Comparing GHG Impact Methodology

A look at three approaches to assessing GHG impact: potential, planned, and realized GHG impact. 

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Today, Frame classifies three approaches to GHG impact assessment, mapped broadly to the information that is available at the different stages of a solution’s development and how far into the future the analyst is projecting: potential impact, planned impact, and realized impact. The comparison chart below provides an at-a-glance overview of each method and how they differ from one another. 

Have feedback or want to see more questions answered on the comparison chart below? Please email impact@primecoalition.org.

	Forward-Looking		Backward-Looking
	Potential Impact	Planned Impact	Realized Impact
What is used to calculate volumes?	Serviceable Obtainable Market (SOM)	Projected commercial sales or units in operation according to a business plan	Historical sales or units in operation
What is used to calculate unit impact?	Scientific information and information inferred according to known market segments and production and distribution realities	Scientific information and market segments that are realistically defined by the business plan; Expected production and distribution plans; Expected solution lifespan	Life Cycle Assessment; Actual market segments; Actual production and distribution channels; Expected solution lifespan until actual operational data becomes available.
At what company stage is it used?	After the solution is scientifically viable, but before the solution has a business plan.	As soon as the company has a business plan.	As soon as the company has put its solution into operation.
How should you use it?	To capture a long-term sense of the market that a solution could take over, assuming it successfully scales.	To realistically assess the company’s plans and their expected impact, and integrate unit impact quantification into business management.	To examine how the solution is operating in the real world and seamlessly integrate impact into management alongside sales reporting and user feedback.
What timeframe is appropriate?	Provides a long-term view of the full shape of the S-curve or solution’s full path to scale, typically 10 to 30 years.  When business plans are available, potential impact begins beyond the business plan, typically at year 7. Time frames are often standardized across funds.	According to commercial forecast timeframes, which are typically 5-7 years. Timeframes should never exceed the period in which reliable data is available.  Time frames can be standardized across funds if data is available.	From the first year of sales or operation.
How should you update values?	Alongside reported updates  to the Total Addressable Market (TAM), Serviceable Available Market (SAM), and SOM.	Alongside reported updates on sales and/or installed base projections.	Alongside reporting on historical sales and/or units in operation as well as user feedback when appropriate
Should GHG impact be segmented by markets?	As much as possible.	Yes.	Yes.
Should values be based on the company's analysis?	No. Projections should be based on the investor’s independent analysis, which is often less optimistic.	No. Projections should be based on the investor’s independent analysis, which is often less optimistic.	Partially. Sales or units in operation must come from the company; unit impact values should be evaluated.
How should the company manage GHG impact post- investment?	Define annual impact targets as part of closing documents and check with the company annually to verify whether targets are being met.	Define annual impact targets as part of closing documents and check with the company annually to verify whether targets are being met.	Define annual impact targets as part of closing documents and check with the company annually to verify whether targets are being met.
Reporting requirements	Internal: cumulative by X year	Internal: annual and potentially cumulative by X year	External: emissions type/year (revisit internal projections)

Want to learn more? Read Project Frame GHG Impact Methodology to dive into emissions impact assessment and reporting.