Do you are feeling a bit misplaced when individuals check with sure environmental sustainability matters and aren’t positive the place to begin in terms of studying extra? Sustainability 101 is a weblog collection that you may flip to for details about completely different environmental phrases which will come up at work, throughout discussions with mates, and even at your annual vacation gathering.
Based on the Intergovernmental Panel on Local weather Change (IPCC), local weather science says we should restrict warming to not more than 1.5 °C above pre-industrial ranges to keep away from the worst impacts of local weather change. And, in response to the Science Based mostly Targets initiative (SBTi), “With a purpose to restrict warming to 1.5°C and keep away from the worst results of local weather breakdown, world emissions have to be halved by 2030.” To assist scale back greenhouse gasoline (GHG) emissions, many corporations try to determine what their carbon footprint is to allow them to begin making modifications.
Carbon accounting, or GHG accounting, is the method through which a company estimates the full quantity of GHG emissions which are generated by way of its actions inside a set of boundaries. The predominant commonplace used to information these estimations is the GHG Protocol Company Accounting and Reporting Normal, first launched in 2001.The GHG Protocol establishes complete world standardized frameworks to measure and handle GHG emissions from non-public and public sector operations, worth chains and mitigation actions.
Defining and quantifying GHG emissions
GHGs had been first outlined in 1997, underneath the Kyoto Protocol, and had been restricted to a set of six particular person GHGs or courses of GHGs: carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), and sulphur hexafluoride (SF6). Nitrogen trifluoride (NF3) was added later for a complete of seven gases that organizations following the GHG Protocol Company Accounting and Reporting Normal report on.(1)
The outlined requirements set by way of the GHG Protocol are essential as a result of they provide corporations the identical commonplace to comply with once they report on emissions. This in flip makes it simpler for individuals to check corporations’ efficiency.
 Normally, GHGs are reported in items of carbon dioxide equivalents or CO2e. CO2e is a means of mixing the seven gases into one unit, by taking a look at their results on the environment over 100 years. In the event you consider GHGs as a forex, consider CO2e as being the one forex everybody makes use of, and you may swap currencies based mostly on their alternate fee or so-called “emission elements”. Emission elements permit us to transform numerous exercise knowledge into GHG emissions and mix them into our one unit, CO2e.
For instance, if you happen to consumed 100 kWh of electrical energy, to estimate the emissions you’ll multiply that knowledge by your emission issue. If we used the 2023 emission elements from america Environmental Safety Company (EPA), we might multiply the 100 kWh by 0.386 kg CO2e/kWh which suggests you’ll generate 38.6 kg CO2e.
As a reminder, emissions of organizations are categorised into 3 scopes:
- Scope 1: Direct emissions from operations owned by the corporate. Examples: Heating gas utilized in firm buildings, gas use in firm automobiles
- Scope 2: Oblique emissions from the technology of bought electrical energy, steam, heating and cooling. Instance: Electrical energy utilized in firm buildings
- Scope 3: All different oblique emissions that happen in an organization’s worth chain. Examples: Worker enterprise journey and commuting, provider emissions, emissions from transportation and distribution of product, emissions from use of bought merchandise
Previous to quantifying a company’s GHG emissions, it’s essential to know the time boundaries reported on throughout the Scope 1, 2 and three stock per the GHG Protocol. Whereas Scopes 1 and a couple of take a look at emissions from the reporting yr, classes in Scope 3 can take a look at previous, current, or future years as outlined in Determine 1 from a GHG Protocol report.(2) The GHG Protocol takes a lifecycle perspective, which suggests for sure classes, like “Scope 3, Class 11: Use of Bought Merchandise,” a company accounts for all of a product’s lifetime emissions within the yr it’s bought.
Estimating GHG emissions
 Carbon accounting relies on estimations. Normally, there are three main strategies of estimating GHG emissions: Exercise based mostly, spend based mostly or a hybrid strategy that makes use of each.
Exercise based mostly: Emissions are estimated by accumulating main knowledge and multiplying the worth by the related emission elements. Examples of main knowledge embrace vitality or gas consumed or quantity of fabric bought.
It will also be estimated from secondary knowledge, which is knowledge that isn’t from particular actions inside an organization’s worth chain. Some examples embrace common knowledge, proxy knowledge or business common knowledge.(1)
Spend based mostly: Emissions are estimated by figuring out the amount of cash spent on an exercise and multiplying the worth by the related secondary knowledge emission elements. Emissions elements will be from an environmentally-extended enter output (EEIO) database, or they are often extra provider particular, based mostly on reported emissions and income info. (1)
Hybrid: Emissions are estimated by first following the activity-based strategy after which utilizing the spend based mostly strategy if there are gaps. This will increase the protection of the potential in-scope emissions sources. (1)
 Enhancing our knowledge
One of many targets of GHG accounting is to make use of main knowledge as a lot as attainable, but it surely’s not at all times simple to entry that knowledge. For Scope 1 and a couple of, main knowledge is often out there, however in Scope 3, a company is usually reliant on secondary knowledge. This could be a problem when attempting to know how numerous investments or design decisions are serving to to scale back GHG emissions.
Cisco has set a aim to succeed in internet zero GHG emissions throughout our price chain (Scopes 1, 2, and three) by 2040, and we have now additionally recognized two near-term targets on the way in which to that bigger aim. Â We’re regularly working to enhance our knowledge, present correct emissions estimates and drive GHG emission reductions.
 Data relating to Cisco’s environmental, social, and governance (ESG) initiatives, targets and commitments, our newest influence, in addition to insurance policies and extra disclosures for specialised audiences, will be present in our 2022 Cisco Objective Report and supplemental info in our ESG Reporting Hub.
1 https://ghgprotocol.org/websites/default/information/requirements/Scope3_Calculation_Guidance_0.pdf (pg. 14, 17, 21)
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