Understand more about how emissions are measured and reported, setting science-based targets for reaching Net Zero through this Emissions Reporting & Target Setting Webinar. (90 minutes)
You can watch back a recent session here, or search our events page for upcoming Net Zero webinars and masterclasses by clicking here.
Part of Tees Valley Net Zero
Tees Valley Net Zero has everything your business needs to develop a Net Zero strategy. Get fully funded consultancy support and up to £2,000 grant funding for your business, alongside easy access to online tools and regular webinars and workshops. If your business is based in Tees Valley (Darlington, Hartlepool, Middlesbrough, Redcar & Cleveland and Stockton-On-Tees), support is fully funded by the UK Government through the UK Shared Prosperity Fund. Find out more here: www.teesvalley-ca.gov.uk/net-zero-support
Tees Valley Net Zero is delivered by Decerna on behalf of the Tees Valley Mayor and Combined Authority.
To speak about a little bit about disna so disera is a consultancy which works to facilitate the transition towards a low carbon economy powered by Clean affordable energy we do this through our four key service areas which are uh Smart Home Technology field trials grid scale Renewables and energy storage
Energy Efficiency Renewables and storage in the environment and a life cycle assessment and Net Zero carbon reduction plans uh we do all of this alongside developing our own solar energy storage and grid stability assets and so what is this workshop and who is it for so this Workshop is meant
To provide a foundation on the fundamentals of basier assessment and Target setting which are the essential first steps for businesses who are both starting their Journey towards net zero and those who have already committed uh and need some guidance so what are the aims for this presentation it’s firstly
To show the importance of Net Zero and what it means for a business discuss the different steps involved in completing the basier assessment and to provide guidance on how to calculate greenhous gas emissions and set reduction targets that are aligned with the ghg protocol and science based targets initiative and
To also highlight development of emission reduction plan which will be further explored in one of our other workshops that we offer so a bit about this presentation so this presentation uh will be for about 60 minutes and if you have any questions please use the Q&A feature and they will be answered in
Between different sections of the workshops uh the slides will be sent over by email after this presentation and I would also like to inform that there will be some overlap with the other workshops that we offer which I will let you know when we come to
Those so moving to the next slide which is uh why is achieving net zero emissions important and how are the greenhouse gas emissions related to it so we all know that the global temperatures are increasing year after year and the greenhouse gas emissions are direct linked to the increase in the
Global temperatures so the UN climate change conference happened in Paris in 2015 in which 196 parties came together and adopted the Paris agreement which is uh legally binding International treaty on climate change and its goal is to limit the temperature increase to 1.5° C above the pre-industrial levels and
Failing to limit our global temperatures to 1.5 5° c will dramatically increase the chances of extreme flooding drought wildfires and food shortages uh global warming is proportional to the greenhouse gas emissions which means that the planet will keep heating for as long as the global emissions exist hence the greenhouse gas emissions must
Decline by at least 43% by 2030 and which in turn will uh help the global emissions reach Net Zero by mid of the century in order to be aligned with the Paris agreement so what does Net Zero mean Net Zero is achieving a balance between greenhouse gas emissions produced and
Removed from the atmosphere to achieve this balance by middle of the century the world must reduce emissions to as close to zero as possible with any remaining emissions absorbed through natural sinks carbon sinks like forests and new technologies like carbon capture and if we are successful in achieving
The global uh emissions of greenhouse achieving this then the global emissions of greenhouse gases will be Net Zero a business is said to have achieved Net Zero if it has reduced its scope one scope two and scope three emissions following science-based Pathways with any residual greenhouse gas emissions being being fully neutralized by
Permanent or like for like removals exclusively claimed by that organization so uh a business might start their Journey towards net zero for the following reasons like cost reduction increased social responsibility which in turn increases the reputation of the business improved operational efficiency staying ahead of regulations and employee retention and
Attraction so these are the key drivers for a business to start their Net Zero journey and many of you might ask where do we as a business start our Net Zero Journey the journey actually starts from the thought a desire to do something about it and that’s why you’re all here
So with that positive note we can now move on to the to discuss the journey and we will help you to reach your uh uh help you in your journey until you reach Net Zero so the infographic shown gives an idea of what a business’s journey to
