How to Measure Energy and Emissions from Construction Equipment

For small and growing businesses (SMEs) in construction and real estate, tracking energy use and emissions from machinery and site vehicles is one of the most significant — and practical — steps toward CSRD and VSME compliance.

This how-to guide walks you through how to measure, calculate, and report energy and greenhouse gas (GHG) emissions from construction equipment using data you already have on-site. For general energy guidance, see how to report electricity use and the step-by-step guide to Scope 1 and 2 emissions.

Why It Matters

Construction sites are energy-intensive. Excavators, cranes, generators, and site vehicles typically run on diesel or petrol — direct Scope 1 emissions. Electricity used for site cabins, lighting, or charging tools counts as Scope 2 emissions.

Under the VSME Standard (B3) and CSRD/ESRS E1, SMEs are expected to disclose:

• Total energy use (MWh), split between renewable and non-renewable sources
• Direct GHG emissions (Scope 1)
• Indirect GHG emissions from purchased energy (Scope 2)
• GHG intensity (emissions divided by turnover)

This information helps clients and financiers assess your environmental impact and is often requested in supply-chain sustainability questionnaires.

Step-by-Step: Measuring Energy and Emissions from Equipment

Step 1 – List Your Energy Sources

Identify all fuels and energy used for construction machinery and site operations.

Tip: Check your fuel invoices, supplier receipts, or fuel-card statements for annual quantities.

Step 2 – Collect Usage Data

You can collect data in one of three ways:

1. Direct measurement – use site fuel logs, meter readings, or telematics data from modern machines.
2. Procurement records – total litres of fuel purchased per site per year.
3. Estimates – for smaller tools, use average consumption per operating hour multiplied by estimated annual hours.

Example:

3 excavators × 8 litres/hour × 1 000 hours = 24 000 litres diesel.

Step 3 – Convert Fuel Use to Energy (MWh)

Use standard energy conversion factors (from the EU or national sources):

Sum all sources to get total annual energy consumption.

Step 4 – Calculate GHG Emissions (tCO₂e)

Apply emission factors per litre of fuel (from the GHG Protocol or national agencies such as DEFRA or ADEME).

Add any Scope 2 emissions from electricity use using your supplier’s emission factor (kg CO₂e per kWh).

Step 5 – Compute GHG Intensity

Divide total emissions by your annual turnover:

GHG intensity = Total tCO₂e / Turnover (€)

Example: Total emissions = 77.5 tCO₂e; Turnover = €5 million → Intensity = 0.0155 tCO₂e per €1 000 turnover.

This ratio allows comparison over time or between projects.

Step 6 – Include Renewable Energy and Efficiency Actions

Show any steps taken to reduce energy or emissions:

• Using HVO (hydrotreated vegetable oil) or biodiesel instead of fossil diesel
• Renting hybrid or electric machinery
• Installing solar panels on site cabins
• Running idling-reduction campaigns or operator training

In your report (VSME B2 and B3), describe these actions briefly and track their effect year-on-year.

Step 7 – Report Using the VSME Template

Prepare a simple disclosure table under B3 – Energy and Greenhouse Gas Emissions:

Add a short narrative:

“Energy use decreased due to improved fuel tracking and replacement of one diesel excavator with a hybrid model.”

Tools and Resources

• GHG Protocol Corporate Standard (2004) – methodology for Scopes 1–3.
• VSME Standard 2024 (B3) – guidance for SME-level energy and GHG reporting.
• National conversion factors – e.g. UK DEFRA, France ADEME, or EU EEA.
• Equipment telematics – Caterpillar VisionLink, Volvo Co-Pilot, etc.
• Simple Excel calculator – multiply litres by factors, no specialised software needed.

Integrating Equipment Data into Your CSRD Report

For SMEs supplying larger contractors or property developers subject to CSRD, this information supports:

• ESRS E1 (Climate Change) — direct emissions data from operations
• ESRS E5 (Resource Use and Circular Economy) — efficiency of machinery
• ESRS G1 (Business Conduct) — responsible energy management

Providing consistent, verifiable energy and emissions data helps your business win low-carbon contracts and strengthens investor confidence.

Key Terms

• CSRD: Corporate Sustainability Reporting Directive (EU 2022/2464)
• VSME: Voluntary Sustainability Reporting Standard for non-listed SMEs (EFRAG 2024)
• Scope 1 emissions: Direct GHG emissions from owned or controlled sources (e.g. fuel use)
• Scope 2 emissions: Indirect GHG emissions from purchased energy
• MWh: Megawatt hour – unit of energy
• GHG Intensity: Total emissions divided by turnover or output
• Turnover: Total income from sales or services

To help you calculate emissions from construction equipment, use our emission estimator:

This tool will help you estimate emissions from fuel use, electricity consumption, and other energy sources on your construction sites.