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Do you’re feeling a bit misplaced when folks confer with sure environmental sustainability matters and aren’t certain the place to begin relating to studying extra? Sustainability 101 is a weblog collection you can flip to for details about totally different environmental phrases which will come up at work, throughout discussions with pals, 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 purpose to restrict warming to 1.5°C and keep away from the worst results of local weather breakdown, international emissions should be halved by 2030.” To assist cut back greenhouse fuel (GHG) emissions, many corporations try to determine what their carbon footprint is to allow them to begin making modifications.
Carbon accounting, or GHG accounting, is the method wherein a corporation estimates the whole quantity of GHG emissions which are generated via its actions inside a set of boundaries. The predominant commonplace used to information these estimations is the GHG Protocol Company Accounting and Reporting Normal, first launched in 2001.The GHG Protocol establishes complete international standardized frameworks to measure and handle GHG emissions from non-public and public sector operations, worth chains and mitigation actions.
Defining and quantifying GHG emissions
GHGs had been first outlined in 1997, underneath the Kyoto Protocol, and had 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 Normal report on.(1)
The outlined requirements set via the GHG Protocol are vital as a result of they offer corporations the identical commonplace to observe after they report on emissions. This in flip makes it simpler for folks to match corporations’ efficiency.
Basically, GHGs are reported in models of carbon dioxide equivalents or CO2e. CO2e is a approach of mixing the seven gases into one unit, by their results on the environment over 100 years. When you 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 fee or so-called “emission components”. Emission components enable us to transform numerous exercise knowledge into GHG emissions and mix them into our one unit, CO2e.
For example, for those who 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 components from the US Environmental Safety Company (EPA), we’d multiply the 100 kWh by 0.386 kg CO2e/kWh which suggests 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 automobiles
- Scope 2: Oblique emissions from the technology 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 vital to know the time boundaries reported on throughout the Scope 1, 2 and three stock per the GHG Protocol. Whereas Scopes 1 and a couple of have a look at emissions from the reporting 12 months, classes in Scope 3 can have 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 suggests for sure classes, like “Scope 3, Class 11: Use of Bought Merchandise,” a corporation accounts for all of a product’s lifetime emissions within the 12 months it’s offered.
Estimating GHG emissions
Carbon accounting relies on estimations. Basically, 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 gathering major knowledge and multiplying the worth by the related emission components. Examples of major knowledge embrace power or gas consumed or quantity of fabric bought.
It may also be estimated from secondary knowledge, which is knowledge that’s not from particular actions inside an organization’s worth chain. Some examples embrace common knowledge, proxy knowledge or trade 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 components. Emissions components could be from an environmentally-extended enter output (EEIO) database, or they are often extra provider particular, primarily based on reported emissions and income info. (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)
Bettering our knowledge
One of many targets of GHG accounting is to make use of major knowledge as a lot as doable, but it surely’s not all the time straightforward to entry that knowledge. For Scope 1 and a couple of, major knowledge is usually obtainable, however in Scope 3, a corporation is commonly reliant on secondary knowledge. This is usually a problem when making an attempt to know how numerous investments or design decisions are serving to to cut back GHG emissions.
Cisco has set a objective to succeed in web zero GHG emissions throughout our price chain (Scopes 1, 2, and three) by 2040, and we have now additionally recognized two near-term targets on the best way to that bigger objective. We’re frequently working to enhance our knowledge, present correct emissions estimates and drive GHG emission reductions.
Info relating to Cisco’s environmental, social, and governance (ESG) initiatives, targets and commitments, our newest impression, in addition to insurance policies and extra disclosures for specialised audiences, could be present in our 2022 Cisco Goal Report and supplemental info 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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