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New Guidance Makes Corporate Value Chain Accounting Easier

An effective corporate climate change strategy requires a detailed understanding of a company’s greenhouse gas (GHG) emissions. Until recently, most companies have focused on measuring emissions from their own operations and electricity consumption, using the GHG Protocol’s Scope 1 and Scope 2 framework. But what about all of the emissions a company is responsible for outside of its own walls—from the goods it purchases to the disposal of the products it sells?

The GHG Protocol Scope 3 Standard, released in late 2011, is the only internationally accepted method for companies to account for these types of value chain emissions. Building on this standard, GHG Protocol has now released a new companion guide that makes it even easier for businesses to complete their scope 3 inventories. The guidance is freely available for download via the GHG Protocol website.

How Can Businesses Use the New Guidance?

Assessing GHG emissions across the entire value chain can be complex. For companies just beginning to assess their scope 3 emissions, it can be difficult to know where to start. This calculation guidance is designed to reduce those barriers by providing detailed, technical guidance on all the relevant calculation methods. It provides information not contained in the Scope 3 Standard, such as:

A New Tool to Measure and Reduce Emissions from Agriculture

Agriculture is a major actor in spurring global climate change. The sector is already responsible for at least 10-12 percent of global greenhouse gas (GHG) emissions, and agricultural emissions are expected to increase by more than 50 percent by 2030.

Mitigating agricultural emissions, then, could go a long way toward mitigating global climate change. The Greenhouse Gas Protocol is currently developing an Agricultural Guidance to help companies measure and reduce their agricultural emissions. We’ve just released a second draft of the Guidance for open comment period, which will run until May 31, 2013.

Key Challenges to Measuring Agricultural Emissions

Reporting agricultural emissions in GHG inventories is a decidedly complex endeavor, which can hinder reduction efforts. For example, agricultural emissions are strongly affected by weather and are therefore often calculated with a large amount of uncertainty. This ambiguity makes it challenging to set and track progress toward reduction targets. The carbon stored in biomass and soils can often be emitted into the atmosphere, making it imperative that companies do not over- or under-count the impact of farming practices on stored carbon. And companies vary widely in how they control different parts of agricultural supply chains—such as commodity production, processing, and retail —so it’s difficult to maintain consistency in how inventories are reported.

For the First Time, a Common Framework for Cities’ Greenhouse Gas Inventories

UPDATE: The deadline to apply to pilot test the Global Protocol for Community-Scale Greenhouse Gas Emissions (GPC) has been extended to March 31, 2013. Download the Terms of Reference and Application Form for the pilot project, as well as other relevant documents about the GPC. Or, for more information, please contact Wee Kean Fong at wkfong@wri.org.

“You cannot manage what you cannot measure” is a well-known adage for business, and the phrase is increasingly relevant for cities. In the past decade, many cities have started measuring their greenhouse gas (GHG) emissions data. GHG inventories are essential for building effective low-carbon strategies, tracking GHG reductions, responding to regulations and local GHG program requirements, and securing climate finance. Some cities also believe that tracking emissions can eventually conserve financial and other resources.

The challenge is that most cities conduct their inventories using different methodologies. Without an internationally consistent framework for GHG accounting and reporting, inventory results can be confusing and misleading to decision-makers, investors, and civil society stakeholders. This lack of consistency can even jeopardize the accountability and effectiveness of cities’ emission-reduction efforts.

The Global Protocol for Community-Scale GHG Emissions

But there is a solution: WRI partnered with C40 Cities Climate Leadership Group (C40) and ICLEI – Local Governments for Sustainability (ICLEI) to develop the Global Protocol for Community-Scale GHG Emissions (GPC) Pilot Version 1.0. This guide—which is now beginning its pilot-testing phase—is set to become the first internationally accepted framework for city-level GHG inventories.

As the GPC begins its pilot-testing phase, city leaders may wonder about the specific benefits of using a standardized GHG accounting method. Let’s take a look at GHG reporting trends in cities and the risks of using inconsistent methods.

Greenhouse Gas Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard

This standard (also referred to
as the Scope 3 Standard) provides requirements and
guidance for companies and other organizations to
prepare and publicly report a GHG emissions inventory
that includes indirect emissions resulting from value
chain activities (i.e.,...

First International GHG Protocol-based Programs Workshop Report

Key Challenges and Recommendations

This Working Paper summarizes the common challenges identified by greenhouse gas accounting and reporting programs at the March 2010 International Workshop of GHG Protocol-based Programs. It then goes on to present recommendations generated by workshop participants on how to best address these...

Remedying Discord in the Accord

Accounting Rules for Annex I Pledges in a Post-2012 Climate Agreement

This paper provides recommendations and options for harmonizing accounting rules for developed country, or Annex I, emissions reduction pledges for a post-2012 climate policy under discussion in the UN Framework Convention on Climate Change‘s (UNFCCC) Ad Hoc Working Group on Long-term...

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