|
|
| (13 intermediate revisions by the same user not shown) |
| Line 1: |
Line 1: |
| | == Definition == | | == Definition == |
| − | '''GHG Accounting'''. A means of measuring the direct and indirect emissions to the Earth’s [[Biosphere]] of CO2 and its equivalent gases from industrial activities | + | '''GHG Accounting'''. A means of measuring the direct and indirect emissions to the Earth’s [[Biosphere]] of CO<sub>2</sub> and its equivalent gases from industrial and other activities. GHG Accounting is a nascent area that has come to receive increased focus in the context of accelerating [[Climate Change]] |
| | | | |
| − | == Principles == | + | == GHG Accounting Standards == |
| − | The [[GHG Protocol]]<ref>The Greenhouse Gas Protocol, A corporate accounting and reporting standard, Revised Edition 2008</ref> Principles stipulate:
| + | Worldwide there are several GHG accounting standards: |
| | + | * [[GHG Protocol]] (including Corporate, Project and Local Government Standards) |
| | + | * Common Reporting Framework by the Global Covenant of Mayors |
| | + | * 1996/2006 IPCC Guidelines for National Greenhouse Gas Inventories (IPCC Guidelines) |
| | + | * International Local Government GHG Emissions Analysis Protocol (IEAP) |
| | + | * International Standard for Determining Greenhouse Gas Emissions for Cities (ISDGC) |
| | + | * Baseline Emissions Inventory/Monitoring Emissions Inventory methodology (BEI/MEI) |
| | + | * U.S. Community Protocol for Accounting and Reporting of Greenhouse Gas Emissions (USA Community Protocol) |
| | + | * PAS 2070: Specification for the assessment of greenhouse gas emissions of a city |
| | | | |
| − | === Relevance === | + | == GHG Accounting Philosophies == |
| − | '''Ensure the [[GHG Inventory]] appropriately reflects the [[GHG Emissions]] of the company and serves the decision-making needs of users - both internal and external to the company'''.
| + | Depending on the type of emissions source and the objectives of a GHG accounting standard there are a number of distinct philosophies. |
| − | | |
| − | For an organization's [[GHG Report]] to be relevant means that it contains the information that users —both internal and external to the company—need for their decision making. An important aspect of relevance is the selection of an appropriate [[GHG Inventory Boundary]] that reflects the substance and economic reality of the company’s business relationships, not merely its legal form. The choice of the inventory boundary is dependent on the characteristics of the company, the intended purpose of information, and the needs of the users. When choosing the inventory boundary, a number of factors should be considered, such as:
| |
| − | | |
| − | * Organizational structures: control (operational and financial), ownership, legal agreements, joint ventures, etc.
| |
| − | * Operational boundaries: on-site and off-site activities, processes, services, and impacts
| |
| − | * Business context: nature of activities, geographic locations, industry sector(s), purposes of information, and users of information
| |
| − | | |
| − | === Completeness ===
| |
| − | '''Account for and report on all [[GHG Emission Sources]] and activities within the inventory boundary. Disclose and justify any specific exclusions.'''
| |
| − | | |
| − | All relevant emissions sources within the chosen inventory boundary need to be accounted for so that a comprehensive and meaningful inventory is compiled. In practice, a lack of data or the cost of gathering data may be a limiting factor. Sometimes it is tempting to define a minimum emissions accounting threshold (often referred to as a [[GHG Materiality Threshold]]) stating that a source not exceeding a certain size can be omitted from the inventory. Technically, such a threshold is simply a predefined and accepted negative bias in estimates (i.e., an underestimate).
| |
| − | | |
| − | Although it appears useful in theory, the practical implementation of such a threshold is not compatible with the completeness principle of the GHG Protocol Corporate Standard. In order to utilize a materiality specification, the emissions from a particular source or activity would have to be quantified to ensure they were under the threshold. However, once emissions are quantified, most of the benefit of having a threshold is lost.
| |
| − | | |
| − | A threshold is often used to determine whether an error or omission is a material discrepancy or not. This is not the same as a de minimis for defining a complete inventory. Instead companies need to make a good faith effort to provide a complete, accurate, and consistent accounting of their GHG emissions. For cases where emissions have not been estimated, or estimated at an insufficient level of quality, it is important that this is transparently documented and justified. [[GHG Verification]] can determine the potential impact and relevance of the exclusion, or lack of quality, on the overall inventory report.
| |
| − | | |
| − | === Consistency ===
| |
| − | '''Use consistent methodologies to allow for meaningful performance tracking of emissions over time. Transparently document any changes to the data, inventory boundary, methods, or any other relevant factors in the time series.'''
| |
| − | | |
| − | Users of GHG information will want to track and compare GHG emissions information over time in order to identify trends and to assess the performance of the reporting company. The consistent application of accounting approaches, inventory boundary, and [[GHG Calculation Methodology]] is essential to producing comparable GHG emissions data over time. The GHG information for all operations within an organization’s inventory boundary needs to be compiled in a manner that ensures that the aggregate information is internally consistent and comparable over time. If there are changes in the inventory boundary, methods, data or any other factors affecting emission estimates, they need to be transpar- ently documented and justified.
| |
| − | | |
| − | === Transparency ===
| |
| − | Address all relevant issues in a factual and coherent manner, based on a clear audit trail. Disclose any relevant assumptions and make appropriate references to the accounting and calculation methodologies and data sources used.
| |
| − | | |
| − | === Accuracy ===
| |
| − | Ensure that the quantification of GHG emissions is systematically neither over nor under actual emissions, as far as can be judged, and that uncertainties are reduced as far as practicable. Achieve sufficient accuracy to enable users to make decisions with reasonable confidence as to the integrity of the reported information.
| |
| | | | |
| | + | * [[Territorial GHG Accounting]] |
| | + | * [[Attributional GHG Accounting]] |
| | + | ** [[Market-Based Scope 2 Accounting]] |
| | + | ** [[Location-Based Scope 2 Accounting]] |
| | + | * [[Consequential GHG Accounting]] |
| | | | |
| | == See Also == | | == See Also == |
| − | * [[PCAF GHG Accounting and Reporting Requirements]]<ref>PCAF (2020). The Global GHG Accounting and Reporting Standard for the Financial Industry. First edition.</ref> | + | * [[GHG Accounting Principles]] |
| − | | + | * [[GHG Inventory]] |
| − | == References ==
| + | * [[Territorial GHG Accounting]] |
| − | <references/>
| |
| | | | |
| | [[Category:GHG Protocol]] | | [[Category:GHG Protocol]] |
| | + | [[Category:Accounting]] |
