👍 This article will help you:
Understand the various scopes and categories of carbon accounting
Understand data types associated with each emissions category
Learn best practices for data collection
Emissions reporting is a critical tool for sustainability professionals to understand and manage the greenhouse gas (GHG) emissions of their organizations. By accurately and transparently reporting on GHG emissions, organizations can track their progress toward reducing emissions and mitigating climate change. The GHG Protocol is a widely recognized guide for consistently and transparently reporting GHG emissions and provides a standardized approach for quantifying and reporting emissions in three scopes: direct emissions (Scope 1), indirect emissions from the generation of purchased electricity, heat, or steam (Scope 2), and other indirect emissions (Scope 3). The Protocol also includes a fourth scope for emissions from the consumption of purchased goods and services. By following the guidelines of the GHG Protocol, sustainability professionals can accurately report on their organization's GHG emissions, and identify opportunities to reduce emissions and transition to a low-carbon future.
Atrius Sustainability provides emissions factors for all emissions scope categories as well as the automation of the calculation.
Scope 1: Direct GHG emissions from sources that are owned or controlled by the reporting company.
1. Scope 1, Category 1: Stationary combustion:
This category includes emissions from the combustion of fossil fuels such as coal, natural gas, and oil in stationary sources, such as power plants and industrial facilities.
Data sources: boilers, heaters, furnaces, kilns, ovens, flares, thermal oxidizers, dryers, and any other equipment or machinery that combusts carbon bearing fuels or waste stream materials.
Data collection:
Use meters or other monitoring equipment to measure fuel consumption and calculate emissions
Use fuel purchase records to verify the quantity of fuel consumed
Use emission factors from recognized sources, such as the EPA, to convert fuel consumption to emissions
Consider the quality of the fuel being used, as this can affect the emission factors applied
Regularly calibrate and maintain monitoring equipment to ensure accuracy
2. Scope 1, Category 2: Mobile combustion:
This category includes emissions from the combustion of fossil fuels in mobile sources, such as cars, trucks, and airplanes.
Data sources: combustion of fuels in different types of mobile equipment, as well as hydrofluorocarbon (HFC) and perfluorocarbon (PFC) emissions from mobile air conditioning and transport refrigeration leaks.
Data collection:
Use fuel purchase records or fuel inventory records to track the quantity of fuel consumed
Use odometer readings or GPS data to track the distance traveled by each vehicle
Use emission factors from recognized sources, such as the EPA, to convert fuel consumption to emissions
Consider the type of fuel being used and the emission control technology of the vehicles
Regularly update records to reflect changes in vehicle fleet composition or fuel use
Note:
According to the Greenhouse Gas Protocol, stationary combustion refers to emissions from the burning of fossil fuels in stationary sources, such as power plants, industrial facilities, and buildings. Mobile combustion refers to emissions from the burning of fossil fuels in mobile sources, such as vehicles.
To differentiate between stationary and mobile combustion, an organization can consider the location and function of the source of the emissions. If the source is stationary and primarily used for heating, electricity generation, or industrial processes, it is likely classified as stationary combustion. If the source is mobile and used for transportation, it is likely classified as mobile combustion.
It's also worth noting that the Greenhouse Gas Protocol specifies additional criteria for determining whether a source is considered stationary or mobile. For example, emissions from on-road vehicles are generally considered mobile, while emissions from off-road vehicles (such as construction equipment or farm machinery) may be considered either stationary or mobile depending on the circumstances.
3. Scope 1, Category 3: Fugitive emissions:
These are emissions that are unintentionally released from a process, storage, or transportation. Examples include emissions from leaking equipment and venting of gases.
Data sources: emissions from refrigeration systems, emissions from livestock operations.
Data collection:
Use monitoring equipment to measure emissions directly, if possible
Use engineering estimates or emission factors from recognized sources, such as the EPA, to estimate emissions if direct measurement is not possible
Regularly inspect equipment and infrastructure for leaks or other sources of fugitive emissions
Implement preventative maintenance practices to minimize the risk of leaks or other unintended releases
Consider the type and quantity of materials being stored or transported, as this can affect the potential for fugitive emissions
Reporting Scope 1 emissions (best practices):
Use standardized reporting protocols, such as the GHG Protocol or the ISO 14064 standard, to ensure consistent and comparable reporting
Use accurate and up-to-date emission factors from recognized sources, such as the EPA, to convert fuel consumption to emissions
Consider the quality of the fuel being used and any emission credits or offsets that may be applicable
Consider the type of fuel being used and the emission control technology of the vehicles
Document and retain records of fuel consumption, emission factors, and any emission credits or offsets applied
Use quality assurance and quality control measures to ensure the accuracy and completeness of the emissions data
A carbon accounting software can automate the process of collecting and organizing data on fuel consumption, emission factors, and emission credits or offsets, and use this information to calculate emissions in a consistent and transparent manner.
