ns relating to the formation of capital assets used in making the products?
The estimates do not incorporate any allowance for emissions relating to the formation of capital assets, whether in the UK or overseas.
How were these factors calculated?
The factors are based on a model of the economy, known as the input-output model, which describes in monetary terms how the goods and services produced by different sectors of the economy are used by other sectors to produce their own output. These monetary accounts are linked to information about the greenhouse gas emissions of different sectors of the economy. For the factors in this Annex an input-output model of the world economy was used with two distinct regions - the UK and the Rest of World.
By using the input-output model, the industrial emissions are then attributed to final products bought by consumers. The result is an estimate of the total upstream emissions associated with the supply of a particular product group.
The supply chain emission factors are expressed on a purchasers' price basis in real terms (i.e. the actual sales price in that year including taxes on products and distribution margins).
The 2022 factors are based on the latest UK Footprint data published by DEFRA in 2022. Please note that there is a 3 year time lag producing the data, ie. 2022 factors are actually based on the 2019 UK Government Footprint Data, etc.
It is common to have a time lag in emissions factors, eg. the BEIS UK Government Grid Electricity factor for 2022 is actually based on emissions data from 2020.
It may be advisable to take subsequent price changes into account when using the factors. It should also be noted that emissions in more recent years may have changed because of subsequent changes in the structure and emissions intensity of the supply chain since.