Do you are feeling a bit misplaced when individuals seek advice from sure environmental sustainability subjects and aren’t positive the place to start out in relation to studying extra? Sustainability 101 is a weblog sequence which you could flip to for details about totally different environmental phrases that will come up at work, throughout discussions with buddies, and even at your annual vacation gathering.
In response to the Intergovernmental Panel on Local weather Change (IPCC), local weather science says we should restrict warming to not more than 1.5 °C above pre-industrial ranges to keep away from the worst impacts of local weather change. And, in keeping with the Science Based mostly Targets initiative (SBTi), “With a view to restrict warming to 1.5°C and keep away from the worst results of local weather breakdown, international emissions have to be halved by 2030.” To assist cut back greenhouse fuel (GHG) emissions, many corporations are attempting to determine what their carbon footprint is to allow them to begin making adjustments.
Carbon accounting, or GHG accounting, is the method during which a corporation estimates the full quantity of GHG emissions which are generated by its actions inside a set of boundaries. The predominant customary used to information these estimations is the GHG Protocol Company Accounting and Reporting Commonplace, first launched in 2001.The GHG Protocol establishes complete international standardized frameworks to measure and handle GHG emissions from personal and public sector operations, worth chains and mitigation actions.
Defining and quantifying GHG emissions
GHGs have been first outlined in 1997, underneath the Kyoto Protocol, and have been restricted to a set of six particular person GHGs or lessons of GHGs: carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), and sulphur hexafluoride (SF6). Nitrogen trifluoride (NF3) was added later for a complete of seven gases that organizations following the GHG Protocol Company Accounting and Reporting Commonplace report on.(1)
The outlined requirements set by the GHG Protocol are essential as a result of they provide corporations the identical customary to observe once they report on emissions. This in flip makes it simpler for individuals to match corporations’ efficiency.
On the whole, GHGs are reported in items of carbon dioxide equivalents or CO2e. CO2e is a approach of mixing the seven gases into one unit, by their results on our surroundings over 100 years. If you happen to consider GHGs as a foreign money, consider CO2e as being the one foreign money everybody makes use of, and you’ll swap currencies primarily based on their alternate charge or so-called “emission elements”. Emission elements permit us to transform numerous exercise knowledge into GHG emissions and mix them into our one unit, CO2e.
For instance, in the event you consumed 100 kWh of electrical energy, to estimate the emissions you’ll multiply that knowledge by your emission issue. If we used the 2023 emission elements from america Environmental Safety Company (EPA), we’d multiply the 100 kWh by 0.386 kg CO2e/kWh which implies you’ll generate 38.6 kg CO2e.
As a reminder, emissions of organizations are categorized into 3 scopes:
- Scope 1: Direct emissions from operations owned by the corporate. Examples: Heating gas utilized in firm buildings, gas use in firm autos
- Scope 2: Oblique emissions from the era of bought electrical energy, steam, heating and cooling. Instance: Electrical energy utilized in firm buildings
- Scope 3: All different oblique emissions that happen in an organization’s worth chain. Examples: Worker enterprise journey and commuting, provider emissions, emissions from transportation and distribution of product, emissions from use of offered merchandise
Previous to quantifying a corporation’s GHG emissions, it’s essential to grasp the time boundaries reported on throughout the Scope 1, 2 and three stock per the GHG Protocol. Whereas Scopes 1 and a couple of take a look at emissions from the reporting yr, classes in Scope 3 can take a look at previous, current, or future years as outlined in Determine 1 from a GHG Protocol report.(2) The GHG Protocol takes a lifecycle perspective, which implies for sure classes, like “Scope 3, Class 11: Use of Offered Merchandise,” a corporation accounts for all of a product’s lifetime emissions within the yr it’s offered.
Estimating GHG emissions
Carbon accounting relies on estimations. On the whole, there are three major strategies of estimating GHG emissions: Exercise primarily based, spend primarily based or a hybrid strategy that makes use of each.
Exercise primarily based: Emissions are estimated by amassing major knowledge and multiplying the worth by the related emission elements. Examples of major knowledge embrace power or gas consumed or quantity of fabric bought.
It can be estimated from secondary knowledge, which is knowledge that isn’t from particular actions inside an organization’s worth chain. Some examples embrace common knowledge, proxy knowledge or business common knowledge.(1)
Spend primarily based: Emissions are estimated by figuring out the sum of money spent on an exercise and multiplying the worth by the related secondary knowledge emission elements. Emissions elements could be from an environmentally-extended enter output (EEIO) database, or they are often extra provider particular, primarily based on reported emissions and income data. (1)
Hybrid: Emissions are estimated by first following the activity-based strategy after which utilizing the spend primarily based strategy if there are gaps. This will increase the protection of the potential in-scope emissions sources. (1)
Enhancing our knowledge
One of many targets of GHG accounting is to make use of major knowledge as a lot as potential, nevertheless it’s not at all times straightforward to entry that knowledge. For Scope 1 and a couple of, major knowledge is often out there, however in Scope 3, a corporation is commonly reliant on secondary knowledge. This generally is a problem when attempting to grasp how numerous investments or design selections are serving to to scale back GHG emissions.
Cisco has set a objective to succeed in internet zero GHG emissions throughout our worth chain (Scopes 1, 2, and three) by 2040, and we’ve got additionally recognized two near-term targets on the way in which to that bigger objective. We’re regularly working to enhance our knowledge, present correct emissions estimates and drive GHG emission reductions.
Data relating to Cisco’s environmental, social, and governance (ESG) initiatives, targets and commitments, our newest influence, in addition to insurance policies and extra disclosures for specialised audiences, could be present in our 2022 Cisco Objective Report and supplemental data in our ESG Reporting Hub.
1 https://ghgprotocol.org/websites/default/information/requirements/Scope3_Calculation_Guidance_0.pdf (pg. 14, 17, 21)
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