Download Climate Reporting in the Future?

Climate reporting today
and in the future
Linda Runesson
Analyst
Mandag Morgen
Agenda
• About Mandag Morgen and KlimaGevinst
• Why is it important to establish an emissions inventory
and report on climate?
• What is good climate reporting? What should be
included in an emissions inventory?
• Climate reporting in the future
Mandag Morgen
An independent Think Tank
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Target group and readers:
Management and decision makers
in public and private sector
www.mandagmorgen.no
KlimaGevinst / Climate benefit
• 14 major international companies in Norway have joined forces in a
new partnership with far-reaching ambitions to combat climate
change. The project will strive to make Norwegian businesses front
runners in developing a low carbon community.
Other Mandag Morgen projects
Agenda
• About Mandag Morgen and KlimaGevinst
• Why is it important to establish an emissions
inventory and report on climate?
• What is good climate reporting? What should be
included in an emissions inventory?
• Climate reporting in the future
Squaring up to Reality
• Emissions of greenhouse gases must be cut by
50% by 2050
• IPCC 4th Report: Climate change happening faster
• IPCC scientists: 50% is not enough:
“Climate Target not Radical Enough”
• “If humanity wishes to preserve a planet similar
to that on which civilization developed and to
which life on Earth is adapted, paleoclimate
evidence and ongoing climate change suggest
that CO2 will need to be reduced from its current
385 ppm to at most 350 ppm.”
– James Hansen/Nasa Goddard Institute for Space Studies
Winners and Loosers in a
Low Carbon Economy
Why Should Companies
Establish a GHG Inventory?
• Public reporting and participation in voluntary
GHG programs
• Managing GHG risks and identifying reduction
opportunities
• Participating in mandatory reporting programs
• Participating in GHG markets
• Recognition for early voluntary action
CSR and Climate Reporting
• Increasing expectation that CSR should include
information about the business implications of
climate change
• New indicator (EC2) in the GRI G3 Sustainability
Reporting Guidelines :
– “Financial implications and other risks and
opportunities for organization’s activities due to
climate change”
Why Should Business
Report on Climate?
• Demands from:
– Investors
• Carbon Disclosure Project
– Customers
• Public image
• Procurement demands
– Regulators
– Employees
Demands from Investors
• “There will be a large creation and re-distribution of
shareholder value in the transition to a low carbon
economy – there will be winners and losers at sector
level, and within sectors at company level. The winners
are more likely to be those businesses that take the
time to understand and address this complex area.”
Tom Delay, Chief Executive, The Carbon Trust,
“Climate Change and Shareholder Value”
March, 2006
Carbon Disclosure Project
”But regarding action, Nordic companies fall down,especially in
terms of operating reduction targets. ….indicating that companies
need to take the vital next step and convert their awareness of
climate change into concret emissions reducing actions.”
Demands from Customers
• Public image
• New business
opportunities
• Procurement
demands
To what extent do Norwegian companies
have ambitions to combat climate change?
Source:
TrygVesta
Business Opportunities?
How much more would customers willing to pay for climate labeled food?
45
40
35
30
25
20
15
10
5
0
0 % mer
10 % mer
20 %mer
30 % mer
vet ej
Source:
KRAV Sverige
Agenda
• About Mandag Morgen and KlimaGevinst
• Why is it important to establish an emissions inventory
and report on climate?
• What is good climate reporting? What should be
included in an emissions inventory?
• Climate reporting in the future
What is Good Climate Reporting?
• More than an emissions inventory
–
–
–
–
–
Disclosure of GHG emissions
Carbon management strategy
Carbon risk exposure
Strategic carbon opportunities
Improvment trend
Emissions Inventory – How is it Done?
• Greenhouse Gas Protocol
– Developed by World Resource Institute and World
Business Council for Sustainable Development
– Set of practices that companies can use to account
for, and report on, their GHG emissions
– The first edition published in September 2001
– Serves as the foundation for other standards and
programmes (ISO 14064-I, GRI)
Three Scopes in the GHG Protocol
Source:
Mandag Morgen
Tree Scopes in The GHG Protocol
• Scope 1 encompasses a company's direct GHG emissions,
whether from on-site energy production or other industrial
activities. Employee travel with company vehicle.
• Scope 2 accounts for energy that is purchased from off-site
(primarily electricity, but can also include energy like steam).
• Scope 3 is much broader and can include anything from the
employees travel to work, to "upstream" emissions embedded in
products purchased or processed by the firm, to “downstream”
emissions associated with transporting and disposing of products
sold by the firm.
From Guidelines to Practical Use
•
•
•
•
•
Limitation of the organizational entity
Limitation of the scope of the value chain
What GHG gases should be included?
Measuring units?
Level of precision
What Should be Measured in Scope 3?
• Focus on where the impact is big
– IKEA found out that their customers travel to the
IKEA-stores represented 56% of the total emissions
in the inventory
– Swiss Re found out business travel stands for 43% of
the company’s emissions
– Other companies may for example find out that it
would make a big difference if they choose suppliers
with lower emissions, or focus on redusing the energy
use related to product use
In Norway:
One out of four measure emissions?
- 51% say their emissions
inventories are verified by
a third party
Does your company measure your greenhouse gas emissions?
Source:
Zapera/Mandag Morgen
The international picture
• Does your company ”measure and/or reduce
your carbon footprint?”
–
–
–
–
–
–
6% in China
36% in Germany
36% in the US
36% in India
47% in Japan
55% in the UK
Source:
Accenture
Agenda
• About Mandag Morgen and KlimaGevinst
• Why is it important to establish an emissions inventory
and report on climate?
• What is good climate reporting? What should be
included in an emissions inventory?
• Climate reporting in the future
Emissions Inventory in The Future
• Scope 3 and supply chain impact in increasingly
in focus
• Techniques for quantifying emissions associated
with certain elements of the supply chain are still
evolving
• New guidelines from GHG protocol is being
developed
Climate Reporting in the Future?
• “In the future I expect a company’s carbon statement to
be as prominent as its financial statement. That’s
because investors are increasingly demanding reliable
information about a company’s global carbon footprint,
as well what it’s doing to reduce its CO2 emissions.
Proper financial reporting is a no-brainer. Carbon
reporting must be the same”
- UK Environment and Climate Change Minister Ian Pearson
KlimaGevinst seminars
Date
Feb 4
Carbon scenarios 2020
Mar 10
Renewable energy
Apr 22
Carbon management and reporting
Jun 10
Energy efficiency
Sep 3
GHG capture and storage
Oct 7
Adjusting to climate change
More information: www.klimagevinst.no
Thank you!
Linda Runesson
[email protected]