Download CDP_UoE Workshop Presentation_CDP

Scope 2 Emissions
Accounting & Reporting
15th May 2014
[email protected]
www.cdp.net | @CDP
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About CDP
CDP’s mission
• To transform the global economic system to prevent dangerous climate
change and value our natural resources by putting relevant information at
the heart of business, investment and policy decisions
CDP collects information on:
• Climate Change
• Water
• Forests
From:
• Publicly listed companies
• Their suppliers
• World’s largest cities
www.cdp.net | @CDP
Climate change
4,350
Reported in 2013
Water
380
Reported in 2013
Forests
138
Reported in 2013
CDP worldwide
www.cdp.net | @CDP
Market-based method for Scope 2 accounting
 In 2013, CDP introduced new recommendations for accounting and reporting of
Scope 2 emissions, preceding the final GHG Protocol Scope 2 Guidance
 New recommendations allow for the use of a market-based method of accounting for
Scope 2 emissions
 Factors that favour the use of the new approach:
 Unresolved double counting and quality issues in company reporting
 Existence of effective systems to avoid double counting of properties sold
separately from physical electricity
 Potential role of consumer choice in changing markets by shifting demand
www.cdp.net | @CDP
Scope 2 accounting recommendations
 CDP recommends that responding companies follow a hierarchy of guidelines when
selecting emissions factors for Scope 2 accounting, and use:
 1. Source specific emissions factors, based on renewable energy tracking systems
 2. Supplier specific emission factors, particularly when this is established country
practice, and robust methodologies and regulation require supplier disclosure
 3. If 1 and 2 are not possible, companies should use, in order of preference:
 Corrected grid average factors (residual mix); or
 Grid emission factors that reflect import and export of electricity; or
 Production based grid emission factors
www.cdp.net | @CDP
Scope 2 reporting in CDP questionnaire
 CDP asks companies to:
 Clarify whether they plan to achieve their Scope 2 targets through reduction of
energy consumption or through the purchase of low carbon energy
 Report one Scope 2 figure, with emission factors determined following the
hierarchy of guidelines and breakdown by country or region (tCO2)
 Disclose purchased and consumed electricity used for Scope 2 calculation (activity
data), by country or region (MWh); this is optional in the GHG Protocol Guidance
 Disclose the amount of purchased and consumed electricity accounted as green
power, by country or region (MWh)
 Disclose information related with electricity accounted for at zero emissions factor
www.cdp.net | @CDP
Scope 2 reporting in CDP questionnaire
www.cdp.net | @CDP
Future evolution of CDP’s guidelines
 Reporting system is designed to maximise transparency while minimising complexity
 Quality of reporting would increase if information was provided for each sub region of
the grid, as opposed to countries or regions; our assessment is that this is still too
advanced to demand of reporting companies
 CDP and GHG Protocol team have worked together for many years in order to reach
maximum alignment between the two initiatives, and this effort will continue after the
publication of the final version of the Scope 2 Guidance
 We expect full compatibility between CDP guidelines and GHG Protocol Guidance, with
only minor changes required to accommodate dual Scope 2 reporting
www.cdp.net | @CDP
Thank you
www.cdp.net | @CDP
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