Emission Intensity
Greenhouse gas emissions expressed relative to a unit of economic or physical output — such as tCO₂e per tonne of product manufactured, per rupee of revenue, or per square metre of fabric produced.
Emission intensity normalises greenhouse gas emissions against a business metric — allowing comparison across different scales of operation and tracking improvement even as production grows. Unlike absolute emissions (which increase when a company grows), intensity allows a company to demonstrate per-unit decarbonisation while expanding output.
Common Emission Intensity Metrics in Manufacturing
- Per unit of production: tCO₂e per tonne of fabric, per tonne of steel, per unit of output — used in CCTS
- Per rupee of turnover: tCO₂e per ₹ crore of revenue — required in BRSR Principle 6
- Per physical output: tCO₂e per tonne produced — required in BRSR Principle 6 (as an alternative intensity metric)
- Per employee: used in social and governance reporting, less common for environmental metrics
- Per square metre: used in some textile and apparel sector reporting
Why Intensity Matters for CCTS
India’s CCTS targets are intensity-based, not absolute. A textile manufacturer that doubles production but improves intensity (tCO₂e per tonne of fabric) by 5% has met the CCTS requirement — even though absolute emissions increased. This design allows the manufacturing sector to grow while decarbonising per unit produced.
The intensity target set by BEE is derived from the distribution of intensities across the sector in the baseline year (FY 2023–24). Manufacturers at or above the median are in credit territory. Those below the target threshold face penalties or credit purchase obligations.
Why Intensity Matters for BRSR
BRSR Principle 6 requires two intensity figures: emissions per rupee of turnover and emissions per unit of physical output. Both must be reported annually. Year-on-year intensity improvement is also required to be disclosed — demonstrating progress regardless of whether absolute volumes grew.
Calculating Emission Intensity
Emission intensity = Total Scope 1 + Scope 2 emissions (tCO₂e) ÷ Production denominator (unit)
The denominator must be measured over the same period as the numerator — monthly production records matched against monthly emission data. Annual estimates for the denominator undermine the accuracy of intensity calculations, particularly when production is seasonal.