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Greenhouse Gas Protocol Product & Supply Chain Initiative

David Rich World Resources Institute. US Climate Partnership Association 23 June 2010. Greenhouse Gas Protocol Product & Supply Chain Initiative. Greenhouse Gas Protocol Initiative. Convened in 1998 by A multi-stakeholder partnership of businesses, NGOs, governments and others

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Greenhouse Gas Protocol Product & Supply Chain Initiative

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  1. David Rich World Resources Institute US Climate Partnership Association 23 June 2010 Greenhouse Gas Protocol Product & Supply Chain Initiative

  2. Greenhouse Gas Protocol Initiative • Convened in 1998 by • A multi-stakeholder partnership of businesses, NGOs, governments and others • Mission: Develop internationally accepted GHG accounting and reporting standards and to promote their use worldwide

  3. GHG Protocol Publications

  4. GHG Protocol Corporate Standard • The most widely used accounting tool for businesses to quantify, manage and report greenhouse gases • Used by majority of the S&P 500 • Free standards and tools available at www.GHGProtocol.org

  5. Accounting for Corporate Emissions

  6. Need for New Standards • Need for an internationally standardized approach to measuring and reporting emissions in the value chain • Corporate supply chain GHG management initiatives • Requests for GHG data by business customers, investors & other stakeholders • Inclusion of supply chain emissions in reporting & GHG reduction goals

  7. New GHG Protocol Standards in Development

  8. Standard Development Process WRI/WBCSD Secretariat • Independent, multi-stakeholder, open, inclusive process • Participation from businesses, governments, NGOs, and academic institutions worldwide • Over 1,000 stakeholders involved Steering Committee (25 members) Product Technical Working Groups ( 100+ members) Scope 3 Technical Working Groups ( 60+ members) Stakeholder Advisory Group (1,200+) Road Testing (70+ companies) Product Standard Scope 3 Standard

  9. Timeline 9

  10. Business Uses of New Standards

  11. Purpose: To quantify and report product-level emissions Applicable to all types of goods and services The overarching method for accounting for product GHG emissions is a life cycle approach Includes all stages of the life cycle, from cradle to grave GHG Protocol Product Life Cycle Standard

  12. Steps in Accounting & Reporting Steps in Scope 3 Accounting and Reporting

  13. GHG Protocol Scope 3 Standard 13

  14. Emissions from the Company’s Operations Emissions from Purchased Products Emissions From Sold Products Purchase Sale VALUE CHAIN Direct Suppliers Reporting Company Raw Materials Product Distribution Energy Product Use Capital Equipment Product Disposal Transportation Grave Cradle Waste Services Gate Gate Scope 2 and 3 Upstream Scope 3 Downstream Scope 1

  15. Key Issues

  16. Over 70 companies are road testing the draft standards More than 20 sectors and 17 countries Purpose: Ensure standards can be practically implemented Road Testing

  17. Sample of Road Testing Companies

  18. How to Participate • Provide feedback on draft standards in September • For more information and to download free standards & tools: www.GHGProtocol.org • Contact: David Rich World Resources Institute Phone: +1-202-729-7744 E-mail: drich@wri.org

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