the world’s first full suite of ghg measurement · pdf filethe world’s first full...

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The world’s first full suite ofGHG measurement standards

The Product Life Cycle Standard and theCorporate Value Chain (Scope 3) Standard

Material 3

METI & GHG Protocol JointWorkshop in Tokyo IINovember 21,2011


The Greenhouse Gas Protocol is a partnership between the World ResourcesInstitute and the World Business Council for Sustainable Development.

GHG Protocol is built on the expertise of WRI and WBCSD, combined with theinsight and experience of hundreds of the world’s leading organizations.

A global partnership


Enable corporate & governmentmeasurement and management

practices that lead to a low carboneconomy

GHG Protocol Vision


The journey so far


1.Corporate Value Chain (Scope 3) Standard

2.Product Life Cycle Standard

Two new standards for business:

Available to download at www.ghgprotocol.org


The potential impact of measuringand managing value chain emissionsis huge. Organizations that canunderstand their impacts across theirwhole value chain can tackle theareas where they have the biggestimpact.

The Opportunity Global Household GoodsCompany Total Emissions


Introducing the new standards


Development of the Standards


Overview of key steps in the two standards


The Corporate Value Chain (Scope 3) Standard


• Majority of corporate emissions are usually found in a company’s value chain– Kraft found that more than 90% of the company’s total emissions were in the

value chain• The first global tool for companies to assess the entire value chain impact and

identify the most effective ways to reduce emissions

• Builds off of the requirements and guidance in the GHG Protocol CorporateStandard – the most widely used standard for measuring direct corporateemissions

• Standard provides requirements and guidance on:– Boundary setting

– Setting targets and tracking performance– Public Reporting

• Can serve as a framework for:

– Sector guidance– Corporate Value Chain/Supplier Reporting Programs

Why is the Corporate Value Chain Standard important?


• To be used in conjunction with GHG Protocol Corporate Standard– Boundary approach followed in Scope 1+2 is applied consistently throughout

Scope 3 (i.e. Equity Share or Control)– If reporting Scope 3, required to also report Scope 1+2

• Designed to meet a number of business goals

• Includes both upstream and downstream emissions organized into 15 differentscope 3 categories– Upstream Emissions are indirect GHG emissions related to purchased or

acquired goods and services– Downstream Emissions are indirect GHG emissions related to sold goods and

services• Companies are required to measure and report all scope 3 emissions and disclose

and justify any exclusions

• Public reporting is required to claim conformance with the Standard• Standard, additional guidance, and tools are available for free at the GHG protocol

website (www.ghgprotocol.org)

Corporate Value Chain (Scope 3) Standard: quick facts


• Identify and understand risks and opportunities associated with value chainemissions

• Identify GHG reduction opportunities, set reduction targets, and trackperformance

• Engage value chain partners in GHG management• Enhance stakeholder information and corporate reputation through public

reporting

Business Goals


• Focused on achieving a completeScope 3 inventory to support strategicdecision making

• Used industry-average life cycle data

• Found that scope 3 comprise morethan 90% of the company’s emissions

• Kraft Foods plans to continuouslyimprove the quality of its GHG inventoryto better understand the company’sinfluence on climate change

•“Think of carbon as waste —somewhere there is inefficiency.”

• - Goal to provide a common “currency” throughout the value chain toidentify the highest-impact GHG reduction strategies / programs

SC Johnson


• Focused on achieving a completeScope 3 inventory to support strategicdecision making

• Used industry-average life cycle data

• Found that scope 3 comprise morethan 90% of the company’s emissions

• Kraft Foods plans to continuouslyimprove the quality of its GHG inventoryto better understand the company’sinfluence on climate change

•“Think of carbon as waste —somewhere there is inefficiency.”

• Goal to inform GHG reductionstrategies

• IKEA estimated scope 3 emissionsfrom all sold products that consumeenergy during use

• Products included all types ofappliances and lighting sold in 25countries

• Use of sold products accounted for20% of total scope 1, 2, and 3emissions

• Expects to achieve annual GHGreductions of several million tons -more than the company’s totalscope 1 and 2 emissions

Ikea


The Product Life Cycle Standard


• Provides useful prescriptiveness around:– Boundary setting– Recycling– Direct land use change– Biogenic emissions and removals– Data quality and uncertainty

• Serves as a framework for:– Sector guidance and product rule development– Product-level programs– Assessing other impacts

• Complements the Scope 3 and Corporate Standards to complete a full suite ofGHG management standards

Why is the Product Standard important?


• Methodology is consistent with ISO 14044 for a one-impact LCA• Quantification is consistent with the revised PAS 2050• Standard includes requirements and user-friendly guidance for quantification

and public reporting• Allows for cradle-to-grave and cradle-to-gate assessments• Assurance is required and can be either:

– First party verification– Third party verification– Critical review

• Public reporting is required to claim conformance with the Standard• Standard, additional guidance, and tools are available for free at the GHG

protocol website

Product Life Cycle Standard: quick facts


Two Major Global Initiatives Adopt and Endorse New GHGProtocol Value Chain Standards

• 500 of the largestConsumer Goodscompanies

• Signals a criticalbreakthrough in terms offuture global adoption

• Especially significantbecause the adoption andendorsement occurredbefore the final standardswere released


Thank you


Next Steps


In support of the new standards:

Sector andproduct

guidance

Implementation

Calculationtools

Reportingprograms

- Training workshops in 2011 & 2012- WBCSD GHG Working Group

- GHG ProtocolProduct Standard ICT Sector Supplement- WBCSD Chemical Sector GHG Measurement andReporting Guidance

- CSI PCR for concrete

- Calculation tools being finalized for 15 Scope 3categories

- List of Third Party data sources now available

- Program workshop held in October for product-levelprograms


GHG Protocol Looking Forward

Policy Accounting City Accounting Calculation Tools


Pankaj BhatiaWorld Resources [email protected]+1 202 729 7629

Andrea BrownWorld Business Council for Sustainable [email protected]+41 22 839 3189

www.ghgprotocol.org

Contact details and more information


Thank you

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