> For the complete documentation index, see [llms.txt](https://kb.bravegen.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://kb.bravegen.com/carbon/configuration/reporting-settings/base-year/base-year-recalculation-policy.md).

# Base Year Recalculation Policy

Define when BraveGen Carbon recalculates your emissions base year.

## Set a base year recalculation policy

Your base year provides a consistent comparison point for emissions performance. Changes to your organisation, data, or calculation methods can affect that comparison.

The GHG Protocol Corporate Standard requires a documented recalculation policy. Define when you restate base-year emissions. Apply the policy consistently.

### Configure the policy

Only Administrators can configure this policy. See [User Roles](/carbon/configuration/user-management/user-roles.md).

Go to **Settings → Carbon Configuration → Reporting** and select the edit icon beside **Base Year Recalculation Policy**. The row summarises the current threshold, for example `> 5%`.

| Field                  | Description                                                                                                                                  |
| ---------------------- | -------------------------------------------------------------------------------------------------------------------------------------------- |
| Significance Threshold | The minimum percentage of base year emissions that must change before you recalculate. BraveGen Carbon warns you if a change would cross it. |
| Recalculation Policy   | How you set the threshold and when recalculation is required. Minimum 40 characters. Disclosed in your audit trail.                          |

Select **Save Changes** to apply the policy, or **Cancel** to discard it.

#### Significance threshold

The threshold is the cumulative percentage change to base-year emissions that triggers a recalculation. BraveGen Carbon warns you before saving a data, boundary, or methodology change that exceeds this threshold.

The GHG Protocol does not prescribe a threshold. Choose one that reflects quantitative and qualitative factors in your organisation.

Use a threshold that you can justify and apply consistently. A **5% threshold** is a common starting point. Some programmes specify their own thresholds. For example, the California Climate Action Registry uses 10% of base-year emissions.

#### Policy statement

Describe how your organisation applies the threshold. Include:

* Why you selected the threshold.
* Changes that trigger a recalculation.
* Qualitative factors you consider alongside the threshold.

The statement must contain at least 40 characters. It is included in your [audit trail snapshots](/carbon/audit-trail/snapshots.md). Write it for an external auditor or verifier.

### Activity Log

Every change to the threshold or the policy statement is recorded in the **Activity Log** on the dialog, with the user, the timestamp, and the text supplied at the time. Users can reply to an entry to add context, and pin an entry to keep it at the top.

The policy is the control that governs when your base year moves. Raising the threshold makes restatement less likely, so an auditor will want to see when it changed and why — keep that reasoning in the log rather than in email.

### Identify recalculation triggers

Assess changes in two categories.

<details>

<summary><strong>Trigger: Data, boundary, and methodology changes</strong></summary>

Assess updates to underlying data, inventory boundaries, and calculation methods against the significance threshold. Recalculate when their cumulative impact exceeds the threshold.

</details>

<details>

<summary><strong>Trigger: Structural changes</strong></summary>

Structural changes can require recalculation because they affect reporting comparability. Assess mergers, acquisitions, divestments, outsourcing, and insourcing as they occur.

Restate the base year when the change materially affects the reported organisation. This prevents a boundary change appearing as an emissions trend.

For transactions involving both an acquisition and disposal, assess the net impact on comparability.

</details>

#### Changes that do not trigger recalculation

Do not recalculate for organic business changes. Changes in production, sales, or normal operations represent genuine performance trends.

BraveGen Carbon applies the threshold to future data, boundary, and methodology changes. Review structural changes independently when they occur.

### Apply a recalculation

Where a change crosses the threshold, restate the base year from the **Base Year** setting. See [Base Year](/carbon/configuration/reporting-settings/base-year.md).