The Greenhouse Gas Reporting Program (GHGRP) requires approximately 8,000 US-based facilities to submit their report on greenhouse gas (GHG) emission data (sources, fuel and industrial gas suppliers, and CO2 emissions) and other pertinent information each year. Every October, the reported data from all companies is made available for public viewing.
What are the 3 scopes in reporting GHG emissions?
A good grasp of the language surrounding climate change and business is essential for impacting your organization. Learning about your company's emissions is a critical first step in taking corporate climate action. This will enable you to identify the areas where you can reduce emissions and how to make informed business decisions and investments that will benefit the future. Greenhouse gases are classified as either "direct" or "indirect" emissions, according to international and national carbon accounting standards, and broken down into three groups known as "scopes."
Scope 1 emissions
Scope 1 emissions come from sources that an organization owns/controls directly – for example, from burning fuel in our fleet of vehicles.
Scope 2 emissions
Scope 2 is emissions that a company causes indirectly when the energy it purchases and uses is produced. For example, electricity in warehouses, electric vehicles fleet, refrigerators, etc.
Scope 3 emissions
Scope 3 encompasses emissions that are not produced by the company itself and not the result of activities from assets owned or controlled by them, but by those that it's indirectly responsible for, up and down its value chain. An example is buying, using, and disposing of products from suppliers. Scope 3 emissions include all sources not within the Scope 1 and 2 boundaries.
Is GHG reporting mandatory?
The European Commission identified insufficient GHG information reported by companies. Therefore, it developed the CSRD.
CSRD requires companies to submit sustainability data in a standardized digital format that will make it easier to compare reports.
CSRD applies to:
1. all large EU companies (including EU subsidiaries of non-EU parent companies) that have at least two of the following criteria:
- more than 250 employees
- a turnover of more than €40 million; or
- total assets of €20 million
2. Companies with securities listed on an EU-regulated market, irrespective of whether the issuer is established in the EU or a non-EU country.
3. non-EU companies that meet the following:
- Annual EU-generated revenues in excess of €150 million, and
- having a large or listed EU subsidiary or a significant EU branch (generating €40 million in revenue)