This document discusses carbon accounting and mitigation strategies. It outlines three types of carbon accounting: product carbon accounting which measures emissions associated with specific products; corporate carbon accounting which measures a company's total emissions; and value chain carbon accounting which measures emissions across a company's entire value chain. It also discusses setting carbon reduction or neutrality targets and examples of public commitments companies have made. Carbon accounting helps companies understand and reduce their greenhouse gas footprints.

1. Carbon Accounting Advisory
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2. Background
• Climate change is one of biggest threats faced by humanity.
– Recent temperatures are warmer than any since direct measurements began
– All the 10 warmest years have occurred since 1990, including each year since 1995.
• Greenhouse gases (GHGs) such as CO2 are believed to be responsible for this
– Efforts to limit the CO2 concentration in the atmosphere below 550 ppm
– The only way to do so is to control rate of greenhouse gases emission into the atmosphere.
• Europe has been at the forefront of these initiatives, having established world’s first
carbon cap-and trade system (EU-ETS) in 2005.
– This mechanism is intended to cap the emissions from more than 12,000 large emitters in the EU.
• India, China, Brazil and South Africa (the BASIC) would continue to face pressures
from the developed world to measure and report emissions, as least measure their
GHG emissions.
• Various voluntary initiatives such as Carbon Disclosure Project (CDP), Investor
Network on Climate Risk (INCR), and Institutional Investor Group on Climate Change
(IIGCC) are increasing the thrust on this area.
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3. Carbon Accounting
• Product Carbon Accounting
– Ideally suited for organizations which have branded products or services
– Either a B2B (Cradle-to-gate) view or a B2C (Cradle to grave) view
– Product-centric view of GHG emissions – to guide efforts or initiate scale-up
– Approaches include GHG Protocol for Product Life Cycle by WRI and PAS2050 by BSI
– Engages Product Life Cycle practitioners
Process for calculating Product Carbon Footprint
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4. Carbon Accounting
• Corporate Carbon Accounting
– Creates an overview of the entire organization’s GHG footprint
– Suited to all types of organizations irrespective of their domain or nature of operations
– Robust approach to establishing GHG inventory
– Applies GHG Protocol Corporate Accounting and Reporting Standard – tested worldwide
– Engages Corporate Communications and Corporate Branding groups
– Implemented in India by Tata Motors, Asian Paints, Infosys, Wipro, ACC, ONGC, Tata Steel etc.
– Recent implementation by Ashoka Buildcon – First infrastructure company in India to do so
• Value-chain Carbon Accounting
– To understand and communicate carbon emissions in core and allied activities
– Activities in direct control and those associated with products or services over entire value chain
– An aggregate view of all the products and services of the company
– GHG Protocol Corporate Accounting and Reporting Standard (in use since 2004) and GHG Protocol
Scope 3 Standard (under development and being road tested).
– Involves Corporate communications, Supply Chain practitioners and Marketing
– Allows the company to collaborate with suppliers and consumers to together understand and reduce the
Carbon footprint of operations
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5. Comparison of approaches
Organization
P1
P2
P3
Raw Use by End Disposal /
Materials
consumer
Recycle
S1
S2
S3
All business activities in operation of business
including use of electricity and fuels
Corporate Carbon Accounting
Value Chain Carbon Accounting
Product Carbon Accounting
Organization
P1
Raw Materials P1 disposal/
P1 usage
for P1
All activities required for P1 + allocated
recycling
portion of shared activities
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6. Carbon Mitigation and Neutralization
• As a natural extension of efforts in accounting the carbon emissions, an organization
can take carbon reduction or carbon neutrality targets for itself
• Such a reduction can be a part of an internal target - monitored on a periodic basis or
a public commitment – discussed annual reports/sustainability reports
Examples of publicly stated GHG targets
Source : Carbon Disclosure Project, 2009
India 200
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7. Thank you!
We look forward to hearing from you.
Indrajeet
+91-9028788430 / indrajeet@agneya.in
Kedar
+91-9665407848 / kedar@agneya.in
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