Scopes Data | GHG Accounting for Fleet Operation

Unlocking Sustainable Transformation: Our Deliverables at a Glance

A Closer Look at How We Turn Data into Sustainable Fleet Strategies

Embark on a journey through our meticulously crafted deliverables, designed to illuminate the path to a greener fleet. At Scopes Data, we pride ourselves on providing actionable insights derived from comprehensive data analysis, tailored to spearhead your fleet's transformation towards sustainability. Our deliverables, encapsulated in adapted case studies, showcase the precision, depth, and impact of our consulting services. Each example, while anonymized to protect confidentiality, offers a real-world glimpse into the potential for emissions reduction, efficiency optimization, and strategic electrification within your fleet operations.

Introduction

Welcome to the essential realm of GHG accounting for fleet operations, a critical aspect of today's environmentally conscious business environment. Our exploration will delve into the complexities of the GHG Protocol, emphasizing the importance of emissions reporting, and examining the various scopes of GHG emissions, with a particular focus on vehicle fleets.

Understanding the measurement and management of greenhouse gas emissions is a cornerstone of corporate responsibility. Whether you are an experienced environmental management professional or just beginning to engage with the concept of GHG accounting, our insights are designed to provide you with the necessary knowledge to navigate this vital field.

Join us as we embark on a journey towards a more sustainable and informed future, where accurate GHG accounting plays a pivotal role in shaping environmentally responsible business practices.

0:00 - 0:49

Introduction to the GHG Protocol History

Overview of the GHG Protocol

The GHG Protocol, a comprehensive global framework, has been instrumental in measuring and managing greenhouse gas emissions. This initiative emerged from a 20-year collaboration between the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD), catering to both private and public sectors. As the primary standard for companies, governments, and organizations worldwide, it stands at the forefront of GHG reporting.

Development and Evolution of GHG Standards

In response to the growing need for standardized GHG accounting during the late 1990s, the WRI and WBCSD, in collaboration with corporate and environmental stakeholders, developed these standards. The introduction of the first Corporate Standard in 2001 marked the beginning of a series of updates to address a broader spectrum of emissions sources, including electricity and comprehensive value chains.

Global Impact and Adoption of the GHG Protocol

Today, the GHG Protocol is a linchpin in global climate change initiatives. Its adoption by leading companies for GHG reporting highlights its global significance. Furthermore, it forms a fundamental part of national and city-level environmental strategies, aligning with major global commitments like the Paris Agreement under the United Nations Framework Convention on Climate Change. This widespread acceptance underscores its role as a benchmark for standardized greenhouse gas accounting and reporting.

Governance and Adaptability of the GHG Protocol

The GHG Protocol's governance structure, encompassing advisory and technical groups, ensures its continual evolution. This structure provides essential tools and training, enabling alignment with the ever-changing landscape of climate goals and strategies, demonstrating its enduring relevance in global environmental efforts.

0:49 - 2:40

Reference:

World Resources Institute (https://www.wri.org/)
World Business Council for Sustainable Development (https://www.wbcsd.org/)
Greenhouse Gas ProtocolGreenhouse Gas Protocol (https://ghgprotocol.org/)

Why Report GHG Emissions

Commitment to Carbon-Neutral Goals through Science-Based Targets

Greenhouse gas emissions reporting is a critical task for organizations worldwide, especially those operating corporate fleets. Participation in initiatives like the Science Based Targets initiative (SBTi) represents more than just setting ambitious environmental objectives; it signifies a commitment to leading in corporate responsibility. Numerous organizations are already advancing towards a carbon-neutral future by establishing science-based emissions reduction targets.

The Pivotal Role of the Carbon Disclosure Project in Corporate Strategy

The importance of disclosure through platforms like the Carbon Disclosure Project (CDP) is paramount. For over 23,000 companies, this process is a cornerstone of their strategy for a climate-safe and sustainable future. Disclosure transcends the requirements of investors and customers. It is a pathway to gaining a competitive advantage, identifying risks and opportunities, and maintaining a leading position in an era where environmental openness is increasingly a regulatory expectation. The European Corporate Sustainability Reporting Directive (CSRD), which will be mandatory from 2025, emphasizes the necessity of this kind of reporting.