Scope 2: Indirect GHG emissions from the generation of electricity, heat, or steam that is purchased by the reporting company.
1. Scope 2, Category 1: Purchased electricity location-based:
This category includes emissions from the generation of electricity that is purchased by the reporting company and delivered to the company's facilities. Emissions are allocated to the location where the electricity is consumed.
Data collection: Keep records of electricity purchase agreements, meter readings, and utility bills.
2. Scope 2, Category 2: Purchased electricity market-based:
This category includes emissions from the generation of electricity that is purchased by the reporting company and delivered to the company's facilities. Emissions are allocated to the location where the electricity is generated, rather than the location where it is consumed.
Note:
The choice between location-based and market-based emissions depends on the company's goals and objectives. Some companies may prefer to use location-based emissions to better reflect the impact of their electricity consumption on local air quality, while others may prefer market-based emissions to better understand the GHG emissions associated with their electricity supply chain
3. Scope 2, Category 3: Purchased heat, steam, and cooling:
This category includes emissions from the generation of heat, steam, and cooling that is purchased by the reporting company and delivered to the company's facilities.
Data collection: Measure the fuel consumption of boilers and other equipment used to generate steam, heat, or cooling.
Reporting on Scope 2 emissions (best practices):
Clearly define which activities are included in the scope 2 emissions report and which are not.
Prioritize the sources of scope 2 emissions based on their relative importance and focus on collecting data for the most significant sources.
Use consistent and transparent methodologies to estimate and report on scope 2 emissions. This will ensure that the emissions data is accurate and can be compared to other companies' data.
Use reliable sources to obtain data on scope 2 emissions, such as utility bills or electricity purchase agreements.
Use consistent reporting periods, such as a calendar year, to ensure that the emissions data is comparable over time.
Clearly communicate any limitations or uncertainties in the scope 2 emissions data, such as assumptions that were made or data that was unavailable.
Set reduction targets for scope 2 emissions and track progress towards meeting these targets over time.
Evaluate opportunities to increase energy efficiency and reduce scope 2 emissions, such as investing in energy-efficient equipment or implementing energy-saving practices.
Use the most appropriate emissions factors to estimate scope 2 emissions, such as those provided by the GHG Protocol or the EPA.
Consider the type of electricity purchase agreement when estimating scope 2 emissions. For example, if the company has a renewable energy purchase agreement, the emissions associated with the electricity may be different than if the company purchases electricity from the grid.
Scope 3: Other indirect GHG emissions that occur in the value chain of the reporting company, but are not included in Scope 2. This includes emissions from the use of the company's products, emissions from business travel, and emissions from waste generated in the company's operations.
1. Scope 3, Category 1: Purchased goods and services
Emissions from the production of goods and services purchased by the reporting company.
Data sources: emissions from the production of office supplies, emissions from the production of electricity.
Data collection: Estimate GHG emissions from purchased goods and services based on their lifecycle, including production, transportation, use, and disposal.
2. Scope 3, Category 2: Capital goods
Emissions from the production of capital goods, such as buildings and machinery, that are purchased by the reporting company.
Data sources: emissions from the production of company-owned buildings, emissions from the production of company-owned machinery.
Data collection: Estimate GHG emissions from capital goods based on their lifecycle, including production, transportation, use, and disposal.
3. Scope 3, Category 3: Fuel- and energy-related activities not included in Scope 1 or Scope 2
Emissions from fuel- and energy-related activities not covered by Scope 1 or Scope 2.
Data sources: emissions from the production of fuel used by the company, emissions from the production of electricity used by the company.
Data collection: Estimate GHG emissions from fuel- and energy-related activities based on their lifecycle, including production, transportation, use, and disposal.
4. Scope 3, Category 4: Upstream transportation and distribution:
Emissions from the transportation of raw materials to the reporting company.
Data sources: emissions from the transportation of raw materials by truck, train, or ship.
Data collection: Obtain data on the distance and mode of transport for the transportation of raw materials.
5. Scope 3, Category 5: Waste generated in operations:
Emissions from the waste generated in the reporting company's operations.
Data sources: emissions from waste incineration, emissions from landfills.
Data collection: Keep records of the types and quantities of waste generated and how it is disposed.
6. Scope 3, Category 6: Business travel
Emissions from business travel undertaken by the reporting company.
Data sources: emissions from air travel, emissions from car travel.
Data collection: Keep records of business travel, including mode of transport, distance traveled, and number of passengers.
7. Scope 3, Category 7: Employee commuting
Emissions from the commuting of the reporting company's employees.
Data sources: emissions from employee commuting by car, emissions from employee commuting by public transportation.
Data collection: Keep records of employee commuting, including mode and distance.
8. Scope 3, Category 8: Upstream leased assets
Emissions from leased assets used in the production of goods and services sold by the reporting company.
Data sources: emissions from leased equipment used in the production of goods, emissions from leased buildings used in the production of goods.
Data collection: Obtain data on the GHG emissions of leased assets from the asset owner.
