A Corporate Accounting and Reporting Standard

Training Curriculum

A Corporate Accounting and Reporting Standard

 Introduction
Lesson Modules

Principles
2. GHG Accounting and Reporting Principles

Organizational
Boundaries
3. Setting Organizational Boundaries

Operational
Boundaries
4. Setting Operational Boundaries

5. Tracking Emissions Over Time

over time
Tracking
6. Identifying and Calculating Emissions

Calculating
Emissions
7. Reporting GHG Emissions

Reporting
8. Review

Review
A Corporate Accounting and Reporting Standard
Identifying and Calculating Emissions
Lesson 6

A Corporate Accounting and Reporting Standard

 Introduction
Learning Objectives

Principles
Organizational
Boundaries
In this lesson, you will learn:

Operational
Boundaries
• How to identify and calculate emissions

over time
Tracking
• Where to find helpful calculation tools

Calculating
Emissions
• How to combine emissions from all of your
organization’s facilities

Reporting
Review
A Corporate Accounting and Reporting Standard
 Introduction
Steps in Identifying and Calculating Emissions

Principles
Identify Sources

Organizational
Boundaries
Select Calculation Approach

Operational
Boundaries
Collect Data and Choose Emissions Factors

over time
Tracking
Calculating
Emissions
Apply Calculation Tools

Reporting
Roll-up Data to Corporate Level

Review
A Corporate Accounting and Reporting Standard
 Introduction
Emission Sources Categories

Principles
Select Calculation Collect Data & Choose Roll-up Data to Corporate
Identify Sources Apply Calculation Tools
Approach Emissions Factors Level

Organizational
Boundaries
• Stationary combustion: fuel burned in stationary sources
– Ex: boilers and heaters

Operational
Boundaries
• Mobile combustion: fuel burned during transportation
– Ex: cars, airplanes, ships

over time
Tracking
• Process emissions: from physical or chemical processes
– Ex: cement calcination, aluminum smelting

Calculating
Emissions
• Fugitive emissions: intentional and unintentional releases
– Ex: equipment leaks, cooling towers, CH4 from natural gas pipelines, HFCs from

Reporting
air conditioning and refrigeration
Consult Appendix D: Emissions by Industry Sector and Scope

Review
A Corporate Accounting and Reporting Standard
 Introduction
Identifying Emissions

Principles
• Process emissions usually only certain industry sectors

Organizational
– (oil, gas, aluminum, cement, etc.)

Boundaries
Scope 1

Operational
Boundaries
• Almost all companies purchase electricity

over time
Tracking
Scope 2

Calculating
Emissions
• Emissions along value chain
• Upstream or downstream of owned operations

Reporting
Scope 3

Review
A Corporate Accounting and Reporting Standard
 Introduction
Calculating Approaches

Principles
Select Calculation Collect Data & Choose Roll-up Data to Corporate
Identify Sources Apply Calculation Tools
Approach Emissions Factors Level

Organizational
Boundaries
1. Direct measurement: monitor GHG concentration and flow rate, such
as with a filter on an exhaust pipe

Operational
Boundaries
– Ex: Continuous Emissions Monitoring System (CEMS)
2. Stoichiometric calculation: measure which elements enter and leave
the system

over time
Tracking
– Ex: Mass balance approach
3. Estimate emissions: multiply activity data (ex: fuel use records) by

Calculating
Emissions
appropriate emission factor

Reporting
most common approach

Review
A Corporate Accounting and Reporting Standard
 Introduction
Estimating Emissions: Basic Equation

Principles
Select Calculation Collect Data & Choose Roll-up Data to Corporate
Identify Sources Apply Calculation Tools
Approach Emissions Factors Level

Organizational
Boundaries
=
tonnes of
activity data x emission factor emissions

Operational
Boundaries
(t)

over time
Tracking
carbon dioxide

Calculating
Emissions
tonnes of Global Warming
emissions
(t)
x Potential
(GWP)
= equivalent
(CO2e) of
emissions

Reporting
Review
A Corporate Accounting and Reporting Standard
 Introduction
Activity data

Principles
t of t of CO2e of
activity emissio
x = x =

Organizational
emissio emissio GWP emissio

Boundaries
data n factor
ns ns ns

Operational
Boundaries
• Activity data: data on an activity resulting in
emissions

over time
Tracking
• Examples:

Calculating
Emissions
– Electricity use (kilowatt hours)
– Distance traveled (kilometers)

Reporting
– Gasoline use (gallons)

Review
A Corporate Accounting and Reporting Standard
 Introduction
Finding Activity Data

Principles
• Most companies should consult these records:

Organizational
– Scope 1: purchase records of fuels

Boundaries
– Scope 2: metered electricity consumption record
– Scope 3: Activity data such as fuel use, passenger miles, etc.

