Chart of sustainability accounts and ledger

Chart of sustainability accounts

The chart of sustainability accounts (CoSA) forms the foundational structured list that is used to record all emissions data. It serves as a framework that categorizes and organizes sustainability accounts based on their attributes, such as the scope or other groupings. Each account is typically assigned a unique code or number for easy reference and tracking. It has the same structure as a traditional chart of accounts but is customized specifically to monitor sustainability-related data and metrics in an organization.

Users can add sustainability account categories and sustainability account subcategories to define how the system behaves. In this way, they can select dedicated emissions to track, emission factors, formulas, and similar configurations.

Note

Note:
Based on the greenhouse gas (GHG) standards, there are three emission scopes:

Scope 1 emissions include emissions from stationary and mobile combustion, and from inadvertent fugitive emissions.
Scope 2 emissions include indirect emissions from the generation of energy that is purchased from utility providers.
Scope 3 emissions include a wide spectrum of emissions, from purchased goods and services and capital goods, to fuel and energy–related activities, to upstream and downstream transportation, to generated waste, to business travel and employee commuting, and so on.

From the CoSA, you can do things such as:

View reports that show sustainability ledger entries and balances.
Open the sustainability account card to add or change settings.
View the category and subcategory for the account.
View separate balances for each emission for a single account.
Add single or multiple dimensions to each account and set dimension filters.

You can add, change, or delete sustainability accounts. However, to prevent discrepancies, you can't delete a sustainability account if one or more ledger entries are associated with it.

Add or change accounts

Select the icon, enter Chart of Sustainability Accounts, and then select the related link.
On the Chart of Sustainability Accounts page, you can open each sustainability account, and then add or change settings. Hover over a field to read a short description.

For accounts of the Total account type, you must set the Totaling field.

For accounts of the End-Total type, the Indent function automatically sets the Totaling field. After you set up all the accounts, select the Indent Chart of Sustainability Accounts action to run the Indent function and set the Totaling field.

Important

Important:
The Indent function overwrites the value of all fields for End-Total accounts. Therefore, if you entered definitions in the Totaling field for End-Total accounts before you ran the Indent function, you must enter them again after you run it.

Delete accounts

You can delete a sustainability account. However, you must first make sure that no ledger entries are associated with it. Business Central prevents you from deleting a sustainability account if one or more ledger entries are associated with it.

Account categories

Users must add a sustainability account category to each sustainability account to define how the system behaves. They can select emission scopes, dedicated emissions to track, formulas, and similar configurations.

To review sustainability account categories, follow the steps:

Select the icon, enter Sustainability Account Categories, and then select the related link.
On the Sustainability Account Categories page, you can edit the existing list or create a new category. To create a new category, select the New action.
Set the Code and Description fields.
In the Emission Scope field, select one of the scope options.
Select the gas emissions that you want to track. Currently, the following options are available: CO2, CH4, and N2O. You can select any combination that you want to track, but you must select at least one emission.
In the Calculation Foundation field, you can select the calculation foundation (formula) to use for emission calculations if you don't know the accurate emission amount. You can select one of the following options: Fuel/Electricity, Distance, Installation, or Custom.

Note

If the set of available formulas in the Calculation Foundation field isn't enough, you can extend the field and add more calculations to the system for use in the sustainability journals.
If you selected Custom in the Calculation Foundation field, you can configure a custom description in the Custom Value field.

If you set the Calculation Foundation field, the following table explains how the system calculates emissions based on the option that you selected. (In this table, EF represents the Emission Factor value that you can configure on the Sustainability Account Subcategory page.)

Emission Type	Calculation Foundation	Formula	Comment
Scope 1
Stationary combustion	Fuel/Electricity	Emission = Fuel × EF	Fuel = Amount of fuel that is spent for boilers, heaters, thermal oxidizers, and so on
Mobile combustion	Fuel/Electricity	Emission = Fuel × EF	Fuel = Amount of fuel that is spent for on-road or non-road vehicles, rail, and so on
		Emission = Distance × EF	Distance = Mileage of on-road or non-road vehicles, rail, and so on
Fugitive emissions	Installation	Emission = Installation multiplier × Custom Amount ÷ 100 × Time Factor	Custom Amount = Assembly losses, annual leak rate, and so on
Scope 2
Utility providers	Fuel/Electricity	Emission = Electricity × EF	Fuel/Electricity = Electricity quantity, steam quantity, heating unit, and so on
	Custom	Emission = Custom Amount × EF	Custom Amount = Thermal unit, ton-hour, and so on
Scope 3
Purchased goods and services, and capital goods	Custom	Emission = Custom Amount × EF	Custom Amount = Cost (GL), and so on
Upstream transportation and distribution	Distance	Emission = Distance × EF
	Distance	Emission = Distance × Multiplier × EF	Multiplier = Tons of cargo
Downstream transportation and distribution	Distance	Emission = Distance × EF
	Distance	Emission = Distance × Multiplier × EF	Multiplier = Tons of cargo
Waste generated in operations and end-of-life treatment of sold products	Custom	Emission = Custom Amount × EF	Custom Amount = Waste
Business travel and employee commuting	Distance	Emission = Distance × EF	Distance = Mileage of the used company car, rental car, train, flight, and so on
	Custom	Emission = Custom Amount × EF	Custom Amount = Hotel stays
	Fuel/Electricity	Emission = Fuel × EF	Fuel = Amount of fuel spent in the company car, rental car, and so on

Account subcategories

Users must add a sustainability account subcategory to each sustainability account. This subcategory defines the emission factors that are used in the formulas, based on the emission tracking choice in the sustainability account category.

To review sustainability account subcategories, follow the steps:

Select the icon, enter Sustainability Account Subcategories, and then select the related link.
On the Sustainability Account Subcategories page, you can edit the existing list or create a new category. To create a new category, select the New action.
Set the Code and Description fields.
Based on the gas emissions that you want to track in the sustainability account category and connect this subcategory with, you can also set one or more emission factors:
- Emission Factor CO2 – The emission factor for carbon dioxide (CO₂) emission.
- Emission Factor CH4 – The emission factor for methane (CH₄) emission.
- Emission Factor N2O – The emission factor for nitrous oxide (N₂O) emission.
If the subcategory is related to renewable energy, select the Renewable Energy field.

Note

Note:
The Import Data and Import From fields are intended for potential integration with external systems that are used to collect emission factors. However, in 2024 release wave 1, these fields can't be used as a feature by default.

It's important to know that you can have more than one Account Subcategory related to one Sustainability Account, but only one can be set as the default value. You must set the default value for the account every time if you want to use it for posting.

Tip

Tip:
For example, if you want to use one account for business cars, but you have different car types with different emission factors, you can set up one Account and create as many Account Subcategories as you need for cars with different emission factors. When you work in your Sustanability Journal, you can easily change your Account Subcategory based on the car type you choose to use for recording emissions.

Sustainability ledger entries

The sustainability ledger stores the history of all posted sustainability transactions and organizes all emission data according to the CoSA. When a user posts the sustainability journal, all crucial data is recorded there. All active reports are generated based on the sustainability ledger entries.

To open this ledger for one specific account, use the Ledger Entries action on the Chart of Sustainability Account page. To open all the ledger entries, select the icon, enter Sustainability Ledger Entries, and then select the related link. Hover over a field to read a short description.

Important

Important:
After you post your data to the sustainability ledger, you can't delete it. If you made a mistake, you can post a reverse transaction that has the same details but uses the negative sign for the amount.

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Chart of sustainability accounts and ledger