Net Zero looks like the first two steps which are Bas year assessment and commitment and Target setting can be interchanged in their order so some businesses might prefer to complete their basier assessment first and then commit to Net Zero and set their targets and some businesses might prefer to
Subit to Net Zero and set their targets before their basa assessment so it totally depends on each business to choose what they would like to go about and these two steps are Then followed by creating an emission reduction plan and the rest of the other steps so the journey as a
Whole is discussed in more detail in our Net Zero Journey for businesses Workshop here we will mainly focus on Bas year assessment commitment and Target in and briefly on creating an emission reduction plan as far as emission emissions calculation reporting and Target setting are considered there are two main bodies
That have set standards and Frameworks that are widely used across the globe so they are the greenhouse gas protocol commonly referred to as the ghg protocol and the science based targets initiative referred to as the spti so the greenhouse gas protocol provides comprehensive guidelines and tools for organizations to measure report and
Manage their greenhouse gas emissions it offers a consistent and transparent framework for tracking emissions from various sources including direct emissions from owned or controlled sources indirect emissions from purchased energy and other indirect emissions from the value chain and the science Bas targets initiative which is s spti helps companies set ambitious and
Science-based greenhouse gas emission reduction Targets in line with the goals of the Paris agreement and with the amount of carbon budget left so science-based targets show companies how much and how quickly they need to reduce their greenhouse gas emissions to prevent the worst effects of climate
Change but now in this Workshop we will be exploring the initial steps a bit more in detail and for this we will be traveling along with the company called Magnus carbonis shortly called MC manufacturing so Magnus carbonis manufacturing is a midsized Manufacturing Company focused on producing consumer goods they are
Committed to reducing their environmental impact by understanding their emissions and begin their Journey towards net zero so let’s say they have three different operating units alpha beta and gamma to handle the different stages of production and distribution so Alpha consists of a manufacturing unit warehouse and an office beta consists of
A packaging unit and a warehouse and GMA has a warehouse and handles the distribution of the finished goods so throughout this webinar we’ll see how MC manufacturing are accounting for their emissions from the three operations and setting their targets so let’s in now discuss in detail the initial steps
Involved in the business’s journey to Net Zero and how MC manufacturing goes about each step so we will know now move on to the first step in our journey which is the base year assessment so what is basee assessment and why is it important so an emissions
Baseline or a Basia assessment refers to the greenhouse gas emissions your company emitted before you started taking steps to reduce your emissions this this will be your starting point on your way to reaching Net Zero and by do doing this you can better understand which areas of your business are
Producing the most emissions and therefore which areas you can Target in order to make the best impact on your emissions and having your Basia emission uh Basia assessment completed provides a great reference point for you to measure your reductions over time allowing you to understand the impact you are making
So based on the greenhouse gas protocols corporate standard Bas year uh assessment involves a list of steps setting boundaries is the initial step in a base year assessment boundaries are imaginary lines that Encompass the emissions to include in a company’s ghg inventory and in the basy assessment we will be
Discussing two main types of inventory boundaries one is organizational boundary and the next one is is operational boundary so once the boundaries are defined the next step involves choosing a base year followed by creating base year inventory and then calculating base year emissions so the first step which is setting organizational boundaries so
This determines which company operations to include and what fraction of emissions from those operations should be included so importance of uh organiz a boundaries comes into picture for complex structures for example uh many companies consist of subsidiaries joint ventures and franchises so setting organizational boundaries uh will establish a consistent method for
Calculating emissions from all the components of an organization the more complex the company structure is the more important it is to set organizational boundaries so the ghg protocol uh recommend using consolidation approach which is combining emissions data from separate operations So within the consolidation approach there are two
Types which is equity share approach and the control approach so under equity share approach emissions are calculated based on equity share a company holds in each operation regardless of who controls the operation for example if a company owns 50% share in two of the operations and if they choose to report emissions with
