustainability from a compliance requirement into a business advantage.

How accurate emissions data drives climate action

Accurate emissions data isn't just about corporate reporting – it transforms how organisations approach sustainability at every level. Here's how:

Revealing hidden hotspots

For instance, a craft soda manufacturer might assume their delivery trucks are their largest source of emissions, when in fact their sugar suppliers have a far greater carbon footprint due to intensive agriculture. Without accurate data, they could spend millions on an electric vehicle fleet while overlooking supply chain improvements that would deliver greater environmental benefits.

Focusing on the right reduction opportunities

Accurate data allows companies to focus on the most carbon-intensive parts of their operations. If a retailer discovers that specific product categories contribute disproportionately to their Scope 3 emissions, they can engage suppliers in these categories first, focusing their influence where it matters most. Similarly, a property management company can target energy efficiency upgrades in the highest-emission buildings.

This targeted approach ensures every investment delivers maximum environmental benefit.

Fostering accountability

Accurate emissions data creates accountability throughout organisations and supply chains. When a company publicly reports its carbon footprint, it establishes a benchmark against which future performance will be measured. 

This accountability extends throughout the organisation. When emissions become measurable, they can be managed. Production teams can see how process changes affect carbon footprints. Procurement can evaluate suppliers based on verified emissions data. Executive bonuses can even be tied to verifiable climate performance.

The result? Climate action becomes embedded in daily operations rather than remaining a separate "sustainability initiative." It transforms from a marketing exercise into a fundamental business metric.

Informing strategic decision-making

Beyond operational improvements, accurate emissions data helps organisations make smarter long-term decisions. A manufacturer might use it  to evaluate the environmental impact of different facility locations based on local grid intensity, transportation infrastructure, and climate conditions. Similarly, a food company can assess the emissions impact of expanding into new product categories, identifying opportunities to develop low-carbon alternatives to high-emission foods.

Accurate data allows companies to align business strategy with climate goals—without sacrificing performance.

Sparking innovation

Accurate emissions data often reveals opportunities for innovation beyond incremental improvements. A brewery analysing its emissions profile might identify fermentation as a carbon hotspot, leading to the development of a low-energy brewing method. 

This type of innovation often delivers benefits beyond emissions reductions, including cost savings, performance improvements, and enhanced customer loyalty.

Turn insights into impact

The journey from accurate emissions data to climate action requires organisational commitment, strategic planning, and systematic implementation. Organisations must develop the capacity to collect activity data, apply appropriate emission factors, analyse the resulting emissions profile, and translate these insights into concrete initiatives.

This isn't just a technical challenge – it's a cultural one. Organisations must foster collaboration between sustainability teams with environmental expertise and operational departments with practical knowledge. They need executives who understand the strategic importance of emissions reduction and are willing to invest in the necessary people and systems.

The drinks industry provides a compelling example of this shift. Today, leading beverage companies like Pernod Ricard and Heineken treat emissions data as a core business metric, not just a compliance requirement.

Companies seeing the greatest success share a common approach: they treat emissions measurement not as a one-time exercise but as an ongoing process of refinement and improvement.

Ready to make your numbers count?

Accurate emissions data is more than just a reporting tool—it’s a strategic asset. Companies that invest in high-quality data are better positioned to reduce costs, strengthen supplier relationships, and meet evolving regulatory requirements.

Zevero helps organisations measure emissions with precision, uncover reduction opportunities, and build a stronger climate strategy. Whether you’re starting from scratch or refining an existing program, we provide the insights and support you need to drive measurable impact. Contact our team today to learn more.