Benefits of Environmental Disclosure in Corporate Governance

Companies stand to benefit substantially from environmental disclosure, with vast global assets and purchasing power driving the demand for such transparency. Advantages include enhanced reputation, competitive edge, strategic insight, and compliance with evolving regulations such as the TCFD recommendations. Disclosing environmental data is more than a fulfillment of corporate responsibility; it is an essential strategic business practice.

2:40 - 4:42

Reference:

Science Based Target Initiative (https://sciencebasedtargets.org/)
Corporate Disclosure Project (https://www.cdp.net/en/companies/)
Task Force on Climate-related Financial Disclosures (https://www.fsb-tcfd.org/)
Corporate Sustainability Reporting (https://finance.ec.europa.eu/capital-markets-union-and-financial-markets/company-reporting-and-auditing/company-reporting/corporate-sustainability-reporting_en)

Understanding GHG Scope Classifications

Scopes Data - In the realm of corporate greenhouse gas (GHG) reporting, emissions are grouped using two principal methods

In the realm of corporate greenhouse gas (GHG) reporting, emissions are grouped using two principal methods: the equity share approach and the control approach, with a focus on the latter's operational control criteria. To understand this better, let's delve into the three GHG scope classifications.

Scope 1

Scope 1 encompasses direct emissions from sources that an organization owns or controls. For vehicle fleets, this specifically includes emissions from the combustion of fossil fuels in vehicles owned or operationally leased by the company, excluding vehicles provided through a Cash Allowance or owned by employees. Identifying these emissions is vital for crafting reduction strategies, such as improving fuel efficiency and optimizing vehicle routes.

Scope 2

Scope 2 covers indirect emissions from the consumption of purchased electricity. This is particularly relevant for electric vehicles owned and leased by the company, aligning with those considered under Scope 1. Effective reporting of Scope 2 emissions requires a thorough understanding of the electricity used, the emission factors of the electricity grid, and the efficiency of vehicle charging. This information is crucial for strategies aimed at emission reduction, like transitioning to renewable energy sources or securing green electricity contracts.

Scope 3

Scope 3 includes all other indirect emissions within an organization's value chain. Regarding fleets, this involves emissions from Business Travel (Category 6) and Employee Commuting (Category 7) for vehicles not included in Scope 1 and 2. These emissions are influenced by the operational control status of the vehicle and its use. Comprehending these emissions is key to helping organizations reduce their broader environmental footprint, encouraging actions like promoting sustainable commuting options.

4:42 - 7:12

Reference:

A Corporate Accounting and Reporting Standard (https://ghgprotocol.org/corporate-standard/)
Technical Guidance for Calculating Scope 3 Emissions (https://ghgprotocol.org/scope-3-calculation-guidance-2)

Don’t Underestimate the Fleet Emissions

Corporate Commitments to GHG Reduction: Balancing Scope 1 and 2 Emissions Across Various Industries

In the pursuit of reducing GHG emissions, numerous companies have pledged to cut Scope 1 and Scope 2 emissions, aligning with their Science Based Targets initiative commitments. A prevalent goal is achieving a 50% reduction by 2030, relative to base year emissions typically set between 2018 and 2022.

For manufacturing industries that utilize fuel in production processes, fleet-related Scope 1 emissions might represent a smaller portion of the total. Conversely, in sectors less dependent on fuel for production, such as those using electric machinery or operating in IT and services, fleet operations often account for a significant share of Scope 1 emissions.

Strategies for Emission Reduction in Manufacturing and Offices

Addressing emissions in factories and offices might seem more straightforward than in fleets. Manufacturing industries can enhance machinery efficiency or implement CO2 capture technologies. Similarly, in electrical systems, emissions can be reduced through on-site renewable energy generation or procurement. The success of these measures often lies in the ease of measuring current emissions, clear action plans, and their minimal direct impact on individual employee benefits.

