Scope 3 emissions ghg protocol pdf

Tds scope 3 emissions include employee business travel, purchased goods and services, capital goods, fuel and energy related activities, and downstream leased assets. Spendbased method from the ghg protocol scope 3 guidance. The ghg protocol distinguishes a total of 15 categories within scope 3. It is envisioned that by enabling increased reporting, the carbon impacts can also have a greater influence on business decisionmaking. The scope 3 standard accounts for upstream and downstream life cycle ghg emissions at the corporate level, while the product standard accounts for them at the individual product level. Apr 02, 2020 the ghg greenhouse gas protocol categorizes a companys ghg footprint into three different scopes. The greenhouse gas protocol 390 370 350 330 310 290 270 ppm year. Figure 1 scope 3 categories figure 2 scope 1, 2 and 3 emissions. 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. Can the implications of the ghg protocols scope 3 standard. The six greenhouse gases agreed under the kyoto protocol are included. Scope 3 ford motor company recently began reporting upstream emissions for fuel related activities. Scope 1 versus scope 3 mobile source emissions this document presents the guidance for calculating scope 1 direct ghg emissions resulting from the operation of owned or leased mobile sources that are within an organizations inventory boundary.

Greenhouse gas emissions are categorised into three groups or scopes by the most widelyused international accounting tool, the greenhouse gas ghg protocol. This document explains the methodologies and assumptions made for each scope 3 co 2 emissions category according to the ghg protocol. Calculation of emissions from upstream transportation and distribution were added in the scope 3 calculation. The guidance is intended to reduce, if not remove, the scope 3 reporting barrier and advance the sectors understanding of scope 3 emissions. Total scope 1 emissions and total scope 2 emissions scope 3 emissions reported separately by scope 3 category emissions data for co 2, ch 4, n 2o, hfcs, pfcs, sf 6 in tonnes of co 2 equivalent a list of scope 3 activities included in the report a list of scope 3 activities excluded from the report with justification of their.

Fifteen reporting categories of scope 3 emissions are defined under the ghg protocol. Scope 3 emissions calculation methodology 2019 bhp. Scope 2 emissions are indirect emissions from the generation of purchased energy. Guide to scope 3 reporting in commercial real estate. Scope 1 covers direct emissions from owned or controlled sources. They include direct emission focal points from energy generation facilities fuel consumption, emissions from nongeneration facilities storage of gas and sludge drying, emissions from ch 4 combustion generation, emissions from n 2 o, fugitive emissions of methane. Scope 1 emissions are direct emissions from owned or controlled sources.

To help companies prepare a true and fair scope 3 ghg inventory in a costeffective manner, through the use of standardized approaches and principles to help companies develop effective strategies for managing and reducing their scope 3 emissions through an understanding of value chain emissions and associated risks and opportunities. Ghg protocol scope 3 standard is the only internationally accepted method for. Many companies are motivated to set supplychain ghg emissions targets and report on their progress, using protocols and standards such as the greenhouse gas protocol scope 3 value chain standard henceforth the scope 3 standard and the science based targets initiative henceforth sbti. The ghg protocol is a widely used international standard for classifying greenhouse gas emissions. Scope 3 emissions are optional in the ghg protocol.

For further information on the calculation of scope 2 emissions, please see the ghg protocol scope 2 guidance wri, 2015. Upstream emissions of purchased fuels and electricity incl transmission and distribution losses. Other categories of scope 3 calculation were included to the calculation already in year 2017. It is designed to set the standard for accurate, complete, consistent, relevant and transparent accounting and reporting of ghg emissions by companies and organizations, including information on setting organizational and operational boundaries. For many companies, the indirect emissions caused by their business can far outweigh their direct emissions. The contributors to the ghg emissions include scope 1, 2, and 3 emissions 3. It defines emissions in three categories, known as scope 1, scope 2, and scope 3. 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. The scope 3 standard provides a methodology that can be used to account for and report emissions from companies of all sectors, globally. It includes fuel combustion, company vehicles and fugitive emissions.

