10. Additional Understanding
Scope 1:
Direct GHG Emissions Scope 1 emissions are direct GHG emissions occurring from sources that are owned or controlled by the company. Such emissions can include e.g. emissions from combustion in owned or controlled boilers, furnaces, vehicles, or emissions from chemical production in owned or controlled process equipment.
Scope 2:
Electricity; Indirect GHG Emissions Scope 2 refers to indirect GHG emissions arising from the generation of purchased electricity consumed by the company. Purchased electricity is defined as electricity that is purchased or otherwise brought into the organisational boundary of the company. Scope 2 emissions physically occur at the facility where electricity is generated.
Scope 3:
Other Indirect GHG Emissions Scope 3 emissions are a result of the activities of the company, but occur from sources not owned or controlled by the company. Examples of Scope 3 activities are extraction and production of purchased materials; transportation of purchased fuels; and use of sold products and services.
Scope 3 emissions are inherently harder to measure and quantify than Scope 1 and Scope 2 emissions and so the GHG Protocol regards these as a voluntary reporting category with importance placed on understanding these emissions more than accurately measuring them.
EU Emissions Trading Scheme History
The European Union Emission Trading System (EU-ETS) is the world’s largest multi-country, multi-sector greenhouse gas emission trading system and has been operating since 2005. It was set up to implement the principles established under the Kyoto agreement and to permit the EU and its member states to both fulfil their Kyoto obligations and to set a global example. In 2008, 30% of Ireland’s total GHG emissions came from companies participating in the EU Emissions Trading Scheme (EU- ETS). A total of 20.4 million tonnes of emissions were released by these EU-ETS category Irish companies in 2008. Significantly, only ten companies were responsible for approximately 95% of these emissions, and as such these companies constitute the largest emitters of CO2
and other greenhouse gases in Ireland.
A significant number of Ireland’s largest participants in the EU ETS are state-owned or privately owned. Out of the eleven invited by CDP to take part, only CRH is listed on the ISEQ. Two subsidiaries of foreign corporations (Conoco Phillips and Endesa) respond to CDP elsewhere via their parent corporations.
Verification
CDP is committed to increasing the level of verification of emissions disclosures in order to improve the quality of the information submitted by companies globally. In turn, this will build trust in carbon reporting and lead to an increase in the use of the data in analysis and decision making. Key drivers for verification include the increasing market demand from investors, customers, regulators, non-governmental organisations and other stakeholders for assured and reliable climate data.
Improved internal management processes that can be harnessed for competitive advantage is a key benefit of verification. In order to support this drive, CDP rewards verification highly in both disclosure and performance scoring.
Verification Levels in 2011 In 2011, a number of criteria were introduced to determine what is accepted as verification within CDP’s scoring methodology. It requires that a verification statement:
1. Is related to the relevant emission scope;
2. Clearly states the type of verification that has been given and the verification standard used;
3. Covers the current reporting year; and
4. Is undertaken by an independent third party.
What is CDP Doing to Support Reporting Companies? For 2012, CDP is providing further clarity on what constitutes an acceptable verification and has launched a verification white paper and consultation on a verification roadmap (2013-2018) aiming to encourage more companies to verify their climate data. Visit
http://www.cdproject.net/ verification to find out more.
4
GHG Protocol: A Corporate Accounting and Reporting Standard (Revised Edition) available at
www.ghgprotocol.org
33
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40