The ghg protocol initiative comprises two separate but linked standards. Request pdf can the implications of the ghg protocol s scope 3 standard be realized. Federal greenhouse gas accounting and reporting guidance. Offsets are often used for meeting voluntary commitments to lower ghg emissions where it is not feasible to lower an organizations d irect or indirect emissions. Scope 3 emissions assessment and circular economy protocol. The guidance is intended to reduce, if not remove, the scope 3 reporting barrier and advance the.
Scope 3 calculation was performed following the requirements of greenhouse gas protocol corporate value. The most material emissions are from category 10 and category 11, which account for over 92 per cent of our scope 3 inventory. Greenhouse gas emissions are categorised into three groups or scopes by the most widelyused international accounting tool, the greenhouse gas ghg protocol. The six greenhouse gases agreed under the kyoto protocol are included. Best practices in scope 3 greenhouse gas management 6 about this guidance to support the growing number of companies committed to address the climate impact of their value chains, this guidance document summarizes the latest best practices in reducing scope 3 ghg emissions by describing different emissions. This document does not attempt to address all scope 2 issues, but it has been updated to reflect the principles and methodologies defined in the ghg protocol scope 2 guidance.
It provides standards and guidance in preparing a ghg emissions inventory and is classified into three scopes, based on their sources. Public sector obsegi ogljicnega odtisa po ghg protocol 1. Note that although the present scope 3 technical guidance accounts only for emission sources and not sequestration sources. Scope 3 emissions for our business are calculated using methodologies consistent with the ghg protocol corporate value chain scope 3 accounting and reporting standard scope 3 standard, and with reference to the additional guidance provided in the ghg protocol technical guidance for calculating scope 3 emissions scope 3 guidance. The scope 3 emissions are calculated by category in accordance with the. In this report, the included and excluded categories, data and assumptions used in the calculation are presented. The ghg protocol splits scope 3 emissions into 15 different categories, grouped into upstream and downstream. Oct 03, 2011 through the greenhouse gas protocol ghgp world resources institute wri and the world business council for sustainable development wbcsd work with businesses to develop standards and tools. The calculation of basf s scope 3 emissions is based on the greenhouse gas protocol corporate value chain scope 3 accounting and reporting standard and the guidance for accounting and reporting corporate ghg emissions in the chemical sector value chain wbcsd. Indirect emissions are included in scope 2 and scope 3. As defined in the ghg protocol, scope 3 represents the indirect ghg emissions of a company from all sources excluding purchased energy, accounted for under scope 2.
The cdp climate change questionnaire is based on this standard. Honda greenhouse gas ghg common calculation standard. Technical guidance for calculating scope 3 emissions ghg protocol. It is designed to set the standard for accurate, complete, consistent, relevant and transparent accounting and reporting of ghg emissions by companies and organizations, including information on setting organizational and operational boundaries. Introduction an important category of scope 1 direct greenhouse gas ghg are fugitive emissions, which result from the direct release to the atmosphere of ghg compounds from various types of equipment and processes. Scope 3 emissions assessment and circular economy protocol development at ford motor company, cssseas ms project report expected april 2019. Upstream emissions of purchased fuels and electricity incl transmission and distribution losses. Carbon accounting methods for estimating scope 3 emissions the ghg protocol is the accounting tool used by companies around the world to understand, quantify and manage ghg emissions. Scope 1 and 2 emissions from fuel and energy are material. For many companies, the indirect emissions caused by their business can far outweigh their direct emissions. The ghg protocol corporate accounting and reporting standard provides requirements and guidance for companies and other organizations preparing a corporatelevel ghg emissions inventory. Ghg protocol scope 3 standard is the only internationally accepted method for companies to account for value chain emissions.
Scope 3 emissions are also divided into upstream and downstream emissions, further divided into 15 categories. The calculation tools are available on the ghg protocol initiative website. These are usually the greatest share of the carbon footprint, covering emissions associated with business travel, procurement, waste and water. Can the implications of the ghg protocols scope 3 standard.
Greenhouse gas protocol provides standards and tools that help countries and cities track progress toward climate goals. The standard covers the accounting and reporting of seven greenhouse gases covered by the kyoto protocol carbon dioxide co2, methane ch4, nitrous oxide n2o, hydrofluorocarbons hfcs, perfluorocarbons. There are several key changes from prior versions of this document. Scope 1 covers direct emissions from owned or controlled sources. The greenhouse gas protocol is the standard used by cdp. Whilst the scope of this study is limited to reporting of ghg emissions by private companies, consideration has been given to ghg reporting methods and initiatives for the public sector and nongovernmental organisations where relevant. Petroleum industry guidelines for reporting greenhouse gas. Ghg protocol guidance on scope 3 reporting 2 3 defines a set of criteria for identifying relevant scope 3 categories. Corporate scope 3 value chain accounting and reporting.
What is the difference between scope 1, 2 and 3 emissions. Scope 1 covers all direct ghg emissions by a company. Bhp 2017 sustainability report scope 3 emissions basis of. This is an immaterial source of scope 3 emissions for the business, however a high level estimate has been annual spend data is extracted from the internal system which tracks all external spend.
