Rebasing

After the purchase or sale of a company, it is possible to reassess the emissions for the reference year. This process, known as rebasing or recalibration, is done to maintain insight into emission trends and reductions. There are many reasons why your emissions might change. In almost all cases, no rebasement occurs. This is only relevant if you acquire a company, sell a company, or have made an error in the past.

Rebasing after purchasing a company

The idea behind this is that when you acquire a company, you become responsible for that company’s emissions, not only from the moment of purchase but also for the prior period. This affects the objectives regarding your baseline year. Therefore, it is important to retroactively calculate the CO2 emissions for your baseline year in Smarttrackers. This can be based on previously available measurements. If these are not available, a calculation can be made based on, for example, revenue. If you know the current emissions and revenue, you can estimate past emissions based on historical revenue. After finalizing the calculation, the reduction, trends and targets are representive and relevant again. 

Rebasing after selling a company

When you sell a company, the new parent company becomes responsible for that company’s past emissions. Thus, the contribution of the company to the total CO2 emissions of the baseline year may be omitted. In SmartTrackers, this is easy to do. The organizational unit can be closed. Subsequently, the consolidation percentage for this part of the business can be set to zero or removed altogether. The advantage of retaining the consolidation percentage is that the data is not lost.