Want to make a real impact? Then start tracking marginal emissions!

To keep global warming manageable, as called for in the Paris Agreement, we need to reduce emissions by 45% by 2030 and reach net zero by 2050. With the EU leading the movement, sustainability remains on the corporate agenda, even as it slips from the headlines. Yet, despite this surge in environmental commitments, we face a critical problem: many companies are calculating the wrong thing. If your business genuinely wants to make a difference rather than just check a sustainability box, understanding and using marginal emissions could be your most powerful tool!

why traditional emissions accounting falls short

For years, companies have relied on Average Emissions Factors (AEFs) to calculate their carbon footprint. These calculations take the overall electricity generation mix for a power grid and apply it to a company’s energy usage. While this approach might seem logical and is still the standard used when it comes to reporting, it fundamentally misunderstands how power grids actually operate. We highly recommend using marginal emissions instead for internal decisions and real impact assessment.

When your business makes energy decisions, like when to run equipment,where to locate a new facility, or when to charge electric vehicles, you don’t impact the entire generation mix equally. Most of the grid’s generation continues unaffected by your choices. What actually responds to your decisions are specific power plants called marginal generators, typically the most flexible (and often most carbon-intensive) plants that ramp up or down based on demand. Marginal emissions aim to take this into account by including in your calculations the amount of greenhouse gases emitted per unit of energy consumed by the last power plant brought online to meet the fluctuating demand.

the real-world impact of marginal emissions

In today’s context, where companies must meet ESG targets and sustainability goals, it becomes essential to track the right metrics if you want to have real-world impact and not just greenwash your way into it.

Marginal emissions factors (MEFs) measure the emissions from these responsive generators, which are those that actually change their output based on your consumption patterns. There is a global consensus amongst research specialists that this is the way to measure emissions, and this is not just an academic opinion: it’s the difference between paper-only achievements and real-world climate impact.

Consider this: when you implement smart building energy management or shift your electricity usage to different times of day, it’s the marginal generators that respond. Using MEFs to guide these decisions will lead to substantially different, and more effective, decarbonization strategies than using grid averages.

MEFs are hard to calculate on your own though, so nonprofits like Watttime gather all the necessary data and build MOER models based on the Gavin McCornick technique published here. They also cover 99%+ of the global electricity grid, so chances are they’ll have the data you’re looking for!

true impact: where Exellyn comes in

This focus on true impact, beyond checking boxes, perfectly aligns withour philosophy. For us, it’s not just about deploying new equipment worldwide; it’s about complete lifecycle management for your entire IT infrastructure, wherever you operate.

While global energy transition efforts are crucial, up to 80% of emissions stem from the production, use, and disposal of products and IT hardware. Exellyn’s experts empower their partners to reduce Scope 3 emissions directly across the value chain. Our BuyBack as a Service program (BBaaS®) supports circularity, ensuring IT hardware is retired responsibly and reintroduced into a sustainable loop, facilitated by our sister company, Ynvolve.

• Smart procurement: we guide clients toward right-sized, high-efficiency hardware optimized for both performance and reduced marginal emissions.
• Lifecycle management: global logistics, deployment, and maintenance keep your operations consistent and running smoothly, no matter where you are.
• Circular solutions: Exellyn buys back your retired equipment, supporting hybrid setups in partnership with Ynvolve, and helping you avoid unnecessary carbon and material waste.
• Compliance support: our reporting capabilities help streamline your CSRD and carbon disclosure processes, providing you with credible marginal emissions data that you can act on.

With our support, you’ll lead the way in impactful, transparent, and more sustainable IT practices.

moving forward: impact-first technology strategy

As we’ve explored, the path to genuine sustainability isn’t about ticking boxes; it’s about making informed decisions that lead to tangible, measurable impact. When making strategic decisions on infrastructure usage, shifting your focus from average emissions to marginal emissions will empower your business to drive real-world reductions in carbon output. Coupled with circular IT solutions, this approach doesn’t just transform your sustainability strategy, it reshapes your entire operational footprint.

At Exellyn, we’ve seen firsthand how businesses thrive when they align their environmental commitments with practical, impactful actions. Whether it’s extending hardware lifecycles, optimizing infrastructure, or responsibly managing retiring equipment, each choice contributes significantly to your sustainability goals and the planet’s future.

So, ask yourself: Are you ready to move beyond traditional metrics and embrace solutions that truly matter? The tools and insights are here. The opportunity for meaningful change is now. Let’s get intouch and make every decision count, one marginal emission at a time.