United States
Environmental Protection
,Agency
Get Started
0
Calculate Greenhouse
Gas Emissions
Create an Inventory
Management Plan
Set a Goal & Track
Progress
CLIMATED
LEADERS^L.
U.S. Environmental Protection Agency
CLIMATE LEADERS
PRACTICAL STEPS TO REDUCE YOUR ORGANIZATION'S GREENHOUSE GAS EMISSIONS
Guide to Greenhouse Gas Management for
Small Business & Low Emitters
CLIMATE
U.S. Environmental Protection Agency
-------
&EPA
GUIDE TO GREENHOUSE GAS MANAGEMENT FOR SMALL BUSINESS & LOW EMITTERS
This technical guide is for Climate Leaders Partners with total company-wide greenhouse gas (GHG) emissions of less
than 10,000 tons. For a definition of which organization type that may include, see www.epa.gov/climateleaders/resources/
lowemitters.html. The guide may also be used by non-Partners that wish to begin managing their greenhouse gas emissions
using these simplified tools from EPA. Climate Leaders Partners with GHG emissions of more than 10,000 tons should use the
Climate Leaders Core Inventory Guidance, available atwww.epa.gov/climateleaders/resources.
CLIMATED
LEADERSJL*
U.S. Environmental Protection Agency
-------
&EPA
GUIDE TO GREENHOUSE GAS MANAGEMENT FOR SMALL BUSINESS & LOW EMITTERS
CLIMATED
LEADERSJL*
U.S. Environmental Protection Agency
Guide to Greenhouse Gas Management for
Small Business & Low Emitters
INTRODUCTION
Businesses can take a leading role in helping
the United States reduce the impacts of climate
change by implementing actions that save money,
improve productivity, and lower greenhouse gas
(GHG) emissions.
This document is a guide to estimating and
reducing a company's GHG emissions through the
EPA Climate Leaders program. The accompanying
Inventory Calculator for Low Emitters, Inventory
Management Plan for Low Emitters, and Goal
Proposal Template are available to be downloaded
at http://www.epa.gov/climateleaders/resources/
lowemitters.html to create a comprehensive climate
change management strategy.
Using these tools will enable a company with total
greenhouse gas (GHG) emissions of less than 10,000
tons to
• create a comprehensive inventory of all
greenhouse gas emissions,
• develop an inventory management plan for data
consistency over time,
• set a GHG reduction goal, and
• annually report its emissions to EPA.
-------
&EPA
GUIDE TO GREENHOUSE GAS MANAGEMENT FOR SMALL BUSINESS & LOW EMITTERS
Since 2002, the EPA Climate Leaders program
has provided guidance and recognition to
leading companies across many industries, from
manufacturers and utilities to financial institutions
and retailers, to help them develop and implement
long-term comprehensive climate change strategies.
Building upon this experience, EPA developed these
tools for low emitters and small businesses to use in
managing their emissions.
THIS GUIDE
This guide walks the user through the following four
key steps, including the use of newly developed tools
designed to assist the low emitter.
All low emitter tools are available at www.epa.gov/
climateleaders/partners/lowemitters.html.
Additional technical resources for managing
GHG inventories are available at www.epa.gov/
climateleaders/resources/index.html.
Step 1: Get Started
• Greenhouse Gas Inventories Defined
• Principles of GHG Accounting
• Choosing a Base Year
• Identifying Organizational Boundaries
Step 2: Calculate GHG Emissions
Tool: Inventory Calculator for Low Emitters
• Sources Covered by the Inventory Calculator
• Using the Inventory Calculator and Guidance
• Identifying Emission Source Types and Quantifying
Emissions
Step 3: Create an Inventory Management Plan
Tool: Inventory Management Plan for Low Emitters
• Documenting Inventory Procedures
• Inventory Management Plan for Low Emitters
• Additional IMP Tools
Step 4: Set a Reduction Goal and Track Progress
Tool: Goal Proposal Template
• Annual GHG Inventory Summary and Goal Tracking
Form
• Setting a GHG Reduction Goal
• Resources for Reducing GHG Emissions
• Going "Carbon Neutral"
CLIMATED
LEADERSJL*
U.S. Environmental Protection Agency
-------
&EPA
GUIDE TO GREENHOUSE GAS MANAGEMENT FOR SMALL BUSINESS & LOW EMITTERS
Get Started
i
*
CLIMATED
LEADERSJL*
U.S. Environmental Protection Agency
Step 1 - Get Started
A. GREENHOUSE GAS INVENTORIES DEFINED
Many organizations are developing greenhouse gas (GHG)
inventories. An inventory is a list of emission sources and the
associated emissions quantified using standardized methods.
