🧑‍🤝‍🧑GHG Strategy Module

GHG - Step 0

GHG Strategy page is composed of following components

Welcome Box

You will see,

• name of the Organization

• Perorting period

• Number of users

• Number of facilities

Standard

GHG Module standard is GHG Protocol. Click to learn more about GHG protocol.

Reported Gases

Reported gases in accordance with ghg protocolo are Carbon Doxide, Methane and Nitrous Oxide.

Organizational Boundaries

"Business operations vary in their legal and organizational structures; they include wholly owned operations, incorporated and non-incorporated joint ventures, subsidiaries, and others. For the purposes of financial accounting, they are treated according to established rules that depend on the structure of the organization and the relationships among the parties involved. In setting organizational boundaries, a company selects an approach for consolidating GHG emissions and then consistently applies the selected approach to define those businesses and operations that constitute the company for the purpose of accounting and reporting GHG emissions." according to GHG protocol.

GHG Protocol also mention:

"For corporate reporting, two distinct approaches can be used to consolidate GHG emissions: the equity share and the control approaches. Companies shall account for and report their consolidated GHG data according to either the equity share or control approach as presented below. If the reporting company wholly owns all its operations, its organizational boundary will be the same whichever approach is used.1 For companies with joint operations, the organizational boundary and the resulting emissions may differ depending on the approach used. In both wholly owned and joint operations, the choice of approach may change how emissions are categorized when operational boundaries are set. "

Carbonze calculation engines will assign 100% of the facility emissions to the organization.

Business goals for GHG

According to GHG Protocol: "Improving your understanding of your company’s GHG emissions by compiling a GHG inventory makes good business sense. Companies frequently cite the following five business goals as reasons for compiling a GHG inventory:

• Managing GHG risks and identifying reduction opportunities

• Public reporting and participation in voluntary GHG programs

• Participating in mandatory reporting programs

• Participating in GHG markets

• Recognition for early voluntary action."

Operational Boundaries

In order to effectively utilize Carbonze, and report properly, it is crucial to define operational boundaries.

Once a company has identified its organizational boundaries, encompassing the operations it owns or controls, the next step is to establish its operational boundaries. This entails identifying emissions linked to the company's operations and categorizing them as either direct or indirect emissions. Additionally, the company must determine the appropriate scope for accounting and reporting indirect emissions. By clearly defining these operational boundaries, users can gain a comprehensive understanding of how to assess and manage their emissions within the Carbonze platform, facilitating more accurate carbon footprint measurement and reporting.

Scope 1

Scope 1 emissions encompass the direct greenhouse gas (GHG) emissions originating from sources owned or controlled by the company. These emissions arise from various activities, such as combustion in boilers, furnaces, and vehicles under the company's ownership or control. Additionally, emissions resulting from chemical production in process equipment that the company manages also fall within scope 1. It's important to note that direct CO2 emissions from biomass combustion are excluded from scope 1 and reported separately as per the guidelines outlined in chapter 9. Moreover, GHG emissions not covered by the Kyoto Protocol, such as CFCs and NOx, should not be included in scope 1 but may be reported separately (refer to chapter 9 for more details). Understanding and accurately measuring scope 1 emissions enable companies to assess their direct environmental impact and develop targeted strategies for emission reduction and sustainability initiatives.

To learn more about scope 1, visit our blog article.

Scope 2

Scope 2 focuses on the greenhouse gas (GHG) emissions associated with the generation of purchased electricity that is consumed by the company. It includes electricity that is purchased or brought into the organizational boundary of the company. The emissions associated with Scope 2 occur at the specific facility where the electricity is generated, rather than at the company's own facilities. By accounting for Scope 2 emissions, companies gain a comprehensive understanding of the indirect environmental impact resulting from their electricity consumption, allowing them to identify opportunities for reducing emissions and promoting more sustainable energy sourcing options.

To learn more about scope 2, visit our blog article.

Scope 3

Scope 3 represents an optional reporting category that encompasses all other indirect emissions associated with a company's activities. Unlike Scope 1 and Scope 2 emissions, Scope 3 emissions occur from sources that are not owned or controlled by the company but are a result of its operations. These emissions are often attributed to activities such as the extraction and production of purchased materials, the transportation of purchased fuels, and the use of products and services sold by the company. By including Scope 3 emissions in their reporting, companies gain a more comprehensive understanding of their environmental footprint and can identify opportunities to reduce emissions throughout their value chain, fostering sustainable practices beyond their direct operations.

To learn more about scope 3, visit our blog article.