The Greenhouse Gas Protocol Product & Supply Chain The Greenhouse Gas Protocol Product & Supply Chain The Greenhouse Gas Protocol Product & Supply Chain The Greenhouse Gas Protocol Product & Supply Chain
InitiativeInitiativeInitiativeInitiative
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InitiativeInitiativeInitiativeInitiative
Laura Draucker, PhDLaura Draucker, PhDLaura Draucker, PhDLaura Draucker, PhDWorld Resources Institute
Outline
• Overview of the GHG Protocol Initiative
• The Growing Practice of GHG Management
• GHG Protocol Supply Chain Initiative
– Standards Under Development
– Timeline
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– Timeline
– Road Testing Process
• GHG Inventories in the Auto Steel Industry
GHG Protocol Initiative
• Convened in 1998 by WRI and WBCSD
• A multi-stakeholder partnership of businesses, NGOs, governments and others convened by WRI and
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others convened by WRI and WBCSD
• Mission: Develop internationally accepted GHG accounting and reporting standards and to promote their use worldwide
GHG Protocol Publications
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Programs Based on the GHG Protocol Initiative
• Carbon Disclosure Project
• The Climate Registry
• California Climate Action Registry
• U.S. EPA Climate Leaders Initiative
• Global Reporting Initiative
• World Wildlife Fund Climate Savers
• Dow Jones Sustainability Index
• EU Emissions Trading Scheme
• UK Emissions Trading System
• ISO 14064 Part 1
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• ISO 14064 Part 1
• U.S. Department of Energy (1605b)
• Chicago Climate Exchange
• French REGES Protocol
• METI, Japan
• Mexico GHG Program
• Respect Europe Business Leaders Initiative for
Climate Change (BLICC)
• International Industry Groups (Aluminum, IPIECA,
ICFPA, Cement, Iron and Steel)
• World Economic Forum Global GHG Registry
The Growing Practice of GHG Management in the Supply
Chain
• Corporate GHG management is moving beyond companies’ own operations, toward full value chain
– Investors pushing for supply
chain GHG disclosure and risk
management
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management
– Programs and policies
increasing public reporting of
scope 3 and product-level
GHG emissions
– Companies requesting product
and supply chain information
from suppliers
Need for New Standards
Need for an
internationally
standardized
approach to
Business-to-
business
(B2B) Inclusion of
supply chain
Requests by
stakeholders
DriversDriversDriversDrivers
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approach to
measuring and
reporting
emissions in
the value
chain
(B2B)
requests for
GHG
information
throughout
the supply
chain
supply chain
emissions in
corporate
GHG reduction
goals
stakeholders
for disclosure
of supply chain
emissions and
risk
New Standards in Development: The Supply Chain Initiative
Scope 3 (Corporate Value Chain)
Accounting & Reporting Standard
• Quantify and report major GHG
emissions in the value chain at the
company/organization level (scope 3)
• To understand, manage, and report
• Quantify and report product-level
emissions
• To understand, manage, and report the
life cycle GHG emissions associated
Product Life Cycle
Accounting & Reporting Standard
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GHG emissions across the entire value
chain
• Build on GHG Protocol Corporate
Standard
life cycle GHG emissions associated
with individual products
• Build on existing life cycle assessment
standards
Goal of both standards: public reporting of GHG inventories to manage and reduce GHG emissions
Scope 3 Accounting and Reporting Standard
downstreamScope 3 emissions = All other indirect emissions upstream &
downstream
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Scope 3 Accounting and Reporting Standard
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Product Life Cycle GHG Accounting and Reporting
Standard
The overarching method to account for product-level GHG
emissions is a life cycle approach
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Product Life Cycle GHG Accounting and Reporting
Standard
• Why product-level?– Products (goods and services) are the backbone of most corporations
– Purchased and sold products have a large influence on most Scope 3 inventories
– Focusing on the product-level creates more options for
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– Focusing on the product-level creates more options for reductions
– Unique business value created through:
• Supplier engagement and reduction opportunities
• Tracking reductions through public reporting
• Product differentiation
Key Issues and Challenges
•What do you include / exclude in your inventory?BoundariesBoundariesBoundariesBoundaries
•When should you collect actual data from suppliers? When should you use generic industry-average data? How do you ensure you have high-quality data, and what to do if you don’t?
DataDataDataData
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and what to do if you don’t?
•How do you allocate emissions between facilities, products, and processes ? How do you allocate recycled products?
AllocationAllocationAllocationAllocation
•How should emissions, data quality, and uncertainty be reported?
ReportingReportingReportingReporting
Standard Development Process Structure
WRI/WBCSD Secretariat
Steering Committee (25 members)
Product
Technical Working
Groups
( 100+ members)
Scope 3
Technical Working
Groups
( 70+ members)
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( 100+ members) ( 70+ members)
Stakeholder Advisory Group (1,200+)
Product Standard Scope 3 Standard
Road Testing (70 companies)
Timeline
Date ActivityNovember 2007 � Survey and consultations to assess need for new standards
September 2008� Steering Committee Meeting #1 (Washington DC)
� Technical Working Group Meeting #1 (London)
January 2009 � Working groups begin drafting
March 2009 � Steering Committee Meeting #2 (Geneva)
June 2009 � Technical Working Group Meeting #2 (Washington DC)
August 2009 � Stakeholder webinar and comment period
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August 2009 � Stakeholder webinar and comment period
October 2009 � Steering Committee Meeting #3 (Washington DC)
November -December 2009
� First draft of standards released for stakeholder review
� Five stakeholder workshops (in Berlin, Germany; Guangzhou, China;
Beijing, China; London, UK; Washington, DC, USA)� Stakeholder comment period on first drafts
January - June 2010
� Road testing by several companies
Summer/Fall 2010 � Public comment period on second drafts
December 2010 � Finalize Standard Text for Publication
Road Testing
• 6 month road testing process began in January 2010
• Over 120 Companies Applied
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Applied
• Over 70 Companies participating
Road Testing Companies
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Companies from 19 Countries
Scope 3 Standard Road Testing Companies
3M Company Kraft Foods
Abengoa Levi Strauss & Co.
