Our calculations only measure projects with a direct relationship to our finance or investment activities. Given that we are often the principle funder of a project we include 100% of the impact when we co-finance a project. If it is not possible to record 100% of the energy produced by the facilities we finance or invest in, we use estimates based on wind and solar indexes, if applicable, and exclude projects that are still under construction.
So, in reporting impact as a sustainable bank, we include all the impact of the projects and clients that we finance. In technical jargon this is called the contribution approach. We also used the contribution approach in reporting the GHG emissions of our renewable energy portfolio up to 2017. This was previously both practical and, we believe, reasonable. From 2018 and onwards we will also include the attribution approach in our carbon disclosures. This means that we calculate the avoided emissions as they relate to the proportion of our finance in a project.
It’s important to note that an attribution approach leads to lower carbon emissions figures than a contribution approach. That is because a contribution approach accounts for all of the emissions from a project rather than a proportion of them. This attribution approach is a more accurate reflection of Triodos Bank’s responsibility for the greenhouse gas emissions of the projects it finances, and is consistent with the PCAF (Platform Carbon Accounting Financials) methodology.
The calculation of CO2 emission avoidance is made using conversion rates (gram CO2 equivalent per kWh energy produced) received from Navigant, an international energy and climate consultancy bureau. The conversion rates describe, per country, the grams of CO2 eq. avoided when comparing sustainable energy with the mix of all non-sustainable power plants.
To calculate the average energy use in kWh per household in the countries where we are active, we use the energy efficiency indicators published by the World Energy Council (WEC), which were updated in May 2016.
The ‘Impact per customer’ calculations used throughout the annual report are based on a total of 715,000 customers at the end of 2018.
More information on how we contribute to decarbonising the economy can be found in our online annual report here.