Operational
Boundaries
over time
Tracking
• Industrial companies should consult sector-specific
guidelines from

Calculating
Emissions
– GHG Protocol website
– Industry associations
– Government agencies

Reporting
Review
A Corporate Accounting and Reporting Standard
 Introduction
Emission factors

Principles
t of t of CO2e of
activity emissio
x = x =

Organizational
emissio emissio GWP emissio

Boundaries
data n factor
ns ns ns

• Emission factors convert activity data to emission values

Operational
Boundaries
• Published by various entities, including government agencies
and intergovernmental organizations

over time
Tracking
• Presented in specific units, e.g.:
– Kilograms of CO2 per air kilometer traveled

Calculating
Emissions
– Pounds of CO2 per kWh of electricity
– Kilograms of CO2 per liter of petrol/gasoline
• Make sure units match

Reporting
• Use most recent available while maintaining consistency

Review
A Corporate Accounting and Reporting Standard
 Introduction
Sources of Emission Factors

Principles
• GHG Protocol (in calculation tools)

Organizational
Boundaries
• IPCC

Operational
Boundaries
• Government agencies

over time
Tracking
• Sector specific sources:

Calculating
Emissions
– WBCSD Sustainable Cement Initiative
– International Petroleum Industry

Reporting
– International Aluminum Institute

Review
A Corporate Accounting and Reporting Standard
 Introduction
For calculating scope 2 emissions

Principles
• For companies with operations only in markets that do not provide
product or supplier-specific data or other contractual instruments:

Organizational
Boundaries
– Only one scope 2 figure shall be accounted and reported, based on the
location-based method.

Operational
Boundaries
• For companies with any operations in markets providing product or
supplier-specific data in the form of contractual instruments
(Currently this includes: EU Economic Area, the US, Australia, most Latin

over time
Tracking
American countries, Japan, India among others)
– Two scope 2 figures shall be accounted and reported, one for the

Calculating
market-based method and one for the location-based method.

Emissions
Reporting
Review
A Corporate Accounting and Reporting Standard
 Organizational Operational Tracking Calculating
Introduction Principles Reporting Review
Boundaries Boundaries over time Emissions
A Corporate Accounting and Reporting Standard
Location-based method

(map not representative)

 Introduction
Principles
Location-based method emission factor hierarchy

Organizational
Boundaries
1. Regional or sub-national emission factors

Operational
Boundaries
2. National production emission factors

over time
Tracking
Data forms listed here should convey combustion-only (direct) GHG emission rates, expressed in

Calculating
Emissions
metric tons per MWh or kWh.

Reporting
Review
A Corporate Accounting and Reporting Standard
 Organizational Operational Tracking Calculating
Introduction Principles Reporting Review
Boundaries Boundaries over time Emissions
A Corporate Accounting and Reporting Standard
Market-based method

(map not representative)

 Introduction
Principles
Market-based method emission factor hierarchy

Organizational
Boundaries
1. Electricity attribute certificates or equivalent instruments

Operational
Boundaries
2. Contracts for electricity, such as PPAs

3. Supplier/Utility emission rates

over time
Tracking
4. Residual mix (sub-national or national)

Calculating
Emissions
5. Other grid-average emission factors (sub-national or national) see location-based data

Reporting
Review
A Corporate Accounting and Reporting Standard
 Introduction
Global Warming Potential (GWP)

Principles
t of t of CO2e of

Organizational
activity emissio

Boundaries
data x n factor = emissio emissio x GWP
= emissio
ns ns ns

Operational
Boundaries
• Global warming potential (GWP): measure of how much a
greenhouse gas contributes to global warming relative to CO2

over time
Tracking
Calculating
Emissions
• Use GWPs to convert tonnes of a GHG to tonnes of carbon
dioxide equivalent (CO2e) to calculate total emissions using a
common unit

Reporting
Review
A Corporate Accounting and Reporting Standard
 Introduction
GWP Values

Principles
Organizational
Boundaries
GHG GWP
• Higher GWP = more warming
capacity CO2 1

Operational
Boundaries
CH4 21
• Use to calculate carbon dioxide N2O 310

over time
equivalent (CO2e)

Tracking
HFCs 140 - 11,700

Calculating
PFCs 6,500 - 9,200

Emissions
• Source: IPCC Assessment Reports
– Choose 2nd or 5th Assessment SF6 23,900
Report values

Reporting
Source: IPCC, 2006

Review
A Corporate Accounting and Reporting Standard
 Introduction
Example: Transportation Emissions

Principles
• How would you calculate the CO2 emissions from travel in company-owned
vehicles?

Organizational
Boundaries
Find activity data Find emission
Consult fuel purchase Calculate
records factor Multiply activity data by
or miles traveled by Consult GHGP emission factor
emission factors

Operational
Boundaries
vehicles

activity data
x emission factor
0.0023 t CO2/liter =
t of emissions
0.23 t CO2

over time
100 liters of gasoline

Tracking
t of emissions
x GWP
=
CO2e of emissions

Calculating
Emissions
1 0.23 t CO2e

Find GWP value Calculate

Reporting
Multiply t of emissions
GHG GWP by GWP
CO2 1

Review
A Corporate Accounting and Reporting Standard
 Introduction
Example: Electricity Emissions (location-based method)

Principles
How would you calculate the CH4 (methane) emissions from use of purchased electricity?

