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Innovating Corporate Carbon Accounting for Accurate Emission Reporting (2010–2012 | China)
Since 2010, we have worked closely with Kimberly-Clark China to develop a comprehensive and credible greenhouse gas (GHG) inventory across their operations in Mainland China. Our role evolved from inventory design to methodological innovation—setting new standards for carbon measurement in complex national contexts.
Kimberly-Clark is a global leader in personal care products, with household brands such as Kleenex, Huggies, Kotex, and Scott. The company’s Chinese operations include 3 office buildings, 4 manufacturing sites, and 45 distribution centres. The GHG inventory covered Scope 1 (direct emissions) and Scope 2 (purchased electricity) from the outset, and later integrated parts of Scope 3 (other indirect emissions) such as subcontracted logistics.
Our key contribution was in rethinking how to estimate emission factors for purchased electricity—a major challenge in China due to:
At the time, most organisations relied on combined margin (CM) grid emission factors from CDM methodology, which average operating and build margin emissions. However, these were intended for project baselines and not accurate for corporate GHG inventories, which must reflect actual emissions.
We identified four major issues:
In response, we developed a customised emission factor estimation method, based on these principles:
This methodology was accepted by Kimberly-Clark’s Environmental Management Team in the U.S., and we were commissioned to produce four consecutive GHG inventory reports, concluding in 2013.
We also shared our findings and concerns at several professional forums, including:
Our insights were later supported in the World Resources Institute (WRI) publication:
Getting Every Ton of Emissions Right: An Analysis of Emission Factors for Purchased Electricity in China (June 2013)
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