Why Carbon Intensity Metrics Matter for Your Energy Strategy

Absolute energy and carbon figures tell you the scale of the problem, but they don’t tell you if you’re getting better. Carbon intensity metrics bridge that gap. By relating consumption and emissions to a relevant driver—floor area, production volume, revenue, or occupancy—you get like‑for‑like comparability across buildings and time. That makes intensity the right steering wheel for day‑to‑day decisions and a reliable KPI for leadership.

Choose the right metrics

Pick a small set of intensity KPIs that reflect how each site actually operates. For offices, kWh/m² and kgCO₂e/m² are intuitive; for retail, kWh per trading hour or per transaction often tracks performance more closely; for manufacturing, energy per unit produced is the north star. Where electricity dominates, consider both location‑based and market‑based carbon intensity to reflect grid mix versus your procurement choices.

Resist the temptation to track dozens of ratios. One or two “headline” intensities per site type keep the message clear and enable benchmarking across the portfolio. Secondary metrics—such as baseload intensity or HVAC runtime per occupied hour—are useful for root cause analysis but shouldn’t crowd the dashboard.

Normalise correctly

Intensity only works if it’s fairly normalised. Adjust for weather (HDD/CDD), occupancy, operating hours, and production mix so improvements aren’t confused with a warm winter or a quiet quarter. For carbon, apply the correct emissions factors for the period and tariff (time‑of‑use where relevant) so your kgCO₂e reflects when the energy was used, not just how much.

A simple EnPI model per site goes a long way. Start with last year as a baseline, then regress energy against key drivers to derive expected consumption. Your intensity becomes the ratio of actual to expected—values below 1.0 indicate true efficiency gains after normalisation, not just randomness.

Act on trends

Once intensities are automated and normalised, use them to set targets, rank opportunities, and confirm savings. Trend lines with control limits help you spot drift early, while cohort comparisons highlight outliers worth a site visit. Overlay cost to see the £/kgCO₂e benefit of each intervention so you tackle high‑impact issues first.

Close the loop with a monthly review: discuss intensity movements, capture actions, and verify results with a light‑touch M&V check. Over a year, this rhythm turns intensity into meaningful reductions in both cost and carbon.