Using the equity share approach then the overall emissions for the operations will first be calculated and then 50% of the emissions of the operations will be taken into account to consolidate for the company’s total emissions so under control approach a company can choose to calculate their emissions based on financial control or
Operational control so Financial control is the ability to direct an operation’s fin ccial and operating policies to gain economic benefits from its activities and operational control is the authority to introduce and Implement operating policies so if a company chooses to calculate its emissions based on operational or financial control 100% of
The emissions from operations under company’s Financial or operational control are considered for consolidation and in special cases some companies May hold a joint Financial control in those cases emissions will be considered based on the percentage of financial control that company holds in its operations so MC manufacturing has three
Operations alpha beta and gamma the company has equity share of 100% on Alpha and 100% on beta and 50% on gamma and MC manufacturing has no Financial control over Alpha and beta but has Financial control on gamma and MC manufacturing has full operational control on Alpha but none on beta and
Gamma so if you consider alpha beta and gamma have each calculated their emissions and if MC manufacturing uses the equity share approach it will account for 100% of emissions from alpha 100% of emissions from beta and and 50% from Gamma or if MC man facturing uses Financial control approach it will
Account for zero emissions from Alpha and beta and 100% from GMA and if MC manufacturing uh uses the operational control approach then it will account for 100% of emissions from alpha but none from beta or gamma so uh most commonly businesses go with the operational control approach so let’s
Assume the same in this case so let’s assume that MC Manufacturing have decided to go with the operational control approach hence they will account for 100% of emissions from Alpha and none from beta and gamma so once the organizational boundaries are defined and we now know which parts of the corporate structure
Should be included in the inventory then the next step is setting the operational boundaries so operational boundaries determine which of those specific emission sources associated with those operations are to be included operational boundaries also determine how the emission sources must be categorized in order to define the operational boundaries companies must
First identify the emissions associated with their operations the company must then classify their emissions as direct or indirect and the final step under this would be to categorize the scope of emissions so according to the greenhouse gas protocol emission sources are classified into Scopes 1 2 and three so
Let’s see what each scope includes so scope one which is also called direct emissions are emissions from activities and sources owned and controlled by the business uh everything falls under scope one so scope one emissions are what you burn so that will be your gas or oil Bing burning boilers non- electric
Vehicles that are owned by the company any leaks from refrigeration and air conditioning units and process emissions from Factory fumes and chemicals and scope two so these are emissions associated with consumption of purchased electricity heat and steam these emissions result from your use of energy but are emitted somewhere else which
Isn’t under your direct control so most commonly you’ll find anme scope to emissions are solely from electricity unless you happen to be on a district heat Network because scope to emissions are primarily electricity this means that as the UK grid decarbonized the impact of scope to emissions will also reduce for
Businesses and with regards to scope three so scope three is for emissions which an organization is indirectly responsible for so this is commonly the largest part of an organization’s carbon footprint and examples of scope 3 include business travel employee commuting and Emissions related to production of purchase goods and
Services as well as Investments and BTE disposal so scope 3 is a very broad area and there are a lot of different uh categories involved in this which can contribute to a large proportion of a company’s greenhouse gas emissions so um with regards to operational boundaries MC manufacturing have uh identified their emission
Sources so just a small exercise for you all so can you help MC manufacturing categorize the emissions into different Scopes so you will receive the questions in the polls um so which scope does the gas used in a boiler on site fall under if you can give your choice of
SO gas Ed in a boiler on site falls under scope one uh which under which scope does purchase goods and services fall under so purchased goods and services falls under scope three so the next one refrigerant leaks so under which scope would we calculate the refrigerant leaks so the refrigerant leaks would
Come under scope one and the next one is business travel so business travel falls under indirect uh emissions and that would come under scope three and the last one electric vehicles owned by MC manufacturing so which one would they fall under so emissions from the company owned electric vehicles would fall under
