Environmental benefits reporting is a way of communicating the environmental value associated with a technology, product, process or innovation. For a clean technology company, the quality of the analysis depends on clearly defining the baseline, the solution and the assumptions connecting them.
Start with the decision being supported
Before calculating anything, establish what the analysis needs to demonstrate. This determines the functional unit, system boundary, baseline scenario and data requirements.
Define the baseline
The baseline represents the conventional or alternative situation against which the proposed technology is assessed. A useful baseline should be realistic, transparent and supported by evidence.
Quantify the difference
Environmental benefits can be expressed through changes in greenhouse gas emissions, energy use, material use or other relevant environmental indicators. The calculation should make the comparison between baseline and solution explicit.
Document assumptions
Assumptions can materially affect environmental benefit estimates. Good reporting identifies them, explains their basis and makes the calculation traceable.
Present results clearly
A technically sound analysis still needs to be understandable. Results should be accompanied by boundaries, units, methodology and enough explanation for a reviewer to understand what the numbers represent.