Work in Progress: This methodology is in the ideation phase and under active development. We welcome your feedback and suggestions to help shape this framework.
Impact Ratio Methodology
How we calculate the Impact Ratio from verified emissions data and industry-standard avoided emissions methodologies.
Grounded in Industry Standards
The Impact Ratio is built on established climate accounting frameworks, adapted specifically for professional services firms.
GHG Protocol Avoided Emissions
Our methodology follows the GHG Protocol's guidance on estimating and reporting avoided emissions—the standard framework for quantifying positive climate impacts.
GHG Protocol GuidanceWBCSD Scope 4 Methodology
We apply WBCSD's 4-step framework for avoided emissions: define timeframe, establish reference scenario, assess lifecycle emissions, and calculate avoided impact.
WBCSD GuidanceVTT Carbon Handprint
The handprint concept—measuring positive climate impact enabled for others—comes from VTT's peer-reviewed methodology aligned with ISO 14040/14044.
VTT Handprint GuideOur Adaptation for Professional Services
Standard avoided emissions reporting works well for product companies (e.g., "our solar panels avoid X tonnes of CO₂"). But professional services firms—engineering consultancies, advisors, project managers—face a unique challenge: they enable climate solutions through client projects but don't own the solutions themselves.
The Impact Ratio solves this by:
- Applying role-based attribution to allocate avoided emissions based on the firm's documented contribution (technical advisor, EPCM, feasibility study, etc.)
- Expressing the result as a ratio (multiplier) to the firm's operational footprint, enabling comparison across different company sizes
- Using conservative assumptions (full Scope 1+2+3 footprint, Operating Margin grid factors) to prevent overclaiming
This approach prevents double-counting while giving credit to the firms that make climate solutions possible.
The Core Formula
The Impact Ratio expresses how many times larger a company's positive climate impact (avoided emissions enabled) is compared to its own operational footprint.
A 127x multiplier (with role-based attribution) means that for every tonne of CO₂e a company emits through its operations, it enables 127 tonnes of avoided emissions through its projects or products, accounting for its documented role.
Data Sources
Company Footprint
We source company emissions data from Klimatkollen, a Swedish open data platform that aggregates corporate emissions disclosures. This provides Scope 1, 2, and 3 emissions data for comprehensive footprint assessment.
Using full Scope 1+2+3 emissions (not just Scope 1+2) ensures we capture the complete operational footprint, including value chain emissions. This provides a more conservative (lower) multiplier calculation.
Avoided Emissions
For renewable energy projects, we use IFI Harmonized Grid Emission Factors(World Bank/UNFCCC standard) to calculate grid displacement. For other project types, we use technology-specific methodologies.
We use Operating Margin (OM) grid factors rather than Combined Margin (CM), and deduct lifecycle emissions from the clean technology. This yields conservative estimates.
Worked Example: AFRY Solar Portfolio with Role-Based Attribution
Calculating the ~127x Multiplier (with Role-Based Attribution)
Company Footprint (Denominator)
| Scope 1 (Direct) | 340 tCO₂e |
| Scope 2 (Electricity) | 3,295 tCO₂e |
| Scope 3 (Value Chain) | 40,450 tCO₂e |
| Total Footprint | 44,085 tCO₂e |
Source: Klimatkollen (2024)
Project Avoided Emissions (Numerator)
AFRY has provided technical advisory, owner's engineer, and EPCM services for 90 GW of solar projects across 500+ projects in 80 countries. Gross avoided emissions: ~39.8 MtCO₂e/yr
| Portfolio Capacity | 90 GW |
| Average Yield (global) | 1,131 GWh/GWp |
| Annual Generation | 101,790 GWh/yr |
| Grid Factor (conservative global avg) | 436 gCO₂/kWh |
| Solar Lifecycle Emissions | −45 gCO₂/kWh |
| Net Displacement Factor | 391 gCO₂/kWh |
| Gross Avoided Emissions | ~39.8 MtCO₂e/yr |
Calculation: 101,790 GWh × 391 gCO₂/kWh ÷ 1,000,000 = 39.8 MtCO₂e
Role-Based Attribution
AFRY's roles vary across the portfolio. Using role-based attribution prevents double-counting:
| 40% Technical Advisor | 7.5% attribution |
| 35% Owner's Engineer | 15% attribution |
| 20% EPCM Provider | 30% attribution |
| Weighted Average Attribution | 14% |
Calculation: (40% × 7.5%) + (35% × 15%) + (20% × 30%) + (5% × 4%) = 14%
Impact Ratio
For every tonne of CO₂e AFRY emits, their attributed solar portfolio contribution enables ~127 tonnes of avoided emissions.