Scope to because they uh they consume electricity and not any fuel so all the electric vehicles would come under scope two so thank you for your responses I think that’s that’s missed in the table so which uh scope would waste generated in operations fall under I apologize the the waste generated is
Not there in this table but the waste generated would fall under scope three as well thank you for your responses so moving on to the next slide so um setting operational boundaries is all about identifying ing emission sources related uh to the included operations and categorizing them into different Scopes as shown
Here so moving on to the next step within the Bas assessment so once the organizational and operational boundaries are identified the next step is to choose a base year so base year is the period in history against which a businesses emissions are tracked over time once the emission ources are
Identified and categorized the activity data must be collected for the identified emission sources and this may include energy consumption fuel usage employee commute miles business miles spend data on purchase Goods Etc and based on the data collected businesses can choose the earliest relevant point in time for which they have reliable
Data and Bas year can be given any uh can be any given period but for business is it is highly recommended to either have the calendar year or their financial year as the base year period And once the Bas year period is fixed to either calendar year or financial year
Businesses must use the same period for rest of their reporting years to be consistent in their reporting so again example with MC manufacturing so MC manufacturing have collected data on their emission sources they find that they have only scope two data for 2018 and uh for scope one and scope two
Emissions data for 2019 but there’s no sufficient scope 3 data and from 2020 onwards they have data for all three Scopes so according to you which year would you uh would you think MC manufacturing should choose as their base year so the option one is to choose 2020
As their base year to include all three Scopes and option two is to choose 2019 as their base year for scope one and two and choose 2020 as the base year for scope three and option three is choosing either option one or two so uh the right answer is they can
Choose either option one or two so it’s it’s it’s okay to choose I mean it’s it’s okay to have the same base here for all three Scopes or a different base here for scope 3 alone so they can choose any of the two options and in this case so let’s assume that MC
Manufacturing have chosen option one uh which is 2020 to be their base year for all three Scopes so moving on to the next step within the Bas year assessment is the is creating the base year inventory so once the base year is chosen the next step in
The basee assessment is to create the baseer inventory and as MC manufacturing have chosen the operational control approach they will only account for emissions from Alpha and not from beta or gamma as they do not have any operational control on beta and gamma and MC manufacturing will now collect
Activity data for different emission sources for the chosen base year 2020 and then calculate their base emissions for their unit Alpha so to be able to complete a basier assessment businesses must first collect data which which will help them calculate their greenhouse gas emissions and
Uh so uh with regards to Alpha so Alpha consists of a manufacturing unit a warehouse and an office so they mainly use electricity for their manufacturing processes and for heating their office and they have company owned delivery and passenger vehicles and EV Vans for delivery and also they have a record of
Data for purchase Goods Services employee commute business travel and also waste generated in operations so this will be alpas basier inventory and uh until this do we have any questions from any of you please you can use the QA Q&A feature to um ask your questions if you’ve got
Any and you can also use the chat now so if you can use chat for your questions okay oh um if you’ve not got any uh I can’t we we’ve got a question being typed if you want to just give us a few more seconds yeah there you
Go so how to decide c not decide the cost for large range or data which has to go so it will the cost with regards to producing an emission report will totally depend on where the SM is so for example for anme within the T Valley
Region we have the net z t value project so within that I think uh producing uh an emission report is free of cost so uh we we we are now in in in the process of launching our own tool which will help businesses uh calculate their emissions
So I think for businesses within te Valley region the emissions producing an emission report is free of cost any other questions so if you’ve not got any questions we’ll move on to the next section of the workshop so the next section in the workshop is B in the Bas assessment is
The emissions calculation so scope one two and three emissions are calculated using activity data and Emissions Factor as follows so so activity data refers to activity data refers to the amount of you will purchased miles traveled in company Vehicles annual electricity consumption cost of purchase goods and
