In this report, the included and excluded categories, data and assumptions used in the calculation are presented. The ghg protocol, a partnership between the world resources institute and the world business council for sustainable development, encountered this issue a few years after it developed the corporate standard. The greenhouse gas protocol ghgp is the most widely used international accounting framework to understand, quantify, and manage greenhouse gas emissions. Calculation of scope 3 emissions of ssab according to the ghg. The ghg protocol scope 2 guidance facilitates green energy procurement for companies who are seeking to reduce their carbon emissions and support the development of renewable energy the scope 2 guidance requires companies to use two reporting methods to disclose their scope 2 emissions. Mary sotos from the world resources insititute talks about ghg protocol scope 2 guidance. The clarification companies will gain from the ghg protocol scope 2 guidance has the potential to transform energy buying practices in the corporate world. The hess ghg inventory protocol is organized into the sections described in table 1. The ghg protocol is the most widely used international accounting tool for government and business leaders to understand, quantify, and manage greenhouse gas emissions. The definition of scope 2 has been revised to exclude emissions from. The scope 2 guidance standardizes how corporations measure emissions from purchased or acquired electricity, steam, heat, and cooling called scope 2 emissions.
For ten years, the corporate standard has provided a common framework for corporate greenhouse gas accounting. Wriwbcsd greenhouse gas protocol corporate value chain scope 3 accounting and reporting standard scope 3 ghg verification protocols used to conduct the verification. At the same time, the ghg protocol recommends companies to set one step further. Greenhouse gas emissions are categorised into three groups or scopes by the most widelyused international accounting tool, the greenhouse gas ghg protocol. Scope 4 is the missing piece for making progress on some of the most intractable supply chain challenges. This guidance is one of the most significant updates to the ghg protocol since it was released. All ghg protocol standards and guidance are available at this scope 2 guidance represents a policyneutral. Ghg protocol scope 2 guidance greenhouse gas protocol.
The scope 2 guidance requires companies to use two reporting methods to disclose their scope 2 emissions. The greenhouse gas protocol world resources report. Calculation of scope 3 emissions of ssab according to the. But the problem with this marketbased approach is most utilities cant provide accurate information.
Origin of the scope framework in calculating greenhouse gas emissions, the ghg protocol corporate standard classifies a companys ghg emissions into three scopes. The ghg protocol s scope 2 guidance, published in 2015, requires that companies use both the locational grid average method and the marketbased method to report scope 2 emissions i. Ghg protocol works with governments, industry associations, ngos, businesses and other organizations ghg protocol is developing standards, tools and. 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. Calculating emissions of the ghg protocol scope 2 guidance in full, for a comprehensive overview of key requirements, steps, and procedures involved in calculating scope 2 emissions according to each method. The ghg p scope 2 categorises indirect emissions from consumption of purchased electricity, heat or steam. The main problems with the draft guidance contractual emission factors do not fulfil the core ghg accounting principles of accuracy and relevance. Typically the majority of total emission come from scope 3 sources. Scope 2 marketbased accounting has huge potential along with. While not strictly required for marketbased scope 2 accounting, there are energy procurement choices that suppliers and companies can make that spur an increase in new, lowcarbon energy.
Energy attribute certificate eac application protocol for thirdparty assessment partners 62 2. The ghg protocol scope 2 guidance facilitates green energy procurement for companies who are seeking to reduce their carbon emissions and support the development of renewable energy. The scope 2 figure reported above includes all ghgs emitted directly by honda motor co. The ghg protocols scope 2 guidance is an indispensable asset on that front. In november 2014, the greenhouse gas protocol ghg protocol published a text about the topic. The scope 2 guidance is required reading for companies that follow the greenhouse gas protocol corporate accounting and reporting standard. Best practices in scope 3 greenhouse gas management 5 executive summary highlights companies must help to prevent the worst impacts of climate change by reducing their greenhouse gas ghg emissions as much and as quickly as possible, including reducing value chain i. Response to the greenhouse gas protocols consultation on. Scope 2 quality criteria are used to determine whether gas is treated as green gas 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. For further information on the calculation of scope 2 emissions, please see the ghg protocol scope 2. 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. An amendment to the ghg protocol corporate standard january 2015 specifically table 7.
