GHG Reporting means reporting the following metrics [monthly/ quarterly/ annually] in a written report [prepared/ validated by an independent expert] [and published in the Company’s financial disclosures/ annual report/ submitted to the Lender/ Licensor/ Competent Authority]. The metrics are:
(a) the Company and its Affiliates’ Scope 1, 2 and 3 Emissions calculated in accordance with [The Greenhouse Gas Protocol – A Corporate Accounting and Reporting Standard/ the Global Reporting Initiative (GRI) Standards (305)];
(b) the global warming potential values of the Company and its Affiliates’ Scope 1, 2 and 3 Emissions measured in tonnes of Carbon Dioxide Equivalent and calculated in accordance with [the IPCC Sixth Assessment Report Global Warming Potential Values];
(c) a comparison of the Company and its Affiliates’ current emissions data against the Base Year;
(d) an intensity metric expressing the Company and its Affiliates’ total Scope 1, 2 and 3 Emissions per [employee/ product sold/ sales revenue] will be calculated in accordance with [The Greenhouse Gas Protocol Scope 3 Guidance Appendix C];
(e) a description of any energy efficiency measures implemented during the period; and
(f) a description of the methodologies used to calculate the metrics set out above.
Option 2 - GHG Reporting
Option 3 - GHG Reporting Standard
The definition provides:
(a) an extensive list of metrics that can be included in any requirement for carbon reporting; and
(b) guidance on how they are calculated.
The definition includes a number of options for how and when to report which contract parties can adapt as appropriate to their contract.
If using this definition, consider also defining the terms ‘independent expert’, and ‘current emissions data’.
The definition includes an option to include reporting for parties who require reporting in addition to measuring and managing GHG emissions.
Corporate annual reporting
GHG reporting currently forms a part of companies’ annual reports. It may also be implemented for internal reporting (including through group company structures and supply chains), and/ or submissions to certain authorities/ regulatory bodies including as part of the EU Emissions Trading System.
There are a variety of standards that can be used to measure, report and manage an organisation’s GHG emissions. Some of the key standards include:
The World Resources Institute (WRI) and World Business Council for Sustainable Development (WBCSD) GHG Protocol Standards – These are globally recognised frameworks to track, measure and manage GHG emissions from private and public sector operations, value chains and mitigation actions. They include the Corporate Accounting and Reporting Standard and the Product Life Cycle Accounting and Reporting Standard.
The International Organisation of Standardisation (ISO) – The ISO 14000 series of environmental management standards are intended to assist organisations in managing their environmental impact. They include ISO 14064, which allows programmes to measure, quantify and reduce GHG emissions and removals and to achieve carbon neutrality.
BSI PAS 2050:2011 – The British Standards Institution (BSI) issued PAS 2050 standard is widely used by businesses to calculate the carbon emissions of goods and services.
The Global Reporting Initiative (GRI) Sustainability Reporting Standards – GRI is an international standards body convened by Ceres, a non-profit coalition of investor, environmental, and social justice groups. The Sustainability Reporting Standards are a set of standards for sustainability reporting (including environmental and climate change reporting) to enable companies to measure and understand their impacts on the environment, society and the economy.
Supply chain clauses, company articles of association, investment or project finance documents (e.g. loan, guarantee and recourse agreements, engineering, procurement and construction contracts), franchise and licensing agreements.