Services Etc and this activity data is Multiplied with relevant emission conversion factors and emission factor or emission conversion factors are values used to convert the activity data such as electricity consumption to greenhouse gas emissions so emission conversion factors represent the average emissions in intensity associated with a
Specific activity of Fu will type the emission conversion factors are measured in carbon dioxide equivalent which measures the warming potential of different greenhouse gases by expressing their impact as how much carbon dioxide would produce the same warming effect over a specific period uh UK government publishes updated values each year to
Ensure the accuracy of emissions calculation and to allow values reflect changes to emission sources such as the decarbonization of grid so this is a link for the latest database that the government produced for these emission conversion factors for scope 1 and two and some categories of scope three we use the UK government’s
Emission conversion factors to calculate the emissions and for other scope three categories we will use different set of emission factors which will be discussed later in this Workshop so just just to show how the emission factors can be used to calculate the emissions the emission conversion factors are relatively easy
To use so just a small example to show how we are able to use them so for example just consider MC manufacturing have determine that they use 32456 kilowatt hours of electricity annually and they would like to calculate the greenhous gas emissions produced from this to help with the scope to emissions
Calculation so the first step would be to open the UK government’s emission conversion factors database choose the Grid electricity and then locate the total carbon dioxide emissions equivalent per unit so our conversion factor in this example will be 0.1 19338 kg of carbon dioxide per unit which which when is Multiplied with the
Activity data will give us a total emissions for the Grid electricity and that comes up to 6,276 point3 kilg of carbon dioxide equivalent so this when convert to tons it gives us a result of 6.2 tons of carbon dioxide equivalent annually for uh uh for the grid consumption Grid electricity
Consumption so with regards to calculation of scope one so we we will now see how uh MC manufacturing calculate their scope 4.2 and3 emissions for their unit Alpha so unit Alpha uses gas for space heating of their warehouse uh they were able to obtain one year’s
Worth of gas bills which sums up to 205,000 324.50 sheet so the the annual consumption figure is Multiplied with the emission factor to obtain the total emissions which is 37,7 53.0 5 kg of carbon dioxide equivalent so similarly uh Alpha also uses air to a heat pumps to heat their
Office space so the air to a heat pump contains 12 kg of hfc 23 refrigerant and has an annual leakage of 5% so that results in a leakage of 0.6 kg of hfc 23 per year so this is again multiplied with the respective emission factor for hfc 23 that’s obtained from the UK
Government’s conversion factor sheet and that sums up to 8,880 kg of carbon dioxide equivalent so similarly the total miles traveled by the company owned diesel Vans and petrol cars are obtained from their annual mileage reports and multiplied with the respective emission factors to obtain the total emissions figure for the
Company owned diesel Vans and petrol cars so moving on to scope to emissions calculation so scope to emissions as we discussed earlier are emissions associated with consumption of purchased electricity heat and steam so emissions from purchased electricity can be calculated using two methods one is the location based method and the
Other one is the market based method so location based method reflects the average emissions intensity of grids on which the energy consumption occurs and market-based Emissions reflect the emissions from electricity that companies have purposefully chosen so for example to calculate the emissions from purchased electricity in the UK
Location based method will use the a average grid emission factors published by the UK government and the market-based method will use the fuel emission factors provided by the fuel suppliers so if a company operates in a country that provides renewable products then it must calculate scope to
Emissions in both approaches even if the business has not purchased any renewable project products so if if the if the business does not have any renewable uh products and it would would not have any supplier specific emission factors then the residual mix emission factor or the grid average emission Factor should be
Used to calculate under the market based approach and the uh they have to calculate both using location based and market-based approach but the the company can choose which among the two must be included to the emissions total so a company can choose to add the location based emissions or the market
Based emissions into their emissions total based on the total quantity of emissions and if they’ve purchased any renewable products it would be beneficial to use the market-based uh emissions into to the total and considering MC manufacturing so Alpha unit mainly uses electricity for their manufacturing processes and
