62 Companies "Road Test" Two New GHG Protocol Standards

Aug 17: A release from World Resources Institute (WRI) indicates that more than 60 companies have completed the "road testing" of new global standards designed to help measure the greenhouse gas (GHG) emissions of their products and supply chains. Developed by WRI and the World Business Council for Sustainable Development (WBCSD), the two new GHG Protocol standards -- the Product Lifecycle Accounting and Reporting Standard and the Scope 3 (Corporate Value Chain) Accounting and Reporting Standard -- provide methods to account for emissions associated with individual products across their life-cycles and of corporations across their value chains.

    The 62 companies from multiple sectors and 17 countries started road testing the standards in January. In June, they submitted written feedback on their usability along with final GHG inventory reports. A summary of the feedback is posted on the GHG Protocol website. Jennifer Morgan, director of WRI's Climate and Energy Program said, "The road testing experience illustrates how developing rules around measurement, reporting, and verification involves complex technical and policy decisions that need real-world feedback to ensure the right balance is achieved between rigor and ease of use while keeping in view the capacity of both experienced and new users. The GHG Protocol approach to develop international standards provides us a model on how we might want to pursue the development of rules on tracking emissions at the country-level as well."

    The companies that road tested the Product Life Cycle Accounting and Reporting Standard reported they had little difficulty completing an inventory in conformance with the requirements and found the guidance provided in the draft helpful. The companies that road tested the Scope 3 Accounting and Reporting Standard found it achievable to complete a Scope 3 inventory and many companies believe it practical to complete one on an annual basis.

    The road testers shared similar views on the business value of using the standards. Most road testers agree that the standards help in identifying GHG reduction opportunities and prioritizing reduction efforts; engaging suppliers and enabling supply chain GHG management; understanding risks and opportunities associated with emissions in the supply chain; creating competitive advantage and product differentiation; and improving credibility and transparency in GHG reporting. The next steps will be to revise the standards based on feedback from the road testers as well as the Steering Committee and Technical Working Groups. The revised standards will be released at the end of September for a 30 day public comment period. The text will be finalized at the end of 2010 and the final versions will be published by March 2011.

    Companies that participated in the road testing exercise include: 3M, Abengoa, Acer Inc, Airbus S.A.S, AkzoNobel, Alcoa, Amcor, Ampacet, Anvil Knitwear, Inc., Autodesk, Inc., Baoshan Iron & Steel Co. Ltd, BASF SE, Belron International, Bloomberg LP, BT plc, Coca-Cola Erfrischungsgetränke AG, Danisco A/S, Deutsche Post DHL, Deutsche Telekom AG, DuPont, Ecolab, Ford Motor Company, General Electric, Gold'n Plump Poultry, LLC, Herman Miller, Inc, IKEA, Italcementi Group, JohnsonDiversey, Kraft Foods, Kun Shan Tai Ying Paint Co, Ltd., Lenovo, Levi Strauss & Co., Mitsubishi Chemical Corporation, National Grid, New Belgium Brewing¸ Ocean Spray Cranberries, Otarian, PE International, PepsiCo, Inc., Pfizer, Pinchin Environmental Ltd., PricewaterhouseCoopers (Hong Kong), Procter & Gamble Eurocor, Public Service Enterprise Group, Inc., Rogers Communications, SAP AG, SC Johnson, Shanghai Zidan Food Packaging and Printing Co., Ltd., Shell International Petroleum Company Ltd., Siemens AG, Suzano Pulp and Paper, Swire Beverages, TAL Apparel Limited, Tech-Front (Shanghai) Computer Co., Ltd. / Quanta Shanghai Manufacturing City, Veolia Water, Verso Paper Corp., Webcor Builders, WorldAutoSteel.

    Access a release from WRI (click here). Access the GHG Protocol website (click here).