Acer Inc National Grid
Airbus S.A.S Natura Cosméticos
AkzoNobel New Belgium Brewing
Alcan Packaging PE International
Autodesk, Inc. Pfizer
Baoshan Iron & Steel CO. LTD Baoshan Iron & Steel CO. LTD Baoshan Iron & Steel CO. LTD Baoshan Iron & Steel CO. LTD Pinchin Environmental Ltd.
BASF SE PricewaterhouseCoopers
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Coca-Cola Erfrischungsgetränke AG Public Service Enterprise Group, Inc.
Deutsche Post DHL SAP AG
Deutsche Telekom AG SC Johnson and Son
Eclipse Networks (Pty) Ltd. Siemens
Ford Motor CompanyFord Motor CompanyFord Motor CompanyFord Motor Company Suzano Pulp and Paper
US GSA Federal Acquisition Service Swire Beverages
Hasbro Inc. UK Highways Agency
Hydro Tasmania Veolia Water
IBM VT Group IKEA Webcor BuildersItalcementi Group
Product Standard Road Testing Companies
3M Company Italcementi GroupAcer Inc JohnsonDiverseyAkzoNobel LenovoAlcoa Levi Strauss & Co.Amcor Mitsubishi Chemical CorporationAnvil Knitwear, Inc. Natura CosméticosBaoshan Iron&Steel CO. LTD Baoshan Iron&Steel CO. LTD Baoshan Iron&Steel CO. LTD Baoshan Iron&Steel CO. LTD New Belgium BrewingBASF SE PepsiCo, Inc.Belkin Procter & Gamble EurocorBelron International Rogers CommunicationsBloomberg LP Shanghai Zidan Food Packaging and Printing Co., Ltd.
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Bloomberg LP Shanghai Zidan Food Packaging and Printing Co., Ltd.BT plc Shell International Petroleum Company Ltd CA, Inc. Siemens AGColors Fruit SA (Pty) Ltd Suzano Pulp and PaperDeutsche Post DHL Swire BeveragesDeutsche Telekom AG TAL Apparel Limited
DuPontTech-Front (Shanghai) Computer Co., Ltd. / Quanta Shanghai Manufacturing City
Eclipse Networks (Pty) Ltd. Tennant CompanyEcolab Verso Paper Corp.General Electric WeyerhaeuserGold’n Plump Poultry, LLC WorldAutoSteelWorldAutoSteelWorldAutoSteelWorldAutoSteel
List of Products (to date)2.5 MW Wind Turbine Food Packaging Product
Advanced High Strength SteelsAdvanced High Strength SteelsAdvanced High Strength SteelsAdvanced High Strength Steels Forged Aluminum Wheel
AnvilSustainable™ Transitional Cotton Tee Home Insurance
Bloomberg Flat Panel Hot Rolled CoilHot Rolled CoilHot Rolled CoilHot Rolled Coil
Bresso Packaged Cream Cheese Industrial Chemicals
Calcestruzzo (concrete) Just BARE Chicken
Chemicals for a T-Shirt Production Magazine
Citrus Fruit Exports from South Africa to the UK Men's Levi Jeans
Coated Freesheet Paper MPLS (Multi-Protocol Label Switching) network product
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Coated Freesheet Paper MPLS (Multi-Protocol Label Switching) network product
Coca-Cola Branded Products Non-iron Shirt
Conserve Smart AV Notebook Computer
Cosmetics and Soap Products Restaurant Meals
Cotton Bleached Fabric Scotchkote Spray in Place Pipe 269 Coating
Desktop Computer SIPROTEC 4 (Universal Differential Protection Relay)
Detergent Solution Tank for a T3 with ec-H2O Floor Scrubber
Deutsche Post PLUSPÄCKCHEN; DHL Express TDI Vehicle Windscreen Replacement/Repair
European Disposable Diaper Size 4 Videoconferencing System
Fat Tire Amber Ale Wood Product
GHG Inventories in the Auto Steel Industry
• What impacts can you have on Scope 3 and Product Inventories?– Fuel-efficient cars can reduce companies Scope 3 emissions due to:
•Transport logistics
•Employee commuting
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•Employee commuting
– Material choices impact a car’s product life cycle (or Scope 3 of a car manufacture)
•Lightweight/high-strength materials
•Recycled or reused materials
•Lower energy intensity production, manufacturing, and/or waste treatment processes
GHG Inventories in the Auto Steel Industry
More Inventories = More Data = More Choices
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To Get Involved
• Please visit our website:
http://www.ghgprotocol.org/standards/product-and-supply-chain-standard
– Access to the draft standards and other standard development materials
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standard development materials
– Become a stakeholder
•Receive updates on the standard development process
•Submit comments on the next draft
• For more information about the GHG Protocol Initiative: www.ghgprotocol.org
Thank youThank youThank youThank you
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