GHG Protocol Program InitiativesKementrian Perindustrian, 31 Oct ‘12
________________________________________________________________________
A Corporate Accounting and Reporting Standard INDONESIAN BUSINESS COUNCIL FOR SUSTAINABLE DEVELOPMENT
________________________________________________________________________
A Corporate Accounting and Reporting Standard INDONESIAN BUSINESS COUNCIL FOR SUSTAINABLE DEVELOPMENT
• Launched in 1998 by • Multi-stakeholder partnership of businesses, NGOs, governments and others
• Mission: to develop internationally accepted greenhouse gas (GHG) accounting and reporting standards for business and to promote their broad adoption
What is the Greenhouse Gas Protocol?
________________________________________________________________________
A Corporate Accounting and Reporting Standard INDONESIAN BUSINESS COUNCIL FOR SUSTAINABLE DEVELOPMENT
GHGP adopted by 60%+ of Fortune 500 companies
Reporting - Common practice in Leading Companies
________________________________________________________________________
A Corporate Accounting and Reporting Standard INDONESIAN BUSINESS COUNCIL FOR SUSTAINABLE DEVELOPMENT
Widespread adoption of Corporate Standard
• To build GHG accounting capacity
• To mainstream GHG accounting as a business practice
• To register GHG emission and reductions
• To track progress toward reduction targets
• To support national climate change efforts
• To support GHG trading programs
• To provide information to investors and stakeholders
________________________________________________________________________
A Corporate Accounting and Reporting Standard INDONESIAN BUSINESS COUNCIL FOR SUSTAINABLE DEVELOPMENT
Why a GHG Program?
• Identifying risks from future GHG constraint
• Reduce impact on the global environment
• Cost saving through energy efficiency
• Public relations-consumer demand
• Reporting to voluntary program
• To keep up with competition (by common practice)
________________________________________________________________________
A Corporate Accounting and Reporting Standard INDONESIAN BUSINESS COUNCIL FOR SUSTAINABLE DEVELOPMENT
Why do companies report?
• Management of GHG risks and identification of reduction opportunities
• Public reporting and participation in voluntary GHG programs
• Participation in mandatory GHG reporting programs and GHG markets
• Recognition for early voluntary action
Business Value of a GHG Inventory
________________________________________________________________________
A Corporate Accounting and Reporting StandardINDONESIAN BUSINESS COUNCIL FOR SUSTAINABLE DEVELOPMENT
Mexico:
• Cost reduction through energy efficiency and conservation
Brazil:
• More competitive International market where sustainability measures are increasingly demanded.________________________________________________________________________
A Corporate Accounting and Reporting Standard INDONESIAN BUSINESS COUNCIL FOR SUSTAINABLE DEVELOPMENT
How GHG help Businesses? Lesson Learn
How to account for renewable energy
purchases and related
instruments
Summer 2012
Membership in stakeholder group
Green Power Guidelines
How to account for reductions from
mitigation policies and actions
Late 2013
Membership in stakeholder group; road-test protocol
Policy Accounting Protocol
How to accountfor emissions from
agriculture companies
Sept 2012
Membership in stakeholder group; road-test protocol
AgricultureProtocol
How to account for full value chain emissions from
cities
Late 2013
Membership in stakeholder group; road-test protocol
City Accounting Protocol
Protocols and guidelines under development
date available
how to participate
protocol overview
________________________________________________________________________
A Corporate Accounting and Reporting Standard INDONESIAN BUSINESS COUNCIL FOR SUSTAINABLE DEVELOPMENT
Available Protocols and Standards
________________________________________________________________________
A Corporate Accounting and Reporting Standard INDONESIAN BUSINESS COUNCIL FOR SUSTAINABLE DEVELOPMENT
Indirect EmissionsDirect Emissions
• Direct: emissions from sources owned or controlled by the reporting company
• Indirect: emissions that are a consequence of the activities of the reporting company but occur at sources owned or controlled by another company
Direct and Indirect Emissions
Your factory Power plant(owned by utility company)
Maintenance service(owned by another company)
Indirect Emissions
________________________________________________________________________
A Corporate Accounting and Reporting Standard INDONESIAN BUSINESS COUNCIL FOR SUSTAINABLE DEVELOPMENT
Classifying Emissions: Scopes
Direct
Indirect
Scope 1
Scope 2
Scope 3
Emissions
________________________________________________________________________
A Corporate Accounting and Reporting Standard INDONESIAN BUSINESS COUNCIL FOR SUSTAINABLE DEVELOPMENT
Scopes 1, 2 and 3
Account for and report emissions from each scope separately________________________________________________________________________
A Corporate Accounting and Reporting Standard INDONESIAN BUSINESS COUNCIL FOR SUSTAINABLE DEVELOPMENT
Find GWP value
GHG GWPCO2 1
• How would you calculate the CO2 emissions from travel in company-owned vehicles?
Example: Transportation Emissions
Find activity dataConsult fuel purchase records
or miles traveled by vehicles
Find emission factorConsult GHGP
emission factors
CalculateMultiply activity data by emission
factor
CalculateMultiply t of emissions
by GWP
x =
x =
activity data t de emissionsemission factor
GWP CO2e of emissionst de emissions
100 liters of gasoline 0.0023 t CO2/liter 0.23 t CO2
1 0.23 t CO2e
________________________________________________________________________
A Corporate Accounting and Reporting Standard INDONESIAN BUSINESS COUNCIL FOR SUSTAINABLE DEVELOPMENT
Example: Electricity Emissions
How would you calculate the CH4 (methane) emissions from use of purchased electricity?
Find activity dataConsult electricity bill
Find emission factorConsult GHGP
emission factors
CalculateMultiply activity data by emission
factor
Find GWP value CalculateMultiply t of emissions by GWP
x =
x =
activity data t of emissionsEmission factor
GWP CO2e of emissionst of emissions
1,000 GWh of electricity 0.039 t CH4/GWh 39 t CH4
21 819 t CO2e
GHG GWPCO2 21
________________________________________________________________________
A Corporate Accounting and Reporting Standard INDONESIAN BUSINESS COUNCIL FOR SUSTAINABLE DEVELOPMENT
Summary
Identify Sourcesstationary, mobile, process, fugitive
Select Calculation Approachdirect measurement, stoichiometry, estimate emissions
Collect Data and Choose Emissions Factors
Apply Calculation Toolshttp://www.ghgprotocol.org/calculation-tools
Roll-up Data to Corporate Levelreport activity data and emissions estimates to corporate
x = x =Activity data
t of emissions
Emission factor
GWPCO2e of
emissionst of
emissions
________________________________________________________________________
A Corporate Accounting and Reporting Standard INDONESIAN BUSINESS COUNCIL FOR SUSTAINABLE DEVELOPMENT
T H A N K Y O U
________________________________________________________________________
A Corporate Accounting and Reporting Standard INDONESIAN BUSINESS COUNCIL FOR SUSTAINABLE DEVELOPMENT
“What you can’t measure, you cannot manage. What you can’t manage, you cannot change.”