Heating for the office using air toare heat pumps so they have uh calculated that their annual electricity consumption is 59 5,676 point2 Kow hours of electricity so to calculate the location based emissions this annual consumption figure is Multiplied with the grid average emission factors for 2020 and uh MC
Manufacturing are not on Renew on any renewable energy contract so the the fu will mix factor from their supplier has been used to calculate their Market based emissions so if you see here the location based emissions are more than the market based emissions so MC manufacturing can now choose which among
The two must be included to their emissions total and here we’ll consider that MC manufacturing has chosen their Market based emissions to be to added to their total and uh MC manufacturing uh also have two electric vans so the total miles travel by the two electric delivery Vans are
Multiplied with the relevant uh emission Factor again obtained from the UK government’s emission conversion factors database and its total emissions are calculated as 2.7 99.78% slides here but unlike scope one and scope two a business uh will have to report emissions only for scope three categories that are applicable to them
So for example if a company will not report under category 8 which is Upstream leased assets if it does not operate on a leased building so a company will have to choose the scope three categories that is applicable to their own business operations and then report uh uh the emissions based on the
Categories so we’ll now briefly discuss on the calculation of scope 3 emissions so calculation calculating scope 3 emissions can become difficult because it involves data from various other businesses within the value chain so to ease the calculations involved within the scope 3 emissions the ghg protocol recommends various calculation
Methods based on the following criteria So based on the relative size of the emissions from the scope 3 activity the company’s business goals the data that’s available with the business the quality of data that’s available the cost and effort required to apply each method and any other criteria identified by the company so
Based on these various criteria a company can choose the calculation methodology for each of those scope three categories so each each category under scope 3 has specific calculation methods uh some of the calculation methods that are common across uh some categories are listed here so some C some methods like
The supplier specific method or average data method spin based method distance based method asset specific method Etc some of the common methods within all three scope three categories and different calculation methods recommended under each category are detailed in the greenhouse gas protocols scope 3 calculation guidance and the
Link is provided here if you want to learn further on the various calculation methods under different scope three categories so just for an example so if a company purchases a manufacturing equipment it will account for the emissions from the equipment under category 2 capital goods so this
Calculation can be done using any of the four methods that are suggested in the greenhouse gas protocol such such as supplier specific method hybrid or allocation method average data method or spend based method so among these four methods the most accurate method to be used is the supplier specific method
Where the supplier of that particular equipment will provide the Cradle to gate emissions involved with that particular equipment and the least uh accurate method to be used is a spend based method where the business can use the total amount spent on that particular equipment multiplied with the spend
Based emission factors that is common for any manufacturing equipment the spend based emission factors again they are not the most accurate ones because they involve a whole set of uh manufacturing or it equipment Etc they are not for any specific equipment as such so they can be the least uh
Accurate method to be used and um but but spend based using spend based method can be a good starting point for any company to know where most of the emissions come from so if you’ve not got any of the supplier specific or any average data then spend based method is
Definitely a very good starting point for you to know where most of your scope three emissions are from uh so in with regards to MC manufacturing we’ll now see how they calculate their scope three emissions so MC Manufacturing have purchased a large quantity of raw materials uh the supplier has calculated
Their own on emissions and have allocated emissions for their raw materials so each item purchased has an emissions of 0.112 kg of carbon dioxide equivalent which sums to 5.4 kg of carbon dioxide equivalent for 4,500 items of raw material that’s purchased and the other significant purchases include it
Services and paper and paper products which also include the packaging material but then they do not have any specific emission factors for the purchase goods and services so they use their spend based method to calculate the emissions using the spend data so they they’ve spent around £99,000 on it
Equipment so this amount spent is Multiplied with 01314 which is the spend based emission factor for it equipment so that sums up to 1,1 182.5 kg of carbon dioxide equivalent for any it equipment that’s purchased by MC manufacturing similarly they’ve um purchased paper and paper products for
