ESG: environment & climate

    Physical carbon intensity

    Formula

    Physical carbon intensity

    Physical Carbon Intensity = (Scope 1 emissions + Scope 2 emissions) ÷ Units of output

    Variables

    Scope 1 and Scope 2 emissionsEmissions in tonnes of CO2e for the year
    Units of outputPhysical production for the year, such as tonnes of cement, crude steel or aluminium

    Finding the inputs

    Emissions are in BRSR Principle 6. Production volumes are usually in the management discussion and analysis, investor presentations or the BRSR's optional intensity per unit of output. CCTS notifications publish plant-level baseline intensities.

    Reading the number

    This is the best measure for comparing plants and companies in the same industry, and it is the basis of India's CCTS targets and of the EU's CBAM charges. Check that output is defined the same way across companies (for example, cement versus clinker, or crude steel versus finished steel). Compare a plant's intensity with its CCTS target to estimate whether it will be a buyer or seller of Carbon Credit Certificates.

    Illustrative example