Ghg protocol corporate accounting and reporting standard this document, which provides a stepbystep guide for companies to use in quantifying and reporting their. The practices explained in the scope 2 guidance are now required for companies that wish to comply with the ghg protocol corporate standard. The greenhouse gas ghg protocols addition of the marketbased method in its scope 2 guidance is intended to arm companies with highly accurate emissions data on the energy they buy. Eaton s ghg emissions were calculated and reported in reference to the requirements of the. The ghg protocols scope 2 guidance, published in 2015, requires that companies use both the locational grid average method and the marketbased method to report scope 2. Scope 5 scope 2 marketbased accounting 1 t he greenhouse gas ghg protocols addition of the marketbased method in its scope 2 guidance is intended to arm companies with highly accurate emissions data on the energy they buy. Wbcsdwri greenhouse gas protocol corporate accounting and reporting standard, revised edition 2004 and the. Ghg emissions have been reported by the three wbcsdwri scopes. The greenhouse gas ghg protocols addition of the marketbased method in its scope 2 guidance is intended to arm companies with highly accurate emissions data on the energy they buy but the problem with this marketbased approach is most utilities cant provide accurate information. New requirements for accounting for emissions from energy contracts and instruments such as renewable energy credits in ghg inventories. Eaton cy2018 scope 1scope 2 ghg verification statement.
Scope 2 guidance new developments in corporate ghg accounting for electricity mary sotos, associate at world resources institute 2. Ebrd protocol for assessment of greenhouse gas emissions. This new scope 2 guidance represents a fouryear global collaboration to harmonize methods for how companies report greenhouse gas. Scope 1 covers direct emissions from owned or controlled sources. This chapter describes these steps and the calculation tools developed by the ghg protocol. Scope emissions mt co 2 e % of total emissions scope 1 8,982,626 99. 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.
The greenhouse gas protocol the greenhouse gas protocol is the most widely used international accounting tool. Consists of 15 categories of scope 3 activities, both upstream and downstream. Scope 3 is systematically broken down into 15 categories. This tool should be used to calculate scope 2 indirect emissions associated with the consumption of purchased electricity, heat, andor steam. Table 8 shows the emissions for transportation broken down by scope, with scope 1 emissions being the largest, followed by scope 2 and no emissions reported for scope 3. Scope 2 accounts for ghg emissions from the generation of purchased electricity, heat and steam generated offsite. The scope 2 guidance standardizes how corporations measure emissions from. Ggcs and ghg protocol green gas certification scheme.
The ghg protocol initiative comprises two separate but linked standards. The calculation tools are available on the ghg protocol initiative website. Greenhouse gas protocol scope 2 guidance a supplement to the ghg protocol corporate standard draft to be used at ilmastokumppaneiden vuosikokous based on draft texts of the scope 2 guidance. 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. Electricity procurement options have expanded in recent years. Further information on the ghg protocol scope 2 quality criteria is available in the following document. Determining which accounting methods to use for scope 2. Petroleum industry guidelines for reporting greenhouse gas. Company ghg emissions reporting a study on methods. The scope 2 guidance standardizes how corporations measure emissions from purchased or acquired electricity, steam, heat, and cooling called scope 2. Ghg inventory protocol content section summary overview, 1.
Ghg protocol scope 2 guidance world resources institute. Scope 2 emissions account for ghg emissions from the consumption of purchased electricity, heat, andor steam at a facility that falls within a companys organizational boundary. Petroleum industry guidelines for reporting greenhouse gas emissions 5th floor, 209215 blackfriars road, london se1 8nl, united kingdom telephone. Other indirect ghg emissions not included in scope 1 and scope 2, as defined by the ghg protocol. Previously, the protocol relied on the locationbased method which provides only. Mar 11, 2019 2 e um generated ghg emissions scope 1 285,681 stationary central power plant, etc. The scope 2 guidance standardizes how corporations measure emissions from purchased or acquired electricity, steam, heat and cooling called scope 2 emissions. Wriwbcsd corporate value chain scope 3 accounting and reporting standard scope 3 cdp guidance for companies reporting on water on behalf of investors and supply chain members.
Technical guidance for calculating scope 3 emissions 05 introduction a n effective corporate climate change strategy requires a detailed understanding of a companys greenhouse gas ghg emissions until. For further information on the calculation of scope 2 emissions, please see the ghg protocol scope 2 guidance wri, 2015. Mobile buses, trucks, car fleet 1% of total reported ghg emissions purchased electricity scope 2 344,724 scope 3 not currently reported. Scope 2 marketbased accounting has huge potential along. The ghg protocol corporate accounting and reporting standard provides requirements and guidance for companies and other organizations preparing a corporatelevel ghg emissions inventory. In the guidance, the ghg protocol set out the following requirements for companies with operations in markets. Other indirect emissions that are a result of organizational activities.
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