Scope 1 and Scope 2 Inventory Guidance

Introduction

Scope 1 emissions are direct greenhouse gas (GHG) emissions that occur from sources that are controlled or owned by an organisation (for example, emissions related with fuel burning in boilers, furnaces, and cars). Scope 2 emissions are indirect greenhouse gas (GHG) emissions that arise from sources that are not controlled or owned by an organisation. Emissions of greenhouse gases that fall under Scope 2 are those that are caused by the indirect use of utilities like electricity, steam, heat, or cooling. Even though scope 2 emissions occur physically at the facility where they are generated, they are nevertheless accounted for in an organization’s GHG inventory because they are the outcome of the organization’s use of energy. This is the case despite the fact that scope 2 emissions are considered to be on-site emissions.

The following set of EPA guideline documents detail the methodologies that can be utilised to calculate and report emissions from the sources listed above.

Direct Emissions from Stationary Combustion – This document is used to determine and quantify the direct greenhouse gas emissions from stationary (non-transport) combustion of fossil fuels at a facility (for example, boilers, turbines, and process heat). These emissions come from non-transportation related combustion processes.

Direct Emissions from Mobile Combustion Sources – Utilising this document, one can determine and estimate the direct greenhouse gas emissions that are caused by the combustion of fuel in mobile sources that are owned or operated.

Indirect Emissions from Purchased Electricity – This document is intended to identify and estimate indirect greenhouse gas emissions that are the result of the purchase of electricity, steam, heat, or cooling. Those emissions can be direct or indirect.

Direct Fugitive Emissions from Refrigeration, Air Conditioning, Fire Suppression, and Industrial Gases – This document is used to identify and estimate direct emissions of GHGs from refrigeration and air conditioning systems, fire suppression systems, and the acquisition and release of industrial gases. Also included in this category is the estimation of direct emissions from fire suppression systems.

Inventory Management Plan Guidance

The procedure that an organisation follows in order to compile a comprehensive, high-quality greenhouse gas (GHG) inventory is outlined in what’s called an Inventory Management Plan (IMP). An IMP is used by organisations to establish a procedure for collecting, calculating, and maintaining GHG data. This process is called an inventory management programme (IMP).

The seven major sections of an IMP are:

1. Organisation Information : organisation name, address, and inventory contact information.
2. Boundary Conditions : organisational and operational boundary descriptions.
3. Emissions Quantification : quantification methodologies and emission factors.
4. Data Management : data sources, collection process, and quality assurance.
5. Base Year : base year adjustments for structural and methodology changes.
6. Management Tools : roles and responsibilities, training, and file maintenance.
7. Auditing & Verification : auditing, management review, and corrective action.

Organisations can choose to have a single IMP document that addresses all of the elements that go into establishing their corporate inventory, or they can have an equivalent collection of documents that contain procedures and other pertinent information. Both options are viable for these organisations, and the decision is ultimately up to the organization’s leadership.

Developing an Inventory Management Plan 

A description of the administrative and technical duties as well as the arrangements that were made for the purpose of collecting, calculating, and maintaining GHG emission data should be included in an Inventory Management Plan (IMP).

The first thing that needs to be done in order to create an IMP is to think about how a GHG inventory will help the organisation achieve its objectives. Companies that process dairy products commonly refer to the following greenhouse gas inventory goals : 

• Identify GHG risks and reduction opportunities in the value chain. 
• Identify cost effective reduction opportunities.
• Participate in voluntary, mandatory and/or customer reporting programs.
•  Acquire eco-labeling or certification.
• Set GHG emission reduction targets, measure progress toward targets and report outcomes to stakeholders.

Implementing an Inventory Management Plan 

Once the company objectives are established and the IMP is outlined, the reporting company can take steps to implement the IMP.

Steps for Implementing an Inventory Management Plan –

• Establish an Inventory Quality Team
• Outline IMP Procedures
• Perform Quality Checks
• Perform Source-Category Specific Quality Checks
• Establish Reporting, Documentation and Archiving Procedures

How can Global PCCS support ?

 

Global PCCS helps organisations in determining their emission goals and assists in the collection of scope 1, scope 2, and scope 3 data along the supply chain, as well as in the calculation of those goals.

For more information on the service please book a free consultation by filling the form or writing to us at  pooja.h@globalpccs.com