To ensure the audit-ability of spend-based Scope 3 calculations, particularly for Purchased Goods and Services & Capital Goods, it's important to apply:
Currency conversions, if your spend data is a different currency to the EEIO emission factors you're applying
Inflation rates, if your spend occurs in a year that differs from the year that your EEIO emission factors are based on
Avarni automates the process of applying currency conversions & inflation rates, and offers a few sources for this data out of the box. If there is a database that you want to make available for use on Avarni that we do not provide, please contact us at [email protected]
Managing FX / Currency Exchange rates
Currency Exchange rates for your organisation are managed in Settings > Exchange Rates
Avarni provides three sources of exchange rates out of the box:
International Monetary Fund (highest level of coverage)
Federal Reserve (from the US Government)
Reserve Bank of Australia (from the Australian Government)
Currency exchange rates are at a monthly granularity, with the latest month's exchange rates added by our team in the first week of the subsequent month.
Browsing FX rates
To view the exact source link of the currently used exchange rates, click on the link next to Current Source.
To see the FX rates from one currency to another, use the currency drop-downs. You can type to search for the currency you're looking for.
In the toolbar of the FX rates table, you have access to the following functions from left to right:
Search
Full-screen view
Column view controls
Column filters
Table density
Excel export
Applying FX rates to your spend data uploads
FX rates from your selected source will automatically be applied to all new spend data uploads on the organisation. To change the source, click Change Source.
Then, select the source you would like to use from the drop-down and click Save.
📌 Note: Your newly selected Exchange Rate Source will only apply to new spend data uploads after the change, not any of your existing uploaded spend data.
If you would like to have the new source applied to any existing calculations, please contact us at [email protected] and we can run a refresh across your calculations with the new exchange rate source.
Managing Inflation rates
Inflation rates for your organisation are managed in Settings > Inflation
Avarni has two options for inflation rates out of the box:
World Bank Inflation Database (Annual HCPI)
No Inflation
Currency exchange rates are at a yearly granularity, with the latest year's exchange rates added by our team when they become available.
📌 Note: If you would like to add your own Inflation rates to your organisation, please contact us at [email protected] and our team can assist you with making them available for use.
Browsing Inflation rates
To view the exact source link of the currently used inflation rates, click on the link next to Current Source.
To see the inflation rates for a particular country, use the drop-down. You can type to search for the country you're looking for.
In the toolbar of the inflation rates table, you have access to the following functions from left to right:
Search
Full-screen view
Column view controls
Column filters
Table density
Excel export
Applying Inflation rates to your spend data uploads
Inflation rates from your selected source will automatically be applied to all new spend data uploads on the organisation. To change the source, click Change Source.
Then, select the source you would like to use from the drop-down and click Save.
📌 Note: Your newly selected Inflation Rate will only apply to new spend data uploads after the change, not any of your existing uploaded spend data.
If you would like to have the new source applied to any existing calculations, please contact us at [email protected] and we can run a refresh across your calculations with the new inflation rate source.
Reviewing FX and Inflation rates applied to your data
Once you have set your FX and Inflation rate sources and uploaded spend data to Avarni, you can audit/review the rates that have been applied in the emissions hub. There are four relevant new columns:
Exchange Rate - the rate that has been applied
Exchange Source - the source of the exchange rate and a link
Inflation (Cumulative) - the inflation rate applied to the activity amount to bring it in line with the year of the emission factor. If there are multiple years between these two values, this will represent the cumulative inflation rate between the two years
Inflation Source - the source of the inflation rate(s) and a link
You can also review these values in Excel by exporting the currently visible rows on the emissions hub using the Download CSV button.