13,500 so this amount is Multiplied with 0.707 which is again a spend based emission factor and that results with 95445 kg of carbon dioxide equivalent for their paper and paper products that they’ve purchased so and moving on to next one so waste generated in operations include uh water supplied and disposed and also
Waste disposed so MC manufacturing have the data for the water supplied into their premises so quantity of water disposed is mostly assumed to be same as the water supplied and they also have the data on quantity of specific types of waste generated and the dis osal method used for the specific bed types
So the spef uh the uh the specific uh emission factors relevant to the waste category and Disposal method are obtained from the UK government’s conversion factor sheet and is Multiplied with a quantity in order to obtain the emissions involved with the waste generated by MC manufacturing and with regards to
Employee commute and business travel so they also have data on total travel by the employees using different Transportation methods for their daily commute so that’s uh used to calculate their total annual emissions uh from their employee commuting and if employees are working from home in a particular business so the emissions
From home working must also be included under employee commute as well the UK government’s conversion factor sheet has an emission factor for home working as well included so that emission Factor can be used to obtain the homeor emissions and similarly MC manufacturing have also used the business travel data
To calculate the emissions from business travel of the employees using the emission factors from the UK government’s conversion factor sheet so using all the above discussed methods for scope one and one 2 and three so MC manufacturing have calculated their total emissions across Alpha as shown in the in the table so
They have a total emissions of 189 .93 tons of carbon dioxide equivalent emitted for the year 2020 in their Alpha unit so since MC manufacturing is going with the operational control approach this will be the total emissions they accounting for in their base year 2020 so I think the emissions
Calculation part is a bit uh complicated but if you’ve got any questions I should be able to answer them for you now no I think you can carry on okay so if you’ve not got any questions so the next step on our journey towards net zero is commitment and Target setting
So as discussed earlier the science based targets initiative also called sbti helps companies set ambitious uh and science-based greenhouse gas emission reduction Targets in line with the goals of the Paris agreement uh and with the car amount of carbon budget left so science-based Target actually shows companies how much and how quickly
They need to reduce your greenhouse gas emissions to prevent the worst effects of climate change and sbti illustrates how much companies need to reduce their emissions by using a linear annual emissions reduction and this involves consistent gradual reduction in emissions over a specific period of time and it helps to
Make the tracking of emissions and targets easier and the benefits for a business is that it provides a predictable pathway which is valuable for long-term planning and budgeting so sbti recommends two kinds of targets the first one is the near-term target which is within 5 to 10 years and if
Consistent with the goal of being Net Zero by 2050 an annual percentage reduction can be used for example every year the for example every year the company will need to reduce its emissions by say 18% to be able to reach their near-term and long-term targets so that is a near-term target maret and
Then next is the long-term targets so long-term targets are set for more than 10 years from the base year so a Net Zero by 2050 Target will be considered a long-term Target and they must have a greenhouse gas emission reduction greater than 90% And the remaining percentage of emissions are to be
Neutralized using permanent uh carbon removal and storage methods so with regards to to MC manufacturing so MC manufacturing aimed to be Net Zero by 2050 so in that case a linear reduction over 30 years is is assumed for Target setting from 2020 so so if they consider 2025 to to be their
Near-term target so that that then says 6.33 tons of carbon dioxide equivalent multiplied by five so that’s 31.659760 and uh it that results in a 16.66% of reductions per year so MC manufacturing’s near-term Target will therefore be uh 16.66% reduction in emissions compared to the base year
Which is 2020 and if they reduce 16.66% each year they will then be able to achieve Net Zero by 2050 any questions with regards to Target setting yes we’ve got one coming through yeah so relating to previous section what level of emissions calculation in terms of Scopes are required by the government
For the carbon reporting so with the level of emissions calculation it totally depends on the size of the company so for large quoted or unquoted companies they are required to produce an secr report every year so the secr report requires a business to report on their scope one scope two and their uh
Uh business employee commute from scope 3 as well uh there’s another requirement from the government which is the carbon reduction plan many of the procurement uh processes involve submitting carbon reduction plan so with regards to carbon reduction plans a business is supposed to report on scope one scope two and