Challenges in Managing Fleet Emissions for GHG Reduction Targets

However, managing fleet emissions is distinctly challenging. Accurately quantifying current fleet emissions is difficult, and the transition to electric vehicles (BEVs) may not always be practical or effective, depending on the country. Negotiating with individual drivers and implementing changes can be complex. Thus, while significant GHG reductions have been seen in other sectors, the impact of fleet electrification has been more constrained for many companies.

The role of fleet management in meeting corporate GHG reduction targets is becoming increasingly crucial. Fleet emissions reduction faces unique obstacles, setting it apart from other areas. An early comprehension of the current situation and strategic planning are critical to surmount these challenges. If fleet emissions are not effectively addressed, companies risk not meeting their Scope 1 and 2 reduction objectives, with fleets being a pivotal factor in this potential shortfall.

7:12 - 10:02

Reference:

Private Equity’s Pivotal Role in the Climate Battle - BCG (https://www.bcg.com/publications/2023/how-private-equity-firms-can-help-win-the-climate-battle)
Technical Guidance for Calculating Scope 3 Emissions (https://ghgprotocol.org/scope-3-calculation-guidance-2)

Vehicles and GHG Scope Classifications

Impact of Vehicle Control Types on GHG Scope Classifications

In the fleet GHG accounting, discerning the control type of vehicles is crucial, as it significantly influences the classification and reporting of their emissions. We'll examine the impact of various vehicle control types on GHG Scope classifications.

Vehicles under a company's operational control, including those owned or leased by the company, report CO2e emissions under Scope 1 for direct fuel combustion and Scope 2 for indirect emissions from electric vehicles' electricity consumption.

Reporting of Emissions from Non-Operationally Controlled Vehicles

On the other hand, vehicles not under operational control, such as those bought by employees via a Cash Allowance, personal vehicles, and those used for short-term rentals or car-sharing, generally fall outside of Scope 1 and Scope 2 categories.

Scopes Data - the GHG Protocol allows for the inclusion of all company-purchased fuel in Scope 1, enabling emissions from employee-owned vehicles, not operationally controlled by the company but fueled by the company, to be reported under Scope 1

However, the GHG Protocol allows for the inclusion of all company-purchased fuel in Scope 1, enabling emissions from employee-owned vehicles, not operationally controlled by the company but fueled by the company, to be reported under Scope 1. This inclusion depends on the company's reporting policy.

The Role of Fleet Managers in GHG Emission Reporting

For fleet managers, collaborating with the GHG reporting team on emission reporting methods is critical. While approaches may differ across companies, it's imperative to gather data that facilitates the distinction of emissions based on the vehicle's control type. Regardless of the existing reporting policy, fleet managers must ensure that data collection methodologies initially differentiate between types of vehicle control, as segregating this data retrospectively can pose significant challenges.

Accurate categorization of emissions according to vehicle control type is essential for organizations to ensure thorough and precise emissions accounting. This accuracy is fundamental in developing effective emission reduction strategies and managing environmental impact efficiently.

10:02 - 12:37

Reference:

A Corporate Accounting and Reporting Standard (https://ghgprotocol.org/corporate-standard/)

Purpose of Vehicle Use in GHG Emissions Reporting

Scopes DAta - understanding the purpose for which each vehicle

In fleet GHG accounting, understanding the purpose for which each vehicle is used and its share in total mileage is crucial, as it significantly impacts how emissions are calculated and reported. Vehicle mileage is generally categorized into three main uses: Business, Commuting, and Private.

Business Purpose

Vehicles utilized for business operations, excluding commuting, require particular reporting considerations. Emissions from vehicles under operational control (like Company Owned or Leased Vehicles) fall under Scope 1/Scope 2. For vehicles not under operational control (such as Employee Private vehicles), the reporting approach varies based on company policy. If the company pays for the fuel or electricity, these emissions could be included under Scope 1/2, or as Scope 3 Category 6 Business Travel.

