GHG corporate reporting
The term "organization" is understood to refer to:
- Public institutions and the State
- Local/regional authorities (collectivities) producing the inventory of their specific activity (also known as "Patrimony & Competences")
To conduct an Organization GHG inventory, it is necessary to define:
- the main stages of the inventory
- the scopes to be taken into account
- the data to be used
The formulated recommendations are not intended to take the place of the regulatory or normative requirements when these are applicable, nor of the environmental policies of the organizations or their expertise in these matters.
These are presented on this page: stages
The question of scopes is essential since this is what determines the framework of the GHG inventory. What installations or buildings are to be taken into account? How far to go with the data collection?
General principle (ref.: ISO 14 064-1 standard)
The implementation of an Organization GHG inventory requires the definition of the organizational scope of the study: "What installations are concerned by my study?" The organization, whatever the complexity of its structure, may in fact be responsible for, control or be involved in the activities of different installations. Any installation may include one or more GHG sinks and/or sources.
Once this organizational scope is determined, the organization must define its operational scope: "What are the sources generating emissions within my organizational scope?"
This involves defining the sites, installations and competences included in the inventory.
For this, the ISO 14064-1 standard defines 2 modes of consolidation:
- The "capital share" approach: the organization consolidates the emissions for installations in line with its capital share in the installations.
- The "control" approach
The "control" approach breaks down into:
- Financial control: the organization consolidates 100% of the emissions for the installations over which it exercises financial control.
- Operational control: the organization consolidates 100% of the emissions for the installations over which it exercises control.
The international financial reporting standards (IFRS) define "control" as "the power to direct the financial and operational policies of an entity in order to benefit from its activities".
If the organization owns and operates all of its installations, then the organizational scope is identical whatever the mode of consolidation chosen.
If the organization is joint owner of installations, then the mode of consolidation chosen will influence the result of the inventory.
Each approach has its pros and cons.
"Organizations should comply with the organizational scopes already defined for their general accounting, provided that these scopes are clearly laid out and used consistently. When applying these concepts, the underlying hypothesis of the "primacy of substance over form" should be pursued. In other words, GHG emissions and eliminations should be quantified and declared in accordance with the concrete and economic reality of the organization, and not simply according to its legal status". (ISO 14064-1: 2006, Appendix A).
For more information about organizational scopes, see the following videos:
|Organizational scope||Organizational scope
Case of subsidiaries
This involves defining the sources of emissions to be included in the inventory.
The operational scope corresponds to the emission scopes and categories linked to the activities of the organizational scope. The principal international standards and methods define 3 emission scopes:
- Direct GHG emissions (or SCOPE 1): Direct emissions emanating from stationary or mobile installations situated within the organizational scope, i.e.: emissions from sources owned or controlled by the organization, such as combustion from stationary and mobile sources, industrial processes excluding combustion, emissions from ruminants, biogas from landfill centers, refrigerant leakages, nitrogenous fertilizers, biomass, etc.
- Indirect energy emissions (or SCOPE 2): Indirect emissions associated with the production of electricity, heat or steam imported for the activities of the organization.
- Other indirect emissions (or SCOPE 3): The other emissions indirectly produced by the activities of the organization which are not accounted for under Scope 2 but which are linked to the overall value chain, such as: the purchasing of raw materials, services or other products; employee travel; upstream and downstream transportation of goods; the management of waste generated by the activities of the organization; the use and end-of-life of sold products and services; the amortization of production goods and equipment, etc.
Operational scopes explained in videos:
Drawing on the work of reference standards currently being drafted (ISO-TR 14069: Application guide for standard 14064-1 WD3, March 2011), it is possible to distinguish several emission categories in each emission scope. These emission categories, along with the calculation methodologies, are presented in the "Method for carrying out GHG emission inventories in accordance with article 75 of Act No. 2010-788 of 12/07/2010" and the aforementioned normative reference frameworks.
The scopes are then broken down into 23 emission categories (ISO-TR 14069: Application guide for standard 14064-1 WD3, March 2011).
SCOPE 1 /
Direct GHG emissions
|1||Direct emissions from fixed combustion sources|
|2||Direct emissions from mobile sources with internal combustion engines|
|3||Direct emissions from processes excluding energy|
|4||Direct fugitive emissions|
|5||Emissions from the biomass (soils and forests)|
SCOPE 2 /
Indirect emissions associated with energy
|6||Indirect emissions linked to electricity consumption|
|7||Indirect emissions linked to the consumption of steam, heating or refrigeration|
SCOPE 3 /
Other indirect GHG emissions
|8||Emissions linked to energy not included in the "direct GHG emissions" and "indirect GHG energy emissions" scopes|
|9||Purchasing of products and services|
|10||Amortization of assets|
|12||Upstream goods transportation|
|14||Uptream leasing assets|
|16||Transportation of visitors and clients|
|17||Downstream transport of goods|
|18||Use of sold products|
|19||End-of-life of sold products|
|23||Other indirect emissions|
The selection of the scope of study depends on the desired goal of the GHG inventory (environmental policy of the organization, regulatory requirements, carbon vulnerability, etc.), as well as on the available resources of the organization for carrying out the GHG inventory and implementing the relevant actions.
To implement a GHG inventory, it is necessary to gather all the activity data for the organization being studied. This may concern information that is already available within the organization (primary data), but also external data to be collected from suppliers, customers, users, etc., or indeed statistical or study data (generic or secondary data).
These are the data that can be used for completing the spreadsheets for the chosen method. These data will then be associated with an emission factor enabling calculation of its carbon equivalent. These emission factors are available in the Base Carbone®.