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CHAPTER 3 | Danir GHG inventory report 2024 16

3.5.1 BASE YEAR RECALCULATION POLICY
The GHG inventory’s base year recalculation policy involves defining the threshold or level of change required
to recalculate the base year. The policy has been defined as follows, whereby recalculation shall take place in
case of:

1. Significant structural changes within the organisation.

2. Significant changes in calculation methodology, for example through:
a. Improved emission factors.

b. Improved activity data.

c. Change of scope and system boundaries.
3. Detection of material errors.

4. Detection of several smaller errors that together constitute a material misstatement.
To determine whether a change or error is significant enough to warrant a recalculation, a threshold of signifi-
cance has been defined, which is set at 5%. This means that if a change in inventory boundaries or methodolo-
gy results in a change in the base year inventory that amounts to 5% or more of the inventory's total reported
emissions, the change is considered significant. This method is used in accordance with recognised interna-
tional standards, such as SBTi.