Technology-Specific Calculation Methods
Solar & Wind
Use IFI Operating Margin grid factors by country, minus technology lifecycle emissions (IPCC data: solar 45 gCO₂/kWh, wind 11 gCO₂/kWh).
Hydropower
Regional grid displacement with 10 gCO₂/kWh lifecycle emissions. Use country-specific grid factors (e.g., Southern Africa: 850 gCO₂/kWh).
Carbon Capture (CCS)
Direct capture accounting: tonnes captured = tonnes avoided. No displacement calculation needed as CO₂ is physically removed from the emission stream.
Biofuels (SAF, HVO)
ISCC-certified lifecycle comparison vs. fossil baseline. SAF typically avoids 2.5-2.9 kgCO₂ per kg compared to fossil jet fuel.
Source Verification Requirements
We only include projects in Impact Ratio calculations when they meet strict documentation standards. Projects are evaluated on three criteria:
Role Documentation
Clear evidence of the company's specific role (engineering, advisory, project management) from press releases, project announcements, or client reports.
Capacity/Scale Data
Verifiable project specifications (MW, tonnes/year, GWh) from authoritative sources (company reports, industry publications, regulatory filings).
Calculation Basis
Sufficient data to apply standard methodology (grid factors, capacity factors, lifecycle emissions) or third-party verified avoided emissions figures.
Projects We Exclude
Projects are excluded when the company's role cannot be clearly documented, when capacity data is unavailable or speculative, or when the project is in early planning stages without committed specifications. We prefer to understate impact rather than make unsupported claims.
From Carbon Handprint to Impact Ratio
Carbon Footprint
The negative climate impact: total GHG emissions caused by a company's operations and value chain (Scope 1, 2, and 3 per GHG Protocol).
Carbon Handprint
The positive climate impact: emissions avoided by customers or society through using a company's products or services instead of conventional alternatives.
Impact Ratio
The ratio expressing how many times larger the handprint is compared to the footprint. Higher multipliers indicate greater positive impact per unit of emissions.
The VTT Definition
"The carbon handprint of a product is the GHG emission reduction that occurs in the product system of a customer or in society, when the customer uses the handprint product instead of the baseline product."
— VTT Carbon Handprint Guide V.2.0, p. 11
The Impact Ratio extends this concept by expressing the handprint as a ratio to the company's own footprint, making it easier to compare climate impact efficiency across different company types and sizes.
Multiplier Ranges at a Glance
Different business models create vastly different handprint-to-footprint dynamics. This visualization shows the typical multiplier ranges for each company archetype.
Typical Multiplier Ranges by Company Type
Logarithmic scale showing typical Impact Ratio ranges. The marker shows the example company's actual multiplier.
Impact Ratios by Company Type
Different business models create different handprint-to-footprint dynamics. Understanding these patterns helps interpret what a "good" multiplier means for each company type.
Climate Solution Enablers
Engineering firms, consultancies, and technology providers whose core business enables client decarbonization
Engineering 90 GW of solar projects creates massive avoided emissions relative to consultancy operations. Using role-based attribution to account for AFRY's documented role (technical advisor, EPCM, feasibility studies) prevents double-counting. Individual project multipliers vary by AFRY's role and grid context.
Enablers typically have the highest multipliers because their operational footprint is small (offices, travel) while their handprint scales with client project size.
Clean Technology Products
Manufacturers of EVs, renewable equipment, efficiency technologies that displace high-carbon alternatives
Each EV sold avoids 16-31 tCO₂ vs. ICE over its lifetime. As fleet grows, cumulative handprint compounds.
Product companies have moderate multipliers because manufacturing has significant emissions, but the handprint grows with each unit sold and its lifetime use.
Climate Finance & Banking
Banks, asset managers, and insurers whose lending and investment decisions shape portfolio emissions
Banks don't have traditional handprints but can measure impact through portfolio carbon intensity reduction and green finance volume.
Financial institutions use a modified approach: their 'handprint' is the emissions reduction achieved through portfolio steering, green bonds, and transition finance.
Supply Chain Transformers
Retailers and consumer goods companies with extensive supplier networks they can decarbonize
IKEA's supplier renewable energy program and product design changes create measurable avoided emissions across the value chain.
Supply chain companies have lower multipliers because their footprint is large (entire value chain), but they can create significant handprints through supplier engagement.
