GHG Protocl Supply Chain and Product Standard High Level Overview

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This is a high level overview for the first public draft of GHG Protocol Supply Chain and Product Standards as of Dec 2009.

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  • GHG Protocl Supply Chain and Product Standard High Level Overview

    1. 1. 1<br />Greenhouse Gas Protocol Product/Supply Chain Standards Overview<br />on P&G Asia Product Safety and Regulatory Affairs Symposium<br />RP Song<br />16 November 2009<br />1<br />
    2. 2. Presentation Outline<br /><ul><li>GHG Protocol and Product/Supply Chain Standard Overview
    3. 3. Draft Scope 3 Standard Overview
    4. 4. Draft Product Standard Overview
    5. 5. Next Steps for Standards Development</li></ul>2<br />
    6. 6. 3<br />Greenhouse Gas Protocol Initiative<br /><ul><li>Convened in 1998 by WRI and WBCSD
    7. 7. A multi-stakeholder partnership of businesses, NGOs, governments and others convened by WRI and WBCSD
    8. 8. Mission: Develop internationally accepted GHG accounting and reporting standards and to promote their use worldwide</li></li></ul><li>4<br />Greenhouse Gas Protocol Initiative<br /><ul><li>The most widely used international accounting tool for businesses to understand, quantify, and manage greenhouse gases
    9. 9. Free standards and tools available at www.GHGProtocol.org</li></li></ul><li>GHG Protocol: Ten Year Overview<br />2003: CDP adopts GHG Protocol<br />2008: Launch of India & China Programs<br />2005: ISO adopts GHGP<br />2001: First edition<br />of GHG Protocol Corporate <br />Standard published<br />2004: Revised edition of Corporate Standard<br />1998: <br />WRI/WBCSD <br />create<br />GHG Protocol<br />2007: TCR & Brazil Program<br />2008: Launch of Product & Supply Chain Initiative<br />2004: <br />Launch of<br />Mexico <br />Program<br />2002: <br />CCAR/EPA adopt GHG Protocol<br />
    10. 10. 6<br />New GHG Protocol Standards<br />Scope 3 <br />(Corporate <br />Value Chain)<br />Standard<br />Under develop-ment<br />Product<br />Life Cycle<br />Standard<br />6<br />
    11. 11. 7<br />Process Structure<br />WRI/WBCSD Secretariat<br />Steering Committee (25 members)<br />Product<br />Technical Working<br />Groups <br />( 100+ members)<br />Scope 3<br />Technical Working<br />Groups <br />( 60+ members)<br />Stakeholder Advisory Group (1,000+)<br />Product Standard<br />Scope 3 Standard<br />7<br />
    12. 12. 8<br />Scope 3 Accounting & Reporting Standard<br />8<br />
    13. 13. 9<br />Accounting for Corporate Emissions <br /><ul><li>Scope 1 emissions = All direct emissions, i.e. owned or controlled by your company
    14. 14. Scope 2 emissions = Indirect emissions from use of electricity, steam, heating and cooling
    15. 15. Scope 3 emissions = All other indirect emissions upstream & downstream of a company, e.g. production of purchased goods & services; third-party transportation; use and disposal of a company’s products; etc.</li></ul>9<br />
    16. 16. 10<br />Scopes Across the Value Chain<br />10<br />
    17. 17. 11<br />GHG Protocol Reporting Requirements<br />Report in conformance with the<br />GHG Protocol Corporate Standard<br />Report in conformance with the<br />GHG Protocol Corporate Standard<br />and Scope 3 Standard<br /><ul><li>Shall report all scope 1 and 2 emissions
    18. 18. Should optionally report scope 3 emissions
    19. 19. Shall report all scope 1 and 2 emissions
    20. 20. Shall report scope 3 emissions (following the requirements/guidance in this standard)</li></ul>11<br />
    21. 21. 12<br />Business Goals<br /><ul><li>GHG management, including identifying GHG reduction opportunities in the value chain; guiding investment and procurement decisions; and managing climate-related risk
    22. 22. Performance tracking, includingsetting a baseline, setting GHG reduction goals, and tracking progress over time
    23. 23. Engaging partners in the value chain to expand GHG accountability, transparency and management throughout the value chain
    24. 24. Public reporting of GHG emissions to meet the decision-making needs of stakeholders (e.g., policy-makers, investors, purchasers, customers, suppliers, employees, NGOs, etc.), as well as participation in corporate-level GHG reporting programs and registries</li></ul>12<br />
    25. 25. 13<br />Mapping the Value Chain: <br />Upstream & Downstream<br /><ul><li>Upstream emissions are the emissions that occur in the life cycle of purchased or acquired goods, services, materials, and fuels up through receipt by the reporting company
    26. 26. These include the emissions of your suppliers
    27. 27. Downstream emissions are the emissions that occur in the life cycle of sold goods and services subsequent to sale by the reporting company
    28. 28. These include the emissions of your customers
    29. 29. Other scope 3 emissions: employee commuting</li></ul>13<br />
    30. 30. 14<br />14<br />
    31. 31. 15<br />Setting the Boundary<br />Companies shall account for and report:<br /><ul><li>The largest scope 3 sources that collectively account for at least 80%*of total anticipated scope 3 emissions;
    32. 32. The use phase emissions of select product type
    33. 33. All scope 1 and scope 2 emissions, as required by the GHG Protocol Corporate Standard.</li></ul>15<br />
    34. 34. 16<br />Collecting Data<br />As a general rule, companies should apply the following hierarchy in collecting data:<br />Primary data<br />Secondary data<br />Extrapolated data<br />Proxy data<br />
    35. 35. Collecting Data<br />1b. Can primary data be combined with one or more of the other data types of sufficient quality?<br />2b. Can the secondary data be combined with the use of extrapolated data or proxy data to obtain sufficient data quality?<br />Decision Tree<br />3. Are extrapolated data or proxy data available of sufficient quality? <br />2. Is secondary data available of sufficient quality?<br />1a. Is the value chain partner able and willing to supply primary data of sufficient quality?<br />N<br />N<br />N<br />N<br />Y<br />Y<br />Y<br />Y<br />Y<br />N<br />5. Calculate, roll-up and report emissions<br />6. Report data gap<br />
