The Greenhouse Gas Protocol: tools for managing corporate value chain GHG emissions Stephen Russell, World Resources Institute COFRET Final Conference – 06/09/2014 www.ghgprotocol.org Agenda • About the GHG Protocol • Existing standards for corporate GHG accounting • The ‘Built on GHG Protocol’ mark COFRET Final Conference – 06/09/2014 www.ghgprotocol.org The Greenhouse Gas Protocol • The GHG Protocol was launched in 1998 • Multi-stakeholder partnership amongst businesses, NGOs, governments, academia, and others COFRET Final Conference – 06/09/2014 www.ghgprotocol.org Our mission To provide the foundation for more sustainable climate strategies and more efficient, resilient and profitable organizations Simplify and reduce the costs to business of measuring GHG emissions Identify emissions reduction opportunities Support reporting of useful data on GHG emissions Enable flow of information across multiple entities COFRET Final Conference – 06/09/2014 www.ghgprotocol.org Our approach Open, transparent, and inclusive development processes Policy neutrality All products are freely available Accounting and Reporting Standards Emissions calculation tools GHG reporting programs Training programs COFRET Final Conference – 06/09/2014 www.ghgprotocol.org The Corporate Standard • Covers GHG emissions from direct activities and purchased electricity • First to introduce the concepts of the scopes • Available in 7 languages • In 2012, 72% of CDP reporters and 86% of Global 500 companies used the GHG Protocol Corporate Standard • Basis for ISO 14064-1:2006 COFRET Final Conference – 06/09/2014 www.ghgprotocol.org Foundation for every corporate GHG reporting program The Canadian GHG Challenge Registry US EO 13514 European Union GHG Emission Trading System (EU ETS) China iCET Climate and Energy Registry Japan’s Voluntary Emissions Trading Scheme (JVETS) The Climate Registry South Korea’s GHG Emission Information System (GEIS) Israel GHG Program Programa Brasileiro GHG Protocol Australia GHG Challenge Plus Program New Zealand CarboN Zero Programme COFRET Final Conference – 06/09/2014 www.ghgprotocol.org The Scope 3 Standard • To be used in conjunction with the Corporate Standard • Includes requirements and user-friendly guidance for quantifying and reporting Scope 3 emissions • Includes upstream and downstream emissions organized into 15 different scope 3 categories • Currently creating a scope 3 screening tool COFRET Final Conference – 06/09/2014 www.ghgprotocol.org The Scope 3 Standard COFRET Final Conference – 06/09/2014 www.ghgprotocol.org Full value chain (scope 3) analyses are important Downstream transportation and distribution 3% Use of sold products 16% Upstream transportation and distribution 7% COFRET Final Conference – 06/09/2014 Average breakdown of emissions by category from Scope 3 Standard road testers Scope 1 & 2 21% Purchased goods and services 34% Scope 1 & 2 emissions Scope 3 emissions categories www.ghgprotocol.org Purpose of the Product Standard • Provides a framework for companies to make informed choices and reduce GHG emissions along the complete life cycle of the products (goods or services) that they: – Design – Manufacture – Sell – Purchase – Use • Provides robust requirements for public reporting of product GHG inventories COFRET Final Conference – 06/09/2014 www.ghgprotocol.org How the GHG Protocol Standards work together COFRET Final Conference – 06/09/2014 www.ghgprotocol.org Still work to be done US GHG Reporting by Scope Global GHG Reporting by Scope Percentage of S&P 500 companies reporting Percentage of MSCI World Index companies reporting State of Green Business 2014, GreenBiz COFRET Final Conference – 06/09/2014 www.ghgprotocol.org Still work to be done – a closer look at scope 3 reporting S&P 500 Climate Change Report 2013, CDP COFRET Final Conference – 06/09/2014 www.ghgprotocol.org Corporate-related standards & guidance under development Product Innovation Standard Financial sector guidance Goal setting Scope 2 guidance Overview Standard on quantifying and reporting the positive impact of products Guidance to measure, report and reduce emissions from investment and lending portfolios Working paper on how companies can set GHG reduction targets in line with climate science How to account for renewable energy purchases and related instruments Date available TBD 02 / 2015 02 / 2015 09 / 2014 First draft is being prepared First draft will be released in 02/2014 Final editing Current status Finished scoping. TWG meetings to begin shortly COFRET Final Conference – 06/09/2014 www.ghgprotocol.org ‘Built on GHG Protocol’ Provided to resources and programs that: – Align with GHGP standards – Result in inventories suitable for assurance – Have robust quality control measure – Clearly document appropriate methods Wide Range of Benefits • Status as best-in-class tool • Use of mark on promotional materials • A boost to brand reputation • Direct listing on GHG Protocol’s website COFRET Final Conference – 06/09/2014 www.ghgprotocol.org Questions & Contact details • GHG Protocol website: www.ghgprotocol.org • Stephen Russell, WRI. [email protected] COFRET Final Conference – 06/09/2014 www.ghgprotocol.org Definitions of Scope 3 categories Category 4: Upstream Transportation and Distribution • • Includes transportation and distribution of products purchased in the reporting year, between a company’s tier 1 suppliers and its own operations in vehicles not owned or operated by the reporting company. Includes third-party transportation and distribution services purchased by the reporting company in the reporting year, including inbound logistics and outbound logistics (e.g., of sold products). Category 9: Downstream Transportation and Distribution • Includes emissions that occur in the reporting year from transportation and distribution of sold products (after the point of purchase) in vehicles and facilities not owned or controlled by the reporting company. • Also includes emissions from retail and storage. • Excludes outbound transportation and distribution services that are purchased by the reporting company (Category 4). COFRET Final Conference – 06/09/2014 www.ghgprotocol.org
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