ESG

The ESG (Environment, Social, and Governance) app helps you automate ESG data collection by integrating with apps like Accounting, Fleet, Payroll, and Employees. It pulls data from your operations to build your ESG reports, based on legal and sustainability reporting requirements, while giving you a real-time view of your emissions and other key ESG metrics.

Carbon footprint

The carbon footprint tool automates emissions tracking by collecting data from accounting records (purchases, expenses, etc.) and employee commuting activity, and supports manual inputs. Emissions are updated in real time, allowing for continuous monitoring and reporting. You can:

  • Track your daily environmental impact.

  • Evaluate the immediate effect of your reduction actions.

  • Prioritize targeted changes.

  • Continuously monitor and refine your sustainability strategy.

Emissions (kgCO₂e) formula

Activity data × Emission factor

Activity data sources

The following data sources are used:

Accounting

Odoo collects activity data from journal entries posted to expense and asset accounts. These include:

  • Fixed assets

  • Declaraties

  • Other expenses

  • Cost of revenue

Only these account types are considered for carbon footprint calculations, in line with the Bilan Carbone methodology.

Fleet

Odoo calculates commuting emissions using data from the Fleet and Employees apps.

Employee commuting emissions formula

Days × Home-work distance × 2 × (Number of office days / 7) × Vehicle model CO₂ emissions

To ensure accurate calculations:

  • Define the average number of days per week the employees commute to the office by going to ESG ‣ Configuration ‣ Settings and filling in the Weekly Office Attendance.

  • Set the emissions of each vehicle model by going to Fleet ‣ Configuration ‣ Models, selecting a model, and entering its CO₂ Emissions.

  • Set each employee’s home-to-work distance by opening the Employees app, selecting an employee, and filling in the employee’s Home-Work Distance.

Notitie

The employee vehicle’s Start Date and, if applicable, End Date, are used to calculate the emissions. Ensure they are set by opening the Employees app, selecting an employee, and clicking the Cars smart button.

To access the employee commuting emissions pivot table, go to ESG ‣ Collect ‣ Employee Commuting.

The employee commuting emissions pivot table

To add the data to the emitted emissions, click Add Emissions, define the Emissions Period that should be covered, and click Save.

Manual input

You can manually enter emissions for activities that not tracked automatically (e.g., employee lunches, waste, etc.). To do so, go to ESG ‣ Collect ‣ Emitted Emissions and click New, then:

  • Name the activity.

  • Select a Date.

  • Select an Emission factor.

  • Enter a Quantity.

Once saved, the entry appears under ESG ‣ Collect ‣ Emitted Emissions and is included in the carbon footprint report.

Emission factors

An emission factor is a coefficient that indicates the rate at which a specific activity emits greenhouse gases into the atmosphere.

Source database

Import the data from a certified emission factors database by going to ESG ‣ Configuration ‣ Source Databases. Click Download on the ADEME database to import its emission factors and sources.

Main components of an emission factor

Source

Each emission factor is assigned to a scope, following the GHG Protocol:

  • Scope 1 – Direct emissions (e.g., fuel burned on-site or in company vehicles)

  • Scope 2 – Indirect emissions from purchased energy (e.g., electricity or heat)

  • Scope 3 – All other indirect emissions across the value chain (e.g., purchased goods, travel, waste)

Scopes can be structured hierarchically (parent-child) for more detailed categorization, such as “Scope 3: Others Indirect > Purchased Goods > Electronics”.

Uncertainty

Uncertainty represents the potential margin of error in an emission factor. It reflects how precise or reliable the factor is when estimating emissions for a given activity, based on the quality of data, assumptions used, and calculation methodology.

It helps you assess the confidence level of the emissions data used in the reporting.

Compute method

The compute method determines whether emissions are calculated using physical quantities (e.g., kg, liters, units) or monetary values (e.g., € spent). In physical mode, the system uses the quantity from the transaction (e.g., 10 units × EF per unit). In monetary mode, it uses the transaction amount (e.g., €500 × EF per €).

Gas emissions lines

Each emission factor can include multiple gas emission lines, representing the different greenhouse gases involved in the activity. The ESG app includes the six main gases from the Kyoto Protocol — CO₂, CH₄, N₂O, HFCs, PFCs, SF₆ — each with a predefined Global Warming Potential (GWP) used to convert them into a common unit: CO₂-equivalent (kgCO₂e).