    36. 36. A public GHG emissions report shall include: <br /><ul><li>Total scope 1 emissions, total scope 2 emissions, and all required scope 3 emissions, separately reported for each scope
    37. 37. Emissions data for all six Kyoto Protocol GHGs (CO2, CH4, N2O, HFCs, PFCs, SF6)
    38. 38. Scope 3 emissions reported separately for each scope 3 category included in the inventory
    39. 39. A list of scope 3 activities included in the report
    40. 40. A list of excluded scope 3 emission sources with justification of their exclusion
    41. 41. Emissions reported separately for sources calculated using primary (company-specific) data and sources calculated using secondary (industry average) data
    42. 42. Methodologies used to calculate or measure emissions
    43. 43. A description of the uncertainties of reported emissions data
    44. 44. A summary of data types used to calculate the inventory (e.g., the percentages of scope 3 emissions calculated using primary data, secondary data, and extrapolated/proxy data) </li></ul>18<br />Reporting<br />
    45. 45. 19<br />
    46. 46. 20<br />Product Life Cycle<br />Accounting & Reporting Standard<br />20<br />
    47. 47. Goal and Scope<br />21<br /><ul><li>The primary goal of the standard is public disclosure of product level GHG emissions
    48. 48. Implementingthe standard may support additional business goals:
    49. 49. Identification of GHG reduction opportunities in the supply chain of a product
    50. 50. Performance tracking
    51. 51. Supply chain engagement and improved disclosure practices
    52. 52. Product differentiation</li></ul>Goal & Scope<br />
    53. 53. Goal and Scope<br />The standard is sufficiently flexible to support GHG quantification and reporting for many product types<br />Who should use this standard?<br />Companies and organizations of all sizes and economic sectors<br />22<br />Goal & Scope<br />
    54. 54. Goal and Scope<br />This standard does not fully support product comparison<br />Valid product comparison, comparative assertion, and labeling requires a greater degree of prescriptiveness than is provided in this standard. <br />The standard will include guidance on how programs, product category rule (PCR) developers and organizations can specify additional constraints so that valid product comparisons and claims can be made<br />23<br />Goal & Scope<br />
    55. 55. 24<br />Product GHG Accounting<br /><ul><li>The overarching method for accounting for product GHG emissions is a life cycle approach
    56. 56. Including all stages of the life cycle, from cradle to grave:</li></ul>24<br />
    57. 57. 25<br />Defining the Functional Unit<br />Example<br />Functional Unit = Illumination<br />Function or Performance Characteristics<br /><ul><li>Lighting 10 square meters with 3000 lumens for 50000 hours</li></ul>Reference Flow <br /><ul><li> 300 light bulbs</li></ul>Relevance to the Study Goal<br /><ul><li> To establish the GHG inventory of the Illumination characteristics of a specific light bulb over its full life cycle</li></ul>Benefits of using a functional unit:<br /><ul><li> Facilitates the ability to compare similar products with the same function</li></ul>25<br />
    58. 58. Key Requirements: Setting the Boundary<br />Setting the Boundary<br />Processes that are attributable to the function of the product shallbe included in the boundary of the product system. <br />These processes are directly connected over the product’s life cycle by material or energy flows, from extraction and pre-processing of product components through to the product’s end-of-life<br />These processes are referred to as foreground processes throughout this standard<br />Capital goods shall be included in the product system if deemed significant for the studied product or product sector<br />Significance can be proven for capital goods using a qualitative or quantitative test. <br />Companies shall conduct a cradle-to-grave assessment for all final products. <br />Companies may conduct a cradle-to-gate assessment for intermediate products when the eventual fate of a product is unknown. <br />26<br />
    59. 59. 27<br />Setting the Boundary<br />Life Cycle Stages<br />
    60. 60. Key Requirements: Collecting Data<br />Primary data shall be collected for all processes under the control (as defined by the GHG Protocol Corporate Standard) of the company undertaking the product inventory <br />For all other processes, primary or secondary data of the highest practical quality shall be collected<br />Data gaps shall be filled using extrapolation or proxy data<br />28<br />Collecting Data<br />
    61. 61. Key Requirements: Reporting<br />A company shallpublicly disclose a GHG inventory report<br /> This report is divided into a summary and detailed report to address the needs of different audiences: <br />The general audience (summary)<br />The audience familiar with GHG inventory accounting (detailed)<br />The summary and detailed reports shall be disclosed together <br />29<br />Reporting<br />
    62. 62. Key Requirements: Summary Report<br />30<br />Reporting<br />Summary Template<br />
    63. 63. Key Requirements: Summary Report<br />31<br />Reporting<br />Summary Template<br />
    64. 64. 32<br />Next Steps<br />32<br />
    65. 65. 33<br />Timeline<br />33<br />
    66. 66. 34<br />Thank You<br />Summary and Full Draft of the Standards available at http://www.ghgprotocol.org/standards/product-and-supply-chain-standard<br />Contact Information:<br />China & Asia:<br />Ranping Song, Associate<br />Tel:86-10-59002566 ext 29<br />Email:rsong@wri.org<br />Global & U.S.:<br />Holly Lahd, Research Assistant <br />Email: hlahd@wri.org. <br />34<br />

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