The fact is that carbon emissions are responsible for 81% of total greenhouse gas emissions, and companies are responsible for much of it. Other greenhouse gas emissions are: methane (10%), nitrous oxide (7%) and fluorinated gases (3%). Companies must monitor and report their CO2 emissions, which is the most important first step in reducing them. To do this, companies need to divide their carbon footprint into three areas. Reporting and reducing carbon emissions is time-consuming, challenging and deserves extensive expertise. Plan A offers unique tools to reduce your carbon emissions per litter. Get carbon neutrality by requesting a free demo. For example, suppose your organization manufactures electronic devices. Downstream use of products sold (Category 11) can probably be a major source of emissions.

To calculate emissions, estimate the lifetime electricity consumption (kWh) of all products sold in the reporting year. Then calculate the emissions as for scope 2 electricity using the eGRID emission factors. Depending on the data available for the place of use of the product, eGRID subregions or U.S. national average factors would be applied. Companies need to reduce their environmental impact. One of the most important ways to achieve this is to reduce their CARBON footprint, and that starts with monitoring carbon emissions. Our comprehensive guide explains emission ranges 1, 2 and 3 (as defined in the GHG Protocol) and how Plan A helps businesses become carbon neutral. The Centre has also developed guidelines for the calculation of Scope 3 emissions from events (e.B.

sporting events, concerts) and conferences (e.B. Business meetings, exhibitions, congresses). The emission sources covered include: travel to and from an event, emissions from participants` hotel stays, and emissions from the event or conference venue. Leased assets are the leased assets of the reporting organization (upstream) and the assets of other organizations (downstream). The calculation method is complex and, depending on the type of asset leased, must be indicated in scope 1 or 2. Scope 3 emissions are the result of activities from assets that are not owned or controlled by the reporting body, but that the organisation indirectly affects its value chain. Scope 3 emissions include all sources that are not within an organization`s Scope 1 and Scope 2 limits. Scope 3 emissions for one organization are Scope 1 and Scope 2 emissions from another organization. Scope 3 emissions, also known as value chain emissions, often account for the majority of an organization`s total greenhouse gas emissions.

Read this paragraph carefully, as Scope 3 emissions are the holy grail of emissions. Franchises are businesses that operate under license to sell or distribute goods or services of another company in a specific location. Franchisees (i.B businesses that operate franchises and pay fees to the franchisor) should include emissions from activities under their control. „Franchisees may potentially offset upstream Scope 3 emissions related to the franchisor`s business activities (i.e., report the franchisor`s Scope 1 and Scope 2 emissions in Category 1 (goods and services purchased). The EPA`s Center for Corporate Climate Leadership currently provides some scope 3 emission factors and plans to expand the list. The following sections explain the factors currently available, the factors to be included in the future, and the application of Scope 1 and Scope 2 factors to calculate Scope 3 emissions for specific categories. The categories listed are those defined in the standard output of scope 3 of the GHG protocol. The GHG Emission Factors Hub currently contains factors that apply to five Scope 3 categories. Below is a list of emission sources and the location of the factors in the GHG Emission Factors Hub.

The GHG protocol also provides the following additional resources of scope 3: Capital goods are final products that have a longer lifespan and are used by the company to manufacture a product, provide a service or store, sell and deliver goods. Examples of capital goods are buildings, vehicles, machinery. For the purpose of accounting for Scope 3 emissions, companies should not devalue, reduce or depreciate emissions from the production of capital goods over time. Instead, companies should consider the total cradle-to-door emissions of capital goods purchased during the year of acquisition (GHG protocol). Fuel and energy activities include emissions related to the production of fuels and energy purchased and consumed by the reporting company in the reporting year and not included in yield lines 1 and 2. According to the GHG Inventory Guidelines, quantification of Scope 1 and Scope 2 emissions is mandatory for organizations reporting and disclosing GHG emissions, while quantification of Scope 3 emissions is not required. However, more and more companies are intervening in their value chain to understand the full impact of their operations on GHGs. Since Scope 3 emission sources can account for the majority of a company`s greenhouse gas emissions, they often offer opportunities to reduce emissions. Although these emissions are not under the control of the organization, the organization may be able to influence the activities that lead to the emissions. The organization may also be able to influence its suppliers or choose the suppliers with whom it wishes to enter into a contract based on its practices.

In most cases, emissions along the value chain represent the greatest impact on greenhouse gases. For decades, companies have missed important opportunities for improvement. For example, Kraft Foods reported that 90% of its total emissions were within its value chain (see Scope 3). Finally, companies need to implement a comprehensive greenhouse gas emissions inventory – Scope 1, 2 and 3 – to focus their efforts on reducing carbon emissions, carbon footprint and climate neutrality. No specific emission factors are required for some Scope 3 categories, as emission-generating activities are linked to scope 1 and Scope 2 factors already available in the GHG Emission Factors Hub. These sources include: Scope 3 emissions are all indirect emissions – not included in Scope 2 – that occur in the reporting entity`s value chain, including upstream and downstream emissions. In other words, emissions associated with the company`s business activities. According to the Gesticul Protocol, Scope 3 emissions are divided into 15 categories. Carbon emissions are at the international level. Experts have been warning us for decades that inaction will lead to drastic hunger, mass migration due to floods, the collapse of financial markets and many other socio-economic disasters. If businesses were afraid of COVID-19, climate change would give them goosebumps.

For this reason, leaders and leaders are now paying more attention to sustainability and reviewing their mission and purpose. Sustainability is a business imperative and should not be seen as a mere component of corporate social responsibility. A full description of all Scope 3 quantification categories and methods can be found in the World Resources Institute / World Business Council for Sustainable Development GHG Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard Exit. For most companies, electricity will be the only source of Scope 2 emissions. Simply put, the energy consumed is divided into two areas: scope 2 covers the end-user`s energy consumption. Scope 3 covers the energy consumption of utilities during transmission and distribution (T&D losses). As a contribution to the objectives of the agreement, countries have submitted comprehensive national climate protection plans (nationally defined contributions, NDCs). These are not yet sufficient to meet the agreed temperature targets, but the agreement points the way for further action. According to the main corporate standard of the GHG protocol, a company`s greenhouse gas emissions are divided into three areas. .