Employee Commute

Scopes Data Commuting Purpose GHG Accounting

Vehicles used for employee commuting to and from the workplace present unique reporting nuances. For operationally controlled vehicles, these emissions are typically categorized under Scope 1/Scope 2. However, some companies may opt to report them under Scope 3 Category 7, reflecting different policy choices. Emissions from non-operational controlled vehicles (like Employee Private vehicles) are classified under Scope 3 - Category 7 Employee Commuting.

Private Use

Scopes Data - Private Purpose GHG Accounting

Emissions from vehicles used privately by employees outside of work hours are generally not considered the company’s responsibility. However, if the company bears the fuel or electricity costs for private use, these emissions might be reported under Scope 1/2, dependent on the company’s reporting policy. While often not included in formal GHG reporting, understanding these emissions is beneficial for a thorough environmental impact assessment.

For each use category, the mileage assigned to the vehicle's purpose informs the data collection process, emission calculations, and strategies for reduction. It's essential for organizations to precisely define each vehicle's purpose in their fleet, ensuring emissions are accurately tracked and reported in alignment with the appropriate GHG Protocol Scope. This detailed approach enables more focused strategies for reducing overall emissions and better aligns with environmental sustainability objectives.

12:37 - 15:46

Reference:

A Corporate Accounting and Reporting Standard (https://ghgprotocol.org/corporate-standard/)
Technical Guidance for Calculating Scope 3 Emissions (https://ghgprotocol.org/scope-3-calculation-guidance-2)
Working 9 10 5 on climate change: An Office Guide (https://www.wri.org/working-9-5-climate-change)

CO2 and CO2e Explained

After exploring operational control and vehicle use purposes, it's essential to differentiate between CO2 and CO2e in the context of fleet GHG reporting.

About CO2

Scopes Data - CO2, or carbon dioxide, is a specific greenhouse gas predominantly produced by vehicles through the combustion of fossil fuels like gasoline and diesel

CO2, or carbon dioxide, is a specific greenhouse gas predominantly produced by vehicles through the combustion of fossil fuels like gasoline and diesel. Monitoring CO2 emissions is a critical aspect of fleet GHG accounting, as it directly correlates with the fuel consumption of vehicles that have internal combustion engines.

About CO2e

Scopes Data - CO2e, or carbon dioxide equivalent, broadens this perspective - GWP - Global Warming Potential

CO2e, or carbon dioxide equivalent, broadens this perspective. It's a metric used to compare emissions from different greenhouse gases, accounting for their varying global warming potential (GWP). For fleet emissions, this includes gases like methane (CH4) and nitrous oxide (N2O), each with its unique impact on global warming. The IPCC's Sixth Assessment Report (AR6) 2021 states that methane has 82.5 times, and nitrous oxide 273 times, the global warming effect of CO2 over a 20-year period. CO2e quantifies these impacts in terms of an equivalent amount of CO2, offering a unified measure of a gas's contribution to global warming.

The Importance of CO2e in Comprehensive Fleet Emissions Reporting

Environmental regulations and reporting frameworks often require the use of CO2e as the standard measurement, aligning with global protocols and standards. For comprehensive Scope 1 reporting, it's necessary to calculate not only CO2e but also the separate emissions of CO2, CH4, and N2O.

In summary, while CO2 emissions directly link to the most prevalent form of vehicle emissions, CO2e provides a more inclusive measure, encompassing the effects of various greenhouse gases. This distinction is crucial for fleet managers and environmental accountants to accurately report the broader environmental impact of their vehicle operations, complying with regulatory mandates and adhering to sustainability best practices.

