Environmental performance
In 2023, EcoOnline's greenhouse gas emissions totaled about 6,038 tonnes (or 6.038 million kg) CO2 equivalent. Of these, only 10.6% were Scope 1 and 2 emissions, which come from our direct operations. The majority, however, were Scope 3 emissions. These include emissions from purchased goods and services, employee commuting, business travel, upstream emissions and distribution.
At EcoOnline, we recognise the increasing expectations from our customers, employees, and investors to critically assess and actively reduce our emissions footprint. Committed to transparency and accountability, we employ a methodology that adheres to the Greenhouse Gas Protocol Initiative standards, the gold standard for corporate greenhouse gas accounting and reporting. This protocol categorises emissions into three sources—known as "Scopes"—which help us define and manage our operational boundaries effectively.
Scopes – defining the three emission sources
Scope 1
tCO2e
Direct Emissions includes emissions from combustible fuels and other sources that occur directly on our sites. This encompasses activities such as the burning of natural gas for heating and emissions from onsite or company-owned vehicles.
Scope 2
tCO2e
Indirect Emissions covers emissions that occur off-site but are associated with the production of electricity or steam purchased for use at our corporate locations.
Scope 3
tCO2e
Other Indirect Emissions accounts for emissions from activities downstream or upstream from our core business. This includes emissions from product use, waste disposal, commuting, business travel, transmission and distribution and inbound and outbound logistics. Transmission and distribution losses encompass the emissions from the generation of heat, cooling, and electricity that is lost as it is transported to the end consumer. Additionally, upstream emissions from energy production within scope one, two and three are also included within the scope three figure. This includes the upstream emissions of purchased fuel and electricity used for travel and on premises. Specific activities relevant to EcoOnline will be documented in detail.
Balancing Growth with Sustainability
In 2023, EcoOnline's overall greenhouse gas emissions increased by 9.2%, yet when viewed in light of our company's growth, a different perspective emerges. Adjusting for our expansion, our emissions intensity actually decreased by 0.6%. This adjustment reveals that, proportionally, our emissions have grown less than our business, illustrating our effective management and commitment to reducing our environmental impact as we scale. This nuanced understanding of our carbon footprint underscores our ongoing efforts to enhance sustainability practices while continuing to grow dynamically.
We remain committed to minimising our environmental impact. Our 2024 focus is on optimising the supply chain for sustainable vendors, prioritising reductions in the high impact Purchased Goods & Services category.
Business travel is essential, but also a major carbon contributor. To address this, we aligned our Travel and Expenses Policy with sustainability goals. The "Fly Less Initiative" and low-carbon travel policy represent significant steps towards reducing our travel footprint.
This year, implementing cost-saving decommissioning, license reductions, and renewal discounts saved 12.3 million NOK and reduced emissions by an estimated 100 tons, demonstrating the financial and environmental benefits of our initiatives.
Moving forward, EcoOnline will refine strategies based on data analysis for maximum impact. We remain dedicated to integrating sustainability into every aspect of our business, striving for a meaningful reduction in our environmental footprint.
2022 Total GHG Emission
MT CO2e
2023 Total GHG Emission
MT CO2e
ISO 14001 Certified
In 2023, EcoOnline achieved significant milestones in our environmental initiatives, setting a robust foundation for our ambitions in 2024. Notably, our Stratford office received ISO 14001 and 45001 certifications, marking a major achievement in environmental and occupational health and safety management. This success has kick-started a broader initiative to extend these certifications to all our locations in the upcoming year, demonstrating our commitment to comprehensive environmental stewardship.
Additionally, our Gothenburg office was certified according to the Swedish Environmental Base standard for environmental management systems. This achievement not only reinforces our dedication to maintaining high environmental standards but also integrates seamlessly with our global strategy to enhance environmental governance across our operations.
Looking ahead to 2024, these foundational achievements will guide the expansion of our environmental programs, ensuring that EcoOnline continues to lead by example in corporate environmental responsibility.
Organisational Boundaries
EcoOnline determines its GHG inventory boundaries based on the financial control approach, which includes leased facilities and locations where direct operational control is exercised. This boundary aligns with our management of operations, enabling us to influence decisions impacting GHG emissions. Newly acquired facilities are also included within the boundary during our period of control. This approach ensures a comprehensive assessment of our GHG emissions for effective tracking and mitigation.
Recalculating baseline year
In 2023, EcoOnline decided to recalculate our 2022 baseline year for emissions due to the acquisition of Ecometrica and significant enhancements in our emissions calculation methodology, derived from adopting the Ecometrica platform. The Science Based Targets initiative (SBTi) guidelines necessitate such recalculations to maintain the relevance and consistency of our targets amidst major operational changes.
This decision to adjust the baseline year does not alter our goals of reducing Scope 1 and 2 emissions by 42% and Scope 3 emissions by 25% by 2030. Instead, it facilitates more accurate year-on-year comparisons, enhancing our ability to track progress effectively and transparently.
GHG Emissions Profile
This report primarily focuses on Scope 3 emissions, with a detailed analysis of the largest emission category - Purchased Goods and Services (PG&S). Understanding the emissions impact of these transactions is crucial for effective reduction strategies.
To summarise Scope 1 and 2 emissions, data was collected from 16 global facilities using various methods, including activity-based calculations for consumption data analysis for stationary combustion, and location-based and market-based approaches for electricity consumption.
Analysis of EcoOnline's Scope 3 Emissions
In the following section, we will provide a more detailed analysis of our scope 3 emissions, focusing on the largest emission category. This analysis will help us gain deeper insights and works as useful sources to our decarbonisation strategies outlined in our 2030 Sustainability Plan.
For reporting purposes, some categories, such as waste and water in operations, was determined to be immaterial to our GHG footprint and thereby excluded from our analysis.
To calculate the Scope 3 categories, a combination of actual and estimated data was used. Actual data was obtained from internal accounting systems and estimated data involved the use of relevant publicly available statistics and emission factors.
In our analysis we found that PG&S is our largest emissions category. Aligning with expectations for a Software-as-a-Service (SaaS) company like EcoOnline, a major portion of our PG&S spend is allocated to services. Going forward, understanding the emissions impact of these service-based transactions is crucial for implementing effective strategies to reduce our carbon footprint.
To calculate the emissions associated with this category, we utilised spend data obtained through accounting sources. The spend data was then mapped to US Environmental Protection Agency's (EPA) Environmentally Extended Input-Output (EEIO) categories, using transaction description, account name, and supplier information. This mapping allowed us to translate the spend amounts into emissions estimates for each category
The EEIO emission factor set is a comprehensive database produced by the US EPA. It provides emissions data for various industrial processes and activities. It enables us to estimate the greenhouse gas emissions associated with different economic sectors and identify the environmental impacts of producing goods and services. By leveraging the EEIO emission factor set, we can assess the carbon footprint of our purchases by considering the emissions from raw material extraction, manufacturing, transportation, and disposal.
In analysing our emissions profile, the following key observations highlight the significance of our PG&S category:
- Data processing and hosting emerge as the largest emissions category within PG&S. This is primarily due to the substantial spend associated with this category and the energy-intensive nature of the process, resulting in a high emissions factor.
- Contractors, encompassing business support, software, and other support services, represent the second-largest emissions category within PG&S. This underscores the importance of addressing emissions associated with contracted services in our sustainability efforts.