What is emissions intensity?
Emissions intensity is a ratio: greenhouse gas emissions in the numerator divided by a business measure in the denominator. Examples include metric tonnes of carbon dioxide equivalent (tCO2e) per EUR 1 million of revenue, kg CO2e per product, or tCO2e per full-time equivalent employee.
A figure such as 12.4 tCO2e per EUR 1 million says little unless you also state the emissions scopes, reporting period, company boundary (the entities and sites counted), denominator definition, and currency scale. Keep the absolute emissions total beside the ratio.
Why does emissions intensity matter to you?
CDP's 2026 full corporate questionnaire, Question 7.45, asks for gross global combined Scope 1 and Scope 2 emissions in metric tonnes CO2e per unit currency total revenue, plus any other intensity metric that fits your operations. ESRS E1-6 paragraphs 53 to 55 ask companies in scope to disclose total GHG emissions per net revenue and reconcile that revenue to the financial statements.
A customer, investor, or reporting team can use the ratio to see whether emissions changed faster or slower than output. A wrong denominator, a changed company boundary, or different Scope 2 methods can create an apparent improvement that did not come from lower emissions.
How is emissions intensity calculated?
First lock the numerator: which scopes, entities, sites, period, gases, and Scope 2 method it contains. Then choose a denominator from the same period and boundary. Divide the emissions total by that measure. For tCO2e per EUR 1 million, divide tCO2e by revenue divided by 1,000,000.
Do not assume every request uses the same numerator. CDP Question 7.45 specifies combined gross Scope 1 and 2. ESRS E1-6 uses total GHG emissions and presents location-based and market-based results. If you use Keslio's GHG emissions calculator, its estimate divides total Scope 1, 2, and 3 emissions by the midpoint of your selected employee or revenue band; the revenue result is tCO2e per USD 1 million.
What mistakes should you avoid?
- Comparing ratios that use different scopes, reporting periods, company boundaries, currencies, or units.
- Claiming an emissions reduction from intensity alone when absolute emissions increased.
- Using gross revenue in one year and net revenue in another, or changing the exchange rate without recording it.
- Mixing headcount and full-time equivalents, or excluding contractors one year but including them the next.
Can emissions intensity fall while total emissions rise?
Yes. If emissions rise from 100 to 120 tCO2e while revenue rises from EUR 10 million to EUR 15 million, intensity falls from 10 to 8 tCO2e per EUR 1 million, a 20% decrease, while absolute emissions increase by 20%. Report both changes.
What should you send when a customer asks for emissions intensity?
Send the ratio and absolute total, the scopes included, reporting dates, company boundary, numerator method, denominator source, unit, currency, exchange rate, and calculation. Attach the GHG inventory, factor list, revenue ledger or production record, and a note explaining any change from the prior year.
How does portfolio emissions intensity work?
Portfolio emissions intensity normalises emissions attributed to loans or investments by a stated financial or physical denominator so a portfolio or its progress can be compared. State the attribution method, emissions scopes, asset coverage, valuation date, and denominator. A ratio per EUR invested is not comparable with one per investee revenue.