EaaC Framework
The EaaC Methodology
A technical approach to ESG impact measurement
Definition
Economy as a Code (EaaC) is a method for measuring a company's ESG indicators, based on all certified open-source data. It provides insight into the impact of an entity's economic activity across all territories where it has a direct, indirect, or induced presence.
The four impact indicators
Economic Impact (EI)
EI_ent = EI_D + EI_I + EI_In
- Direct Economic Impact (EI_D): the company's total net revenue.
- Indirect Economic Impact (EI_I): total supplier expenditure.
- Induced Economic Impact (EI_In): household consumption generated by direct and indirect jobs.
Social Impact (SI)
SI_ent = SI_D + SI_I + SI_In
- Direct Social Impact (SI_D): jobs directly generated by the company.
- Indirect Social Impact (SI_I): jobs generated at its suppliers.
- Induced Social Impact (SI_In): jobs generated by household consumption.
Fiscal Impact (FI)
FI_ent = FI_D + FI_I + FI_In
- Direct Fiscal Impact (FI_D): taxes and duties paid by the company.
- Indirect Fiscal Impact (FI_I): taxes paid by suppliers proportionally to expenditure.
- Induced Fiscal Impact (FI_In): taxes generated by household consumption.
Carbon Impact (CI)
CI_ent = CI_D + CI_I + CI_In
- Direct Carbon Impact (CI_D): CO2e emitted by direct economic impact.
- Indirect Carbon Impact (CI_I): CO2e emitted by indirect economic impact.
- Induced Carbon Impact (CI_In): CO2e emitted by induced economic impact.
The ESG impact matrix
A company's total ESG impact is broken down into three types of effects (direct, indirect, induced) crossed with the four indicators.
| Direct Effects | Indirect Effects | Induced Effects | Total Impact | |
|---|---|---|---|---|
| Impact Éco | IE_D | IE_I | IE_In | IE_ent |
| Impact Social | IS_D | IS_I | IS_In | IS_ent |
| Impact Fiscal | IF_D | IF_I | IF_In | IF_ent |
| Impact Carbone | IC_D | IC_I | IC_In | IC_ent |
| Total Impact ESG | ED_ent | EI_ent | EIn_ent | IESG_ent |
Impact ESG Total
IESG_ent = EI_ent + SI_ent + FI_ent + CI_ent
Data sources
EaaC relies on certified open-source data, democratized by the European INSPIRE directive of 2007.
National Business Register (RNE)
INSEE data (employment, demographics, economy)
Public fiscal data
ADEME Carbon Footprint Database (GHG emission factors)