The purpose of this document is to help the interested user understand the data, assumptions, and calculations used to transform user inputs into estimates of emissions for the various scopes and categories as defined in the greenhouse gas protocol corporate value chain accounting and. Standard referred to as the scope 3 standard, the parent document to this. Second edition climate change 2011 ipieca is the global oil and gas industry association for environmental and social issues. The distinction is based on the financial transactions of the reporting company. The ghg protocol corporate standard classifies a companys ghg emissions into three scopes. It aims to provide clarity on interpretation of the ghg protocol for commercial real estate companies to enable consistency in reporting across the industry. Greenhouse gas protocol corporate value chain scope 3. Request pdf can the implications of the ghg protocols scope 3 standard be realized. Documentation of the data and calculations to support the greenhouse gas protocol scope 3 screening tool. This convenient, selfpaced course teaches business professionals how to account for.
Scope 3 emissions reported separately by scope 3 category emissions data for co 2, ch 4, n 2o, hfcs, pfcs, sf 6 in tonnes of co 2 equivalent a list of scope 3 activities included in the report a list of scope 3 activities excluded from the report with justification of their exclusion 22. Ghg protocol corporate value chain scope 3 accounting and reporting standard referred to as the scope 3 standard, the parent document to this guidance, offers an internationally accepted method to enable ghg management of companies value chains. It includes fuel combustion, company vehicles and fugitive emissions. The ghg protocol provides guidance on how the emissions for each category may be calculated. Please note that the factsheet below is part of the ghg protocol ict sector guidance, which contains six chapters. The ghg protocol s scope 1 and 2 have largely succeeded in gaining compliance from large firms to report their internal ghg emissions and those from electricity purchases. It covers the accounting and reporting of the six kyoto greenhouse gases ngo world business council for sustainable development and world resources institute. Scope 3, category 6 business travel emissions from transportation of employees to and from work scope 3, category 7 employee commuting emissions from leased vehicles operated by the reporting company not included in scope 1 or scope 2 scope 3, category 8 upstream leased assets calculating emissions from business travel. The gpc provides a robust framework for accounting and reporting citywide greenhouse gas. Co1 wriwbcsd ghg protocol corporate standard co3 iso 14064. If an organization purchases biogas that is delivered through a shared natural gas pipeline, see appendix a of the ghg protocol scope 2 guidance for a discussion of appropriate ghg accounting for this situation.
Typically the majority of total emission come from scope 3 sources. The physical or spatial extent of the subject the entity, product or activity i. The ghg protocol has become the standard for corporate reporting of greenhouse gases, adopted by. Until recently, most companies have focused on measuring emissions from their own operations and electricity consumption, using the ghg protocols scope 1. Ghg protocol corporate accounting and reporting standardthis document, which provides a stepbystep guide for companies to use in quantifying and reporting their ghg emissions ghg protocol project quantification standardforthcoming. It develops, shares and promotes good practices and knowledge to help the industry improve its environmental and. A comparison of iso 14064 part 1 and the ghg protocol. Scope 3 calculation guidance greenhouse gas protocol. Since the corporate standard was revised in 2004, business capabilities and needs in the field of ghg accounting and reporting have grown significantly. Greenhouse gas protocol corporate value chain scope 3 accounting and reporting standard. Furthermore, this guidance focuses on accounting for emissions resulting directly from an organizations activities, not on the full life cycle greenhouse gas emissions associated with those activities.
Ghg protocol recommendations on scope 2 accounting the final version of the ghg protocol scope 2 guidance published in january 2015, runs to over 100 pages and is the product of over four years of extensive consultation. About the ghg protocol for cities world resources institute, c40 cities climate leadership group and iclei local governments for sustainability iclei have partnered to create a ghg protocol standard for cities known as global protocol for communityscale greenhouse gas emission inventories gpc. Scope 3 is a category of co2e emissions defined by world resources institute wri and the world usiness ouncil for sustainable developments greenhouse gas protocol ghg protocol. These are represented in figure 1 alongside scope 1 and scope 2 3, p. Scope 3 emissions calculation methodology 2018 bhp. Scope 3 scope 2 scope1 scope 3 honda customer targeted suppliers 618 it is for reference only, and does not guarantee the identity of the definition of the ghg protocol. Wbcsdwri ghg protocol scope 3 reporting standard description provides standards and guidance for companies and other organisations preparing a ghg emissions inventory. Mar 11, 2019 scope 3 ford motor company recently began reporting upstream emissions for fuel related activities. The greenhouse gas protocol divides emissions into 3 scopes. The greenhouse gas protocol corporate module was developed by a consortium convened by the world resources initiative and the world business council on sustainable development, and will soon issue its second revision. Calculation of emissions from upstream transportation and distribution were added in the scope 3 calculation. Spendbased method from the ghg protocol scope 3 guidance.