Organizational
Boundaries
Find emission
Find activity data Calculate
Consult electricity bill factor Multiply activity data by
Consult GHGP emission factor
emission factors

Operational
Boundaries
activity data
x Emission factor
=
t of emissions

over time
1,000 GWh of electricity 0.039 t CH4/GWh 39 t CH4

Tracking
t of emissions
x GWP
=
CO2e of emissions

Calculating
Emissions
21 819 t CO2e

Find GWP value Calculate

Reporting
GHG GWP Multiply t of emissions by GWP
CO2 21

Review
A Corporate Accounting and Reporting Standard
 Introduction
Example: Electricity Emissions (market-based method)

Principles
How would you calculate the CO2 emissions from use of purchased electricity?

Organizational
Boundaries
Find activity data Identify contractual Calculate
Consult electricity bill Multiply activity data by
instruments emission factor

Operational
Boundaries
activity data
x Emission factor
=
t of emissions

over time
1,000 GWh of electricity 0 t CO2/GWh 0 t CH4

Tracking
t of emissions
x GWP
=
CO2e of emissions

Calculating
Emissions
1 0 t CO2e

Find GWP value Calculate

Reporting
GHG GWP Multiply t of emissions by GWP
CO2 1

Review
A Corporate Accounting and Reporting Standard
 Introduction
GHG Protocol Calculation Tools

Principles
Select Calculation Collect Data & Choose Roll-up Data to Corporate
Identify Sources Apply Calculation Tools
Approach Emissions Factors Level

Organizational
Boundaries
• GHGP emissions calculation tools publicly available

Operational
Boundaries
• http://www.ghgprotocol.org/calculation-tools
– use not mandatory but encouraged

over time
Tracking
• Advantages of tools:
– Easier calculation

Calculating
Emissions
– Reviewed by industry experts
– Regularly updated
– Best available

Reporting
Review
A Corporate Accounting and Reporting Standard
 Introduction
Available Tools

Principles
Organizational
Cross Sector Tools

Boundaries
• Stationary combustion
• Mobile combustion

Operational
Boundaries
• HFC use
• Uncertainty

over time
Tracking
Sector Specific Tools
• Aluminum

Calculating
Emissions
• Iron and Steel
• Cement

Reporting
• Pulp and Paper
• etc.

Review
A Corporate Accounting and Reporting Standard
 Introduction
Available Tools

Principles
Organizational
Boundaries
Guidance
• Purpose and process

Operational
Boundaries
• Choosing activity
data and emission
factors

over time
Tracking
• Calculation methods
• Good practice

Calculating
Emissions
guidance

Reporting
Worksheet (tool)

Review
A Corporate Accounting and Reporting Standard
 Introduction
Example: Stationary Combustion Tool

Principles
Use tool to calculate emissions from burning 10,000 m3 of natural gas

Organizational
Boundaries
(Find tool at http://www.ghgprotocol.org/calculation-tools/all-tools )

Operational
Boundaries
over time
Tracking
Calculating
Emissions
Reporting
Review
A Corporate Accounting and Reporting Standard
 Introduction
Principles
Select Calculation Collect Data & Choose Roll-up Data to Corporate
Identify Sources Apply Calculation Tools
Approach Emissions Factors Level

Organizational
Boundaries
SITE LEVEL CORPORATE LEVEL
CENTRALIZED

Emission factors and GWPs

2 APPROACHES

Operational
Boundaries
Each unit reports
factored in, then all emissions added
activity data
together at corporate level

over time
Tracking
DECENTRALIZED

Calculating
Emissions
Each unit reports Emissions added together
emissions at corporate level

Reporting
Review
A Corporate Accounting and Reporting Standard
 Introduction
Summary

Principles
Identify Sources
stationary, mobile, process, fugitive

Organizational
Boundaries
Select Calculation Approach

Operational
Boundaries
direct measurement, stoichiometry, estimate emissions

Collect Data and Choose Emissions Factors

over time
Tracking
Emission t of t of CO2e of
Activity
data x factor = emissions emissions
x GWP = emissions

Apply Calculation Tools

Calculating
Emissions
http://www.ghgprotocol.org/calculation-tools

Reporting
Roll-up Data to Corporate Level
report activity data and emissions estimates to corporate

Review
A Corporate Accounting and Reporting Standard
 Introduction
Further Reading

Principles
The Greenhouse Gas Protocol: A Corporate
Accounting & Reporting Standard

Organizational
Boundaries
• Chapter 6: Identifying and Calculating
GHG Emissions
• Appendix A: Accounting for Indirect

Operational
Boundaries
Emissions from Purchased Electricity
• Appendix D: Industry Sectors and
Scopes

over time
Tracking
Hot Climate, Cool Commerce: A Service Sector
Guide to Greenhouse Gas Management

Calculating
Emissions
• Part 2, Step 4: Calculating Emissions

Reporting
ISO 14064-1
• Section 4.3: Quantification of GHG
Emission and Removals

Review
A Corporate Accounting and Reporting Standard