GHG Protocol Chapter 11

Question 1

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

Answer 1

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 2

Regarding GHG Target-Setting, describe the two different types of base years that companies can choose from? Name and describe the variant of one of the types of baselines.

Answer 2

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. The variant of Fixed is making it a multi-year average (e.g. baseline is the 2015-2018 average tCO2e emissions)

Question 3

Describe up to 4 listed disadvantages of Absolute GHG Reduction Targets?

Answer 3

1. Recalculating from the base year becomes complex if the company undergoes major structural changes (M&A, divestitures, etc)
2. Does not allow for comparisons of GHG Intensity (ratios) {comparing with peer companies}
3. Recognizes a company for reducing GHGs when they organically decline (decreasing production or output).
4. May be hard to achieve if the company grows unexpectedly or substantially higher than forecasted

Question 4

Describe up to 3 listed disadvantages of GHG Intensity Targets?

Answer 4

1. No guarantee that GHG emissions will reduce because though the intensity ratio lowers, the overall emissions may still increase from company growing in production/output/etc.
2. Companies with diverse operations may find it difficult to decide on a single business metric
3. If using a monetary metric, it must be recalculated for changes in product prices and product mix (as well as inflation).

Question 5

For a Target Completion Date, describe the difference between a “Single Year Commitment Period” and a “Multi-Year Commitment Period”

Answer 5

A single year will account for the sum total emission for just that. E.g. given: In the year 2010 our emissions will be no more than 90% of our year 2000 emissions (or 10% absolute reduction).

A multi-year commitment period will account for the sum total emissions across a number of years (or average) E.g. given: The sum total emissions from 2008-2012 must not exceed 90% of our emissions from year 2000 times 5. In other words, the avg emissions over the 5 years (2008-2012) must mot exceed the emissions from 2000 time 5.