Tip

Add more specific gases by going to ESG ‣ Configuration ‣ Gases.

Each gas line can be linked to an activity type such as production, transport, or use, allowing for detailed breakdowns in your emissions reporting.

The final emission factor value is the sum of all these gases’ emissions converted into CO₂-equivalents.

Assignation rules

Assignation rules allow emission factors to be automatically applied to relevant activity data based on specific criteria: the product, partner, and/or account involved in the transaction.

Example

You have assigned an emission factor to the Zenith Pro Computer product and later receive a vendor bill for 150 units; the system automatically applies the assigned emission factor, multiplying the emission factor’s emissions (kgCO₂e) by 150.

To define assignation rules on emissions factors, go to ESG ‣ Configuration ‣ Emission Factors and select an emission factor. Under the Assignations tab, click Add a line, and select a record for one or more of the following attributes: Product, Partner, and Account.

All attributes have to match for the rule to be applied.

Belangrijk

Ensure the unit of measure set next to the product’s Cost matches the emission factor’s Unit of Measure.

A product's unit of measure

If the field is not displayed, go to Accounting ‣ Configuration ‣ Settings and enable the Units of Measure & Packagings option.

Tip

Accounting journal entries with a missing emission factor can be found by clicking Emissions to define under the Collect Emissions card on the dashboard.

Rules priority

When multiple assignation rules match, Odoo prioritizes the most specific rule based on the following criteria:

  1. Attribute specificity: Odoo first evaluates rules by the most precise attribute, following this priority hierarchy (from most to least specific):

    1. Product

    2. Relatie

    3. Rekening

  2. Attribute count: if multiple rules share the same level of attribute specificity, Odoo then considers the number of attributes in the rule. The rule with more attributes defined will take priority.

Example

Example 1

Emission factor #1 assignation rule

Rekening

Relatie

Product

Any Account

Any Partner

Zenith Pro Computer

Emission factor #2 assignation rule

Rekening

Relatie

Product

Any Account

Digital Den

Any Product

Given the assignation rules above, all products purchased from Digital Den will be assigned emission factor #2, except the Zenith Pro Computer product, which will be assigned emission factor #1.

Example 2

Emission factor #1 assignation rule

Rekening

Relatie

Product

Any Account

Any Partner

Zenith Pro Computer

Emission factor #2 assignation rule

Rekening

Relatie

Product

Any Account

Digital Den

Zenith Pro Computer

Given the assignation rules above, any purchased Zenith Pro Computer will be assigned emission factor #1, except if purchased from the Digital Den, which will be assigned emission factor #2.

Apply retroactively

Once your emission factors are configured with assignation rules, you can also apply them retroactively to past activity data.

To do so, go to ESG ‣ Configuration ‣ Emission Factors, select an emission factor, and click Assign. Select an Application Period, and, if desired, enable the Replace existing assignations option.

Tip

Apply emission factors in bulk by selecting multiple emission factors in list view and clicking (Actions) ‣ Assign Emission Factors.

Sex parity and pay gap

Sex parity tracks the distribution of sexes across the workforce, such as comparing women and men in technical vs. administrative roles, permanent vs. temporary contracts, different office locations, or management vs. non-management positions.

These insights, based on employee data, are essential for CSRD reporting under ESRS S1 and will also support future VSME standards.

To view a company’s sex parity and pay gap measures, set the sex of each employee by opening the Employees app and selecting an employee. Under the Private Information tab, select the employee’s Gender.

The pay gap is calculated using the wages set on the employees’ Payroll contracts for the same jobs.

Pay gap formula

((Average male salaryAverage female salary) / Average male salary) × 100

Access the measures by clicking ESG ‣ Measure ‣ Sex Parity / Pay Gap.

Tip

Use the different Group By options to break down the data by Leadership Level, Department, Job Position, Contract Type, or Country.

The sex parity graph filtering options

Initiatives

Go to ESG ‣ Act ‣ Initiatives to access all the Project features, and start taking action on your impact. You can estimate CO₂ savings for each task, track progress, and assign team members with deadlines.

Notitie

Estimated CO₂ reductions do not immediately lower your carbon footprint. The real impact shows only when these reductions are reflected in your operations.