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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.

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Corporate emissions inventory module a guide to corporate accounting and reporting standards

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


Corporate emissions inventory module a guide to corporate accounting and reporting standards

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

Setting the scene


Corporate emissions inventory module a guide to corporate accounting and reporting standards

Multi – Stakeholder Process

Builds on Existing Approaches

  • GHG Protocol

  • Standard

  • Corporate module

  • Project module

Adoption and Continuous Improvement

Building a Credible Standard


Corporate emissions inventory module a guide to corporate accounting and reporting standards

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

Climate initiatives using GHG Protocol


Corporate emissions inventory module a guide to corporate accounting and reporting standards

Calculation tools

Standards, Guidance and Calculation Tools

GHG Protocol Standards and Guidance

2nd edition to be published in September

Web-based, user-friendly, step-by-step guidance


Corporate emissions inventory module a guide to corporate accounting and reporting standards

Standards and Guidance: Table of Contents

  • Identifying and Calculating GHG emissions

  • Managing inventory quality 

  • Reporting GHG emissions

  • Verification

  • ----

  • Possibly new Appendix: rough overview of issues in accounting for carbon stocks

  • Business Goals

  • Accounting Principles

  • Organizational Boundaries

  • Operational Boundaries

  • GHG Reductions and Offsets

  • Tracking Emissions Over Time (formerly “Setting a Historic Performance Datum”)

  • New Chapter: Voluntary GHG Targets


Corporate emissions inventory module a guide to corporate accounting and reporting standards

Standards

  • Accounting emissions from subsidiaries, JVs, etc.

  • Based on financial accounting practices

Principles

Organizational Boundaries

Operational boundaries

Historic Datum

Reporting GHG emissions


Corporate emissions inventory module a guide to corporate accounting and reporting standards

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


Corporate emissions inventory module a guide to corporate accounting and reporting standards

Standards

  • 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)

Principles

Organisational Boundaries Operational boundaries

Historic Performance Datum

Reporting GHG emissions

Selection of scope/s depends on objectives of inventory (e.g. internal risk management vs. trading markets).


Corporate emissions inventory module a guide to corporate accounting and reporting standards

Producing the 2nd EditionSetting Operational Boundaries – Scope 2

  • 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


Corporate emissions inventory module a guide to corporate accounting and reporting standards

Producing the 2nd EditionSetting Operational Boundaries – Scope 2

Own use

Scope 2

Indirect emissions from Own Use of Purchased Electricity

Purchased Electricity

Scope 3

Indirect emissions from Purchased Electricity resold to end user

Resold to end-user

Supplementary Information

Emissions from Purchased Electricity resold to non end user

Resold to intermediary


Corporate emissions inventory module a guide to corporate accounting and reporting standards

Producing the 2nd EditionNew Guidance chapter: Voluntary GHG targets

  • Why set a GHG target?

  • Steps in setting and reporting progress towards a GHG target

    • Obtain senior management commitment

    • Choose the target type (absolute vs. intensity)

    • Decide on the target boundaries

    • Decide on the use of external offsets

    • Choose a type of base year (fixed vs. rolling base year)

    • Decide on the level of reduction

    • Tracking GHG performance against target


Corporate emissions inventory module a guide to corporate accounting and reporting standards

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


Corporate emissions inventory module a guide to corporate accounting and reporting standards

Calculation Tools: new developments

  • 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


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