Energy Intensity Reporting for Industrial Companies: Tracking & Benchmarking

Whether you run a machining workshop, a fabrication line or a multi-process production facility, energy use drives both operational cost and environmental impact. Some industrial sites now report under CSRD directly, while many others use the VSME Standard to meet customer expectations. In each case, energy intensity metrics — energy per unit of production — offer a practical way to show efficiency, compare performance over time and demonstrate continuous improvement to customers.

CSRD places strong emphasis on energy and greenhouse gas data, requiring companies to disclose energy consumption and related emissions as part of ESRS environmental topics. The Directive recognises that business partners rely on corporate sustainability information, including energy data, to understand impacts throughout their value chain . For SMEs, the VSME Standard includes energy and GHG reporting requirements (B3) and calls for consistent, comparable metrics supported by verifiable data .

This guide explains how manufacturers can calculate energy intensity, select meaningful denominators, benchmark performance and present year-over-year improvements in a CSRD-aligned format.

1. What Is Energy Intensity?

Energy intensity expresses how much energy your facility uses relative to output. Unlike absolute consumption, energy intensity provides insight into process efficiency and production variability.

Typical formulas used in manufacturing

• Energy per unit produced: Total energy consumed (MWh) ÷ Total units produced
• Energy per tonne: Total energy ÷ Tonnes of finished goods
• Energy per machine hour: Total energy ÷ Total machine operating hours
• Energy per batch or cycle: Useful for specialised, low-volume operations (e.g., coatings, heat treatment)

The correct denominator should reflect your production reality. Machining shops often use machine-hours; metal fabrication plants may use tonnes; electronics manufacturers may use finished units.

2. What CSRD and VSME Expect From Energy Metrics

CSRD expectations

Under ESRS E1, industrial companies must disclose both:

• Absolute energy consumption, distinguishing renewable and non-renewable sources
• Energy performance indicators, normalised to output where relevant

CSRD places emphasis on comparability and reliability so stakeholders can evaluate efficiency improvements and risk exposure over time.

VSME requirements for SMEs

The VSME Basic Module (B3) requires SMEs to report:

• Total energy consumption (MWh), broken down by renewable/non-renewable
• Scope 1 and Scope 2 emissions based on the GHG Protocol
• GHG intensity (emissions per € turnover)

The Standard encourages supplementary information where sector-specific issues apply (paragraph 10) — including energy intensity for manufacturing operations.

This approach fits CSRD’s broader goal of ensuring that sustainability information is comparable, understandable and verifiable across supply chains .

3. How to Calculate Energy Intensity Step by Step

Step 1 — Collect your energy consumption data

Use the same sources required for GHG reporting:

Step 2 — Convert everything to a common unit

Most industrial facilities convert to MWh for consistency across reporting standards.

Step 3 — Choose the right normalisation factor

Examples:

• Metal fabrication: tonnes of steel processed
• Injection moulding: number of moulded parts
• Electronics assembly: PCB assemblies or units
• Surface finishing: square metres coated
• Heat treatment: number of cycles

A good normalisation factor should be:

• Measurable
• Representative of output
• Stable year to year
• Minimally influenced by mix changes (or adjustable where needed)

Step 4 — Calculate the intensity

Example: A machining workshop consumes 640 MWh annually and produces 2,500 machined units.

Or if the same workshop prefers machine hours:

Step 5 — Document assumptions

For CSRD-aligned reporting, record:

• How you define your output
• Any changes in product mix
• Whether idle energy is included
• How you treat rework or scrap

The VSME Standard emphasises that information must be “relevant, faithful, comparable, understandable and verifiable” (paragraphs 8–11) — making documentation essential.

4. Handling Changes in Product Mix and Complexity

Manufacturing output isn’t always linear. A year with more complex parts, heavier materials or longer cycle times can distort intensity metrics.

Methods to improve comparability

1. Weighted output

Assign weighting factors to product families based on average runtime or energy demand.

2. Equivalent units

Convert diverse products into a standardised “equivalent unit” (e.g., machining hours per part).

3. Normalisation per processing step

For multi-stage factories (coating + assembly + machining), split the energy use by department or process.

