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Compliance Guide

Powered by the Latest NGA Factors

Accuracy is non-negotiable in carbon accounting. QuantS2's Spend-to-Carbon AI engine does not rely on generic global averages. Instead, every Xero transaction is automatically classified and matched against the latest National Greenhouse Accounts (NGA) Factors, published annually by the Australian Department of Climate Change, Energy, the Environment and Water (DCCEEW).

Why Localised Factors Matter

This localised approach guarantees that the kg CO₂e generated for electricity, transport, and procurement accurately reflects the Australian market context — providing a highly defensible and accurate carbon baseline. A unit of electricity consumed in Queensland has a different emission intensity than in Tasmania, and our engine accounts for this automatically.

QuantS2 uses the NGA 2023–24 edition — the most current factors available from DCCEEW. When the 2024–25 edition is published, all calculations update automatically. Historical reports retain the factors that were current when they were generated.

How Spend-Based Calculation Works

For SMEs without direct meter readings, the most practical — and AASB S2-accepted — method is spend-based estimation: multiply the dollar amount of a purchase by an emission intensity factor for that category.

Transaction: "BP Station Sydney · $150"

AI classifies to: Transport — Petrol (Scope 1)

NGA Factor applied: 1.087 kg CO₂e per AUD $1

$150 × 1.087 = 163 kg CO₂e

QuantS2's AI reads the transaction description, identifies the correct NGA category using keyword matching and large language model classification, then applies the factor automatically. No spreadsheets, no manual lookups.

The Classification Pipeline

1

Keyword matching

Fast rule-based matching against known supplier names and transaction patterns (e.g. "BP", "Toll", "Origin Energy").

2

Groq llama-3.3-70b

If keyword matching is inconclusive, the transaction is passed to a large language model for semantic understanding.

3

Gemini fallback

A second AI model is used as a fallback for further disambiguation.

4

Confidence threshold

≥ 60% confidence → auto-classified. 40–59% → flagged for human review. Below 40% → escalated as unmatched.

Categories QuantS2 Classifies

ScopeCategory
Scope 1Stationary Energy
Scope 1Transport — Fuel Combustion
Scope 1Fugitive Emissions
Scope 2Purchased Electricity
Scope 3Business Travel
Scope 3Freight & Logistics
Scope 3Purchased Goods & Services
Scope 3Waste Generated in Operations

Audit-Ready Data Quality

Classified

AI confidence ≥ 60%. Auto-approved.

Needs Review

40–59% confidence. Human review queue.

No Factor

No NGA match. Manual assignment needed.