You have seen how to calculate the Greenhouse Gas (GHG) Scopes 1, 2, 3.1, 3.3 and 3.5 emissions. In this training, you will learn a side calculation for direct emissions and energy consumption from the use of sold products.
Objective
You have seen how to calculate the Greenhouse Gas (GHG) Scopes 1, 2, 3.1, 3.3 and 3.5 emissions. In this training, you will learn a side calculation for direct emissions and energy consumption from the use of sold products.
The first step is to upload the master data for company, plant, resource, production documents for the customer who consumes the finished product. This data is crucial for tracking the product’s lifecycle.
Next, you create distinct scope definitions tailored to each product category. It involves diving into the specifics of the product's impact on the environment, particularly focusing on direct emissions and energy consumption. The customer is considered an integral part of the company's organizational boundary, ensuring that the carbon footprint includes every phase from the production to the end-use of the product. At this stage, you can also create a calculation variant.
Then, you configure the specific types of energy carriers and sources applicable to your operations for Scope 1 and Scope 2 emissions.
After configuring the energy sources and energy carriers, you set up the planned consumption rates for resources and activities.
Next, you import business transactions that confirm the quantities of services rendered regarding resources on the production document imported earlier. It involves gathering accurate data from service confirmations, ensuring it reflects actual resource consumption. By importing and associating these transactions with the correct resources, you maintain precise records, which are crucial for sustainability reporting and management.
Then, initiate a periodic calculation for predefined scopes related to your sustainability footprint. Before starting the calculation, it is essential to conduct a data readiness check to ensure that all necessary input data is prepared and accurate. This step helps capture the current state of all inventory items related to sustainability metrics, allowing for precise tracking and management of the environmental impact.
Next, analyze the calculated Scope 1 and Scope 2 emissions from the additional scope definition. This scope definition represents the product's lifecycle as used by the customer. Scope 1 refers to direct greenhouse gas emissions from sources owned or controlled by the company, while Scope 2 refers to indirect emissions from the generation of purchased energy. Observing these emissions provides insight into the environmental impact of the product during its usage phase by the customer.
Then, apply the manual emission and allocation scheme to assign Scope 1 and Scope 2 emissions observed in the previous step (from the customer's usage) to Scope 3.11 emissions in the corporate main scope definition. Scope 3.11 typically deals with the carbon footprint associated with the use of sold products, thus integrating the emissions data into the broader corporate sustainability metrics.
The final step is to start the periodic inventory calculation for the main scope definition. It involves conducting an inventory assessment based on the combined data, including the manually allocated Scope 3.11 emissions from the previous step. It’s crucial to perform a thorough data readiness check to ensure all input data required for the inventory calculation is accurate and complete. This step helps in capturing the up-to-date state of emissions inventory, facilitating accurate sustainability tracking and reporting.
In this lesson, you focus on the first two steps of the overall process flow.
Our sample company, AlmikaSoft aims to report emissions occurring during the use phase of the on-premises software by their customers. To achieve this, they conduct a separate calculation for a partial scope and later integrate the calculated emissions into their main footprint inventory.
To implement this, they create a new company to represent the customers in Germany and India, along with two new plants for the respective countries where the customers use their software.
In this scenario, software usage is divided into two activities: active usage and idle time. Once these emissions are calculated, they are added to AlmikaSoft's Corporate Emission Scope as Manual Emissions.
The servers running in Germany and India for which the use phase emissions are calculated are modeled as resources.
The screenshot shows the imported resources.
The footprint inventory scope defines the scope of the footprint calculation for the reporting organization.
When setting the footprint inventory scope, our model company AlmikaSoft focuses on Direct Emissions and Energy Consumption. In this case, you do not activate the GHG forms.
You are using planned energy consumption rates for this calculation. As a result, you create a new calculation variant with this setting.
In the next lesson, you will see how to manage the planned energy consumption rates for resources and activities.
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