tools for managing corporate value chain GHG emissions

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
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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
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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
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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
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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
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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
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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
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The Scope 3 Standard
COFRET Final Conference – 06/09/2014
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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
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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
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How the GHG Protocol Standards work together
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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
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Still work to be done – a closer look at scope 3 reporting
S&P 500 Climate Change Report 2013, CDP
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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
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‘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
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Questions & Contact details
• GHG Protocol website: www.ghgprotocol.org
• Stephen Russell, WRI. [email protected]
COFRET Final Conference – 06/09/2014
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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
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