The accuracy gap: Definition

The accuracy gap is the difference between the emissions a company reports and the emissions it is actually responsible for. It is the term we use at NetNada for the error that builds up when a footprint relies on broad estimates, missing data or inconsistent methods.

Where the gap comes from

• Spend-based estimates standing in for activity data in large Scope 3 categories.
• Missing sites or entities because the organisational boundary was never written down.
• Outdated or mismatched emission factors, for example last year’s grid factor or a factor for the wrong state.
• Manual spreadsheets, where a unit error (kWh vs MWh) can shift a total by orders of magnitude.

Why it now has consequences

Under AASB S2, emissions figures go into a mandatory report that is subject to assurance under ASSA 5010, starting with limited assurance and moving towards reasonable assurance. A large accuracy gap means restatements, qualified assurance conclusions, and targets measured against a baseline that was never right. It is also a greenwashing risk if reported reductions come from method changes rather than real cuts.

How to close it

1. Document the boundary and methodology before collecting data.
2. Move material categories from spend-based to activity data.
3. Keep the source evidence attached to every number.
4. Recalculate the baseline when methods or structure change, and disclose why.