Greenhouse Gas Protocol Product & Supply Chain Initiative

US Climate Partnership Association23 June 2010

David Rich World Resources Institute

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Convened in 1998 by

A multi-stakeholder partnership of businesses, NGOs, governments and others

Mission: Develop internationally accepted GHG accounting and reporting standards and to promote their use worldwide

Greenhouse Gas Protocol Initiative

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GHG Protocol Publications

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The most widely used accounting tool for businesses to quantify, manage and report greenhouse gases

Used by majority of the S&P 500

Free standards and tools available at www.GHGProtocol.org

GHG Protocol Corporate Standard

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Accounting for Corporate Emissions

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Need for New Standards

Need for an internationally standardized approach to

measuring and reporting

emissions in the value

chain

Requests for GHG data by

business customers, investors &

other stakeholders

Inclusion of supply chain emissions in reporting &

GHG reduction

goals

Corporate supply chain

GHG management

initiatives

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New GHG Protocol Standards in Development

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Standard Development Process

WRI/WBCSD Secretariat

Steering Committee (25 members)

ProductTechnical Working

Groups ( 100+ members)

Scope 3Technical Working

Groups ( 60+ members)

Stakeholder Advisory Group (1,200+)

Product Standard Scope 3 Standard

Road Testing (70+ companies)

Independent, multi-stakeholder, open, inclusive process

Participation from businesses, governments, NGOs, and academic institutions worldwide

Over 1,000 stakeholders involved

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Timeline

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Date Activity

November 2007 Survey and consultations to assess need for new standards

September 2008 Steering Committee Meeting #1 Technical Working Group Meeting #1

January 2009 Working groups begin drafting

August 2009 Stakeholder webinar and comment period

November - December 2009

First draft of standards released for stakeholder review 5 stakeholder workshops (in China, Germany, UK, and US) Public comment period on first drafts

January - June 2010

Road testing by over 70 companies

September 2010 Public comment period on second drafts

December 2010 Finalize standards

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Business Uses of New Standards

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Purpose: To quantify and report product-level emissions

Applicable to all types of goods and services

The overarching method for accounting for product GHG emissions is a life cycle approach

Includes all stages of the life cycle, from cradle to grave

GHG Protocol Product Life Cycle Standard

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Steps in Scope 3 Accounting and ReportingSteps in Accounting & Reporting

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Upstream Scope 3

Emissions from Purchased Products

Production of Purchased Goods & Services

Energy-Related Activities (Not Included in Scope 2)

Production of Capital Equipment

Transportation & Distribution of Purchased Products

Waste Generated in Operations

Business Travel

Leased Assets

Investments

Downstream Scope 3 Emissions from Sold Products

Transportation & Distribution of Sold Products

Use of Sold Products

Disposal of Sold Products

Franchises

Leased Assets

Other Scope 3 Emissions

Employee Commuting

GHG Protocol Scope 3 Standard

Direct Suppliers

Reporting Company

VALU

E CHAIN

CradleGrave

Emissions from Purchased Products

Emissions From Sold Products

Gat

e

Gat

e

Raw Materials

Energy

Capital Equipment

Transportation

Product Distribution

Product Use

Product Disposal

Scope 2 and 3Upstream

Scope 3DownstreamScope 1

Purchase Sale

Emissions from the

Company’s Operations

Waste Services

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Key Issues

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Over 70 companies are road testing the draft standards

More than 20 sectors and 17 countries

Purpose: Ensure standards can be practically implemented

Road Testing

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Sample of Road Testing Companies

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How to Participate

Provide feedback on draft standards in September

For more information and to download free standards & tools:

www.GHGProtocol.org

Contact: David Rich

World Resources Institute

Phone: +1-202-729-7744

E-mail: drich@wri.org