Supporting appendix · PPN 06/21
Methodology & Hotspot Analysis
Calculation basis, scope reconciliation, and hotspot breakdown underpinning the FY 2024/25 baseline of 32.07 tCO2e (market-based) / 31.48 tCO2e (location-based) disclosed in the Climatise Carbon Reduction Plan.
- Companion to
- Climatise CRP, FY 2024/25
- Publication Date
- 16 August 2025
- Reporting Period
- 1 Jun 2024 – 31 May 2025
- Baseline (market)
- 32.07 tCO₂e
00 — Scope
About this document
This is the supporting methodology for the published Climatise Carbon Reduction Plan. It documents the calculation basis behind the FY 2024/25 baseline of 32.07 tCO2e (market-based) / 31.48 tCO2e (location-based), and explains the choices made under the GHG Protocol Scope 2 Guidance and the PPN 06/21 Technical Standard.
It is published alongside the CRP in the interests of transparency. Supplier-specific commercial data and individual travel-itinerary line items are summarised at category level rather than disclosed in identifiable form.
01 — Category breakdown
Emissions by category
Share of the FY 2024/25 location-based footprint by category. Under the market-based view, Scope 2 electricity rises from 0.43 to 1.03 tCO2e and the total moves from 31.48 to 32.07 tCO2e; all other rows are unchanged.
| Category | Scope | tCO₂e (loc) | % of total |
|---|---|---|---|
| Purchased Goods & Services (Cat 1) | 3 | 19.39 | 61.6% |
| Business Travel — Air (Cat 6) | 3 | 4.10 | 13.0% |
| Business Travel — Land (Cat 6) | 3 | 1.70 | 5.4% |
| Business Travel — Hotel (Cat 6) | 3 | 0.28 | 0.9% |
| Business Travel — Rail (Cat 6) | 3 | 0.11 | 0.4% |
| Business Travel total | 3 | 6.20 | 19.7% |
| Employee Commuting — WFH (Cat 7) | 3 | 5.28 | 16.8% |
| Electricity (location-based) | 2 | 0.43 | 1.4% |
| Fuel & Energy-Related Activities (Cat 3) | 3 | 0.17 | 0.5% |
| Upstream Transport & Distribution (Cat 4) | 3 | 0.01 | 0.0% |
| Scope 1 | 1 | 0.00 | 0.0% |
| Total (location-based) | — | 31.48 | 100% |
02 — Baseline reconciliation
Reconciling SECR, PPN 06/21 minimum, and full inventory
The same underlying data can be presented against three different scope boundaries. The CRP uses View C, the full voluntary inventory.
| View | Boundary | tCO₂e (loc) | Used for |
|---|---|---|---|
| A. SECR scope | Scope 1 + Scope 2 + Cat 3 FERA + Cat 6 Business Travel | 6.80 | Statutory SECR disclosure in the Directors' Report |
| B. PPN 06/21 strict minimum | Scope 1 + Scope 2 + Cats 4, 5, 6, 7, 9 | ~11.40 | Hypothetical PPN 06/21-only boundary |
| C. Full voluntary inventory | Scope 1 + Scope 2 + Cats 1, 3, 4, 6, 7 | 31.48 | CRP basis (this document) |
Rationale for using View C in the CRP:
- PPN 06/21 explicitly allows — and encourages — broader disclosure than its minimum requirement (best industry practice per §10 of the technical standard).
- The PG&S and WFH categories together account for ~78% of Climatise's actual footprint. Restricting the CRP to View B would make the hotspot-driven reduction initiatives unintelligible.
- View C matches the internal footprint figure (31.48 tCO2e) already used to calculate the SECR location-based tCO2e-per-FTE intensity ratio.
03 — Hotspot summary
Purchased Goods & Services
Total Cat 1 emissions are 19.39 tCO2e across 12 spend categories and many suppliers. All Cat 1 emissions are calculated on spend-based emission factors (kgCO2e per £ spend by UK SIC code).
