Doconomy’s Climate Disclosure has been conducted in accordance with the Greenhouse Gas (GHG) Protocol, the world’s most widely used greenhouse gas accounting standard for companies and organizations. According to the GHG Protocol, emissions are divided into three scopes. Scope 1 covers the company’s direct emissions, scope 2 covers the indirect emissions from purchased energy, and scope 3 covers all other indirect emissions in the company’s value chain. Scope 3 is further divided into 15 categories; see the graphic for details.

The consolidation approach chosen for Doconomy’s calculations is the operational control approach. The selection of a consolidation approach affects which activities in the company’s value chain are categorized as direct emissions (i.e., scope 1 emissions) and indirect emissions (i.e., scope 2 and scope 3 emissions). By choosing the operational control approach, emissions from any assets Doconomy has operational control over are included in scope 1.  

Regarding scope 2, there are two calculation methods to consider: the location-based method and the market-based method. The location-based method uses average emission intensities in the grid where the consumption occurs (i.e., the average emission intensity at your location — usually
a country). On the other hand, the market-based method takes contractual agreements into account and allocates emissions thereafter. Doconomy is reporting its scope 2 emissions using the location- and market-based approaches, as per the GHG protocol standard. 

Read more about the GHG protocol, the guidance, and standards used at https://ghgprotocol.org/

Regarding emissions intensities, Doconomy has consistently used publicly available sources from well-known organizations such as DEFRA (Department for Environment, Food and Rural Affairs, UK GOV), NTM (Network for Transport Measures), ICAO (International Civil Aviation Organisation), and AIB (Association of Issuing Bodies). For the complete list, contact Doconomy directly. The chosen sources include the greenhouse gases covered by the Kyoto Protocol, expressed as carbon dioxide equivalents (CO₂e). GWP100 has been used in line with Intergovernmental Panel on Climate Change (IPCC) Fourth Assessment Report (AR4).

At the start of 2022, Doconomy conducted a materiality analysis, reviewing all emissions generated from the company’s activities. Based on this analysis, the following scope 3 areas have been excluded from Doconomys climate disclosure: 

Capital goods — not applicable to Doconomy’s operations
Processing of sold products — not applicable to Doconomy’s operations
End-of-Life treatment of sold products — not applicable to Doconomy’s operations
Franchise — not applicable to Doconomy’s operations
Transportation and Distribution — less than 1% of Doconomy’s total emissions
Leased Assets — less than 1% of Doconomy’s total emissions
Waste generated in operations — less than 2% of Doconomy’s total emissions

Regarding Transportation and Distribution, Doconomy sometimes uses delivery services for the transportation of office equipment or larger parcels. Since this is a very small post, covering less than 1% of Doconomy’s total emissions, it has been excluded in the final climate disclosure. 

Doconomy rents some of its office equipment, categorized as Leased Assets. This is also a very small post, covering less than 1% of Doconomy’s total emissions, and has therefore been excluded from the final climate disclosure. 

Waste generated in Doconomy’s operation is limited to office waste. Since Doconomy recycles to the most significant extent possible, and since the general waste goes to incineration with energy recovery, there are not many emissions connected with this category (less than 2% of Doconomy’s total emissions). Hence it is excluded from the final climate disclosure. 

During FY 2021, Doconomy sponsored the Climate Crisis Film Festival (CCFF). According to the methodology, sponsorships should be allocated a share of the sponsored project’s scope 1 and 2 emissions and included as part of the sponsor’s value chain emissions. Doconomy recognizes that a share, proportionate to the percentage of sponsoring, of CCFFs scope 1 and 2 emissions should be included in this climate disclosure. However, since no information on the CCFFs emissions was available, the share allocated to Doconomy is unknown and has therefore been omitted from Doconomy’s final climate disclosure.

The results from Doconomy’s climate calculations are presented in Table 01 and Figure 02 below. Note that all emissions are shown in tones of CO₂e. 

• Office — <1 tonne CO2e
• Business travel — 45.7 tonne CO2e
• Purchased goods and services — 32,2 tonne CO2e
• Employees — 6,7 tonne CO2e
• Use of sold product — <1 tonne CO2e

Scope 1 emissions are solely from car travels (included in scope 1 due to the operational control approach Doconomy has chosen). Included are both rental cars and car travel expenses. 

Scope 2 emissions originate from electricity and heat consumption at Doconomy’s office. Doconomy purchases 100% renewable electricity with a guarantee of origin.

Scope 3 emissions include business travel, purchased goods and services, employee commuting, and use of sold products.

• Flights are the largest source of emissions, not only in the business travel category but also for Doconomy as a whole. Business travel also includes taxi travel, train travel, and hotel nights. 
• Within the category of purchased goods and services, Doconomy identifies three overarching areas: electronic equipment, food, representation, and office material. Electronic equipment is mainly computers and phones for the employees. Food is coffee, fruit, milk, etc., for the office, while representation covers restaurant visits and other activities where food and beverages are purchased. Office materials are office-related equipment (in FY 2021, mainly new chairs). The results show that food and representation contribute the most emissions in this category.
• Employee commuting includes both Doconomy employees and full-time consultants. The number of employees and consultants used is an average over the year. The fact that, due to the Covid-19 pandemic, many employees have worked from home has been taken into account. 
• Doconomy offers digital products that help measure the climate footprint of purchases, lifestyles, and products. Since the products Doconomy sells are digital, the emissions from the use of these products are emissions associated with data storage and data transfer. Even though the emissions are small today, Doconomy has chosen to include this number as it is connected to the company’s core business and since it might grow in the future (as the use of Doconomys products increases).

Though Doconomy has not prepared public disclosures in previous years, Figure 03 shows a summary comparison of the years 2021 and 2020.

The difference in emissions between the years can be explained by:  

• The changed scope of the emission calculations. During FY 2020, the subsections “Food and representation” and “office material” were not included.
• The Covid-19 pandemic put restrictions on both business travel and employee commuting in 2020 than in 2021. Although business travel was limited during 2021, air travel increased significantly compared to 2020.
• In late 2020 Doconomy changed to renewable electricity. This affected the emissions in scope 2 and explained the change over the years.
• Change in the calculation for the number of employees affected the number of employees commuting in scope 3. The 2020 calculations used the number of employees by the end of the year; the 2021 calculations used the average number during the year.

Biogenic CO₂ emissions, both direct and emissions that occur in the value chain, shall not be included in the scopes but shall be reported separately. Biogenic CO₂ emissions refer to emissions from the combustion or biodegradation of biomass. Doconomy has no biogenic emissions to report for FY 2021.

Doconomy is monitoring the KPIs presented in Figure 04. Emissions per revenue and emissions per employee represent how the emissions and the company grow. Note that this is Doconomy’s first year tracking progress in these areas and therefore no comparison with previous years is possible.

• KPI FY 2021
  Emissions/Revenue: 2,98 tonne CO2e/MSEK
  Emissions/Employee: 3,28 tonne CO2e/Employee