By: Tiffany Richmond
The Greenhouse Gas Protocol launched two new standards that aim to give companies a comprehensive view of the life cycle impacts of their products and value chains. Developed by the World Resources Institute and World Business Council for Sustainable Development, the new standards, which is supplement to the existing Corporate Accounting and Reporting Standard, will provide a standardized method to inventory the emissions associated with individual products across their full life cycles and of corporate value chains, taking into account impacts both upstream and downstream of the company’s operations.
At the core of the Greenhouse Gas Protocol’s comprehensive accounting and reporting framework these standards will facilitate identifying greenhouse gas reduction opportunities, setting reduction targets, and tracking performance in value chains.
The New Standards:
Corporate Value Chain (Scope 3) Standard – this standard will allow companies to evaluate their greenhouse gas emissions across their entire value chain. Focusing on the downstream activities, it includes but not limited to activities like transportation and distribution, processing, use of sold products, end of life treatment, leased assets, etc. This will allow companies to identify which parts of its value chain it should target to reduce emissions.
Product Life Cycle Standard – this standard will allow companies to measure the greenhouse gas emissions of an individual product. This standard will cover activities such as materials, manufacturing, distribution and storage use and disposal of a product. This will allow companies to develop new low-carbon product lines.
The new standards complete the Greenhouse Gas Protocol suite of corporate accounting and reporting standards created for business. The tools establish a much-needed comprehensive, global, standardized framework for companies working to manage their value chain and product emissions and to mitigate their climate impacts.
- 2,300 participants were involved from 55 countries;
- 207 members formed technical working groups to draft the standards, and;
- 60 companies from various industries road tested the standards in 2010.
The new standards provide a methodology that can be used to account for and report emissions from companies of all sectors, globally.
Tiffany Richmond is an enthusiastic marketing professional and is responsible for online marketing strategies at Energy Advantage Inc.