The top two suppliers in this category together account for approximately 60% of PG&S emissions and around 37% of the total company footprint. Both fall under UK SIC division 73 (advertising and market research), which carries a relatively high spend-based emission factor. Long-tail suppliers (rank 16+) collectively contribute the remaining ~13% of PG&S emissions.
Why this matters
Two suppliers concentrate the majority of Climatise's measured carbon footprint. This makes supplier engagement — requesting each supplier's own Carbon Reduction Plan and reweighting spend toward suppliers with credible published commitments — the highest-leverage reduction lever in the FY 2024/25 baseline.
Supplier identities and contract values are commercially sensitive and are not disclosed in this public methodology. The category-level total (19.39 tCO2e) and the concentration ratio (top 2 suppliers ≈ 60%) are disclosed in full.
04 — Business travel
Mode breakdown
Total Cat 6 emissions are 6.20 tCO2e, dominated by air travel.
| Mode | tCO₂e | Share of Cat 6 | Basis |
|---|---|---|---|
| Air | 4.10 | 66% | Spend-based (SWC MRIO factor) |
| Land (taxi, rideshare, hire car, mileage) | 1.70 | 27% | Spend-based |
| Hotel | 0.28 | 5% | Spend-based |
| Rail | 0.11 | 2% | Spend-based |
| Total Cat 6 | 6.20 | 100% | — |
All air travel in the baseline year is attributable to a small number of business trips concentrated with one to two travellers, which makes a per-employee annual flight carbon budget a highly actionable reduction lever. The current spend-based air travel factor will be migrated to passenger-km with haul-length and cabin-class splits at the next data refresh, in line with §7 (Data quality and improvement priorities).
05 — Employee commuting
Working from home (Cat 7)
| Metric | Value |
|---|---|
| Total WFH hours (FY 2024/25) | 15,824 |
| Emission factor (DEFRA 2025 WFH, per hour) | 0.33378 kgCO₂e/hour |
| Total WFH emissions | 5.28 tCO₂e |
WFH teleworking emissions are calculated using the DEFRA hours-based WFH factor, which captures both home electricity and home heating attributable to the working day. With a remote-first operating model this is structurally the right category for Climatise's commuting-equivalent footprint. Traditional commuter emissions (vehicle kilometres to a fixed worksite) are zero for the reporting period.
06 — Scope 2
Electricity — location and market
| Metric | Value |
|---|---|
| Facility | Horizon Business Village |
| Consumption | 2,437.50 kWh |
| Location-based emission factor (DEFRA 2025 UK grid) | 0.1773 kgCO₂e/kWh |
| Location-based emissions | 0.43 tCO₂e |
| Market-based emission factor (AIB UK residual mix) | 0.4208 kgCO₂e/kWh |
| Market-based emissions | 1.03 tCO₂e |
07 — Methodology notes
Emission factor sources & treatment choices
Emission factor sources by scope and category
| Scope / Category | tCO₂e | EF source | Basis |
|---|---|---|---|
| Scope 1 | 0.00 | n/a | — |
| Scope 2 Electricity (location) | 0.43 | DEFRA 2025 UK grid average (0.1773 kgCO₂e/kWh) | Activity (kWh) |
| Scope 2 Electricity (market) | 1.03 | AIB European Attribute Mix, UK residual mix (0.4208 kgCO₂e/kWh) | Activity (kWh) |
| Cat 1 Purchased Goods & Services | 19.39 | Small World Consulting (SWC) MRIO spend-based factors | Spend (£, by UK SIC code) |
| Cat 3 FERA | 0.17 | DEFRA 2025 (WTT + T&D + WTT of T&D) | Derived from Scope 2 activity |
| Cat 4 Upstream T&D | 0.01 | DEFRA 2025 spend-based T&D | Spend |
| Cat 6 Business Travel | 6.20 | SWC MRIO spend-based (majority); DEFRA 2025 passenger-km where activity data allowed | Mixed (spend + activity) |
| Cat 7 Employee Commuting / WFH | 5.28 | DEFRA 2025 hours-based WFH factor (0.33378 kgCO₂e/hr) | Activity (hours) |
Transparency note
Small World Consulting Limited — the organisation whose MRIO spend-based factors underpin approximately 80% of Climatise's Scope 3 inventory (Cats 1 and 6) — also appears in Climatise's own Cat 1 PG&S data as a supplier (£1,200 spend / 0.23 tCO2e). Climatise pays SWC for advisory services using the emission factor dataset that SWC themselves publish. This is declared here for full transparency; the factors are the UK industry-standard SIC-level spend-based dataset and have been applied at arm's length.
