GHG Emissions:

Measurement & Management

C Charles Sabbithi
MBA (Business Sustainability)
Agenda
Greenhouse Gases Organisational Boundaries
Greenhouse Effect and Enhanced Operational Boundaries
Greenhouse Effect
Scope 1
Rationale for Measurement and
Management Scope 2

GHG Protocol and Developers Scope 3

Standards available under GHG Consolidation Approaches

Protocol
Tracking Emissions Over Time
The Measurement Process
Further Discussion
Greenhouse Gases
Water Vapour (H2O)
Carbon Dioxide (CO2)
Methane (CH4)
Nitrous Oxide (N2O)
Ozone (O3)
Chlorofluorocarbons (CFCs)
Hydrofluorocarbons (HFCs) and Perfluorocarbons (PFCs)
Sulphur Hexafluoride (SF6)
The Greenhouse Effect

Image Source https://www.sciencenewsforstudents.org/article/explainer-global-warming-and-greenhouse-effect

Why measure GHG emissions?
Reporting
Sustainability Reports
Carbon Disclosure Project

Compliance
Monitoring
Management
Mitigation
Participation in GHG markets
Standards Available
Corporate Standard
Corporate Value Chain Standard (Scope 3)
Project Protocol
Mitigation Goal Standard
Product Lifecycle Standard
GHG Protocol for Cities
Policy and Action Standard
Principles
Relevance
Completeness
Consistency
Transparency
Accuracy
The Measurement Process

Setting Setting Selecting a

Organisational Operational Inventorisation calculation
Boundaries Boundaries approach

Collecting activity
data and Applying Rolling up data to
choosing calculation tools corporate level
emissions factors
Setting Organisational Boundaries
Financial
Control
Control
Organisational Approach
Operational
Boundary
Control
Setting Equity Share
Approach

Some Basic Considerations

Avoidance of double-counting MIS and tracking
Consolidation among multi-national Compliance for trading programs
conglomerates Administration and data access
Contracts among partners
Commercial reality
Alignment with financial accounting
standards
Setting Operational Boundaries
Scope 1 Direct GHG Emissions from sources that are owned or
controlled by the company
Scope 2 Electricity Indirect GHG Emissions from generation of
purchased electricity
Scope 3 Other Indirect GHG Emissions, basically anything other than
Scope 1 and Scope 2 emissions
Scope 1:
Direct GHG Emissions
Emissions from combustion of fuels
Physical or chemical process
emissions
Emissions from company owned/
controlled mobile combustion sources
Fugitive emissions

Emissions (CO2e) =
AD (Units) x EF (tonnes of gas/Unit) x GWP Source
https://www.educate-
sustainability.eu/kb/content/international-
AD = Activity Data agreements-and-european-legislation
EF = Emissions Factor
GWP = Global Warming Potential
Scope 2:
Electricity Indirect GHG Emissions
Accounting for scope 2 emissions allows companies to assess the risks
and opportunities associated with changing electricity and GHG emissions
costs.

Electricity Attribute Certificates

Power Purchase Agreements

Supplier/Utility Emission Rates

Residual Mix (National/Sub-national)

Grid Average Emissions Factors

Scope 3:
Other Indirect GHG Emissions
Extraction and production of purchased materials and fuels
Transport-related activities
Purchased goods and materials
Purchased fuels
Business travel
Employee commute
Sold products
Waste
Scope 3:
Other Indirect GHG Emissions contd
Electricity related activities not included in Scope 2
Extraction, production, and transport of fuels consumed in electricity
generation
Purchase of electricity that is sold to an end-user
Generation of electricity that is consumed in a T&D system

Leased assets, franchises, and outsourced activities

Use of sold products and services
Waste disposal
Waste generated in operations
Waste generated in production of purchased materials and fuels
End-of-life disposal of sold products
Consolidation Approaches

Centralised Activity Data

Cost effective
Less technical capacity required

Decentralised Emissions Data

On-site personnel must be trained
Usually more accurate
Tracking Emissions Over Time
Choosing a base year
Companies should choose as a base year the earliest relevant point in
time for which they have reliable data.
Base year can be fixed or rolling
Recalculation may be required after acquisitions and divestments
Significance is considered in case of small acquisitions or divestments
No recalculation for organic growth or decline
Structural changes might necessitate change in base year
Changes in calculation methodology or improvements in data accuracy
Further Discussion
Inventory quality
Verification and assurance
Target-setting
Emissions intensity and specific targets

Thank you.