Scope 3 emissions for our business are calculated using methodologies consistent with the ghg protocol corporate value chain scope 3 accounting and reporting standard scope 3 standard, and with reference to the additional guidance provided in the ghg protocol technical guidance for calculating scope 3 emissions scope 3 guidance. Information on any ghg sequestration or removals, reported separately from scope 1, scope 2 and scope 3 emissions information on projectbased ghg reductions calculated using the project method e. Ghg emission sources all known sources of scope 1 and 2 ghg emissions have been included in the banks ghg schedule. These are represented in figure 1 alongside scope 1 and scope 2 3, p. Scope 1 emissions are direct ghg emissions from sources owned or controlled by the company. Since the corporate standard was revised in 2004, business capabilities and needs in the field of ghg accounting and reporting have grown significantly. Scope 1 includes direct emissions from sources owned or controlled by the university and includes emissions from mobile combustion, stationary combustion, process emissions, and fugitive emissions. 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. It is accompanied by a suite of userfriendly guidance and tools developed by the ghg protocol to make scope 3 accounting more easy and accessible. As defined in the ghg protocol, scope 3 represents the indirect ghg emissions of a company from all sources excluding purchased energy, accounted for under scope 2. In calculating greenhouse gas emissions, the ghg protocol corporate standard classifies a companys ghg emissions into three scopes. Corporate value chain scope 3 standard ghg protocol.

In 2016, sanofis total scope 3 co 2 emissions amounted to 8,732,292 tco 2 e, representing 90% of its global co 2 emissions worldwide. Achieving scope 3 s intent of a full audit of value chain emissions ghg, however, is a much more complicated affair and according to the cdp, scope 3 is much less successful. The greenhouse gas protocol is recognized by the uk government as an independent standard for reporting greenhouse gases. The greenhouse gas protocol world resources institute. Technical guidance for calculating scope 3 emissions 43 catego 3 fuel and energyrelated activities not included in scope 1 or scope 2 figure 3. Scope 1 and scope 2 emissions come from owned or purchased assets that are directly involved in an organizations operations. Scope 1 covers all direct ghg emissions by a company. Scope 1 and 2 emissions from fuel and energy are material. For some organizations, ghg emissions from outside of the organization, or resulting from the use of their products, are much greater than their direct scope 1 ghg emissions or energy indirect scope 2 ghg emissions. Typically the majority of total emission come from scope 3 sources.

Developed simultaneously, the ghg protocol scope 3 standard and ghg protocol product standard take a value chain or life cycle approach to ghg accounting. Consists of 15 categories of scope 3 activities, both upstream and downstream. The ghg protocol s scope 1 and 2 have largely succeeded in gaining compliance from large firms to report their internal ghg emissions and those from electricity purchases. Scope 3 calculation was performed following the requirements of greenhouse gas protocol corporate value chain scope 3 accounting and. Indirect ghg emissions from consumption of purchased electricity, heat, steam and cooling for own use energy indirect. Ghg protocol corporate accounting and reporting standardthis document, which provides a stepbystep guide for companies to use in quantifying and reporting their ghg emissions ghg protocol project quantification standardforthcoming. Direct emissions come from sources that are owned or controlled by the company. Greenhouse gas protocol corporate value chain scope 3.

This guidance applies to all sectors whose operations include owned or leased mobile sources. Other indirect emissions, such as the extraction and production of. Of these only categories are of relevance for daimler and are calculated. Calculation of scope 3 emissions of ssab according to the ghg. Scope 2 emissions are indirect emissions from generation of purchased energy. Scope 3 emissions assessment and circular economy protocol development at ford motor company, cssseas ms project report expected april 2019. The ghg protocol initiative comprises two separate but linked standards. The greenhouse gas protocol divides emissions into 3 scopes. Mar 11, 2019 emissions from extraction, processing, delivery of fuels including fugitive emissions are. Ghg protocol initiative team janet ranganathan world resources institute. The ghg protocol corporate accounting and reporting standard helps companies and other organizations to identify, calculate, and report ghg emissions.