Five categories of scope three so the five categories of scope 3 would include uh Upstream transportation and distribution employee commute business travel waste generated in operations and downstream transportation and distribution so a company will have to report on all these categories if they require a carbon reduction plan apart
From that the government itself does not have any regulations on what level of reporting is required but they recommend every business to rec to report on their scope one and any applicable scope three categories in order to be able to achieve at 0 by 2050 any other questions if you’ve not got any
Questions so moving on to the next section so the next step once the Bas assessment is completed and the targets are set is the development of an emission reduction plan so an uh emission reduction plan could be anything that helps the business to reduce their emissions and
Reach the Net Zero Target so it could be anything like conducting energy audits installation plans for energy efficient equipment plans for conducting staff and supplier engagement events Etc so with regards to MC manufact facturing so they have planned to conduct an energy audit to see where most of your scope one and
Scope two emissions are from and also conduct Fe feasibility studies for installing solar panels on their roof so conducting an energy off it would definitely help a business see where most of their energy consumption is and then help them reduce most of their scope one and scope two emission so this
Is conducting an energy audit is part of an emission reduction plan also B businesses uh also MC manufacturing uh plans on having Employee Engagement activities to change their energy use Behavior so this again is part of an energy reduction plan where a business can engage with their own uh employees
In order to reduce their energy consumption within their business premises and the next plan for MC manufacturing is to engage with their packaging material suppliers to purchase low carbon packaging boxes to pack their finished goods so again supplier engagement is another uh uh is is another uh factor that can be added to
The energy reduction plan which would help most of the businesses reduce their uh emissions from purchase goods and services which would reduce your scope three emissions as well so anything that comes under reduction of the emissions would would fall under the emission reduction plan and uh uh so I think we’ve covered
Most of the sections that we are uh aiming for today but as we move towards the end of the workshop I would also like to briefly discuss on recalculation of Base year so companies may have uh questions on uh when when do they have to calculate or when do they have to
Recalculate their base Year and have doubts on when a base year recalculation is necessary so just a few uh thoughts on when we’ll have to calculate a Rec uh basier so according to the greenhouse gas protocol recalculation of basier is necessary when there are significant changes in the structure of the
Organization or if there are significant changes in the calculation methodologies where you try to use improved emission factors or improved uh quality of the activity data so that’s when you will have to recalculate your Bas emissions and also if you discover any significant errors in your BAS year emissions that
You’ve calculated already so all these things will um will force you to recalculate your base year and uh it will also depend on the significance threshold so all companies must Define a recalculation policy where a significance threshold is defined so significance threshold is a Criterion that’s used to determine whether a
Change is significant enough to warrant recalculation and there is there there is no specific if significant threshold value but mostly 5% is used so if if if there is a a significant change of 5% from the Bas emissions with with any changes that’s happening within the company then definitely a recalculation
Has to be done uh and structural changes as mentioned earlier structural changes refer to transfer of ownership or control of emitting activities from one company to another so these include mergers Acquisitions divestments Outsourcing or insourcing of emitting activities so these are the about changes that trigger recalculation if
They are equal to the significance threshold and some changes will not require recalculations so according to the greenhouse gas protocol changes involving facilities that did not exist in the baser Outsourcing or insourcing of activities that were previously reported under a different scope organic growth or decline so organic growth or
Decline refers to increases or decreases in production output changes in product mix and closures and openings of operating units that are owned or controlled by the company so for any kind of organic growth a recalculation is not necessary even if there is a significant increase in emissions so these are the different uh
Factors that do not require recalculation as well uh so any questions on emission reduction plan or recalculation of basier emissions that doesn’t look like it okay so if you’ve not got any questions so that’s the end of the workshop today and uh thank you so much for