Summary: This is an extract of Chapter 3. This chapter provides a summary of the steps involved in scope 3 accounting and reporting, as well as a list of the requirements that must be followed for a scope 3 inventory to be in conformance with this standard.
3.3 Summary of Requirements
This standard presents accounting and reporting requirements to help companies prepare a GHG inventory that represents a true and fair account of their scope 3 emissions. Standardized approaches and principles are designed to increase the consistency and transparency of scope 3 inventories.
Table 3.1 provides a list of all the requirements included in this standard. Each requirement is further explained in the following chapters. Requirements are also presented in a box at the beginning of each chapter that contains requirements (chapters 4, 6, 9, and 11).
| Chapter | Requirements |
|---|---|
| Accounting and Reporting Principles | |
| Chapter 4 | - GHG accounting and reporting of a scope 3 inventory shall be based on the following principles: relevance, completeness, consistency, transparency, and accuracy. |
| **Setting the Scope 3 Boundary | |
| Chapter 6** |
- Companies shall account for all scope 3 emissions and disclose and justify any exclusions.
|
Companies shall account for emissions from each scope 3 category according to the minimum boundaries listed in table 5.4.
- Companies shall account for scope 3 emissions of CO₂, CH₄, N₂O, HFCs, PFCs, and SF₆, if they are emitted in the value chain. <br>
- Biogenic CO₂ emissions that occur in the value chain shall not be included in the scopes, but shall be included and separately reported in the public report.
Setting a GHG Target and Tracking Emissions over Time Chapter 9
When companies choose to track performance or set a reduction target, companies shall: <br>
- Choose a scope 3 base year and specify their reasons for choosing that particular year; <br>
- Develop a base year emissions recalculation policy that articulates the basis for any recalculations; and <br>
- Recalculate base year emissions when significant changes in the company structure or inventory methodology occur.
Reporting Chapter 11
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 GHG emissions reported in metric tons of CO₂ 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 CO₂ emissions reported separately
- For each scope 3 category, a description of the types and sources of data, including activity data, emission factors and global warming potential (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.