Measures that track carbon can be improved through better reporting: for example, self reporting by companies, better reporting within procurement itself. This includes carbon calculation as part of tender scoring during the procurement process.
A $5.5m taxi contract is being let, starting on 01/01/23 and ends on 01/01/28
Bidders must estimate their yearly emissions with supporting evidence.
Taxi Co reported yearly emissions to perform contract = 620 tonnes
Passengo reported yearly emissions to perform contract = 635 tonnes
Taxi Co wins the contract for $5 million or $1 million a year
This self report can be benchmarked against average for that category.
Taxi service's estimated carbon emissions/$ = 603.05 tonnes CO2/$ million
(620 tonnes - 603.05 tonnes) / 603.05 tonnes = 3%
This represents a 3% greater carbon emissions compared to market
This 5 year contract therefore yields 3100 tonnes of CO2
The industry average would generate 3015.25 tonnes over the same 5 years
This represents 84.75 tonnes in excess generation
This translates to 42,375 CO2 fire extinguishers
And would need 4138 trees to be planted to offset from average
Source: https://www.climateneutralgroup.com/en/news/what-exactly-is-1-tonne-of-co2/