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cleanFiles/bookmap_Introduction_to_Greenhouse_Gas__GHG__Proto_en-US_learning-sap-com_lsc-prod.zip (MMCP-DROPZONE) - 2024-10-29T10:37:21.000Z

Introducing Greenhouse Gas Protocol and Regulations

<div id="content"><div tabindex="0"><h3>Greenhouse Gas Protocol – Background</h3></div><div class="formalblock"><p tabindex="0">The Greenhouse Gas Protocol (GHG Protocol) is a widely used accounting tool for governments, businesses, and organizations to understand, quantify, and manage greenhouse gas emissions.</p><p tabindex="0">It provides a comprehensive, globally standardized framework to measure and manage emissions from private and public sector operations, value chains, products, cities, and policies.</p><p tabindex="0">Many governments and regulatory agencies use the Greenhouse Gas Protocol as a basis for their own emissions reporting requirements and standards. In addition, many companies and organizations voluntarily use the protocol to measure and manage their carbon footprint and demonstrate their commitment to climate action.</p><p tabindex="0">To learn more about the GHG protocol, follow the link <a target="_blank" href="https://ghgprotocol.org/corporate-standard">https://ghgprotocol.org/corporate-standard</a></p></div><div tabindex="0"><h3>Direct and Indirect Emission</h3></div><div class="formalblock"><p tabindex="0">The Corporate Standard of the GHG Protocol (chapter 4) divides a company’s emissions into direct and indirect emissions:</p><ul style="list-style-type:disc"><li tabindex="0">Direct emissions are emissions from sources that are owned or controlled by the reporting company.</li><li tabindex="0">Indirect emissions are emissions that are a consequence of the activities of the reporting company but occur at sources owned or controlled by another company.</li></ul></div><div tabindex="0"><h3>Scopes</h3></div><div class="formalblock"><p tabindex="0">These emissions are further divided into three scopes. Direct emissions are included in scope 1. Indirect emissions are included in scope 2 and scope 3.</p><p tabindex="0">While a company has control over its direct emissions, it has influence over its indirect emissions. A complete GHG inventory therefore includes scope 1, scope 2, and scope 3.</p></div><table border="1" class="table" cellspacing="0" cellpadding="5"><colgroup><col style="width:25%"><col style="width:25%"><col style="width:25%"><col style="width:25%"></colgroup><thead align="left"><tr><th>Emission Type</th><th>Scope</th><th>Definition</th><th>Example of Emissions</th></tr></thead><tbody><tr><td>Direct Emissions</td><td>Scope 1</td><td>Emissions from sources directly owned or controlled by the company</td><td><ul style="list-style-type:disc"><li tabindex="0">Stationary Combustion: Emissions from combustion in stationary sources (for example, boilers, furnaces, and turbines)</li><li tabindex="0">Mobile combustion: Emissions from combustion of fuels in transportation</li></ul></td></tr><tr><td rowspan="2">Indirect Emissions</td><td>Scope 2</td><td>Emissions from purchased energy from external suppliers</td><td>Use of purchased electricity, steam, heating, or cooling</td></tr><tr><td>Scope 3</td><td>Emissions that occur in the value chain of the reporting company, including both upstream and downstream emissions</td><td>Production of purchased products, transportation of purchased products, or use of sold products</td></tr></tbody></table><p tabindex="0">Watch the following video, which explains the GHG methodology to manage the carbon footprint in detail.</p><div class="kalturaVideoLessonWrapper"><div aria-label="" class="kalturaVideoLessonContainer" data-testid="video" id="1_lqpqo8rb"></div></div></div>

Greenhouse Gas Protocol

Establishing Corporate Carbon Footprint Emissions with Simple Configuration

Learn about the GHG protocol developed by WRI and WBCSD for quantifying emissions at corporate and product levels. Understand corporate and product carbon footprints, GWP, and the PACT framework.<br><br># This description was auto-generated #

