Summary: This is an extract of Chapter 11. A credible GHG emissions report presents information based on the principles of relevance, accuracy, completeness, consistency, and transparency. It should be based on the best data available and be transparent about its limitations.
11.1 Required information
Companies shall publicly report the following information:
- A scope 1 and scope 2 emissions report in conformance with the GHG Protocol Corporate Standard
- Total scope 3 emissions reported separately by scope 3 category
- For each scope 3 category, total emissions of GHGs (CO2, CH4, N2O, HFCs, PFCs, and SF6) reported in metric tons of CO equivalent, excluding biogenic CO2 emissions and independent of any GHG trades, such as purchases, sales, or transfers of offsets or allowances
- A list of scope 3 categories and activities included in the inventory
- A list of scope 3 categories or activities excluded from the inventory with justification of their exclusion
- Once a base year has been established: the year chosen as the scope 3 base year; the rationale for choosing the base year; the base year emissions recalculation policy; scope 3 emissions by category in the base year, consistent with the base year emissions recalculation policy; and appropriate context for any significant emissions changes that triggered base year emissions recalculations
- For each scope 3 category, any biogenic CO emissions reported separately
- For each scope 3 category, a description of the types and sources of data, including activity data, emission factors and GWP values, used to calculate emissions, and a description of the data quality of reported emissions data
- For each scope 3 category, a description of the methodologies, allocation methods, and assumptions used to calculate scope 3 emissions
- For each scope 3 category, the percentage of emissions calculated using data obtained from suppliers or other value chain partners
11.2 Optional information
A public GHG emissions report should include, when applicable, the following additional information:
- Emissions data further subdivided where this adds relevance and transparency (e.g., by business unit, facility, country, source type, activity type, etc.)
- Emissions data further disaggregated within scope 3 categories where this adds relevance and transparency (e.g., reporting by different types of purchased materials within category 1, or different types of sold products within category 11)
- Emissions from scope 3 activities not included in the list of scope 3 categories (e.g., transportation of attendees to conferences/events), reported separately (e.g., in an “other” scope 3 category)
- Emissions of GHGs reported in metric tons of each individual gas
- Emissions of any GHGs other than CO2, CH4, N2O, HFCs, PFCs, and SF whose 100-year GWP values have been identified by the IPCC to the extent they are emitted in the company’s value chain (e.g., CFCs, HCFCs, NF3, NOX, etc.) and a list of any additional GHGs included in the inventory
- Historic scope 3 emissions that have previously occurred, reported separately from future scope 3 emissions expected to occur as a result of the reporting company’s activities in the reporting year (e.g., from Waste generated in operations, Use of sold products, End-of-life treatment of sold products)
- Qualitative information about emission sources not quantified
- Information on any GHG sequestration or removals, reported separately from scope 1, scope 2 and scope 3 emissions
- Information on project-based GHG reductions calculated using the project method (e.g., using the GHG Protocol for Project Accounting), reported separately from scope 1, scope 2, and scope 3 emissions
- Information on avoided emissions (e.g., from the use of sold products), reported separately from scope 1, scope 2, and scope 3 emissions
- Quantitative assessments of data quality
- Information on inventory uncertainty (e.g., information on the causes and magnitude of uncertainties in emission estimates) and an outline of policies in place to improve inventory quality
- The type of assurance performed (first or third party), the relevant competencies of the assurance provider(s), and the opinion issued by the assurance provider
- Relevant performance indicators and intensity ratios
- Information on the company’s GHG management and reduction activities, including scope 3 reduction targets, supplier engagement strategies, product GHG reduction initiatives, etc.
- Information on supplier/partner engagement and performance
- Information on product performance
- A description of performance measured against internal and external benchmarks
- Information on purchases of GHG reduction instruments, such as emissions allowances and offsets, from outside the inventory boundary
- Information on reductions at sources inside the inventory boundary that have been sold/transferred as offsets to a third party
- Information on any contractual provisions addressing GHG-related risks or obligations
- Information on the causes of emissions changes that did not trigger a scope 3 base year emissions recalculation
- GHG emissions data for all years between the scope 3 base year and the reporting year (including details of and reasons for recalculations, if appropriate)
- Additional explanations to provide context to the data
11.3 Reporting guidance
By following the GHG Protocol Scope 3 Standard reporting requirements, companies adopt a comprehensive standard with the necessary detail and transparency for credible public reporting. The appropriate level of reporting of optional information categories can be determined by the objectives and intended audience for the report. For national or voluntary GHG programs, or for internal management purposes, reporting requirements may vary.