15:46 - 18:12

Reference:

Greenhouse gas reporting: conversion factors 2023 (https://www.gov.uk/government/publications/greenhouse-gas-reporting-conversion-factors-2023)
IPCC AR6 WGI Chapter 07 Supplementary Material (https://www.ipcc.ch/report/ar6/wg1/downloads/report/IPCC_AR6_WGI_Chapter_07_Supplementary_Material.pdf)
Corporate Disclosure Project (https://www.cdp.net/en/companies/)

Fuel Types

In fleet GHG emissions assessment, the fuel type used is a crucial factor influencing environmental impact. Various fuels, including traditional gasoline and diesel as well as biofuels, each have distinct contributions to greenhouse gas emissions.

Fuels such as Petrol (Gasoline), Diesel, LPG, CNG

These fuels are commonly utilized in Internal Combustion Engine (ICE) vehicles, Hybrid Electric Vehicles (HEVs), and Plug-in Hybrid Electric Vehicles (PHEVs). Each fuel type has a specific CO2e emission level upon consumption, known as the Emission Factor. While diesel possesses a higher Emission Factor than gasoline, the overall CO2e emissions may be comparably less significant due to the greater fuel efficiency of diesel vehicles. Comprehensive emission factor data can be sourced from references such as the Department for Environment, Food & Rural Affairs (Defra), UK Government GHG Conversion Factors for Company Reporting 2023.

Biofuels such as E85 and E100

Produced from renewable resources like plant biomass, biofuels such as E85 (comprising 15% Petrol and 85% Bio Ethanol) and E100 (100% Bio Ethanol) offer the potential to lower GHG emissions compared to conventional fossil fuels. The CO2 released during their combustion is counterbalanced by the carbon absorbed during the production phase of the biomass. The GHG Protocol mandates a distinct calculation method for emissions from biofuels. Biofuel emissions in Scope 1 are divided into Scope - Bio (CO2) and Scope 1 (CH4 and N2O). For E85, the petrol component falls under Scope 1. For bioethanol, emissions are calculated as 1.52 kg CO2 per liter for Scope Bio and 0.00901 kg CO2e per liter for Scope 1.

In summary, understanding the specific environmental impact of each fuel type used in fleet operations is essential for accurate GHG emissions reporting and effective reduction strategies. This consideration enables organizations to align their fleet management with environmental sustainability goals.

18:12 - 20:30

Reference:

Greenhouse gas reporting: conversion factors 2023 (https://www.gov.uk/government/publications/greenhouse-gas-reporting-conversion-factors-2023)

Electricity in GHG Emissions

The Role of Electricity Source

The increasing prevalence of electric vehicles (EVs) and plug-in hybrid electric vehicles (PHEVs) has brought the role of electricity to the forefront in fleet GHG accounting. The impact of electricity on greenhouse gas emissions varies significantly based on its generation source. Renewable energy sources like wind, solar, or hydroelectric power typically yield lower emissions than fossil fuels such as coal or natural gas.

Electricity Emission Factors

To calculate GHG emissions from electricity consumption, electricity emission factors are used. These factors represent the average emissions per kilowatt-hour and differ by region and country. Maintaining the accuracy and currency of these factors is essential for reliable emission calculations. Two types of factors are encountered: The Generation Factor, measuring the carbon intensity of electricity generation, and the Transmission and Distribution Factor. However, for fleet emission calculations, the focus is primarily on the Generation Factor.

Global Variations in Emission Factors

Scopes Data - This graph demonstrates how the average electricity emission factor varies by country

Scopes DAta - In the USA, the factor varies even more granularly by state, affecting the environmental impact of vehicles.

This graph demonstrates how the average electricity emission factor varies by country. For instance, France, with its reliance on nuclear power, has a lower emission factor, while Poland, dependent on coal-fired power, has a higher one. In the USA, the factor varies even more granularly by state, affecting the environmental impact of vehicles. For example, in Kentucky, a compact HEV may emit less CO2e than a Battery EV, highlighting how the electricity source can alter the environmental impact narrative.

Renewable Electricity Contracts

Scopes Data - In some regions, special contracts for renewable electricity enable adjustments to the emission factor of consumed electricity based on the renewable energy used.