4. Boundary setting

If energy-intensive processes are outsourced, document how this affects your metrics.

These approaches help prevent misleading year-over-year comparisons — especially important when customers evaluate your efficiency trajectory.

5. Benchmarking Energy Intensity

Benchmarks help contextualise your performance and demonstrate continuous improvement to customers under CSRD expectations.

Types of benchmarks

1. Internal benchmarks

• Compare this year’s energy intensity with previous years
• Compare departments or lines within your factory
• Useful for identifying improvement opportunities

2. Industry benchmarks

These vary widely by sector and technology. Examples:

• Metal machining: 0.03–0.07 MWh per machine hour
• Injection moulding: 0.4–1.2 kWh per kg of polymer processed
• Coating lines: heavily dependent on oven type, typically 0.5–1.5 MWh per batch
• Fabrication workshops: 0.1–0.4 MWh per tonne processed

These ranges are indicative — they help frame performance rather than certify compliance.

3. Customer-driven benchmarks

Large OEMs often compare suppliers by:

• Energy per unit
• Energy per € turnover
• Scope 2 emissions per unit

Providing a clear intensity metric strengthens your position during supplier evaluations.

6. Showing Year-over-Year Improvement

Stakeholders want a narrative as well as numbers. CSRD encourages companies to explain efficiency initiatives, risk mitigation and performance evolution.

Steps to demonstrate improvement

1. Use consistent definitions

Changing denominators or boundaries often confuses year-to-year comparisons.

2. Present a three-year trend

Even if VSME requires only one year of comparative information after the first reporting year (paragraph 12) , customers appreciate a longer record.

3. Highlight operational improvements

Examples for manufacturers:

• Replacing old compressors or pumps
• Upgrading ovens or heaters
• Implementing machine standby modes
• Reducing scrap, which reduces the energy footprint per usable unit

4. Link improvements to emission reductions

Energy intensity improvements often translate directly into lower Scope 2 emissions (and Scope 1 when fuel consumption is reduced), which strengthens your CSRD narrative.

For more detail on tracking and reducing GHG emissions, see the guide on Energy & GHG emissions.

Frequently Asked Questions

What counts as the “right” production denominator for energy intensity?

The right denominator is the one that best reflects your output and minimises variability unrelated to energy efficiency. Machining shops often use machine-hours; high-volume manufacturers use units or tonnes. If you change your denominator, document it clearly for reporting purposes. The resource use & circular economy hub provides guidance on normalising production metrics.

Do small manufacturers need to report energy intensity under CSRD?

Energy intensity isn’t mandatory for SMEs under VSME, but it is strongly encouraged when sector-specific metrics add value. Larger customers subject to CSRD often request these indicators because they help evaluate efficiency improvements. VSME allows SMEs to add metrics beyond the Basic Module when relevant to their operations.

How do we handle major changes in product mix when comparing years?

Use weighted outputs, equivalent units or departmental normalisation to keep metrics comparable. Include a short explanation in your sustainability report to clarify the change. This helps stakeholders understand real efficiency improvements versus production changes.

Can we calculate energy intensity without advanced metering?

Yes. Most manufacturers use utility bills and production records as the starting point. For process-specific insights, sub-metering or equipment runtime logs can be added gradually. See the energy & GHG topic hub for data-collection methods used by SMEs.

Key Terms

• Energy intensity: A performance metric showing energy used per unit of production.
• Normalisation factor: The chosen output measure used to calculate intensity.
• Internal benchmark: A comparison against your own historic performance.
• Process boundary: Definition of which operations are included in the energy calculation.
• VSME Energy (B3): Required disclosure of total energy use and GHG emissions for SMEs.

Conclusion

Energy intensity metrics help industrial companies tell a clear story of efficiency, risk reduction and operational improvement. By selecting a suitable denominator, maintaining consistent boundaries, and documenting assumptions, your organisation can create reliable indicators that meet CSRD expectations and satisfy customer requirements. With regular updates and transparent methodology, these metrics become a powerful tool for both sustainability reporting and production optimisation.

With a clear structure and consistent effort, CSRD becomes an advantage — not an obstacle.