GHG protocol corporate Flashcards
(20 cards)
What GHG does the protocol cover?
Covers 6 greenhouse gases covered by the Kyoto Protocol
- CO2
- methane (CH4)
- nitrous oxide (N2O)
- Hydrofluorocarbons (HFCs)
*perfluorocarbons (PFCs) - sulphur hexafluoride (SF6)
What are the GHG accounting and reporting principles?
- Relevance
Ensure the balance appropriately reflects the emissions of the company
- Completeness
Account for and report all GHG emissions
Disclose and justify any specific exclusions
- Consistency
Use consistent methodologies
- Transparency
Disclose any relevant assumptions
- Accuracy
Uncertainties are reduced as far as practicable
Why do GHG accounting?
- Managing GHG risks (future restaints)
- identifying reduction opportunities (cost effective ones)
- Participating in mandatory reporting programs (ESG)
- Participating in GHG markets
- Recognition for early voluntary action
Important metrics
energy use / tonne of produced product
Tonne of Co2e / tonne of produced product
Euro / tonne of reduced emissions of CO2e
What are the two methods of setting organisational boundaries?
- Equity share approach
- the control approach
What is the equity share approach?
a company accounts for GHG emissions according to its share of equity in the operation.
Equity: the company’s percentage ownership of that operation.
What is the control approach?
Under the control approach, a company accounts for 100 percent of the GHG emissions from operations over which it has control.
It does not account for GHG emissions from operations in which it owns an interest but has no control
What is double counting?
When two or more companies hold interests in the same joint operation and use different consolidation approaches (e.g., Company A follows the equity share approach while Company B uses the financial control approach), emissions from that joint operation could be double counted.
Is double counting a problem?
This may not matter for voluntary corporate public reporting as long as there is adequate disclosure from the company on its consolidation approach. However, double counting of emissions needs to be avoided in trading schemes and certain mandatory government reporting programs.
What is included in scope 1
Direct emissions from sources that are owned or controlled by the company, for example: combusioned in boilers, furnaces, vehicles, etc
Direct CO2 emissions from combustion of biomass shallnot be included in scope 1 but reported separately
GHG emissions not covered by the Kyoto Protocol, e.g. CFCs, NOx, etc. shall not be included in scope 1 but may be reported separately (see chapter 9).
What is scope 2?
accounts for GHG emissions from the generation of purchased electricity2 consumed by the company
physically occur at the facility where electricity is generated.
What is scope 3?
all other indirect emissions. Scope 3 emissions are a consequence of the activities of the company, but occur from sources not owned or controlled by the company.
What are some general steps in identifying scope 3 emissions?
- Describe the value chain
- determine which categories are relevant
- Identify partners along the value chain
- quantify scope 3 emissions
(lower accuracy is acceptable, better to know their relative magnitude)
How are GHG emissions generally calculated?
Identify GHG emissions sources
Select a GHG emissions calculation approach
Collect activity data and choose emission factors
Apply calculation tools
Roll-up ghg emissions data to corporate level
Why might historical emissions need to be recalculated?
Due to acquisitions divests and merges the comapny’s historical profile will change - > this makes meaningfull comparisons difficult - > historical emissions will have to be recalculated
How to select which year shall be the base year?
Verifiable data must be available
And specify reasons for choosing this year
Or choose average over several years
Why recalculate the base year?
Discovery of significant errors
Changes in calculation methods
Mergers, acquisition and divestsments
Outsourcing or insourcing of emitting activties
Possible GHG calculation approach
- through the application of documented emission factors (most common)
- based on mass balance (uncommon)
- direct measurement by monitoring concentration and flow are ( least common)
How to manage the quality ofthe GHG inventory?
- Establish an inventory quality team
- develop a quality management plan
- perform generic quality check
- perform source -category-specific quality checks
5.review final inventory assesment and reports
- institutionalize formal feedback loops
7.establisch reporting, documentation and archiving procedures
Difference between market based and location based approach (for energie)
Location based: Reflects average emissions intensity of the grid, based on the company’s location
- does not allow for claims of renewable energy (buying renew energy is now recognized)
- can only reduce emissions by: site business elsewhere, reduce consumption or behind-the-meter renewables (solar)
Market based approach: reflects emissions from the electricity you buy.