In some regions, special contracts for renewable electricity enable adjustments to the emission factor of consumed electricity based on the renewable energy used. This adjustment can significantly change the emissions landscape, as seen in the Kentucky example, where incorporating renewable energy can tip the balance in favor of Battery EVs.

GHG Reporting for Electricity Consumption

Electricity consumption for EVs and PHEVs typically falls under Scope 2 emissions. These indirect emissions result from purchased electricity, and their accurate reporting is vital. It's not just about meeting regulatory requirements; accurate reporting aligns with voluntary sustainability initiatives and genuinely reflects the fleet's environmental impact. Fleet managers must understand and accurately report these emissions to ensure both regulatory compliance and alignment with environmental sustainability goals.

20:30 - 23:13

Reference:

Energy Storage in Time Saves Nine: A Case fora Greener Smart Grid (https://web.cs.umass.edu/publication/docs/2018/UM-CS-2018-007.pdf)
EPA: Emissions & Generation Resource Integrated Database (eGRID) (https://www.epa.gov/egrid)
Europe Electricity Emission Factors; Association of Issuing Bodies (AIB) 2021 (https://www.aib-net.org/facts/european-residual-mix/2021)

Data Capture Methodology in GHG Emissions

In fleet GHG emissions accounting, the precision of data capture is paramount. Determining whether vehicles fall under the company's operational control, like company-owned or leased vehicles, or are employee-owned, is fundamental. Additionally, accurately discerning the ratio of total mileage for Business, Commuting, and Private use is essential for integrating this data with emission information.

The Role of Electricity Source

Utilizing market average calculations offers estimated emissions profiles based on standard values for different vehicle types or fuels. While beneficial for evaluating large fleets, this method lacks the granularity of actual vehicle data and doesn't fully capture the effects of GHG reduction initiatives, such as adopting cleaner vehicles, reducing mileage, or using renewable electricity. As a result, it may not effectively support strategic GHG reduction planning.

Pros

‍Provide a broad estimate of emissions profiles
‍Handy for large fleet assessments

Cons

‍Don't capture the specifics of your actual vehicle data
Don't account for proactive GHG reduction measures

Vehicle Spec Data

Employing specific vehicle data, such as NEDC and WLTP ratings, provides more detailed emissions and fuel consumption information under controlled conditions, especially for ICE and HEV vehicles. However, this data primarily focuses on CO2 emissions, not CO2e, and may not accurately reflect real-world conditions for commercial vehicles or the actual emissions of electric and plug-in hybrid vehicles. As electric vehicle usage grows, reliance on these methods could lead to discrepancies between calculated and actual emissions, affecting strategic decisions.

Pros

Offer detailed emissions info under controlled conditions
‍Useful for ICE and HEV

Cons

‍For commercial vehicles with different load factors
BEVs (0g/km) and PHEVs (30 - 50 g/km), these data may not mirror actual emissions

Actual Vehicle Data

Gathering actual dashboard fuel and electricity efficiency readings offers critical insights into real-world consumption and efficiency. While Connected Vehicle or Telematic systems can directly collect this data, implementing these across all fleet vehicles, including those owned by employees, presents challenges as GDPR restrictions apply and a significant OPEX needs to be available.

Pros

Provide invaluable insights into real-world emissions
Connected vehicle or telematics systems can help to correct

Cons

Rolling out across all vehicles is quite a task
GDPR restrictions, OPEX required

Actual Energy Data

The most precise approach involves tracking the actual fuel or electricity consumption for each vehicle through systems like fuel cards, telematics, or electric vehicle charging station metering. This method is effective in regions where data collection is feasible, but it faces obstacles in many areas. Even where possible, challenges in ensuring comprehensive data capture and correct categorization between business, commuting, or private use can complicate effective analysis.

Pros

The most precise one, is tracking actual fuel or electricity consumption

Cons

Highly effective where feasible, but not all countries are equipped for this yet

Integrating Methods for Accurate Fleet GHG Accounting

Fleet managers often combine these methods to enhance the overall accuracy of GHG accounting. For instance, they might use specific vehicle data where available, supplemented by market averages for older or less common vehicles, and corroborated with real-time efficiency readings from dashboards.

