Guidelines on Disclosure of CO 2 Emissions from Transportation & Distribution

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1 Gudelnes on Dsclosure of CO 2 Emssons from Transportaton & Dstrbuton Polcy Research Insttute for Land, Infrastructure and Transport June 2012

2 Contents 1. Introducton Purpose and concept Canddate company Contents Identfyng calculaton scope of CO 2 emssons How to advance calculaton of CO 2 emssons Calculaton tool for CO 2 Emssons from Transportaton & Dstrbuton Purpose Outlne of tool

3 1. Introducton 1.1 Purpose and concept Japanese companes wth global busness operatons have a responsblty to dentfy and dsclose volumes of CO 2 emtted throughout ther supply chans, ncludng overseas emssons, and to respond to requests for such nformaton from nvestors and other nterested partes. These gudelnes provde corporate groups wshng to voluntarly release such nformaton wth a standard methodology for calculatng and dsclosng consoldated data on CO 2 emssons from nternatonal transportaton & dstrbuton actvtes and nternal transportaton & dstrbuton wthn foregn countres. Compared to assessng CO 2 emssons from domestc transportaton & dstrbuton, there are a number of constrants on dentfyng CO 2 emssons from nternatonal transportaton & dstrbuton and transportaton & dstrbuton wthn foregn countres. Respectng companes autonomy, we have provded them wth a smple methodology for calculatng such emssons by, as far as possble, complng and presentng useful emsson factors and calculaton methods. Identfyng and managng quanttatve CO 2 emssons data on an ongong bass, ncludng emssons from nternatonal transportaton & dstrbuton and transportaton & dstrbuton wthn foregn countres, wll help to accelerate companes efforts to reduce ther CO 2 emssons. Makng companes efforts to dentfy CO 2 emssons to encompass ther supply chans vsble to thrd partes. 1.2 Canddate company Although the man canddate company supposng practcal use of ths gudelnes s a "specfc shpper" company n the revsed energy savng law n Japan, t expects the practcal use of a company n varous types of ndustry whch are not concerned wth a specfc shpper but actve conduct of busness s globalzng. -3 -

4 2. Contents 2.1 Identfyng calculaton scope of CO 2 emssons (1)Calculaton scope on supply chan Identfcaton of CO 2 emssons n the transportaton & dstrbuton supply chan s dvded nto the sx categores below, based on regonal dvsons and GHG Protocol Scope 3 standards, usng your own company as the central pont. Overseas Overseas Domestc Overseas /Domestc Wthn country Internatonal Own company Internatonal Wthn country Category No. v v v GHG Protocol category Upstream Scope 3 (to own company) Downstream Scope 3 (from own company) : Transportaton & dstrbuton wthn foregn countres n the course of procurement : Internatonal transportaton & dstrbuton n the course of procurement : Domestc transportaton & dstrbuton n the course of procurement v: Domestc transportaton & dstrbuton n the course of sales v: Internatonal transportaton & dstrbuton n the course of sales v: Transportaton & dstrbuton wthn foregn countres n the course of sales (2)Calculaton scope on cargo ownershp In expandng the scope of data to be dentfed and dsclosed to cover the entre supply chan, companes should take a broad nterpretaton and count any goods they control, regardless of whether they own such goods. Companes should dentfy transportaton & dstrbuton exceed the range of ther corporate groups, such as procurement from supplers, and sales to end users from sales store. (3)Calculaton scope on corporate group For the purposes of calculatng and dsclosng CO 2 emssons, the scope of the corporate group should be the same as that used for consoldated fnancal statements; n prncple, emssons by the parent company, subsdares and afflates should all be dsclosed. However, allowance should be made for excludng subsdares or afflates of mnmal mportance n terms of CO 2 emssons. Conversely, companes wth sgnfcant CO 2 emssons from transportaton & dstrbuton should be ncluded n calculatons even f they are not mportant from a fnancal accountng perspectve. -4 -

