Banks offer businesses free calculator to calculate greenhouse gas emissions

To help achieve the European Union’s climate goals, banking associations and financial companies from Lithuania, Latvia, and Estonia are issuing a GHG Emissions Calculator‍, which was developed in collaboration with Deloitte. The calculator can be used to estimate Scope 1 and Scope 2 emissions, which are, on the one hand, direct GHG emissions generated by the activities of a business or an organisation and, on the other hand, GHG emissions resulting from the consumption of electricity and heat.

‘Our goal is to provide companies with practical tools that support sustainable development and help them reduce their environmental impact. Climate change is a common concern that we all share, and we believe that such initiatives will help businesses to act more consciously and responsibly,’ commented Julia Grik-Meder, senior credit analyst at OP Estonia.

According to Kadri Vunder, head of the sustainability working group at the Estonian Banking Association, the new calculator is based on widely accepted databases (DEFRA, AIB, CIBSE, etc.) and the International Greenhouse Gas Protocol. It also takes into account each country’s emission factor and is available in Lithuanian, Latvian, Estonian, and English. In addition, supplementary educational materials are available.

‘Although several very good free GHG emission calculators are already available in Estonia, our Baltic neighbours have so far lacked such calculators. That’s why we decided to work together with the banking associations to strengthen cooperation between the associations,’ said Vunder, explaining the background behind the creation of the calculator.

European and state authorities are increasingly seeking data on the policies implemented by organisations to mitigate climate change and reduce environmental impact. Consumers, partners, and investors are also increasingly seeking such information.

In some cases, financial institutions that play an important role in financing the transition to climate neutrality are requesting information on greenhouse gas emissions. The European Central Bank expects banks and credit unions to provide data on the GHG emissions of funded projects. Credit institutions are also required to report to the relevant authorities how the funded projects address social and environmental issues, and assess whether customers are taking environmental objectives into account in their activities. Each bank or credit union makes its own decision regarding what data will be needed in a particular case, taking into account the services provided and the specific nature of the business.

Since the adoption of the Paris Agreement on climate change in 2015, the European Union has paid a great deal of attention to reducing GHG emissions. In order to achieve full climate neutrality by 2050, a reduction of GHG emissions by 55% in comparison with 1990 levels has been set for 2030.

The GHG emissions calculator is available for free here:

https://www.lba.lt/en/sustainability/greenhouse-gas-ghg-emissions-calculator‍