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World Resources Institute. Corporate Emissions Inventory Module – A guide to corporate accounting and reporting standards. GHG Protocol Initiative Corporate Accounting Standards - An Update June 12, 2003 Simon Schmitz World Business Council for Sustainable Development. - PowerPoint PPT Presentation
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Corporate Emissions Inventory Module –
A guide to corporate accounting and reporting standards
GHG Protocol Initiative
Corporate Accounting Standards - An Update
June 12, 2003
Simon Schmitz
World Business Council for Sustainable Development
World Resources Institute
Setting the scene
Some background of the Initiative
• Convened in 1998 by WBCSD and WRI
• Mission: to develop international GHG accounting and reporting standards for business through an inclusive and transparent multi-stakeholder process
• 2 modules: corporate inventories & GHG mitigation projects
GHG ProtocolStandard
• Corporate module• Project module
Building a Credible Standard
Adoption and
Continuous Improvemen
t
Builds on Existing
Approaches
Multi – Stakeholder
Process
Businesses using GHG Protocol
Alcan Aluminum, USA
Alcoa, USA
AstraZeneca, UK
Ball Corporation, USA
Baxter International, USA
BP, USA
Bethlehem Steel, USA
Birka Energi, Sweden
The Body Shop, UK
Casella Waste Systems
Inc., USA
Cinergy, USA
Eastman Kodak, USA
FPL Group, Inc., USA
CODELCO, Chile
Edison Mission Energy, USA
Ford, USA
ENDESA, Spain
Green Mountain Energy, USA
Holcim, USA
IBM, USA
IKEA International, Sweden
International Paper, USA
Interface, USA
ITC Inc., India
Johnson & Johnson, USA
Kansai Electric Power, Japan
Lockheed Martin, USA
Miller Brewing Co., USA
Mirant, USA
National Renewable Energy
Laboratory, USA
Nike, USA
Norm Thompson Outfitters,
USA
Norsk Hydro, Norway
N.V. Nuon Energy,
Netherlands
PWC, New Zealand
PSEG, USA
Pfizer Inc, USA
SC Johnson, USA
St Lawrence Cement Inc.,
USA
Seattle City Light, USA
Simplex Paper & Pulp, India
Sony Electronics, Japan
STMicroelectronics,
Switzerland
Suncor, USA
Target Corporation, USA
Tata Steel, India
Tokyo Gas, Japan
Verizon Communications,
USA
Volkswagen, Germany
We Energies, USA
500 PPM GmbH, Germany
Philips & Yaming, China
Climate initiatives using GHG Protocol
Government Initiatives
U.S. Environmental Protection
Agency Climate Leaders
USAID Clean Technology Initiative
and Greenhouse Gas Pollution
Prevention Program
California Climate Action Registry
Wisconsin GHG Registry
NGO Initiatives
World Wildlife Fund Climate Savers
Carbon Disclosure Project- 35 of the
worlds largest investors with assets
of more than $4.5 trillion have
asked the world’s top 500
companies to quantify their GHG
emissions using the GHG Protocol
Global Reporting Initiative
Climate Neutral Network
Business Initiatives
International Forum of Forest and Paper Associations
Pulp & Paper Sector Calculation Tools
Aluminium Institute Protocol & Calculation Tools
International Iron and Steel Institute Calculation Tools
(under development)
Proposed WEF Global GHG Registry
NZ Business Council for Sustainable Development
Respect Europe Business Leaders Initiative for
Climate Change (BLICC)
WBCSD Sustainable Cement Initiative
French REGES Protocol
Trading Schemes
Chicago Climate Exchange
UK Emissions Trading Scheme
EU Emissions Trading Scheme
Other
European, Japanese, Canadian, and Australian
Cement Industry Associations
European Bank for Reconstruction & Development
Standards, Guidance and Calculation Tools
Calculation toolsWeb-based, user-
friendly, step-by-
step guidance
GHG Protocol Standards and Guidance
2nd edition to be published in September
Standards and Guidance: Table of Contents
1. Business Goals
2. Accounting Principles
3. Organizational Boundaries
4. Operational Boundaries
5. GHG Reductions and Offsets
6. Tracking Emissions Over Time (formerly “Setting a Historic
Performance Datum”)
7. New Chapter: Voluntary GHG Targets
8. Identifying and Calculating GHG emissions
9. Managing inventory quality
10.Reporting GHG emissions
11.Verification
----
• Possibly new Appendix: rough overview of issues in accounting for carbon stocks
StandardsPrinciples
Organizational BoundariesOperational boundaries
Historic Datum
Reporting GHG emissions
• Accounting emissions from subsidiaries, JVs, etc.
• Based on financial accounting practices
Entity What to report Reporting for control controlled 100% of emissions no control -- Reporting for equity wholly owned or controlled equity share of emissions share significant influence / equity share of emissions associated entities no control / no influence -- (Fixed investments)
Producing the 2nd EditionSetting Organizational Boundaries
•Overall framework remains same: two main accounting options for consolidation: Equity and Control
•Companies now have a choice to use either the control or the equity share approach
•More accurate definition of/criteria for control
•Some new/simpler definitions which need to be decided on
•Guidance on contractual arrangements and leasing provided
Standards
Principles
Organisational Boundaries
Operational boundariesHistoric Performance Datum
Reporting GHG emissions
3 scopes guarantee transparency:
scope 1: Direct emissions (must report)
scope 2: Indirect Emissions - imported electricity, heat, or steam (must report)
scope 3: Other relevant indirect emissions (voluntary)
Selection of scope/s depends on objectives of inventory (e.g. internal risk management vs. trading markets).
• Scope 2 definition changed to avoid double counting within Scope 2 emissions: emissions associated with production of electricity consumed by the reporting entity
• Emissions associated with transmission & distribution losses shall be reported by an entity that owns or controls the T&D equipment
Producing the 2nd EditionSetting Operational Boundaries – Scope
2
Producing the 2nd EditionSetting Operational Boundaries – Scope 2
Own use
Resold to end-user
Resold to intermedia
ry
Purchased Electricity
Scope 2Indirect
emissions from Own Use of Purchased Electricity
Scope 3Indirect
emissions from Purchased Electricity
resold to end user
Supplementary Information
Emissions from Purchased Electricity
resold to non end user
• Why set a GHG target?• Steps in setting and reporting progress
towards a GHG target1. Obtain senior management commitment2. Choose the target type (absolute vs. intensity)3. Decide on the target boundaries4. Decide on the use of external offsets5. Choose a type of base year (fixed vs. rolling base
year)6. Decide on the level of reduction7. Tracking GHG performance against target
Producing the 2nd EditionNew Guidance chapter: Voluntary
GHG targets
Existing calculation tools
Sector-specific tools
•aluminum•pulp and paper•iron and steel•nitric acid •ammonia •adipic acid •cement •lime •HCFC-22•semi-conductors
Cross-sector tools
•Mobile and stationary combustion
• Updates of – International Forum of Forest and Paper
Associations Pulp & Paper Sector Calculation Tools
– Aluminium Institute Protocol & Calculation Tools– International Iron and Steel Institute Calculation
Tools • Guidance on choosing emissions factors,
electricity flows, and CHP in the Stationary Tool
• GHG Guide for office-based organizations• Uncertainty tool: quantifying measurement
uncertainties
Calculation Tools: new developments
Recommended