Regular validation and updates to this data are essential for maintaining accuracy, especially considering changes in vehicle use, fuel types, or energy sources. By adopting a multifaceted approach to data collection, fleet managers can more accurately assess and manage their operations' environmental impact. This comprehensive strategy is crucial in developing effective emission reduction strategies, ensuring regulatory compliance, and meeting sustainability objectives.

23:13 - 26:57

GHG Accounting Methodology

In fleet GHG accounting, the method of data capture significantly influences the calculation approach. Let's assume the availability of data for Operationally Controlled vehicles (Company Owned/Leased) and Non-Controlled Vehicles (Private), information on Business, Commuting, and Private mileage for each vehicle, knowledge of Fuel and Electricity Emission Factors, and actual data on Fuel and Electricity consumption.

Scope 1 Emissions Calculation

Scopes Data - To calculate Scope 1 emissions, actual fuel consumption is multiplied by the emission factor for each fuel type, accounting for CO2, N2O, and CH4

To calculate Scope 1 emissions, actual fuel consumption is multiplied by the emission factor for each fuel type, accounting for CO2, N2O, and CH4. These calculations are then adjusted according to the company's GHG Accounting Policy, applying the proportion of Business, Commuting, and Private use. For company-owned and leased vehicles, total fuel emissions are typically adjusted by the Business and Commuting proportions. For Private Vehicles, even when used for business, Scope 1 emissions are considered zero.

Scopes Data - Scope 1 - For PHEVs, actual fuel consumption is determined by applying fuel-only usage efficiency to the fuel-driven mileage.

Actual Fuel Consumption is calculated using Fuel Efficiency Data multiplied by total mileage, effective for ICE and HEV vehicles. For PHEVs, actual fuel consumption is determined by applying fuel-only usage efficiency to the fuel-driven mileage.

Scope 1 - Bio Fuel Calculation

Scopes Data - For biofuels, CO2 emissions (counted under Scope-Bio) are separated from CH4 and N2O emissions (under Scope 1).

Scope 2 Emissions Calculation

Scopes Data - Scope 2 emissions, relevant to electric and plug-in hybrid vehicles, involve multiplying electricity consumption by the electricity emission factor.

Scope 2 emissions, relevant to electric and plug-in hybrid vehicles, involve multiplying electricity consumption by the electricity emission factor. This factor varies based on the electricity source.

Scopes Data - For companies using renewable electricity, a unique calculation method adjusts the standard emission factor by the proportion of renewable electricity used.

For companies using renewable electricity, a unique calculation method adjusts the standard emission factor by the proportion of renewable electricity used. This gives a more accurate picture of the environmental benefits of using green energy.

Once total electricity emissions are calculated, they're adjusted according to the company's GHG Accounting Policy. Typically, total emissions from electricity are allocated to Business and Commuting use for company-owned and leased vehicles. For private vehicles, including those used for business, Scope 2 emissions are generally zero.

Scope 3 Emissions Calculation (Business Travel & Employee Commuting)

Emissions from company-owned and leased vehicles are often considered zero under Scope 3 for Business Travel and Employee Commuting. For company non-controlled vehicles, calculate total emissions (fuel and electricity for PHEVs, fuel for ICEs, or electricity for BEVs), then apply the Business use proportion for Scope 3 - Business Travel and Commuting use for Scope 3 - Employee Commuting.

Out of Scope Calculation

Scopes Data - Emissions from vehicles used for non-business private purposes, regardless of ownership status, are out of scope.

Emissions from vehicles used for non-business private purposes, regardless of ownership status, are out of scope. The Private Purpose Use proportion is applied to total emissions as in Scope 3 calculations.

Summary

Companies may adopt different calculation methods based on data availability and established practices. Fleet Managers should consult with their GHG Accounting team for specific methodologies.