Scope 2 reporting — location and market
Scope 2 electricity is reported against two emission factors per the GHG Protocol Scope 2 Guidance:
- Location-based uses the published UK grid average factor (DEFRA 2025, 0.1773 kgCO2e/kWh) and represents the emissions associated with the grid from which electricity is drawn.
- Market-based uses the AIB European Attribute Mix UK residual mix factor (0.4208 kgCO2e/kWh) because Climatise Technology Limited does not hold contractual instruments (REGOs / Guarantees of Origin) for the electricity supply at Horizon Business Village. Under the GHG Protocol Scope 2 Quality Criteria, the residual mix is the correct default in the absence of such instruments.
The two figures are not additive. Both are reported in the CRP. Reduction targets are set against the market-based total (32.07 tCO2e), as this is the basis on which the impact of contractual instruments such as REGO-backed renewable electricity supply is recognised under the GHG Protocol Scope 2 Guidance.
A direct consequence: a market-based figure higher than a location-based figure is the expected outcome for any UK organisation without REGOs. The quantified opportunity to move to a REGO-backed tariff is therefore approximately 1.03 tCO2e/yr under the market-based view (with no change to the location-based view, which only moves as the UK grid decarbonises).
FERA (Scope 3 Category 3) derivation
FERA is derived from the Scope 2 electricity activity (2,437.50 kWh) and comprises the well-to-tank emissions of the fuel used to generate that electricity, grid transmission & distribution losses, and the WTT of those T&D losses. The CRP reports FERA at 0.17 tCO2e (derived from the activity, consistent with both Scope 2 reporting bases).
PPN 06/21 required versus voluntary Scope 3 disclosure
The PPN 06/21 Technical Standard requires reporting against Scope 3 Categories 4 (Upstream T&D), 5 (Waste), 6 (Business Travel), 7 (Employee Commuting), and 9 (Downstream T&D). It does not require Category 1 (Purchased Goods & Services) or Category 3 (FERA).
Climatise's CRP includes voluntary disclosure of Categories 1 and 3 because:
- Category 1 is the single largest driver of Climatise's actual footprint (62%). Omitting it would produce a CRP whose reduction initiatives did not correspond to any disclosed emissions, undermining the purpose of the document.
- Category 3 is included in the SECR statutory report and aligns with the GHG Protocol Scope 3 Standard's expectation that organisations disclose all material categories regardless of minimum thresholds.
08 — Data quality
Improvement priorities for FY 2025/26
- Where practical, transition Purchased Goods & Services emissions from spend-based SIC-level factors to supplier-specific or activity-based factors, starting with the top two PG&S hotspots.
- Move Business Travel air emissions from a single spend-based factor to passenger-km with haul-length and cabin-class splits.
- Review and reclassify three rows currently sitting under Business Travel — Air that appear, on closer inspection, to be train travel (~1.00 tCO2e total). Reclassification would shift this between sub-categories without changing the total footprint.
- Continue annual review of this methodology in line with the PPN 06/21 §11 expectation of a CRP refresh within six months of financial year-end.
Climatise Technology Limited · Methodology & Hotspot Analysis · Companion to the Carbon Reduction Plan · Published 16 August 2025