GHG Protocol Initiative

1
GHG Protocol Initiative Standards, Guidelines and
Calculation Tools for Corporate GHG Accounting
Reporting WBCSDEric Derobert and Heidi
Sundin Milan, Italy March 1st 2002
World Resources Institute
2
WBCSD - Who we are

• A coalition of some 160 leading international
  companies

• Representing more than 30 countries and 20
  business sectors

3
Our Mission

• To provide business leadership as a catalyst for
  change toward sustainable development

• To promote the role of eco-efficiency, innovation
  and corporate social responsibility

4
Our Aims

• Policy Development framework

• Best Practice learning by sharing learning
  by doing

• Global Outreach Regional network

5
How we work

• Working Groups made of members
•  sweat equity  from companies

• Teaming up with IGOs, NGOs, uni-versities,
  foundations etc.

• Chaired by at least two CEOs of member companies
•  buy in  and guidance

6
Recent Focus Highlights

• Sectorial approaches to SD
• The power of markets
• Natural resources
• Bridging  divides 

7
With the WRI a collaborative effort

• A shared network brings new perspectives

• Bridges the gap between different stakeholders

• Exploits synergies between both organizations

8
The GHG Protocol A corporate accounting and
reporting standard (October 2001)

• A truly groundbreaking piece of work that results
  from our shared vision of developing an
  internationally accepted reporting standard
  through a transparent and inclusive process

9
Corporate Emissions Inventory Module A guide
to corporate accounting and reporting standards
Heidi Sundin Milan, Italy March 1st 2002
10
Building a Credible Standard
11
Calculation tools
Web-based, user-friendly, step-by-step
guidance. Build on IPCC methodologies industry
best practice. Cross sector.Sector specific.
Standards
Organizational Boundaries. Operational
boundaries. Historic Datum. Reporting GHG
emissions.
Guidance
Business goals and inventory design. Accounting
for GHG reductions. Identifying GHG
sources. Managing inventory quality. Verification
of GHG emissions.
12
Standards
Organizational Boundaries Operational
boundaries Historic Datum Reporting GHG emissions

• Accounting emissions from subsidiaries, JVs, etc.
• Based on financial accounting practices

13
Standards

• 3 scopes guarantee transparency
• scope 1 Direct emissions (must report)
• scope 2 Indirect Emissions - imported
  electricity, heat, or steam (must report)
• scope 3 Other relevant indirect emissions
  (voluntary)

Organisational Boundaries Operational
boundaries Historic Datum Reporting GHG emissions

• Companies must report all of their direct
  emissions.
• Relevant indirect emissions only(e.g.
  electricity imports).
• Scope selection depends on data use (internal
  risk management vs. trading markets).

14

• Set base year to compare emissions over time.
• Adjust base year emissions for significant
  structural changes of the business (investment/
  divestment) or in calculation methodologies.

• No adjustment for organic growth or decline.
  (e.g. changes in productivity)

15
Sector-specific tools Aluminum CO2 PFC Iron
and steel CO2 Nitric acid N20 Ammonia CO2
Adipic acid N20 Cement CO2 Lime CO2 HCFC-22
HFC-23 Semi-conductor PFC
Cross sector tools Stationary combustion
CO2 Mobile combustion CO2 Air conditioning/refrige
ration HFC
16
Next Steps

• Establish feedback process for Corporate
  standard (Feb 2002).
• Outreach adoption.
• Work with business and others to develop/
  maintain calculation tools.
• Work on new module accounting for project
  reductions (sinks sources).

17
Project Accounting and Reporting
18
The motivation behind the project accounting and
reporting module was The absence of clear
international accounting and reporting guidelines
for projects under different trading schemes.
19
Put yourself in the shoes of a project
developer...
What would you find most useful from the protocol?
To be able to accurately estimate the emissions
reductions potential of a project?
To be able to accurately measure the actual
emissions reductions.
20
Progress to Date

• September 2001 work begins.

• October 2001 workshops London DC

• Over 150 active participants now involved.

• Reviewing existing and emerging emissions
  trading schemes, registries and other initiatives.

• An established project management team.

• Created task forces on key accounting issues.

21
www.ghgprotocol.org sundin_at_wbcsd.org