Emissions from joint procurement calculated

In 2023, around EUR 1.6 billion worth of goods and services were procured through Hansel’s joint procurement. Such a significant procurement volume results in significant greenhouse gas emissions, and in the autumn of 2023 we decided to calculate for the first time the emissions from procurement by means of framework agreements and dynamic purchasing systems.

We have already previously offered our customers the possibility to view the calculated carbon dioxide emissions of their own procurement, based on their purchase invoice data, in the Procurement Pulse service. The same model and factors were now applied to the calculation of emissions from joint procurement. Also with joint procurement, we started from the calculated emissions, with a few refinements. This is the first step towards an increasingly accurate and realistic picture of emissions.

Both the calculated emissions based on purchase invoice data and the emissions from joint procurement that were calculated now are based on factors describing the average emission factors of each product and service group, produced by experts from the Finnish Environment Institute. The factors were updated in 2023 in collaboration with the Finnish Environment Institute and linked to reporting data on joint procurement sales for the purpose of calculating the emissions from joint procurement.

 

 

 

In 2024, the emission data from joint procurement will also be made available to customers and suppliers via services such as Procurement Pulse and Supplier Pulse. Customers and suppliers will be able to utilise the data as part of their own organisation’s emissions calculations. When reviewing and using the emission figures, it is important to keep in mind that this exercise – like any emission calculations so far – involves some uncertainty in the sense that the factors are calculated averages and therefore do not fully reflect the reality of each procurement procedure. However, even indicative emission calculations for procurement are a valuable tool to help ensure appropriate targeting of emission reduction measures. On the other hand, even indicative procurement emission calculations will assist contracting entities in making Scope 2 (energy) and Scope 3 (purchased goods and services) emission calculations under the Greenhouse Gas Protocol (GHG).

For some of Hansel’s joint procurement procedures, the contractual suppliers themselves have very good and accurate emissions data. However, such more detailed emissions data is not yet systematically collected from the contractual suppliers, but we expect this to change in the coming years.

Emissions calculations for procurement using framework agreements and dynamic purchasing systems mean looking at the past, but Hansel also conducts a comprehensive sustainability analysis of all its joint procurement procedures from the environmental, economic and social responsibility perspective already at the preparation stage. More information about these sustainability analyses for each joint procurement procedure is available in Procurement Pulse at hansel.fi (in Finnish).

Emissions from Hansel’s own operations

Emissions from Hansel’s own operations have been calculated according to the GHG Protocol using the same limitations since 2020. Hansel’s Scope 1 and Scope 2 emissions were zero. The increase in Scope 3 emissions was caused by increased business travel after the COVID-19 pandemic and increased procurement of IT services.

	2023	2022	2021	2020	Change, % (compared to 2022)
Total emissions (excl. Hilma), (Scope 1–3), tCO2eq.*	661 (74)	480 (55)	535 (62)	657 (76)	38
Total emissions (incl. Hilma), (Scope 1–3), tCO2eq.*	865 (97)	591 (68)	651 (76)	767 (89)	46
Scope 1, tCO2eq.	0	0	0	0	0
Scope 2, tCO2eq.	0	0	65	54	0
Scope 3 (excl. accounting/Envimat data), tCO2eq.	70	43	37	170	63
Scope 3 (excl. Hilma), tCO2eq.	661	480	471	603	38
Scope 3 (incl. Hilma), tCO2eq.	865	591	587	713	46
Emissions per employee, tCO2eq. per person (person-year; incl. accounting/Envimat data)	5.4	4.0	4.6	5.9	35
Emissions per employee, tCO2eq. per person (person-year; excl. accounting/Envimat data)	0.6	0.4	0.9	2.0	50
*The figure in brackets indicates how many average Finns’ annual emissions are equivalent to the total emissions.

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