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Today we will discuss how the EPA categorizes GHG emissions and why its approach doesn’t affect just large sources. Tomorrow we will look at how large companies are doing EPA’s job and finding some success in reducing overall GHG emissions by leaning on smaller companies such as their vendors.
‘Scope’ It Out!
The GHG emissions generated directly and indirectly by a company or organization can be classified into “scopes,” based on the source of the emissions:
- Scope 1 emissions are direct GHG emissions from sources that are owned or controlled by the company. Scope 1 can include emissions from fossil fuels burned on-site, emissions from company-owned or company-leased vehicles, and other direct sources.
- Scope 2 emissions are indirect GHG emissions resulting from the generation of electricity, heating and cooling, or steam generated off-site but purchased by the company, and the transmission and distribution (T&D) losses associated with some purchased utilities (e.g., chilled water, steam, and high temperature hot water).
- 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.
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.
Heat Absorption Is Key to GHG Emissions
Each GHG differs in its ability to absorb heat in the atmosphere. The ability of a GHG to absorb heat in the atmosphere is referred to as its global-warming potential (GWP).
To report GHG emissions or determine if GHG emissions from a source trigger the reporting threshold, GHG emissions must be converted to metric tons of carbon dioxide equivalent (CO2e). CO2 is used as the baseline because it is a very prevalent GHG. However, as we’ll see, other GHGs are far more potent.
Note: GWPs for various GHGs can be found at 40 CFR 98 Appendix Table A-1.
We’ll look at a couple of illustrations.
So, as the baseline, CO2 has a GWP of 1. Methane (CH4) traps 25 times more heat per molecule than CO2, so it has a GWP of 25. Nitrous oxide (N20) absorbs 298 times more heat per molecule than CO2, so it has a GWP of 298. Sulfur hexafluoride (SF6) is currently the most potent GHG with a GWP of 22,800. So, you would have to emit far less SF6 into the atmosphere to have the same global warming effect as CO2.
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!
Who—Me?
If you think the reduction of GHG emissions is important for your company, here’s where Scope 3 emissions can come into play.
Conversely, if you don’t think you are in the arena where reduction of GHG emissions is important, here’s where Scope 3 emissions definitely come into play.
Stay-tuned for tomorrow’s Advisor!