For public reporting, it is important to differentiate between a summary of a public report that is, for example, published on the internet or in sustainability corporate social responsibility reporting and a full public report that contains all the necessary data as specified by this standard. Not every circulated report must contain all information as specified by this standard, but a link or reference needs to be made to a publicly available full report where all information is available to be in conformance with the Scope 3 Standard.
Companies should strive to create a report that is as relevant, transparent, accurate, consistent and complete as possible. Including a discussion of the reporting company’s strategy and goals for GHG accounting, any particular challenges or tradeoffs encountered, the context of decisions on boundaries and other accounting parameters, and an analysis of emissions trends will provide a more complete picture of the company’s inventory efforts.
Guidance is provided below for implementing selected reporting requirements and optional information listed in sections 11.1 and 11.2. See the relevant chapters of this standard for guidance on implementing reporting requirements not listed below. A sample GHG reporting form is provided at www.ghgprotocol.org.
Required reporting:
For each scope 3 category, total GHG emissions reported in metric tons of CO2 equivalent, excluding biogenic CO2 emissions
Companies are required to include emissions of each of the 6 required greenhouse gases (i.e., CO2, CH4, N2O, HFCs, PFCs, and SF6) in the reported scope 3 emissions data, but are not required to separately report scope 3 emissions by individual gas. Companies may report aggregated emissions in units of CO2e only.
Required reporting:
For each scope 3 category, a description of the methodologies, allocation methods, and assumptions used to calculate scope 3 emissions
Companies should report assumptions underlying reported emissions for each of the 15 scope 3 categories. For example, for category 11 (Use of sold products), companies should report information on average use profiles, assumed product lifetimes and other underlying assumptions. For category 12 (End-of-life treatment of sold products), companies should report underlying assumptions related to product lifetimes and waste treatment methods. Companies should also specify the time boundary of each scope 3 category.
Optional reporting:
Information on supplier/partner engagement and performance
Scope 3 accounting is focused on tracking the emissions associated with specific activities in the value chain, such as the production of purchased products, transportation of purchased products, and use of sold products. Because scope 3 emissions include the scope 1 and scope 2 emissions of a company’s partners in the value chain (including suppliers, customers, service providers, etc.), reporting on a company’s efforts to engage their partners in the value chain provides additional transparency on a company’s scope 3 management and reduction activities.
A public GHG emissions report should include, when applicable, the following additional information:
- Supplier/partner engagement metrics, such as the number and percentage of suppliers and other partners that have:
- Received a request from the reporting company to provide primary GHG emissions data
- Provided primary GHG emissions data to the reporting company
- Publicly reported entity-wide GHG emissions
- Established a publicly-available entity-wide GHG reduction target
- Supplier/partner performance metrics, including the GHG emissions performance of suppliers and other partners over time
- For example, the sum of the reporting company’s tier 1 suppliers’ scope 1 and scope 2 emissions, allocated to the reporting company; the methodology used to quantify and allocate supplier emissions data; and the percentage of tier 1 suppliers accounted for (as a percentage of the reporting company’s total spend)
- Other relevant information
Optional reporting:
Information on product performance
To provide appropriate context related to category 11 (Use of sold products), a public GHG emissions report should include, when applicable, the following additional information:
- Product performance indicators and intensity metrics (e.g., average GHG intensity of sold products, average energy efficiency of sold products, average emissions per hour of use, average fuel efficiency of sold vehicles, average emissions per kilometer driven, GHG intensity of sold fuels, average emissions per functional unit, etc.)
- Annual emissions from the use of sold products (i.e., emissions that occur in a single year from products sold in the reporting year)
- Average lifetime/durability of sold products
- The methodologies and assumptions used to calculate product performance indicators and intensity metrics
- The percentage of sold products that are compliant with standards, regulations, and certifications, where applicable
- A statement explaining why emissions from category 11 (Use of sold products) have increased or decreased over time
- Any sold products not included in the inventory, with justification for their exclusion
- Other relevant information
Optional reporting:
Historic scope 3 emissions that have previously occurred, reported separately from future scope 3 emissions expected to occur as a result of the
reporting company’s activities in the reporting year
Emissions reported for category 5 (Waste generated in operations), category 11 (Use of sold products), and category 12 (End-of-life treatment of sold products) should not be interpreted to mean that emissions have already occurred, but rather that the reported emissions are expected to occur as a result of activities that occurred in the reporting year. Companies may separately report historic emissions (that have already occurred) from future emissions (that have not yet occurred) in order to avoid misinterpretation by stakeholders.
Optional reporting:
Information on uncertainty
Companies should describe the level of uncertainty of reported data, qualitatively or quantitatively, to ensure transparency and avoid misinterpretation of data. In cases where data uncertainty is high, companies should also describe efforts to address uncertainty. See Appendix B for more information on uncertainty.