Scope 2 marketbased accounting has huge potential along. This tool should be used to calculate scope 2 indirect emissions associated with the consumption of purchased electricity, heat, andor steam. The ghg protocols scope 2 guidance is an indispensable asset on that front. The scope 2 figure reported above includes all ghgs emitted directly by honda motor co. The calculation tools are available on the ghg protocol initiative website. Scope 2 guidance new developments in corporate ghg accounting for electricity mary sotos, associate at world resources institute 2. 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 parallel is made with the reporting of scope 1. Mobile buses, trucks, car fleet 1% of total reported ghg emissions purchased electricity scope 2 344,724 scope 3 not currently reported. Scope emissions mt co 2 e % of total emissions scope 1 8,982,626 99. The scope 2 guidance requires companies to use two reporting methods to disclose their scope 2 emissions. Typically the majority of total emission come from scope 3 sources. Mar 11, 2019 2 e um generated ghg emissions scope 1 285,681 stationary central power plant, etc.
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. 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. Scope 1 covers direct emissions from owned or controlled sources. Ghg protocol works with governments, industry associations, ngos, businesses and other organizations ghg protocol is developing standards, tools and. 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. An amendment to the ghg protocol corporate standard january 2015 specifically table 7. New integrated feature helps organizations benefit. Ghg inventory protocol content section summary overview, 1.
This chapter describes these steps and the calculation tools developed by the ghg protocol. New requirements for accounting for emissions from energy contracts and instruments such as renewable energy credits in ghg inventories. Eaton s ghg emissions were calculated and reported in reference to the requirements of the. This new scope 2 guidance represents a fouryear global collaboration to harmonize methods for how companies report greenhouse gas. Ebrd protocol for assessment of greenhouse gas emissions. Ghg emissions have been reported by the three wbcsdwri scopes. Other indirect emissions that are a result of organizational activities. Protocol scope 2 guidance, an amendment to the ghg protocol corporate standard. The greenhouse gas protocol the greenhouse gas protocol is the most widely used international accounting tool. In this report, the included and excluded categories, data and assumptions used in the calculation are presented. Response to the greenhouse gas protocols consultation on. Ghg protocol scope 2 guidance world resources institute.
Electricity procurement options have expanded in recent years. Other indirect ghg emissions not included in scope 1 and scope 2, as defined by the ghg protocol. The greenhouse gas protocol ghgp is the most widely used international accounting framework to understand, quantify, and manage greenhouse gas emissions. The greenhouse gas protocol world resources report. Consists of 15 categories of scope 3 activities, both upstream and downstream. The scope 2 guidance is required reading for companies that follow the greenhouse gas protocol corporate accounting and reporting standard. Scope 1 includes direct ghg emissions from sources that are owned or controlled by the company such as natural gas combustion and company owned vehicles. The definition of scope 2 has been revised to exclude emissions from. Ghg protocol corporate accounting and reporting standard this document, which provides a stepbystep guide for companies to use in quantifying and reporting their. For ten years, the corporate standard has provided a common framework for corporate greenhouse gas accounting. Further information on the ghg protocol scope 2 quality criteria is available in the following document.
Company ghg emissions reporting a study on methods. Scope 2 marketbased accounting has huge potential along with. At the same time, the ghg protocol recommends companies to set one step further. 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. Wbcsdwri greenhouse gas protocol corporate accounting and reporting standard, revised edition 2004 and the.
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. For further information on the calculation of scope 2 emissions, please see the ghg protocol scope 2. 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. Wriwbcsd greenhouse gas protocol corporate value chain scope 3 accounting and reporting standard scope 3 ghg verification protocols used to conduct the verification. The ghg protocol corporate accounting and reporting standard provides requirements and guidance for companies and other organizations preparing a corporatelevel ghg emissions inventory.
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. Mary sotos from the world resources insititute talks about ghg protocol scope 2 guidance. This guidance is one of the most significant updates to the ghg protocol since it was released. 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.
Greenhouse gas emissions are categorised into three groups or scopes by the most widelyused international accounting tool, the greenhouse gas ghg protocol. All ghg protocol standards and guidance are available at this scope 2 guidance represents a policyneutral. Calculation of scope 3 emissions of ssab according to the. Scope 3 is systematically broken down into 15 categories. The scope 2 guidance standardizes how corporations measure emissions from. 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 purchased or acquired electricity, steam, heat and cooling called scope 2 emissions. For further information on the calculation of scope 2 emissions, please see the ghg protocol scope 2 guidance wri, 2015. The ghg protocol initiative comprises two separate but linked standards. In the guidance, the ghg protocol set out the following requirements for companies with operations in markets.
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. 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 scope 2 guidance standardizes how corporations measure emissions from purchased or acquired electricity, steam, heat, and cooling called scope 2. 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 practices explained in the scope 2 guidance are now required for companies that wish to comply with the ghg protocol corporate standard. Energy attribute certificate eac application protocol for thirdparty assessment partners 62 2. 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. The greenhouse gas ghg protocol is a multistakeholder partnership of businesses, nongovernmental organizations ngos, governments, and others convened by the world resources. The ghg p scope 2 categorises indirect emissions from consumption of purchased electricity, heat or steam. 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.
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. 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. Ggcs and ghg protocol green gas certification scheme. Calculation of scope 3 emissions of ssab according to the ghg. 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. Scope 4 is the missing piece for making progress on some of the most intractable supply chain challenges. Collect activity data and choose emission factors 4. The hess ghg inventory protocol is organized into the sections described in table 1. Origin of the scope framework in calculating greenhouse gas emissions, the ghg protocol corporate standard classifies a companys ghg emissions into three scopes. 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. 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.
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. Ghg protocol scope 2 guidance greenhouse gas protocol. It is intended to address questions and concerns in scope 2 reporting that have emerged over time. Previously, the protocol relied on the locationbased method which provides only. But the problem with this marketbased approach is most utilities cant provide accurate information. Petroleum industry guidelines for reporting greenhouse gas. Determining which accounting methods to use for scope 2. Eaton cy2018 scope 1scope 2 ghg verification statement. Jan 15, 2015 mary sotos from the world resources insititute talks about ghg protocol scope 2 guidance.
The ghg protocol is the most widely used international accounting tool for government and business leaders to understand, quantify, and manage greenhouse gas emissions. 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. 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 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 main problems with the draft guidance contractual emission factors do not fulfil the core ghg accounting principles of accuracy and relevance. Page 2 of 2 scope 3 categories in mtco 2 e purchased goods and services. Petroleum industry guidelines for reporting greenhouse gas emissions 5th floor, 209215 blackfriars road, london se1 8nl, united kingdom telephone. The scope 2 guidance standardizes how corporations measure emissions from purchased or acquired electricity, steam, heat, and cooling called scope 2 emissions.
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