Catalytic Procurement
Technology companies using purchasing power to mandate supplier decarbonization
Apple's $383B purchasing power mandates supplier decarbonization. Impact measured through supply chain carbon intensity reduction.
Tech companies with large supply chains can use procurement leverage to drive decarbonization beyond their direct control.
Industrial Transformation
Steel, cement, chemicals producers transforming high-emission processes
Green steel producers have unique multiplier dynamics: near-zero operational footprint with significant handprint from displacing blast furnace steel.
Heavy industry in transition may have low multipliers initially, but breakthrough technologies like green steel can achieve very high multipliers.
Important Methodological Caveats
Attribution Complexity
Avoided emissions are often shared across multiple actors in a value chain. The WBCSD Guidance recommends clear attribution rules to prevent double-counting. Our multipliers represent the company's contribution, not exclusive ownership of avoided emissions.
Baseline Selection
The handprint depends critically on the baseline scenario chosen. We use industry-standard baselines (e.g., grid average for renewable energy, ICE vehicles for EVs) following VTT and WBCSD guidance. Different baseline choices would yield different multipliers.
Per-Project vs. Portfolio
We show multipliers for individual projects (e.g., solar portfolio, CCS plant) rather than aggregating across all company activities. This provides transparency about which projects drive the highest impact and allows comparison across technology types.
Temporal Considerations
Handprints are often calculated over product lifetimes (e.g., 15-year EV use), while footprints are annual. We normalize to annual equivalents where possible, but users should note the time horizons involved in each calculation.
WBCSD Avoided Emissions Eligibility Gates
The WBCSD Guidance on Avoided Emissions (v2.0, 2025) establishes "eligibility gates" that claims must pass to be credible. Our Impact Ratio calculations follow these principles:
Scientific References & Standards
The Impact Ratio methodology is grounded in peer-reviewed research and industry standards from leading institutions.
IFI Dataset of Default Grid Factors v.3.3
IFI Technical Working Group on GHG Accounting • UNFCCC / World Bank / IFC / EIB
Provides harmonized grid emission factors for 194 countries, including Operating Margin (OM), Build Margin (BM), and Combined Margin (CM) factors. The standard methodology for calculating avoided emissions from renewable energy projects.
Relevance: Primary source for grid displacement calculations in our Impact Ratio methodology. We use Operating Margin factors for conservative estimates.
Carbon Handprint Guide V.2.0: Applicable for Environmental Handprint
Pajula, T., Vatanen, S., Behm, K., Grönman, K., Lakanen, L., Kasurinen, H., & Soukka, R. • VTT Technical Research Centre of Finland & LUT University
Defines carbon handprint as 'the reduction of the carbon footprint of others' enabled by a product or service. Provides the foundational formula: Handprint = Baseline Footprint - Solution Footprint.
Relevance: Primary source for the handprint concept and calculation methodology that underlies our Impact Ratio.
Carbon Handprint – An Approach to Assess the Positive Climate Impacts of Products
Grönman, K., Pajula, T., Sillman, J., Leino, M., Vatanen, S., Kasurinen, H., Soininen, A., & Soukka, R. • Journal of Cleaner Production, Vol. 206, pp. 1059-1072
Peer-reviewed methodology establishing carbon handprint as a complement to footprint assessment. Validates the LCA-based approach for quantifying positive climate impacts.
Relevance: Academic validation of the handprint methodology, confirming its scientific rigor and alignment with ISO 14040/14044.
Estimating and Reporting the Comparative Emissions Impacts of Products
Russell, S. • World Resources Institute (GHG Protocol)
Establishes terminology and methodology for comparative emissions assessment. Defines 'avoided emissions' and 'comparative emissions' within the GHG Protocol framework.
Relevance: Provides the GHG Protocol foundation for avoided emissions claims, ensuring alignment with corporate carbon accounting standards.
Guidance on Avoided Emissions: Helping Business Drive Innovations and Scale Solutions Toward Net Zero (Version 2.0)
WBCSD (World Business Council for Sustainable Development) • WBCSD
Comprehensive guidance on avoided emissions eligibility, reference scenarios, and reporting. Introduces 'eligibility gates' to prevent greenwashing.
Relevance: Industry-standard guidance ensuring avoided emissions claims meet rigorous criteria for credibility and comparability.
ISO 14040:2006 & ISO 14044:2006 - Environmental Management - Life Cycle Assessment
ISO • International Organization for Standardization
International standards for Life Cycle Assessment methodology, providing the foundational framework for both footprint and handprint calculations.
Relevance: The Carbon Handprint methodology is explicitly built on ISO LCA standards, ensuring methodological consistency.