Consists of 15 categories of scope 3 activities, both upstream and downstream. Ghg protocol corporate accounting and reporting standard. Jointly convened in 1998 by the world business council for sustainable development wbcsd and the world resources institute. The first chapter is an introduction to the general principles of life cycle accounting and reporting in the ict sector. This guidance may also be applied in other reporting protocols and programs, where approved. The scope 3 standard has further subdivided scope 3 sources into 15 main categories. Achieving scope 3 s intent of a full audit of value chain emissions ghg, however, is a much more complicated affair and according to the cdp, scope 3 is much less successful.
Company ghg emissions reporting a study on methods and. Corporate value chain scope 3 standard greenhouse gas. The ghg project protocol presents two optional procedures. The ghg protocol corporate accounting and reporting standard helps companies and other organizations to identify, calculate, and report ghg emissions. Ghg protocol corporate value chain scope 3 accounting and reporting standard scope 3 greenhouse gas emissions ghg are defined as indirect ghg emissions, other than scope 2 ghg emissions, which are consequences of our activities, but arise from ghg. Treatment of green gas in the ghg protocol is included in the ghg protocol scope 2 guidance, published in 2015 guidance primarily focusses on ghg emissions from purchased electricity, but a parallel is made with the reporting of scope 1 emissions from consumed natural gas, including green gas if a company purchases green gas through a. The ghg protocol corporate value chain scope 3 accounting and reporting. In the context of corporate ghg accounting and reporting, the greenhouse gas protocol. Detail on the specific methodologies used for each scope 3 category is listed below. Scope 1 versus scope 3 mobile source emissions this document presents the guidance for calculating scope 1 direct ghg emissions resulting from the operation of owned or leased mobile sources that are within an organizations inventory boundary.
Greenhouse gas protocol corporate value chain scope 3 accounting and reporting standard by pankaj bhatia, cynthia cummis, david rich, laura draucker, holly lahd and andrea brown wbcsd october 2011. Ghg protocol corporate value chain scope 3 standard allows factory to assess the emission impact of its entire value chain. Scope 1 emissions are direct ghg emissions from sources owned or controlled by the company. Calculation of scope 3 emissions of ssab according to the ghg. The main category is electricity to power our networks and data centers, plus a small amount of steam and heat purchased to heat our buildings. Scope 1 emissions are direct emissions from owned or. Company ghg emissions reporting a study on methods. Calculation of scope 3 emissions of ssab according to the. The mission of the greenhouse gas protocol initiative ghg protocol is to develop and promote internationally accepted greenhouse gas ghg accounting and reporting standards through an open and inclusive process. The federal greenhouse gas accounting and reporting guidance was originally established by section 9 of executive order e.
This chapter describes these steps and the calculation tools developed by the ghg protocol. Scope 3 all other indirect emissions from activities of the organisation, occuring from sources that they do not own or control. Technical guidance for calculating scope 3 emissions 42 catego 3 fuel and energyrelated activities not included in scope 1 or scope 2 if possible, the combustion and life cycle emission factors should be from the same temporal, technical, and geographic representativeness see table 7. While this guidance is widely used, it is less prescriptive than. Mar 15, 2016 the greenhouse gas protocol now requires nitrogen trifluoride nf3, a chemical released in some hightech industries including electronics manufacturing, to be included in ghg inventories under the corporate standard, value chain scope 3 standard, and product standard. Collect activity data and choose emission factors 4. Vitalmetrics reporting analyst katie day explains how it works and can benefit your business. For scope 3 emissions we use the ghg protocol corporate value chain scope 3 accounting and reporting standard. The greenhouse gas protocol is recognized by the uk government as an independent standard for reporting greenhouse gases. It is accompanied by a suite of userfriendly guidance and tools developed by the ghg protocol to make scope 3 accounting more easy and accessible. The greenhouse gas protocol world resources institute. Other categories of scope 3 calculation were included to the calculation already in year 2017. Fifteen reporting categories of scope 3 emissions are defined under the ghg protocol.
Best practices in scope 3 greenhouse gas management 6 about this guidance to support the growing number of companies. Scope 3 accounting and reporting standard ghg protocol. It is designed to set the standard for accurate, complete, consistent, relevant and transparent accounting and reporting of ghg emissions by companies and organizations, including information on setting organizational and operational. Offsets can be used in addition to an organization taking actions within its own operational boundary to lower emissions. The definition of scope 2 has been revised to exclude emissions from electricity purchased for resalethese are now included in scope 3.
Scope 2 indirect emissions sources generated offsite, but purchased by verizon. Relevance ghg protocol guidance on scope 3 reporting 2 3 defines a set of criteria for identifying relevant scope 3 categories. Carbon accounting methods for estimating scope 3 emissions there are fifteen categories in the ghg protocol scope 3 standard, including business activities common to many organizations. This will enable the industry to more accurately report and reduce scope 3 emissions. Following the ghg protocol the direct emissions related to the incineration of. In the guidance, the ghg protocol set out the following requirements for companies with operations in markets. The scope 3 standard provides a methodology that can be used to account for and report emissions from companies of all sectors, globally.
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