ICAEW SE · Chapter 4 · Question 16 of 18
A company reported total greenhouse gas emissions of 18,400 tonnes CO2e for the year and revenue of £230 million. What is its emissions intensity, measured in tonnes CO2e per £1 million of revenue?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) 80 tonnes CO2e per £1 million
Explanation
Emissions intensity = total emissions / revenue in £ millions = 18,400 / 230 = 80 tonnes CO2e per £1 million of revenue. Dividing revenue by emissions gives the inverse figure of 0.0125, which is not an intensity measure. Intensity ratios allow comparison between companies of different sizes, but they can fall even when absolute emissions rise.
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