This GHG accounting approach, considering operational control and vehicle use purpose, enables precise categorization and calculation of emissions across different scopes. By applying specific emission factors to actual consumption, organizations can measure their fleet's impact and formulate targeted emission reduction strategies. This methodology is vital for comprehensive GHG reporting and sustainability goals.

26:57 - 31:50

Closing

In conclusion, our examination of GHG accounting for fleet operations underscores the intricacy and vital significance of this process in today's eco-conscious landscape. Precise categorization and calculation of emissions across different scopes, from direct fuel combustion in Scope 1 to indirect emissions from electricity in Scope 2, and all other indirect emissions in Scope 3, necessitate an in-depth understanding and meticulous application of specific methodologies.

The selection of methods varies depending on the operational control of vehicles, their usage purposes, and the data at an organization's disposal. The complexity of handling various fuel types, including biofuels and electricity, adds further dimensions to this task. Additionally, evolving standards such as the GHG Protocol and diverse company policies require adaptability and continuous engagement with the latest practices and guidelines.

Fleet managers play a pivotal role in this process. They are tasked with ensuring precise capture and reporting of emissions data and must work closely with their GHG Accounting teams to integrate with the organization's wider environmental strategies and objectives. This collaboration is crucial for devising and implementing effective emission reduction strategies, adhering to regulatory requirements, and contributing to the global push for sustainability.

GHG accounting transcends mere regulatory compliance; it represents a strategic imperative that propels organizations toward enhanced efficiency, innovation, and environmental guardianship. Embracing this challenge, companies not only meet regulatory demands but also showcase their dedication to a sustainable future, benefiting their reputation, stakeholders, and the planet.

31:50 - 34:19

GHG Accounting for Fleet Operations

Mastering Emissions Reporting to Drive Corporate Sustainability

Link to Sections

Unlocking Sustainable Transformation: Our Deliverables at a Glance

Introduction

Introduction to the GHG Protocol History

Overview of the GHG Protocol

Development and Evolution of GHG Standards

Global Impact and Adoption of the GHG Protocol

Governance and Adaptability of the GHG Protocol

Why Report GHG Emissions

Commitment to Carbon-Neutral Goals through Science-Based Targets

The Pivotal Role of the Carbon Disclosure Project in Corporate Strategy

Benefits of Environmental Disclosure in Corporate Governance

Understanding GHG Scope Classifications

Scope 1

Scope 2

Scope 3

Don’t Underestimate the Fleet Emissions

Corporate Commitments to GHG Reduction: Balancing Scope 1 and 2 Emissions Across Various Industries

Strategies for Emission Reduction in Manufacturing and Offices

Challenges in Managing Fleet Emissions for GHG Reduction Targets

Vehicles and GHG Scope Classifications

Impact of Vehicle Control Types on GHG Scope Classifications

Reporting of Emissions from Non-Operationally Controlled Vehicles

The Role of Fleet Managers in GHG Emission Reporting

Purpose of Vehicle Use in GHG Emissions Reporting

Business Purpose

Employee Commute

Private Use

CO2 and CO2e Explained

About CO2

About CO2e

The Importance of CO2e in Comprehensive Fleet Emissions Reporting

Fuel Types

Fuels such as Petrol (Gasoline), Diesel, LPG, CNG

Biofuels such as E85 and E100

Electricity in GHG Emissions

The Role of Electricity Source

Electricity Emission Factors

Global Variations in Emission Factors

Renewable Electricity Contracts

GHG Reporting for Electricity Consumption

Data Capture Methodology in GHG Emissions

The Role of Electricity Source

Pros

Cons

Vehicle Spec Data

Pros

Cons

Actual Vehicle Data

Pros

Cons

Actual Energy Data

Pros

Cons

Integrating Methods for Accurate Fleet GHG Accounting

GHG Accounting Methodology

Scope 1 Emissions Calculation

Scope 1 - Bio Fuel Calculation

Scope 2 Emissions Calculation

Scope 3 Emissions Calculation (Business Travel & Employee Commuting)

Out of Scope Calculation

Summary

Closing

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