Company GHG Emissions Reporting – a Study on Methods …

1 Delivering sustainable solutions in a more competitive world Directorate-General Environment Company GHG Emissions Reporting a Study on Methods and initiatives ( ) Revised Final Report October 2010 Date: 22nd October 2010 This report does not reflect the position or opinion of the EC. It has been prepared by Environmental Resources Management the trading name of Environmental Resources Management Limited, with all reasonable skill, care and diligence within the terms of the Contract with the client, incorporating our General Terms and Conditions of Business and taking account of the resources devoted to it by agreement with the client.

2 We disclaim any responsibility to the client and others in respect of any matters outside the scope of the above. This report is confidential to the client and we accept no responsibility of whatsoever nature to third parties to whom this report, or any part thereof, is made known. Any such party relies on the report at their own risk. ERM Floor 11 5 Exchange Quay Manchester M5 3EF UK T: +44 161 958 8800 F: +44 161 958 8888 Imola Bed Policy Officer DG ENV G1 ECAP European Commission Avenue de Beaulieu 9, 4/166 BRUSSELS Project 0110273 Company GHG Emissions Reporting a Study on Methods and initiatives ( ) Revised Final Report For and on behalf of Environmental Resources Management Limited.

3 Author: Andrew Marsh-Patrick Position: Senior Consultant Signed: Reviewed by: Position: Signed: Approved by: Charles Allison Position: Partner Signed: ERM EC Company GHG Reporting Study Table of Contents Executive Summary .. 8 1. Introduction .. 16 Study Background .. 16 Report Structure .. 17 The European GHG Emissions Context .. 18 Overview of GHG Reporting Methods .. 21 Overview of Principles of Company GHG Reporting .. 25 2. Study Scope and Methodology .. 27 Objectives and Scope of Work .. 27 Drivers for the Study .

4 28 Study Methodology .. 29 Stakeholder Interviews and Data Sources .. 32 3. Identification of GHG Reporting Methods and initiatives .. 33 Major Methods and initiatives Identified .. 33 Key Features of Major Methods and initiatives .. 34 Observations about Major Methods and initiatives .. 67 4. Comparison of GHG Reporting Methods and initiatives .. 71 Shortlist of Methods and initiatives .. 71 Development of Evaluation System and Criteria .. 72 Assessment of Methods and initiatives .. 76 Observations from Assessment of Methods and initiatives .

5 93 ERM EC Company GHG Reporting Study Summary of Phase I Analysis of methodologies and initiatives .. 100 5. Assessment of Risks and Benefits of GHG Reporting 102 Introduction .. 102 Company Interviews: Selection Criteria .. 102 Company Interview Process .. 105 Company Interview Results .. 107 Observations from Company Interviews .. 131 GHG Reporting Methodology and initiative Owner Questionnaire Process . 136 GHG Reporting Methodology and initiative Owner Questionnaire Results .. 137 Observations from Methodology and initiative Owner Questionnaires.

6 147 Literature Review of Risks and Benefits Data .. 149 Observations from Literature Review of Data .. 163 Contribution of SMEs: Data on Company Size and Emissions .. 164 Summary of Phase II - Analysis of Risks and Benefits .. 169 6. Future Scenario Development and Gap Analysis .. 171 Introduction .. 171 The Role of GHG Reporting .. 171 Key Factors to Consider for Possible Policy Scenarios .. 172 Possible Future GHG Reporting Policy Scenarios .. 174 Assessment of Future Policy Scenarios .. 180 Observations from the Assessment of Future Policy Scenarios.

7 202 Gap Analysis for Development of Policy Options .. 205 Stakeholder Workshop Outputs .. 209 Summary of Phase III - Analysis of Analysis of Possible Future Policy Scenarios .. 209 7. Conclusions and Recommendations .. 211 Phase I Conclusions - Analysis of methodologies and initiatives .. 211 Phase II Conclusions - Analysis of Risks and Benefits .. 212 ERM EC Company GHG Reporting Study Phase III Conclusions - Analysis of Possible Future Policy Scenarios .. 214 Recommendations for Further Work .. 216 Glossary.

8 218 References .. 219 Annex A List of Additional GHG Reporting Methods and initiatives Identified .. 221 Annex B Basis for Shortlisting of Methods and initiatives for Detailed Assessment .. 222 Annex C Shortlist of Companies Selected for Interview .. 223 Annex D Questionnaire used for Company Interviews .. 224 Annex E Questionnaire sent to GHG Methodology/ initiative Owners .. 226 Annex F Summary of Feedback Provided at the Stakeholder Workshop .. 228 Annex G Summary of Stakeholder Comments and Feedback on the Draft Final Report.

9 229 Annex H Briefing Note Sent to Stakeholder Workshop Participants .. 234 ERM EC Company GHG Reporting Study List of Tables and Figures Figure EU GHG Emissions Percentage Contribution by Sector for 2007 (EEA 2010) .. 19 Figure EU Net GHG Emissions Percentage Contribution by Country for 2007 (EEA 2010).. 20 Figure EU Net GHG Emissions Percentage Contribution by Gas for 2007 (EEA 2010) .. 20 Table Basket-of-Six Greenhouse Gases Covered by the Kyoto Protocol and Example Sources .. 22 Figure Calculation of Total GHG Emissions .

10 23 Figure Different Company GHG Reporting Requirements UK Example (DEFRA 2010) .. 24 Figure Summary of Study Phases and Tasks indicating Key Inputs and Outputs .. 30 Table Major GHG Reporting Methods and initiatives Identified for the Purposes of this Study .. 33 Table Data Fields Captured for Major GHG Reporting Methods and initiatives .. 34 Table Major GHG Reporting Methods and initiatives - Overview .. 35 Table Major GHG Reporting Methods and initiatives - Coverage .. 45 Table Major GHG Reporting Methods and initiatives - Uptake.