Greenhouse Gas Protocol Product & Supply Chain Initiative

Transcription

1 Greenhouse Gas Protocol Product & Supply Chain Initiative David Rich World Resources Institute RILA Meeting Arlington, 8 April 2010

2 Presentation Outline 1. Overview of the GHG Protocol Initiative 2. Overview of the new GHG Protocol Product & Supply Chain Initiative 3. How to Participate 2 2

3 Greenhouse Gas Protocol Initiative Convened in 1998 by WRI and WBCSD A multi-stakeholder partnership of businesses, NGOs, governments and others convened by WRI and WBCSD Mission: Develop internationally accepted GHG accounting and reporting standards and to promote their use worldwide 3

4 GHG Protocol Publications 4

5 GHG Protocol Corporate Standard The most widely used accounting tool for businesses to quantify, manage and report greenhouse gases Used by most of the S&P 500 Free standards and tools available at 5 5

6 Programs Based on GHG Protocol Carbon Disclosure Project The Climate Registry California Climate Action Registry U.S. EPA Climate Leaders Initiative Global Reporting Initiative World Wildlife Fund Climate Savers Dow Jones Sustainability Index EU Emissions Trading Scheme UK Emissions Trading System ISO Part 1 U.S. Department of Energy (1605b) Chicago Climate Exchange French REGES Protocol METI, Japan Mexico GHG Program Respect Europe Business Leaders Initiative for Climate Change (BLICC) International Trade Associations (Aluminum, IPIECA, ICFPA, Cement, Iron and Steel) World Economic Forum Global GHG Registry 6 6

7 New GHG Protocol Standards in Development Scope 3 (Value Chain) Accounting & Reporting Standard Quantify and report major GHG emissions in the value chain ( scope 3 ) at the corporate level Building on the GHG Protocol Corporate Standard Product Life Cycle Accounting & Reporting Standard Quantify and report life cycle GHG emissions at the product level Building on existing life cycle assessment methods 7 7

8 Need for New Standards Requests by stakeholders for disclosure of supply chain emissions and risk B2B requests for GHG information throughout the supply chain Inclusion of supply chain emissions in corporate GHG reduction goals Need for an internationally standardized approach to measuring and reporting emissions in the value chain 8 8

9 Business Uses of New Standards Identify and prioritize GHG reduction opportunities in the value chain Understand and mitigate risk in the value chain Engage partners to achieve GHG reductions throughout the value chain Establish baselines, set reduction targets and track performance Enable credible disclosure and reporting to stakeholders 9 9

10 Standard Development Process Independent, multistakeholder, open, and inclusive process WRI/WBCSD Secretariat Steering Committee (25 members) Participation from businesses, governments, NGOs, and academic institutions worldwide Product Technical Working Groups ( 100+ members) Scope 3 Technical Working Groups ( 60+ members) Over 1,500 stakeholders involved in this process Stakeholder Advisory Group (1,200+) Road Testing (70+ companies) Product Standard Scope 3 Standard 10

11 Timeline Date Activity November 2007 Survey and consultations to assess need for new standards Steering Committee Meeting #1 (Washington DC) September 2008 Technical Working Group Meeting #1 (London) January 2009 Working groups begin drafting March 2009 Steering Committee Meeting #2 (Geneva) June 2009 Technical Working Group Meeting #2 (Washington DC) August 2009 Stakeholder webinar and comment period October 2009 Steering Committee Meeting #3 (Washington DC) November - December 2009 First draft of standards released for stakeholder review 5 stakeholder workshops (in Berlin, Germany; Guangzhou, China; Beijing, China; London, UK; Washington, DC, USA) Stakeholder comment period on first drafts January - June 2010 Road testing by over 70 companies September 2010 Public comment period on second drafts December 2010 Publication of final standards 11

12 Accounting for Corporate Emissions Scope 1 emissions = All direct emissions, i.e. owned or controlled by your company Scope 2 emissions = Indirect emissions from use of electricity, steam, heating and cooling Scope 3 emissions = All other indirect emissions upstream & downstream of a company, e.g. production of purchased goods & services; thirdparty transportation; use and disposal of a company s products; etc

13 Upstream: Cradle to Gate emissions of purchased products Purchase Emissions from the company s operations Sale Downstream: Gate to Grave emissions from sold products Tier 1 Suppliers Raw Materials Product Distribution Cradle Energy Capital Equipment Transportation Waste Services Reporting Company Product Use Product Disposal Grave Scope 2 and 3 Upstream Gate Scope 1 Gate Scope 3 Downstream

14 Scope 3: Steps in Accounting & Reporting Steps in 3 Accounting and Reporting Define Business Goals Map the Value Chain Set the Boundary Collect Data Calculate Emissions Report Emissions 14 14

15 Key Issues and Challenges Boundaries What do you include / exclude in your inventory? Data When should you collect actual data from suppliers? When should you use generic industryaverage data? Allocation How do you allocate emissions between multiple suppliers, products, and customers? Downstream Emissions When should you account for downstream emissions (product transport, use & disposal)? Reporting How should emissions be reported? 15 15

16 Illustrative GHG Reporting Form Measured Modeled Total Uncertainty Scope 1: Direct Emissions from Owned/Controlled Operations Scope 2: Indirect Emissions from the Use of Purchased Electricity, Steam, Heating & Cooling Scope 3: Other Indirect Emissions a. Indirect Emissions from Purchased Products (Upstream) 1. Supply Chain Direct Supplier Emissions 2. Supply Chain Cradle-to-Gate Emissions 3. Capital Equipment 4. Energy-Related Emissions (Not Included in Scope 2) 5. Disposal of Waste Generated in Operations 6. Business Travel 7. Transportation & Distribution of Purchased Materials 8. Investments, Franchises & Leased Assets (Not Included in Scope 1 or 2) 9. Other b. Indirect Emissions from Sold Products (Downstream) 1. Distribution of Sold Products 2. Use of Sold Products 3. Disposal of Sold Products at the End of Life 4. Other c. Other Scope 3 Emissions 1. Employee Commuting 2. Other CO 2 from Biomass Combustion 16

17 GHG Protocol Product Life Cycle Standard 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 Raw Material Acquisition Production Distribution & Retail Use End of Life Includes all stages of the life cycle, from cradle to grave 17

18 Road Testing Over 70 companies are road testing the draft standards Representing more than 20 industry sectors and 17 countries Objective: provide realworld feedback to ensure the standards can be practically implemented by companies from all sectors, sizes, and geographic regions 18 18

19 Sample of Road Testing Companies 19 19

20 How to Participate Provide feedback on next drafts of standards in September 2010 (before finalization in December 2010) For more information and to download free standards & tools: Contact: David Rich World Resources Institute Phone:

21 Thank You 21 21