Preparing a climate account can seem overwhelming for many companies.
With countless factors to consider and busy daily operations, the task can feel complex and time-consuming. Fortunately, help is available through Klimakompasset — a free digital tool provided by the Danish Business Authority (Erhvervsstyrelsen) for companies. While the tool does not fully automate the process, it assists in structuring climate data and calculations efficiently. At ESG365, Klimakompasset is an integral part of the ESG reporting process.
Klimakompasset: A Key Tool for Your Climate Accounting
Klimakompasset is part of the Virksomhedsguiden (Business Guide), which offers financial support and skills development, and describes itself as a digital guide for companies from the public sector. Companies can use the tool to calculate their CO₂ footprint according to the GHG Protocol’s Scope 1, 2, and 3. To ensure accurate calculations, Klimakompasset applies emissions factors developed and documented by the Danish Energy Agency.
Klimakompasset works with five main categories:
- Energy and processes
- Procurement
- Transport
- Waste and recycling
- Sold products
When companies enter data into Klimakompasset, it automatically converts the data into CO₂ equivalents based on these emissions factors. This allows users to see their climate footprint broken down by category as well as aggregated for Scope 1, 2, and 3. The tool also converts energy consumption into total energy use in MWh.
Before entering data, it’s essential to gather the relevant information. The Danish Business Authority has created an inspiration guide to help get started, which you can read here.
After calculating your climate account, there are many options for further work, including:
- Exporting data to Excel for further processing
- Simulating how the climate footprint will develop over time
- Setting reduction targets and identifying the most effective climate actions
- Visualization tools that provide clarity and enable comparisons
Continuous improvements and new features
Klimakompasset is continuously being developed and improved. Recently, it became possible to compare annual climate accounts to track footprint changes over time or compare two different units within a company (e.g., two production sites) to see differences in their development.
A new feature also allows companies to share their climate calculations with third parties by inviting them via their CVR number — for example, to facilitate cooperation with ESG365, giving us access to the climate account.
The Danish Business Authority has announced several upcoming features. Currently, users can only log in through MitID, limiting access to Danish companies. However, work is underway to simplify login for foreign companies (e.g., subsidiaries), enabling them to use the tool as well.
Great support for ESG reporting
From February, it will also be possible to create datapoints aligned with the data requirements and ESG key figures relevant to companies. This includes the EU’s VSME requirements, which you can read more about here.
At ESG365, Klimakompasset is an integral part of the sustainability reporting process. We recommend that companies with fewer than 100 employees use the Danish Business Authority’s Klimakompasset to start gathering environmental data. Once the climate account is calculated, the data can be transferred to ESG365 for further ESG reporting work.
If you need help getting started with sustainability reporting, ESG365 has the expertise to assist you. Learn more here.
Article by Victoria Ørum, Communications Manager, ESG365.