GRI 305 Emissions

The GRIaddresses emissions into air, which are the discharge of substances from a source into the atmosphere. Types of emissions include greenhouse gas (GHG), ozone-depleting substances (ODS), and nitrogen oxides (NOX) and sulfur oxides (SOX), among other significant air emissions.

The Standard covers the following GHGs:

Carbon dioxide (CO2)

Methane (CH4)

Nitrous oxide (N2O)

Hydrofluorocarbons (HFCs)

Perfluorocarbons (PFCs)

Sulphur hexafluoride (SF6)

Nitrogen trifluoride (NF3)

Some GHGs, including methane, are also air pollutants that have significant adverse impacts on ecosystems, air quality, agriculture, and human and animal health. As a result, different national and international regulations and incentive systems, such as emissions trading, aim to control the volume and reward the reduction of GHG emissions.

The reporting requirements for GHG emissions in the standard are based on the requirements of the ‘GHG Protocol Corporate Accounting and Reporting Standard’ and the ‘GHG Protocol Corporate Value Chain (Scope 3), developed by the World Resources Institute (WRI) and the World Business Council on Sustainable Development (WBCSD).

The GHG Protocol has established a classification of GHG emissions called ‘Scope’: Scope 1, Scope 2 and Scope 3. The GHG emissions standard published by the International Organization for Standardization (ISO), ‘ISO 14064’, represents these classifications of Scope with the following terms:

Direct GHG emissions = Scope I

Energy indirect GHG emissions = Scope 2

Other indirect GHG emissions = Scope 3

Direct (Scope 1) GHG emissions can come from the following sources owned or controlled by an organization:

Generation of electricity, heating, cooling and steam: these emissions result from combustion of fuels in stationary sources, such as boilers, furnaces, and turbines – and from other combustion processes such as flaring;

Physical or chemical processing: most of these emissions result from the manufacturing or processing of chemicals and materials, such as cement, steel, aluminum, ammonia, and waste processing;

Transportation of materials, products, waste, workers, and passengers: these emissions result from the combustion of fuels in mobile combustion sources owned or controlled by the organization, such as trucks, trains, ships, airplanes, buses, and cars;

Fugitive emissions: these are emissions that are not physically controlled but result from intentional or unintentional releases of GHGs. These can include equipment leaks from joints, seals, packing, and gaskets; methane emissions (e.g., from coal mines) and venting; HFC emissions from refrigeration and air conditioning equipment; and methane leakages (e.g., from gas transport).

Energy indirect (Scope 2) GHG emissions include, but are not limited to, the CO2 emissions from the generation of purchased or acquired electricity, heating, cooling, and steam consumed by an organization – disclosed as specified in Disclosure 302-1 of GRI 302: Energy. For many organizations, the energy indirect (Scope 2) GHG emissions that result from the generation of purchased electricity can be much greater than their direct (Scope 1) GHG emissions.

The ‘GHG Protocol Scope 2 Guidance’ requires organizations to provide two distinct Scope 2 values: a location-based and a market-based value. A location-based method reflects the average GHG emissions intensity of grids on which energy consumption occurs, using mostly grid-average emission factor data. A market-based method reflects emissions from electricity that an organization has purposefully chosen (or its lack of choice). It derives emission factors from contractual instruments, which include any type of contract between two parties for the sale and purchase of energy bundled with attributes about the energy generation, or for unbundled attribute claims.

The market-based method calculation also includes the use of a residual mix, if the organization does not have specified emissions-intensity from its contractual instruments. This helps prevent double counting between consumers’ market-based method figures. If a residual mix is unavailable, the organization can disclose this and use grid-average emission factors as a proxy (which can mean that the location-based and market-based are the same number until information on the residual mix is available).

Other indirect (Scope 3) GHG emissions are a consequence of an organization’s activities, but occur from sources not owned or controlled by the organization. Other indirect (Scope 3) GHG emissions include both upstream and downstream emissions. Some examples of Scope 3 activities include extracting and producing purchased materials; transporting purchased fuels in vehicles not owned or controlled by the organization; and the end use of products and services.

Other indirect emissions can also come from the decomposing of the organization’s waste. Process-related emissions during the manufacture of purchased goods and fugitive emissions in facilities not owned by the organization can also produce indirect emissions.

The reporting organization can identify other indirect (Scope 3) GHG emissions by assessing which of its activities’ emissions:

-                      contribute significantly to the organization’s total anticipated other indirect (Scope 3) GHG emissions;
-                      offer potential for reductions the organization can undertake or influence;
-                      contribute to climate change-related risks, such as financial, regulatory, supply chain, product and customer, litigation, and reputational risks;
-                      are deemed material by stakeholders, such as customers, suppliers, investors, or civil society;
-                      result from outsourced activities previously performed in-house, or that are typically performed in-house by other organizations in the same sector;
-                      have been identified as significant for the organization’s sector;
-                      meet any additional criteria for determining relevance, developed by the organization or by organizations in its sector.