The Greenhouse Gas Protocol Product & Supply Chain Initiative Laura Draucker, PhD World Resources Institute

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Outline • Overview of the GHG Protocol Initiative • The Growing Practice of GHG Management • GHG Protocol Supply Chain Initiative – Standards Under Development – Timeline – Road Testing Process • GHG Inventories in the Auto Steel Industry

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GHG Protocol Initiative • Convened in 1998 by WRI and WBCSD

• A multi-stakeholder partnership of businesses, NGOs, governments and others convened by WRI and WBCSD

• Mission: Develop internationally accepted GHG accounting and reporting standards and to promote their use worldwide www.autosteel.org

GHG Protocol Publications

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Programs Based on the GHG Protocol Initiative • • • • • • • • • • • • • • • • • •

Carbon Disclosure Project The Climate Registry California Climate Action Registry U.S. EPA Climate Leaders Initiative Global Reporting Initiative World Wildlife Fund Climate Savers Dow Jones Sustainability Index EU Emissions Trading Scheme UK Emissions Trading System ISO 14064 Part 1 U.S. Department of Energy (1605b) Chicago Climate Exchange French REGES Protocol METI, Japan Mexico GHG Program Respect Europe Business Leaders Initiative for Climate Change (BLICC) International Industry Groups (Aluminum, IPIECA, ICFPA, Cement, Iron and Steel) World Economic Forum Global GHG Registry

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The Growing Practice of GHG Management in the Supply Chain • Corporate GHG management is moving beyond companies’ own operations, toward full value chain –

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Investors pushing for supply chain GHG disclosure and risk management Programs and policies increasing public reporting of scope 3 and product-level GHG emissions Companies requesting product and supply chain information from suppliers www.autosteel.org

Need for New Standards Drivers

Requests by stakeholders for disclosure of supply chain emissions and risk

Business-tobusiness (B2B) requests for GHG information throughout the supply chain

Inclusion of supply chain emissions in corporate GHG reduction goals

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Need for an internationally standardized approach to measuring and reporting emissions in the value chain

New Standards in Development: The Supply Chain Initiative Scope 3 (Corporate Value Chain) Accounting & Reporting Standard • Quantify and report major GHG emissions in the value chain at the company/organization level (scope 3) • To understand, manage, and report GHG emissions across the entire value chain • Build on GHG Protocol Corporate Standard

Product Life Cycle Accounting & Reporting Standard • Quantify and report product-level emissions • To understand, manage, and report the life cycle GHG emissions associated with individual products • Build on existing life cycle assessment standards

Goal of both standards: public reporting of GHG inventories to manage and reduce GHG emissions www.autosteel.org

Scope 3 Accounting and Reporting Standard Scope 3 emissions = All other indirect emissions upstream & downstream

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Scope 3 Accounting and Reporting Standard

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Product Life Cycle GHG Accounting and Reporting Standard The overarching method to account for product-level GHG emissions is a life cycle approach

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Product Life Cycle GHG Accounting and Reporting Standard • Why product-level? – Products (goods and services) are the backbone of most corporations – Purchased and sold products have a large influence on most Scope 3 inventories – Focusing on the product-level creates more options for reductions – Unique business value created through: • Supplier engagement and reduction opportunities • Tracking reductions through public reporting • Product differentiation

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Key Issues and Challenges Boundaries

Data

•What do you include / exclude in your inventory?

•When should you collect actual data from suppliers? When should you use generic industry-average data? How do you ensure you have high-quality data, and what to do if you don’t?

Allocation

•How do you allocate emissions between facilities, products, and processes ? How do you allocate recycled products?

Reporting

•How should emissions, data quality, and uncertainty be reported?

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Standard Development Process Structure WRI/WBCSD Secretariat Steering Committee (25 members) Product Technical Working Groups ( 100+ members)

Scope 3 Technical Working Groups ( 70+ members)

Stakeholder Advisory Group (1,200+) Road Testing (70 companies)

Product Standard

Scope 3 Standard

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Timeline Date

Activity

January 2009







March 2009


Steering Committee Meeting #2 (Geneva)

June 2009


Technical Working Group Meeting #2 (Washington DC)

August 2009


Stakeholder webinar and comment period

October 2009


Steering Committee Meeting #3 (Washington DC)

November December 2009


First draft of standards released for stakeholder review
Five stakeholder workshops (in Berlin, Germany; Guangzhou, China; Beijing, China; London, UK; Washington, DC, USA)
Stakeholder comment period on first drafts

