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Suppliers, if you’re breathing a sigh of relief because so far the EPA has not targeted you to reduce your GHG emissions, don’t settle back just yet. Walmart, et al. may be doing the Agency’s job for it.
- Recap: Scope 3 emissions include indirect GHG emissions from sources not owned or directly controlled by the company but related to the company’s activities. Scope 3 GHG emission sources include T&D losses associated with purchased electricity, employee travel and commuting, contracted solid waste disposal, and contracted wastewater treatment. Additional sources include GHG emissions from leased space, vendor supply chains, outsourced activities, and site remediation activities.
This article will discuss one example of large companies leaning on suppliers to reduce GHG emissions.
Flat Screens—Who Knew?
In a recent report, the EPA highlighted how large companies encouraged their flat panel display suppliers to reduce their F-GHG emissions in manufacturing across key areas. (F-GHGs are fluorinated greenhouse gases and are considered among the most potent and persistent GHGs contributing to global climate change.) These gases are used in the manufacture role of flat panel displays—namely, liquid crystal display (LCD) panels—that go into televisions, computer monitors, and many other display products. The EPA contends that the overall climate impact of the millions of display products Americans use can be greatly reduced if suppliers of these components take steps to mitigate releases of these F-GHGs to the atmosphere.
Hence, our story.
In 2013, Wal-Mart, Dell, HP, Lenovo, Best Buy, and Acer asked their LCD suppliers to:
- Develop a standard method for measuring F-GHG emissions,
- Set new voluntary F-GHG emissions reduction goals, and
- Develop annual progress reports.
Join us for the Scope 3 GHG Emissions webinar on July 22 to know precisely what to do to improve your CDP disclosure and performance scores. Learn more.
Initial Findings
Here are some initial findings of the vendor initiative:
- There is an opportunity to standardize F-GHG emissions reporting so that each supplier provides the same information. Currently, suppliers report information on their F-GHG emissions and amount of reductions with some variability. For example, it is not clear if all suppliers are including nitrogen trifluoride (NF3), which has a global warming potential of 17,200 (see yesterday’s Advisor) in reporting their total perfluorocarbons (PFC) emissions and reductions.
- F-GHG emission decreases and increases appear to be tied to changes in production levels. The EPA is interested in understanding the extent to which F-GHG emission reductions result from the use of F-GHG reduction technologies or other reduction measures.
- Some suppliers reported their emissions intensity per square meter of glass produced. The EPA is interested in learning more about the inputs that determine F-GHG emissions intensity.
Scope 3 GHG Emissions: Quantification and CDP Reporting Best Practices
Determine the relevance of Scope 3 categories and methodologies for performing your calculations. Register now!
Supplier GHG Reduction Results
Of the 12 suppliers who are participating in the program, 5 reported that information on the F-GHG reductions is still unknown. The others installed F-GHG abatement systems, targeting specific F-GHGs pertinent to the manufacture of flat panel displays.
Of the 7 suppliers that installed F-GHG abatement systems, 4 appear to have decreased F-GHG emissions and 3 appear to have either increased F-GHG emissions, one by 12,000 metric tons, or not to have reduced emissions as much as previous years. Here is another instance where the need for standardized reporting comes in.