GHG Protocol

Question 1

What are the 7 gases that the GHG Corporate Standard covers?

Answer 1

1. Carbon Dioxide, CO2
2. Methane, CH4
3. Nitros Oxide, N2O (3 examples: Agricultural fertilizer, Certain Industrial Processes, and Landfill Waste Treatment and Wastewater Treatment)
4. Nitrogen Trifluoride, NF3 (a gas made in factories, used to clean machines when making things like TVs and computers)
5. Hydrofluorocarbons, HFC (a gas emitted by things like HVAC and Refrigerators if not sealed)
6. Perfluorocarbons, PFC (gas emitted as a byproduct in the manufacturing process of aluminum and other electronics devices)
7. Sulphur hexafluoride, SF6 (a gas used as an insulator in high-voltage switches, transformers, and circuit breakers)

Question 2

In order to be registered & validated, does SBTi require that the GHG Protocol was used when developing their inventories which inform the reduction targets?

Answer 2

Yes

Question 3

What are the 5 Principles of the GHG Protocol Corporate Standard?

Answer 3

1. Relevance
2. Completeness
3. Consistency
4. Transparency
5. Accuracy

Question 4

Does GHG Protocol Corporate Standard require 3rd party verification of the submission?

Answer 4

No, but it’s recommended

Question 5

Does the GHG Protocol Corporate Standard address either Carbon Mitigation Projects or Product LIfecycle Assessments?

Answer 5

No, neither

Question 6

What are the two types of Boundaries in a GHG Inventory?

Answer 6

1) Organizational
2) Operational

Question 7

What is the difference between Organizational boundaries and Operational boundaries?

Answer 7

Organizational boundaries decide which company operations to include in the GHG inventory. Operational boundaries decides which emissions sources to include and how to categorize them.

(“Organizational” can be one subsidiary, one facility, one P&L-tracked BU, one etc)

Question 8

What are the two types of “Consolidation Approaches” to Organizational Boundary setting?

Answer 8

1) Equity Share (think what % ownership you have)
2) Control (think what you control 100%)

Question 9

Can you use both Equity Share and Control approaches for the same GHG inventory when setting boundaries?

Answer 9

No! Must select one or the other.

Question 10

What are the two types of Control Approaches in Boundary Setting?

Answer 10

Financial or Operational

Question 11

What is the most commonly used Consolidation Approach?

Answer 11

Operational Control

Question 12

What are 3 of the 5 Risks if you don’t follow the Five Principles of GHG Accounting?

Answer 12

1) Overestimate emissions
2) Underestimate emissions
3) Create distrust with stakeholders; hurt your reputation
4) Misinform decisions about reducing emissions
5) Difficulty tracking your emissions over time

Question 13

In Organizational Boundary setting, what is the opposite of the “Control” consolidation approach?

Answer 13

Equity Share approach

Question 14

Regarding GHG Target-Setting, what are the two types of Targets? Describe each.

Answer 14

Absolute Targets and Intensity Targets. Absolute are a quantified amount of emissions into the atmosphere over a time period. The unit is mtCO2e. Intensity Targets are a ratio of mtCO2e relative to a business metric. For example: per Sales Dollar, per Production Units Sold, per kWh sold (Utility), per BBL beer sold (Brewery)

Question 15

Regarding GHG Target-Setting, describe the two different types of base years companies can choose from?

Answer 15

Fixed base year or rolling base year. Fixed is a particular year (e.g. 2018) where all reductions are measured from. Rolling is where the base year changes - usually from the prior year. This can be selected when the company often restructures, for example does a lot of M&A.

Question 16

Name the two organizations behind the GHG Protocol standards?

Answer 16

World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD)

Question 17

Regarding Leased Assets from the Lessee’s accounting perspective, if they chose the Operational Control boundary approach then which Scope(s) does a Capital Leased Asset fall into? Which Scope(s) does an Operating Lease fall into?

Answer 17

Both fall into Scope 1 or Scope, depending on they type of emissions. Capital Lease of a Vehicle would be Scope 1.

Question 18

Regarding Leased Assets from the Lessee’s accounting perspective, if they chose the either Equity Share or Financial Control boundary approach then which Scope(s) does a Capital Leased Asset fall into? Which Scope(s) does an Operating Lease fall into?