9. Scope 3, Category 9: Downstream transportation and distribution
Emissions from the transportation of finished products from the reporting company to the point of sale.
Data sources: emissions from the transportation of finished products by truck, train, or ship.
Data collection: Obtain data on the distance and mode of transport for the transportation of finished products.
10. Scope 3, Category 10: Processing of sold products
Emissions from the processing of sold products by the reporting company.
Data sources: emissions from the processing of food products, emissions from the processing of chemicals.
Data collection: Monitor and record process-related emissions using continuous emission monitoring systems.
11. Scope 3, Category 11: Use of sold products:
Emissions that result from the use of the company's products by customers.
Data sources: emissions from the use of a company's appliances, emissions from the use of a company's vehicles.
Data collection: Estimate the GHG emissions that result from the use of the company's products based on their lifecycle, including production, transportation
12. Scope 3, Category 12: End-of-life treatment of sold products
Emissions from the disposal of the company's products at the end of their lifecycle.
Data sources: emissions from the disposal of a company's products in a landfill, emissions from the recycling of a company's products.
Data collection: Keep records of the disposal of the company's products, including how they are disposed and where they are disposed.
13. Scope 3, Category 13: Downstream leased assets
Emissions from leased assets used by the end user of the company's products.
Data sources: emissions from leased vehicles used by customers, emissions from leased office equipment used by customers.
Data collection: Obtain data on the GHG emissions of leased assets from the asset owner.
14. Scope 3, Category 14: Franchises
Emissions from franchised operations that are not directly owned by the reporting company.
Data sources: emissions from franchised restaurants, emissions from franchised retail stores.
Data collection: Obtain GHG emissions data from franchised operations.
15. Scope 3, Category 15: Investments
Emissions from investments made by the reporting company in other companies.
Data sources: emissions from a company's investments in a coal-fired power plant, emissions from a company's investments in a wind farm.
Data collection: Obtain GHG emissions data from invested companies.
Reporting Scope 3 emissions (best practices):
Consider the full range of activities: Scope 3 emissions include a wide range of activities that are not covered by scope 1 and 2 emissions, such as the emissions from the use of a company's products by customers and the emissions from the supply chain of the reporting company.
Engage with stakeholders: Scope 3 emissions often involve interactions with external stakeholders, such as suppliers, customers, and business partners. Engaging with these stakeholders can help to better understand and address scope 3 emissions.
Use appropriate data collection and reporting tools: Scope 3 emissions can be complex and may involve a large number of data sources. Using appropriate data collection and reporting tools, such as carbon accounting software, can help to streamline the data collection and reporting process.
Consider the full lifecycle of products and services: When estimating scope 3 emissions, it is important to consider the full lifecycle of products and services, including the emissions from raw material extraction, transportation, and end-of-life disposal.
Automate emissions reporting by using a carbon accounting platform to integrate with existing systems, such as energy management or accounting software, to streamline data collection and reduce the risk of errors.
Scope 4: GHG emissions from the consumption of purchased goods and services, not included in Scope 1, 2 or 3.
Scope 4 emissions, also known as "other indirect emissions," are emissions that are not directly or indirectly caused by the activities of the reporting company, but are a result of the use of the company's products or services by the end user. These emissions are considered to be outside of the control of the reporting company and are typically more difficult to quantify than Scopes 1-3 emissions.
Scope 4 emissions were added to the GHG Protocol in 2017, with the release of the GHG Protocol Corporate Standard - Scope 4: Other Indirect Emissions. Companies are not required to report on Scope 4 emissions, but they may choose to do so voluntarily as a way to better understand and address their indirect GHG emissions. Reporting on Scope 4 emissions can also help companies to identify opportunities to reduce their indirect emissions and to set reduction targets for these emissions.
Emissions reporting an important business practice, as it helps organizations to understand and quantify their GHG emissions and to identify opportunities to reduce these emissions. By establishing clear reporting boundaries, using consistent and transparent methodologies, and obtaining data from reliable sources, organizations can gain confidence in their emissions reporting and be better equipped to set and achieve emissions reduction targets. Regular review and update of emissions data, as well as monitoring and tracking progress towards emissions reduction goals, can also help organizations to continuously improve their carbon accounting practices. By following best practices for emissions reporting, organizations can gain a deeper understanding of their GHG emissions and take meaningful action to reduce their impact on the environment
References:
1. Greenhouse Gas Protocol. (n.d.). Corporate accounting and reporting standard. Retrieved from https://www.ghgprotocol.org/standards/corporate-standard
2. ISO. (2006). ISO 14064-1:2006 - Greenhouse gases - Part 1: Specification with guidance at the organization level for quantification and reporting of greenhouse gas emissions and removals. Retrieved from https://www.iso.org/standard/32553.html
3. US Environmental Protection Agency. (n.d.). Emission factors. Retrieved from https://www.epa.gov/energy/emission-factors