November 2007 September 2008

January - June  2010 Summer/Fall 2010  December 2010 

Survey and consultations to assess need for new standards Steering Committee Meeting #1 (Washington DC) Technical Working Group Meeting #1 (London) Working groups begin drafting

Road testing by several companies Public comment period on second drafts Finalize Standard Text for Publication

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Road Testing • 6 month road testing process began in January 2010 • Over 120 Companies Applied • Over 70 Companies participating

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Road Testing Companies

Companies from 19 Countries www.autosteel.org

Scope 3 Standard Road Testing Companies 3M Company Abengoa Acer Inc Airbus S.A.S AkzoNobel Alcan Packaging Autodesk, Inc. Baoshan Iron & Steel CO. LTD BASF SE Coca-Cola Erfrischungsgetränke AG Deutsche Post DHL Deutsche Telekom AG Eclipse Networks (Pty) Ltd. Ford Motor Company US GSA Federal Acquisition Service Hasbro Inc. Hydro Tasmania IBM IKEA Italcementi Group

Kraft Foods Levi Strauss & Co. National Grid Natura Cosméticos New Belgium Brewing PE International Pfizer Pinchin Environmental Ltd. PricewaterhouseCoopers Public Service Enterprise Group, Inc. SAP AG SC Johnson and Son Siemens Suzano Pulp and Paper Swire Beverages UK Highways Agency Veolia Water VT Group Webcor Builders

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Product Standard Road Testing Companies 3M Company Acer Inc AkzoNobel Alcoa Amcor Anvil Knitwear, Inc. Baoshan Iron&Steel CO. LTD BASF SE Belkin Belron International Bloomberg LP BT plc CA, Inc. Colors Fruit SA (Pty) Ltd Deutsche Post DHL Deutsche Telekom AG DuPont

Italcementi Group JohnsonDiversey Lenovo Levi Strauss & Co. Mitsubishi Chemical Corporation Natura Cosméticos New Belgium Brewing PepsiCo, Inc. Procter & Gamble Eurocor Rogers Communications Shanghai Zidan Food Packaging and Printing Co., Ltd. Shell International Petroleum Company Ltd Siemens AG Suzano Pulp and Paper Swire Beverages TAL Apparel Limited Tech-Front (Shanghai) Computer Co., Ltd. / Quanta Shanghai Manufacturing City

Eclipse Networks (Pty) Ltd. Ecolab General Electric Gold’n Plump Poultry, LLC

Tennant Company Verso Paper Corp. Weyerhaeuser WorldAutoSteel

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List of Products (to date) 2.5 MW Wind Turbine

Food Packaging Product

Advanced High Strength Steels

Forged Aluminum Wheel

AnvilSustainable™ Transitional Cotton Tee

Home Insurance

Bloomberg Flat Panel

Hot Rolled Coil

Bresso Packaged Cream Cheese

Industrial Chemicals

Calcestruzzo (concrete)

Just BARE Chicken

Chemicals for a T-Shirt Production

Magazine

Citrus Fruit Exports from South Africa to the UK

Men's Levi Jeans

Coated Freesheet Paper

MPLS (Multi-Protocol Label Switching) network product

Coca-Cola Branded Products

Non-iron Shirt

Conserve Smart AV

Notebook Computer

Cosmetics and Soap Products

Restaurant Meals

Cotton Bleached Fabric

Scotchkote Spray in Place Pipe 269 Coating

Desktop Computer

SIPROTEC 4 (Universal Differential Protection Relay)

Detergent

Solution Tank for a T3 with ec-H2O Floor Scrubber

Deutsche Post PLUSPÄCKCHEN; DHL Express TDI

Vehicle Windscreen Replacement/Repair

European Disposable Diaper Size 4

Videoconferencing System

Fat Tire Amber Ale

Wood Product

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GHG Inventories in the Auto Steel Industry • What impacts can you have on Scope 3 and Product Inventories? – Fuel-efficient cars can reduce companies Scope 3 emissions due to: •Transport logistics •Employee commuting – Material choices impact a car’s product life cycle (or Scope 3 of a car manufacture) •Lightweight/high-strength materials •Recycled or reused materials •Lower energy intensity production, manufacturing, and/or waste treatment processes www.autosteel.org

GHG Inventories in the Auto Steel Industry More Inventories = More Data = More Choices

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To Get Involved • Please visit our website: http://www.ghgprotocol.org/standards/product-andsupply-chain-standard – Access to the draft standards and other standard development materials – Become a stakeholder •Receive updates on the standard development process •Submit comments on the next draft • For more information about the GHG Protocol Initiative: www.ghgprotocol.org www.autosteel.org

Thank you [email protected]

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