A Corporate Accounting And Reporting Standard

Training Curriculum

A Corporate Accounting and Reporting Standard

 Introduction
Lesson Modules

Principles
2. GHG Accounting and Reporting Principles

Organizational
Boundaries
3. Setting Organizational Boundaries

Operational
Boundaries
4. Setting Operational Boundaries

5. Tracking Emissions Over Time

over time
Tracking
6. Identifying and Calculating Emissions

Calculating
Emissions
7. Reporting GHG Emissions

Reporting
8. Review

Review
A Corporate Accounting and Reporting Standard
Review
Lesson 8

A Corporate Accounting and Reporting Standard

 Introduction
The GHGP Corporate Standard

Principles
Organizational
Boundaries
• Provides standards and guidance for
preparing GHG emissions inventories

Operational
Boundaries
• Primarily used by businesses; also used
by other organizations and
policymakers

over time
Tracking
• Policy neutral, although used by and
compatible with many GHG programs

Calculating
Emissions
• Emissions inventories bring value to
business

Reporting
Review
A Corporate Accounting and Reporting Standard
 Introduction
GHG Accounting and Reporting Principles

Principles
• To ensure that your inventory represents a faithful, true and
fair account of your company’s emissions, adhere to the GHG

Organizational
Boundaries
accounting and reporting principles:

Operational
Boundaries
1. RELEVANCE
2. COMPLETENESS

over time
Tracking
3. CONSISTENCY

Calculating
Emissions
4. TRANSPARENCY
5. ACCURACY

Reporting
Review
A Corporate Accounting and Reporting Standard
 Introduction
Organizational Boundaries

Principles
• Determine which parts of the company are included in the inventory, and at
what percentage

Organizational
Boundaries
Operational
Boundaries
100%
1. Equity Share
2. Control
a) Financial control
b) Operational Control

over time
Tracking
30%

• Total emissions accounted can vary significantly

Calculating
Emissions
100%
depending on consolidation approach

Reporting
Companies can use both approaches to get a more thorough assessment of
their emissions

Review
A Corporate Accounting and Reporting Standard
 Introduction
Summary of Organizational Boundary Approaches

Principles
APPROACH DEFINITION GHG ACCOUNTING

Organizational
Boundaries
Equity share Percent ownership % owned

Operational
Boundaries
Directs financial policies If yes: 100%
Financial

over time
Tracking
to gain economic If no: 0%
control
benefits If joint: % owned

Calculating
Emissions
Operational Authority to introduce and If yes: 100%

Reporting
control implement operating policies If no: 0%

Review
A Corporate Accounting and Reporting Standard
 Introduction
Operational Boundaries

Principles
• Operational boundaries determine which emissions are included and how
they are classified

Organizational
Boundaries
SCOPE TYPE OF EMISSIONS REPORTING
direct mandatory

Operational
Boundaries
Scope 1
Scope 2 purchased electricity mandatory
all other indirect optional

over time
Tracking
Scope 3

• Apply selected consolidation approach to leased assets, outsourced activities

Calculating
Emissions
or franchises

• Scope prevent emissions from being double-counted

Reporting
Review
A Corporate Accounting and Reporting Standard
 Introduction
Scopes 1, 2 and 3

Principles
Organizational
Boundaries
Operational
Boundaries
over time
Tracking
Calculating
Emissions
Reporting
Account for and report emissions from each scope separately

Review
A Corporate Accounting and Reporting Standard
 Organizational Operational Tracking Calculating
Introduction Principles Reporting Review
Boundaries Boundaries over time Emissions
A Corporate Accounting and Reporting Standard
 Introduction
Tracking Emissions Over Time

Principles
did NOT
• Base year: the year in history against which
an organization’s emissions are tracked exist 15 20

Organizational
over time

Boundaries
• Define your organization’s recalculation
policy 20

EMISSIONS

Operational
Boundaries
– Define significance threshold to trigger base
year recalculation

• Recalculate for 30 30

over time
Tracking
– structural changes
– changes in calculation methodology 25
– discovery of significant errors

Calculating
Emissions
• Don’t recalculate for 25 30 30
– organic growth or decline
– changes involving facilities that didn’t exist
1 2 3

Reporting
in base year
Base Year Increase in Company
– out-/in-sourcing of activities previously
production acquires
under a different Scope unit C

Review
A Corporate Accounting and Reporting Standard
 Introduction
Identifying and Calculating Emissions

Principles
Identify Sources
stationary, mobile, process, fugitive

Organizational
Boundaries
Select Calculation Approach

Operational
Boundaries
direct measurement, stoichiometry, estimate emissions

Collect Data and Choose Emissions Factors

over time
Tracking
Emission t of t of CO2e of
Activity
data x factor = emissions emissions
x GWP = emissions

Calculating
Apply Calculation Tools

Emissions
http://www.ghgprotocol.org/calculation-tools

Reporting
Roll-up Data to Corporate Level
report activity data and emissions estimates to corporate

Review
A Corporate Accounting and Reporting Standard
 Introduction
Reporting Emissions Required

Principles
Company Description

Organizational
Boundaries
Inventory Boundary
• Follow 5 GHGP principles
when reporting Emissions Information

Operational
Boundaries
Scope 1 Scope 2

• If participating in a GHG
program, check its reporting

over time
Tracking
requirements Optional

Calculating
Emissions
Emissions and Performance Information
• Interpret emissions using ratio
Scope 3
indicators

Reporting
Offsets Information

Review
A Corporate Accounting and Reporting Standard
 Organizational Operational Tracking Calculating
Introduction Principles Reporting Review
Boundaries Boundaries over time Emissions
A Corporate Accounting and Reporting Standard
Questions