Scope 1 Company vehicle emissions refer to a wide variety of company-owned or operated vehicles, engines and equipment that generate GHG emissions through the combustion of various fuels while moving from one location to another. They include vehicles used on roads for the transportation of employees, distribution trucks as well as off-road vehicles, engines and equipment used for various other purposes.
Typically, these will be cars, vans, trucks and motorcycles powered by petrol or diesel engines. However, the landscape of transportation is changing. Alternative fuels, such as liquid petroleum gas (LPG) and liquefied natural gas (LNG) are being adopted, as are biofuels such as biodiesel and bioethanol. Full electric vehicles (EVs) and plug-in hybrids (PHEVs) are also becoming more popular. The increasing use of electric vehicles could mean that some of an organization’s fleet will be categorized as Scope 2 emissions.
1) How this category aligns with carbon accounting standards
The Cozero category, Company vehicles, is a source of Scope 1 and/or Scope 2 emissions, as defined by the GHG Protocol. All Cozero emissions calculation methodologies follow the requirements for this Scope of emission accounting.
The GHG Protocol Corporate Standard
The GHG Protocol Corporate Standard
The GHG Protocol Corporate Standard is an internationally-recognized go-to standard for estimating and reporting corporate GHG emissions. GHG emissions are categorized into three ‘Scopes'. For further information see here.
Scope 1 includes direct GHG emissions that originate from sources that are owned or controlled by the reporting company, e.g. generation of electricity, heat and steam, physical or chemical processing, transportation of materials and fugitive emissions. They are the most important source of emissions because they are the direct result of companies’ activities.
Scope 2 encompasses indirect emissions from the generation of purchased or acquired electricity consumed by the reporting company. These emissions are considered to be indirect because they arise as a result of the reporting company’s activities, but they originate from sources that are owned and controlled by external entities.
Other upstream emissions associated with the production and processing of upstream fuels, or the transmission and distribution of energy within a grid are included in Scope 3.
2) Calculation methods
Here are the various calculation methods available in Cozero Log for calculating Scope 1 emissions from Company vehicles. Users should choose the method that is the most appropriate to the data available to them, to their business goals and the significance of the emissions of the category.
2a. Fuel and electricity consumption methods
Emissions are estimated by collecting data on the quantity of fuel or electricity used for the reporting company’s vehicle fleet during the reporting period and multiplying by the relevant emission factor.
Activity data: volume of fuel or electricity (in case of electric means of transport) used by employees in kWh. Cozero provides conversion of other units
Emission factor: Cozero provides a default fuel or electricity emission factor but users can also enter supplier-specific emission factors.
Note that when entering fuel data, direct emissions will be accounted for in Scope 1 while for electricity data, the related emissions will be accounted for in Scope 2.
How to report emissions in Cozero?
Step 1: Select the Log called “Company vehicles”
Step 2: Select the subcategory (means of transport) you want to report on
Step 3: Select either “Electricity consumption” or “Fuel consumption” as calculation method
Step 4: Select the activity data source
Step 5: Enter the quantity of fuel or electricity used by the means of transport and where the data was procured from
Cozero Log will automatically calculate the emissions for the quantity of fuel or electricity entered.
For more information on market-based vs. location-based (Grid-mix) electricity accounting, please refer to the article on Purchased electricity.
2b. Distance method
Emissions are estimated by collecting data on the total distance traveled by company vehicles during the reporting period and multiplying by the relevant emission factor. This method allows users to input the distance traveled in kilometers directly, or alternatively, they can set the origin and destination, in which case Cozero will automatically calculate the distance covered.
Activity data: distance traveled in km
Emission factor: Cozero provides a default distance emission factor matching the selected activity data but users can also enter supplier-specific emission factors.
How to report emissions in Cozero?
Step 1: Select the Log called “Company vehicles”
Step 2: Select the subcategory (means of transport) you want to report on
Step 3: Select either “Vehicle distance traveled” or “Distance traveled (origin/destination)” as calculation method
Step 4: Select the activity data source
Step 5: Enter the distance traveled or origin/destination for the means of transport
Cozero Log will automatically calculate the emissions for the distance or origin/destination entered.
2c. Spend method
Emissions are estimated by collecting data on the economic value of company vehicles and multiplying by the relevant emission factor.
Activity data: amount spent on owned or controlled company vehicles within the reporting period. The user can select one of the available currencies from the dropdown.
Emission factor: Cozero provides a default cradle-to-gate emission factor of the company vehicle per unit of economic value. Entered currencies are converted as needed automatically to match the emission factor.
How to report emissions in Cozero?
Step 1: Select the Log called “Company vehicles”
Step 2: Select the subcategory (means of transport) you want to report on
Step 3: Select “Spend” as calculation method
Step 4: Select the activity data source
Step 5: Enter the amount spent on the means of transport
Cozero Log will automatically calculate the emissions for the spend entered.
2d. Direct emissions Input
Users can enter the amount of emissions in CO2e directly in the Log. Make sure of the accuracy of data used in this estimation.
3) Modeled Categories
In the Company vehicles category, there are additional emissions relating to upstream impact from the fuel or electricity purchased and consumed which therefore require additional calculations. The Log automatically calculates these emissions but we still want to give you a brief overview of what they include.
For fuel:
Upstream emissions of purchased fuels: Relating to the extraction, production, and transportation of fuels consumed by the reporting company
For electricity:
Upstream emissions of purchased electricity: Relating to the extraction, production, and transportation of fuels utilized in the generation of electricity, steam, heating, and cooling that is consumed by the reporting company.
Transmission & distribution losses: Generated electricity, steam, heating and cooling that is consumed (i.e., lost) as it passes through a T&D system.
For biofuel: out of scope emissions:
CO2 emissions resulting from the combustion of biofuels (so called biogenic emissions) need to be reported separately. Unlike fossil fuels, where CO2 emissions are accounted for within Scope 1, the emitted CO2 from biofuels is considered as zero under Scope 1. Scope 1 mainly covers emissions of greenhouse gasses like Nitrous Oxide (N2O) and Methane (CH4) that are directly produced by an entity's activities. However, when biofuels are burned, they do release CO2 into the atmosphere. This CO2 is not treated as a conventional Scope 1 emission because it's seen as part of a natural carbon cycle.
To ensure a comprehensive understanding of all potential CO2 sources and maintain transparency, these extra CO2 emissions resulting from the burning of biofuels are reported separately, to provide a holistic view of the carbon impact associated with different fuel types, including those that are environmentally considered more favorable like biofuels.
4) Where can I find the relevant data?
Activity Data:
Data on vehicle mileage (e.g. odometer reading)
Internal data systems (e.g. invoices for fuels)
Purchasing records
To find out more about data collection, you can refer to the article about Data Sourcing.