Behind the scenes
Our climate contribution model
by Alex Hämmerli
Our carbon compensation model
11.6.2020
Translation: Jessica Johnson-Ferguson
We’ve developed a model that reflects the carbon footprint caused by every product in our range. As a result, you know all the facts and can decide for yourself whether or not to compensate for the carbon emissions of your purchase.
We offer you the chance to make up for the carbon footprint caused by your purchase. Let’s take a look at a few examples: for a smartphone, the carbon offset is 2.34 euros; for a mobile phone cover, 10 cents. How do we calculate these voluntary fees?
We use the following formula:
Carbon compensation = product carbon footprint in CO2 tons × price of compensating one ton of CO2
Let’s break down the carbon footprint of the products in our range:
Footprint of the product in CO2 tons = (CO2 intensity of the product × brand correction) × weight in tons + (600 km average distance from warehouse to place of delivery × delivery efficiency × weight in tons × return factor)
Let’s take a look at an example. For a table made of wood and metal, which weighs 25 kg and is transported 600 km from the warehouse to the recipient, the calculation is as follows:
6.1 kg CO2 / kg product x 25 kg + 600 km x 0.025 t x 0.67 kg CO2/tkm x 1.05= 163.05 kg CO2 The compensation fee for the table is therefore 0.163 t x 19 €/t = 3.09 €.
We also take into account whether top brands have committed to the RE100 initiative. If so, this is included in the brand correction. RE100-certified companies are committed to sourcing 100% renewable electricity globally in the shortest possible timeline.
The emission value of RE100 brands is reduced by 10% in our calculation if a company’s products are made with at least 75% renewable energy. RE100-certified brands include, for example, Google, Philips, LEGO, Microsoft and Apple.
When calculating the delivery efficiency, we use the emission of conventional delivery vans (0.67 kg CO2e/tkm = CO2 emissions/tonne-kilometres).
The distance from our warehouse to our customers’ addresses is calculated based on the average distance of 600 kilometres between the two. We estimate the return factor with a flat rate of 1.05 to reflect the percentage of orders that are sent back to us.
We’re aware that this calculation isn’t perfect and are continuously improving our model. If you have any feedback or suggestions, let us know by commenting below this article.
Refunds and price limits
Once an order is ready for delivery, any climate contribution you’ve made can’t be refunded. The entire amount is forwarded to our partner South Pole and invested in certified climate protection projects. If an order is cancelled prior to delivery, no compensation fee will be charged.
The minimum compensation contribution per product is 10 cents, the maximum is 5 per cent of the sales price.
Katharina Schiller
Digital Communications Manager
katharina.schiller@galaxus.deCommunication is my passion – whether in German, English or French. I'm interested in a broad range of topics but like the colourful ones best. Travel and food never fail to excite me.
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