5 2.2 How to advance calculaton of CO 2 emssons (1)Calculaton methods There are 3 methods to calculate CO 2 emssons from transportaton & dstrbuton. Fuel method Fuel consumpton method Ton-km method Calculaton method Calculate CO 2 emssons from volume of fuel used (CO 2 emssons = volume of fuel used x CO 2 emsson factor) Calculate CO 2 emssons from transport dstance and fuel consumpton (CO 2 emssons = transport dstance/fuel consumpton x CO 2 emsson factor) Calculate CO 2 emssons from cargo volume and ton-km CO 2 emsson factor (CO 2 emssons = cargo volume x ton-km CO 2 emsson factor) Data used Actual volume of fuel used Actual fuel consumpton (ncludng samplng surveys) Estmate of fuel consumpton (ncludng estmates prepared by local agences and estmates prepared for other regons) Transport dstance Emsson factor based on actual fgures obtaned from transport operator Average of emsson factors for each regonal/transport agency Substtuton by emsson factor set for other regon Emsson factor subdvded for transport stuaton(improved ton-km method) Sngle emsson factor (Conventonal ton-km method) Hgh-level Work load Accuracy Transport dstance Low-level (2)Procedure of how to advance calculaton of CO 2 emssons In consderaton of accuracy, frst consder dentfyng emssons by the fuel method, and then by the fuel consumpton method. If t s dffcult to obtan the data needed for these methods, the ton-km method should be used for calculatons. When usng the fuel consumpton method and the ton-km method, t s deal to use actual transportaton dstance and emsson factors of ton-km method. However, when t s dffcult, they can be assumed by usng the dstance data and emsson factors of followng chapters. -5 -

6 (3) How to get the nformaton for calculaton a)dstance Data Internatonal ar freght Arlne webstes showng the number of mles between arports can be used to determne the dstance between two ar transport ponts. Snce ths mleage data generally conforms to Tcket Pont Mleage (TPM) data publshed each year by the Internatonal Ar Transport Assocaton (IATA), there s almost no dfference between arlnes. The Internatonal Cvl Avaton Organzaton (ICAO) Carbon Emssons Calculator also dsplays dstance between two ponts on the results screen (see below). Another smple dstance calculaton tool s Flyng dstances between 325 major arports n the world, provded free of charge on webste. -6 -

7 Internatonal sea freght There are free tool for calculatng dstances between ports for nternatonal sea freght on web sghts( Ports.com : Sea route & dstance Dataloy : Dataloy Dstance Table Sea-Rates.com : Port to port dstances ). Select departure and arrval ports to calculate the dstance between two ponts (see below). Transportaton & dstrbuton wthn foregn countres Free tool such as Google Maps and other web servces can be used to search road transport routes n many countres(see below). b)emsson factors of ton-km method About emsson factors of ton-km method, t s decded n varous forms regardless of organzatons, and systems. About offcal announcement values, such as a government agency and a research nsttuton, the lst s publshed to Calculaton tool for CO 2 Emssons from Transportaton & Dstrbuton (MS Excel). -7 -

8 3. Calculaton tool for CO 2 Emssons from Transportaton & Dstrbuton 3.1 Purpose Smple methods have been used to create calculaton tool for CO 2 emssons n order to support the dentfcaton and dsclosure of CO 2 emssons from transportaton & dstrbuton on nternatonal routes and wthn foregn countres. The tool has been desgned on the bass of these gudelnes and ncorporates exstng calculaton methods, emsson factors, and dstance data to provde convenent calculaton mechansms for companes n accordance wth the level of transportaton & dstrbuton data they have avalable. 3.2 Outlne of tool The tool conssts of sx sheets. Calculaton table Detals lst Dstance table Non_protected_sheet emsson factors lst Total table. Input & selecton result n the Calculaton table sheet s reflected n the Total table sheet, and the amount of emsson s calculated. Also, t s possble to change a setup of the transportaton secton, transportaton dstance, and the ton-km method emsson factors by settng change of Calculaton table Detals lst Dstance table sheet accordng to the stuaton of each user's physcal dstrbuton. (1) Explanaton of the functon n each sheet a)calculaton table Calculatons usng the conventonal ton-km method form the bass of ts desgn. When cargo weghts are entered and transportaton methods and sectors (departure and arrval ponts) are selected from the pull-down menus, transportaton dstance and CO 2 emsson factors are nserted automatcally to calculate the volume of CO 2 emssons. If you wsh to nsert your own fgures for transportaton dstances and CO 2 emsson factors, you may enter these drectly nto the calculaton. Whle the conventonal ton-km method forms the bass of calculatons, the system s desgned to enable calculatons usng the mproved ton-km method, the fuel method, and the fuel consumpton method, and to prortze calculaton results obtaned from each of these methods (prorty s gven to the most precse fgures). -8 -