CM01_GHG methodology.mp4

The GHG protocol is developed by the World Resources Institute, WRI, and the World Business Council for Sustainable Development, WBCSD, and provides a consistent framework for companies and organizations to quantify, track, and report their emissions. The protocol comprises three different standards, including corporate standard, value chain standard, and the product standard. Organizations need to assess their GHG emissions at corporate or product level, which are based on different GHG protocol standards. Let us start with understanding the corporate carbon footprint, CCF. A corporate carbon footprint is the total GHG emissions of a company that is directly or indirectly caused by a company's activities. These emissions are calculated for a specific period, such as a calendar year. It is important to understand that a carbon footprint does not only include carbon dioxide emissions. The reporting organizations need to consider other major greenhouse gases while assessing their carbon footprint. This is why they report their corporate carbon footprint as carbon dioxide equivalents. Here you can see all the greenhouse gases with their respective global warming potentials, GWP. For example, the GWP for methane is 28, which means if you release one molecule of methane in the atmosphere, it has the same global warming potential as releasing 28 molecules of CO2, because the global warming potential of methane is 28 times higher. Now we will understand what is included in the corporate carbon footprint and how it is evaluated using the GHG protocol methodology. Let us start with scope 1. These are the direct activities that cover emissions from operation that are owned or controlled by the reporting company. Scope 1 emissions include emissions from boilers, company vehicles, and emissions that are directly released into the atmosphere from chemical productions. Scope 2 emissions are indirect emissions. These are emissions from purchased electricity, steam, heating, and cooling. Scope 2 emissions occur at the source of the energy production. Scope 3 emissions are indirect emissions, which encompass the entire value chain of a company. These are divided into emissions from upstream and downstream activities. Let us look at the upstream activities first. The upstream activities include emissions from purchased goods and services, capital goods, fuel, and energy-related activities not included in Scope 1 or 2, upstream transportation and distribution, waste generated in operations. It also includes emissions that occur because of business travel or commuting. The downstream activities of the corporate carbon footprint include the transportation to the retailer and distributors, processing of sold products, use of sold products, end-of-life treatment of sold products, franchises, and investments. In essence, the corporate carbon footprint tries to capture all the emissions that are caused by a company's direct and indirect activities. This is usually calculated for one calendar year, and it is then expressed as CO2 equivalents. Now that you have an idea of what a corporate carbon footprint includes and how it is analyzed using the GTHG methodology, we will look at the product carbon footprint. A product carbon footprint, PCF, is the total amount of greenhouse gas emissions generated by the product over the different stages of its life cycle. The product carbon footprint is not assessed within a specific period, but over the whole life cycle of the product starting from raw material extraction to its disposal. The entire life cycle of a product is explained via the Ore Partnership for Carbon Transparency PACT framework of GHG protocol. Let us take a closer look at the lifecycle stages of a product as defined by the PACT framework. A product's lifecycle starts with the material acquisition and pre-processing. Next we move to production. Following production, we enter the distribution and storage stage. Once the product reaches consumers, it enters the product use stage. Eventually, the product reaches its end of life. At this point, it can either be recycled or reused. All these lifecycle stages cause emissions which are part of the product carbon footprint. The lifecycle stages highlighted in green are cradle-to-gate emissions, that is, all emissions that occur until the product leaves the factory gate. If you include the use phase and disposal phase, then it called the cradle-to-grave footprint. Now you have seen how to use the GHG protocol methodology to track the corporate carbon footprint and product carbon footprint to provide a comprehensive understanding of an organization's or product's impact on the environment.

Emission Type	Scope	Definition	Example of Emissions
Direct Emissions	Scope 1	Emissions from sources directly owned or controlled by the company	Stationary Combustion: Emissions from combustion in stationary sources (for example, boilers, furnaces, and turbines) Mobile combustion: Emissions from combustion of fuels in transportation
Indirect Emissions	Scope 2	Emissions from purchased energy from external suppliers	Use of purchased electricity, steam, heating, or cooling
Indirect Emissions	Scope 3	Emissions that occur in the value chain of the reporting company, including both upstream and downstream emissions	Production of purchased products, transportation of purchased products, or use of sold products