Answer 18

Capital Leased Asset falls into Scope 1 or 2
Operating Leased Asset falls into Scope 3

Question 19

Define, simply, “Double Counting”

Answer 19

When different companies account for the same emissions or reductions.

Question 20

What are the 4 types of “differentiated electricity products” (per se) according to the GHGP?

Answer 20

1. Supplier-specific emissions rates
2. Energy Attribute Certifications (RECs) and Guarantees of Origin (GOs)
3. Power Purchase Agreements (PPA), which is considered a ‘Direct Contract’
4. “Residual Mix”; e.g. the emissions rate left after #1-#3 are removed or subtracted? Still learning about thi one.

Question 21

Does the GHGP require a company set a base-year recalculation policy?

Answer 21

Yes! (uses the word “shall” on page 75 of Scope 2 Guidance)

Question 22

Does the GHGP specify an actual baseline recalculation “significance threshold percentage”? If so, what is it? If not, what does the GHGP specify in this regard?

Answer 22

No. The specification is to define your own and apply it consistently over time. (5% is common amongst corporations)

Question 23

If a company outsources or insources emissions-generating activities that were previously reported in their Scopes, do they need to recalculate their baseline year?

Answer 23

No, as long as these activities were previously included in a difference scope.

Question 23

If Company A acquires Company B, and Company B existed in Company A’s base year, does Company A have to recalculate their base year?

Answer 23

Yes. Visa versa for Company A DIVESTING Company B. They should recalculate and exclude Company B’s emissions.

Question 24

If Company A divests Company B, and company B did not exists in Company As base year, do they calculate their base year?

Answer 24

No, of course not. They didn’t exist to emit!

Question 25

What was the top Advantage and Disadvantage in deciding to recalculate your base year, that Stephen Russell of GHGP stated in the Training webinar?

Answer 25

Advantage: you are more credible (and accurate) to external parties. Disadvantage: risk losing ground on your reduction target - which is awkward to communicate publically

Question 26

If Company A discovers it used an incorrect or inferior Emissions Factor the year of it’s base year, does it need to recalculate it’s base year?

Answer 26

Yes

Question 27

Technically Speaking, what are the 3 approaches or techniques to measuring GHG Emissions?

Answer 27

1. Direct measurement with equipment & software
2. Stoichiometric calculation: measure the mass of an element as it enters and leaves a system. Subtracts the carbon from the input stream from the output stream to get the net carbon output. (Eg - Cement)
3. Estimations w/ Activity Data multiplied by Emissions Factors (most common of course)

Question 28

What is the umbrella category (and acronym) of contractual instrument’ that RECs and GOs fall under?

Answer 28

Energy Attribute Certificates (EAC)

Question 29

What is the numerical value of one (1) Renewable Energy Certificate (REC)?

Answer 29

One (1) Megawatt-Hour (MWh) of renewable energy

Question 30

In Scope 2, what is the hierarchy of Emission Factor information (in rank order) for the Market-based calculation method?

Answer 30

1. EACs
2. PPAs
3. Supplier/Utility Emission Rates
4. Residual Mix
5. Grid-Avg EF’s (EGRID in US and Defra in the UK)

Question 31

What does the acronym CHP stand for

Answer 31

Combined Heat & Power. The system generates electricity using a generator or turbine, typically fueled by natural gas, biomass, or another fuel source.

Question 32

If a company has a 50% stake in another, and uses ‘Equity Share’ as their Org Boundary, what percent of the Scope 1, 2, and 3 emissions of the other company must they report?

Answer 32

50% for S1, S2, and S3.

Question 33

(Scope 3 Brain Racker!) If a company has a 40% stake in another and selects either Operational Control or Financial Control for their boundary, what amount
of which emissions of the company they own 40% stake in to they report and in which Scope?

Answer 33

“Proportional Share” is the term. They report 40% of the Scope 1 and Scope 2 emissions of the company they have 40% stake in. That number gets put in their Category 15 of Scope 3.

Question 34

True or False: All 15 Scope 3 Categories are mutually exclusive, meaning there is no possibility of double-counting within 1 company if accounted for correctly?

Answer 34

True