9 Company name Polcy Research Insttute for Land, Infrastructure and Transport Enter data Select from pull-down menu Automatc calculaton Catego ry Transport method Select one Contaner vessel Asan route Contaner vessel Asan route Contaner vessel Asan route Contaner vessel Asan route Contaner vessel Asan route Contaner vessel Asan route Road transport n Road transport n Road transport n Road transport n Road transport n Road transport n Road transport n Conventonal ton-km method Improved ton-km method Fuel consumpton method Fuel method Cargo No. of Departure Departure Arrval Arrval Dstance Dstance Emsson Emsson Max. load Max. Load Emsson Fuel type Fuel Porton of Fuel type Amount of Porton of CO 2 weght contaners pont pont pont pont (km) (km) factor factor (kg) load factor factor cargo cargo (gasolne, consumpton (gasolne, fuel used controlled by controlled by emssons (tons) (TEU) (regon) (detals) (regon) (detals) (g-co 2 /tkm) (g-co 2 /tkm) (kg) (%) (g-co 2 /tkm) desel, type (km/l) your desel, type (lters) your (t-co 2 ) Enter data n ether Select one column Select one Automatc calculaton Selfentry Automatc calculaton Enter data Enter data Enter data Automatc calculaton A fuel ol, etc.) company (%) A fuel ol, etc.) company (%) Automatc calculaton 100 Eastern No Japan No 1, selecton selecton 100 Eastern Shangha Japan Kobe 1, Eastern Shangha Japan Kobe 1, Eastern Shangha Japan Kobe 1,450 1, Eastern Shangha Japan Kobe 1,450 0 Type % 3.2 B/C fuel ol 100 Eastern Shangha Japan Kobe 1,450 0 Type 20,000 6% 3.6 B/C fuel ol 2 Northern No Northern No selecton selecton 2 Northern Qngdao Northern Tanjn Northern Qngdao Northern Tanjn Northern Qngdao Northern Tanjn Desel 80% ,000 7,999 2 Northern Qngdao Northern Tanjn ,000 75% Northern Qngdao Northern Tanjn Desel 2 75% Northern Qngdao Northern Tanjn Desel %

10 1 Enter detals common to all calculaton methods Select transport method (requred) Enter amount of cargo (one feld requred) Select regon (requred) Select ar/sea port or cty n chosen regon (optonal) As for departure pont ( regon s requred, detals are optonal) Select from pull-down menu Select from pull-down menu Select from pull-down menu Select from pull-down menu Select from pull-down menu Transport dstance s dsplayed accordng to the transport method and departure/arrval regon selected Own dstance data can be entered f avalable 2Enter/select data specfc to each separate calculaton method Emsson factor s dsplayed accordng to method of transport selected n (1) Own emsson factor data can be entered f avalable Emsson factor wll not be dsplayed f entres are made for other calculaton Used for road transport only Emsson factor dsplayed accordng to maxmum load selected/entered for vehcle and load factor specfed

11 Fuel consumpton method: automatcally calculates by fuel consumpton method when fuel type s selected and fuel consumpton and porton of cargo controlled by your company are entered Fuel method: automatcally calculates by fuel method when fuel type s selected and amount of fuel used and porton of cargo controlled by your company are entered 3CO 2 emssons are calculated on the bass of data entered n (1) and (2). Automatc calculaton based on data entered/selected n (1) and (2). Calculated usng the conventonal ton-km method as the default, but other calculaton methods wll be prortzed f data s entered n the relevant columns. Desgned so that calculaton results wll appear f data s entered or selected n the requred felds as a mnmum. The ton-km method emsson factors accordng to transport method are dsplayed

12 b) Detals lst The pull-down lst of Calculaton table sheet s set up by ths sheet. It wll be reflected n a pull-down lst f a setup n each Transport method and Regon s changed. c) Dstance table The dstance between 2 ponts s set up for each transport method. The dstance between 2 ponts s dsplayed n pull-down lst of Calculaton table. d) Non_protected_sheet It s necessary to operate the functon of 名前の管理 on ths sheet at the tme of settng change. The procedure of settng change s shown n the sheet

13 e) Emsson factors lst Emsson factors whch varous organzatons have released are publshed. Emsson factor s shown accordng to every countres and every transport method. Transport method s classfed nto Shp, Ar, Ral, Vehcles by Mode, and s classfed n detal for every transport method by Detals1, 2. Emsson factor s classfed by target Green House Gas (GHG) and target emsson process (see below). TTW (Tank To Wheel): The emsson process at the tme of fuel use. WTW (Well To Wheel): The emsson process ncludng from supply of fuel to combuston. CO2 : Only CO 2 emsson factor GHG : Emsson factor ncludng GHG(s) other than CO 2 f) Total table The calculaton result on Calculaton Table sheet s totaled and dsplayed for each transportaton & dstrbuton supply chan(ⅰ~ⅵ)

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