Procurement Glossary
CO2e: Definition, calculation, and significance for Procurement
November 19, 2025
CO2e (CO2 equivalent) is a standardized unit of measurement used to assess the climate impact of various greenhouse gases. In Procurement , this metric Procurement the uniform assessment and comparison of suppliers in terms of their climate impact. Read on to find out what CO2e means, how it is calculated, and what strategic role it plays in sustainable procurement.
Key Facts
- CO2e combines all greenhouse gases into a single unit of measurement.
- Basis for climate accounting and supplier evaluation in Procurement
- Enables comparability of different products and services
- Key figure for Scope 3 emissions in the supply chain
- Basis for regulatory requirements and reporting obligations
Contents
Definition and significance of CO2e (CO2 equivalent)
CO2e standardizes the assessment of different greenhouse gases by converting them into CO2 equivalents based on their global warming potential.
Basics and calculation
CO2 equivalents are calculated by multiplying the emission amount of a greenhouse gas by its global warming potential (GWP). The most important factors are:
- Methane (CH4): GWP of 25 over 100 years
- Nitrous oxide (N2O): GWP of 298 over 100 years
- Fluorinated gases: GWP between 124 and 14,800
CO2e vs. other climate indicators
Unlike absolute CO2 emissions, CO2e measures the total climate impact of all greenhouse gases. This allows for a more comprehensive assessment than pure CO2 measurements and forms the basis for product carbon footprints.
The importance of CO2e in Procurement
CO2e values enable buyers to systematically integrate climate considerations into procurement decisions. They support the decarbonization of the supply chain and meet regulatory requirements such as the Supply Chain Due Diligence Act.
Measurement and calculation of CO2e
The accurate recording of CO2e values requires systematic methods and standardized calculation procedures for different emission sources.
Data collection and primary data
The quality of CO2e calculations depends largely on the data used. Primary data from suppliers offers the highest accuracy:
- Direct energy consumption data
- Transport kilometers and means of transport
- production process data
Calculation standards and tools
Established standards such as the GHG Protocol or ISO 14067 define uniform calculation methods. Life cycle assessments enable the complete recording of product life cycles. Specialized software supports the automated calculation of complex supply chains.
Scope 3 emissions in the supply chain
The recording of Scope 3 emissions places special demands on CO2e calculation. Upstream and downstream activities must be systematically recorded and evaluated in order to determine the complete supply chain carbon footprint.
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Interpretation and target values
The effective use of CO2e metrics requires clear interpretation frameworks and industry-specific benchmarks for informed procurement decisions.
Industry benchmarks and comparative values
CO2e intensities vary significantly between industries and product categories. Relevant benchmarks include:
- CO2e per product unit or service
- CO2e per revenue or value added
- Relative reduction targets compared to base year
Objectives and monitoring
Effective CO2e targets are based on science-based approaches such as SBTi targets. Continuous monitoring requires regular data updates and trend analyses. Supplier-specific improvement plans support systematic emissions reduction.
Integration into procurement decisions
CO2e values should be evaluated as a factor alongside cost, quality, and delivery performance. Weighting models enable systematic integration into supplier evaluations and support the development of supplier ESG improvement plans.
Measurement risks and bias in CO2e
CO2e assessment involves various methodological and practical risks that can lead to inaccurate or misleading results.
Data quality and availability
Incomplete or inaccurate primary data leads to incorrect CO2e calculations. Data gaps arise particularly in complex supply chains:
- Lack of transparency with subcontractors
- Use of outdated emission factors
- Inconsistent calculation methods
Methodological uncertainties
Different calculation approaches can lead to significant deviations. The choice of system boundaries, allocation methods, and time periods has a significant impact on CO2e values. Standardized approaches such as GRI standards reduce these uncertainties.
Greenwashing and manipulation
The complexity of CO2e calculations allows for conscious or unconscious distortions. Suppliers could choose favorable system boundaries or provide incomplete data. Robust due diligence processes and independent verification are therefore essential for reliable CO2e assessments.
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Practical example
An automobile manufacturer implements CO2e assessments for the selection of steel suppliers. Not only direct production emissions are taken into account, but also transport and raw material extraction. Supplier A offers steel with 2.1 t CO2e per ton, while supplier B achieves only 1.6 t CO2e by using renewable energies. Despite 8% higher costs, the company chooses supplier B because this contributes to achieving the group-wide climate targets.
- Complete life cycle assessment of all emissions
- Integration of CO2e costs into the overall cost assessment
- Long-term supplier development for emission reduction
Current developments and effects
CO2e assessment is constantly evolving due to regulatory requirements, technological advances, and changing market expectations.
Regulatory developments
New EU regulations such as CBAM and the Corporate Sustainability Reporting Directive are increasing the pressure for accurate CO2e reporting. Companies must make their supply chains more transparent and provide detailed emissions data.
Technological innovations and the influence of AI
Artificial intelligence is revolutionizing CO2e calculation through automated data collection and analysis. Machine learning algorithms improve the accuracy of emissions estimates and enable real-time monitoring of complex supply chains. Blockchain technology supports the traceability of materials and their CO2e values.
Market dynamics and supplier requirements
More and more companies are integrating CO2e criteria into their supplier evaluations and setting science-based targets. This is leading to increased demand for CO2e-transparent products and services, as well as the development of industry-specific evaluation standards.
Conclusion
CO2e is establishing itself as a key indicator for climate-conscious procurement decisions and enables the systematic integration of climate aspects into purchasing processes. The standardized assessment of all greenhouse gases creates transparency and comparability between suppliers and products. However, successful implementation requires robust data bases, standardized methods, and continuous development of assessment approaches. CO2e is increasingly becoming a strategic success factor for sustainable and future-proof supply chains.
FAQ
What does CO2e mean and how does it differ from CO2?
CO2e (CO2 equivalent) encompasses all greenhouse gases, which are converted into CO2 units according to their global warming potential. While CO2 only records carbon dioxide emissions, CO2e also takes methane, nitrous oxide, and other climate-impacting gases into account for a complete climate balance.
How can buyers request CO2e data from suppliers?
Buyers should integrate CO2e requirements into tenders and supplier contracts. Standardized questionnaires, references to established standards such as the GHG Protocol, and the requirement for verified data increase data quality and comparability between suppliers.
Which calculation methods are most reliable for CO2e?
The most reliable methods are based on primary data from suppliers and follow international standards such as ISO 14067 or the GHG Protocol. Life cycle assessments offer the most comprehensive view, while industry-specific emission factors can serve as approximate values.
What are the advantages of integrating CO2e into procurement decisions?
CO2e integration enables climate-conscious supplier selection, meets regulatory requirements, and supports sustainability goals. In addition, competitive advantages arise from early adaptation to climate policy developments and improved stakeholder communication about climate protection measures.
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