EPA inventory guidance for the Climate Leaders program
is based on the World Resources Institute/World Business
Council for Sustainable Development (WRI/WBCSD) GHG
Protocol Corporate Accounting and Reporting Standard
("GHG Protocol"), which has become the global standard for
calculating GHG emissions.
Calculating GHG emissions involves the following process
which is explained in this guide:
• Choose a base year for the emissions inventory, against
which future emissions will be tracked
• Identify the facilities to include in the inventory
("organizational boundaries")
• Identify the sources within the facilities to include in the
inventory ("operational boundaries")
• Follow a standardized and accepted methodology to
calculate the GHG emissions from each identified source
• Include each of the six major greenhouse gases: carbon
dioxide (C02), methane (CH4), nitrous oxide (N20),
hydroflurocarbons (HFCs), perfluorocarbons (PFCs), and
sulfur hexafluoride (SFJ.
B. PRINCIPLES OF GHG ACCOUNTING
The GHG Protocol is based on five principles. When in doubt
regarding the application of the tools explained in this guide to
ambiguous issues or situations, refer back to these principles
to ensure the creation of a high-quality credible inventory:
1. Relevance: Ensure the GHG inventory appropriately
reflects the GHG emissions of the company and serves
the decision-making needs of users- both internal and
external to the company.
2. Completeness: Account for and report on all GHG
emission sources and activities within the chosen
inventory boundary. Disclose and justify any specific
exclusions.
3. Consistency: Use consistent methodologies to allow
for meaningful comparisons of emissions over time.
Transparently document any changes to the data,
inventory boundary, methods, or any other relevant
factors in the time series.
-------
&EPA
GUIDE TO GREENHOUSE GAS MANAGEMENT FOR SMALL BUSINESS & LOW EMITTERS
Get Started
CLIMATED
LEADERSJL*
U.S. Environmental Protection Agency
4. Transparency: Address all relevant issues in a
factual and coherent manner, based on a clear audit
trail. Disclose any relevant assumptions and make
appropriate references to the accounting and calculation
methodologies and data sources used.
5. Accuracy: Ensure that the quantification of GHG
emissions is systematically neither over nor under actual
emissions, as far as can be judged, and that uncertainties
are reduced as far as practicable. Achieve sufficient
accuracy to enable users to make decisions with
reasonable assurance as to the integrity of the reported
information.
C. CHOOSING A BASE YEAR
For the inventory, collect data for a full year of operating
activities, on a calendar year basis. The emissions calculated
from this data will then serve as the "base year" data, against
which emissions will be compared over time. The base year
data should be high quality in order to provide a meaningful
comparison; therefore, choose a recent year. For example, for
a company starting this process in 2008, collecting data for a
base year of 2007 will likely provide the most robust data for its
inventory.
LEASES: A company's organizational boundary approach will help
determine which operations to include that are not fully owned and
operated, such as leased office space or vehicles. When using an
operational control approach, a general rule of thumb for leases
suggests that if the company has access to the data (i.e., pays the
utility bills or purchases gasoline), those operations are under its
control and should be included in the inventory. Companies that do
not have access to the data but still wish to include those operations
in their inventory can use estimates derived from national data, such
as the Commercial Buildings Energy Consumption Survey, available
at http://www.eia.doe.gov/emeu/cbecs/
D. IDENTIFYING ORGANIZATIONAL BOUNDARIES
An organizational boundary is used to determine which facilities
or operations will be included in the GHG emissions inventory.
Two approaches may be used in determining an organizational
boundary, an equity share or a control approach:
• Using an equity share approach, account for GHG
emissions based on the company's share of equity (typically
by percentage ownership) in a facility or operation;
• A control approach is divided into either financial or
operational control:
• Under financial control, include operations for which the
company has the ability to direct financial and operating
policies with a view to gaining economic benefits from
those activities
• Under operational control, include operations for which
the company has full authority to implement operating
policies.
ORGANIZATIONAL BOUNDARY
APPROACH
EQUITY SHARE
(by % ownership)
CONTROL
FINANCIAL CONTROL
(by economic interest)
OPERATIONAL CONTROL
(can institute operating policies)
-------
&EPA
GUIDE TO GREENHOUSE GAS MANAGEMENT FOR SMALL BUSINESS & LOW EMITTERS
Calculate Greenhouse
Gas Emissions
i
CLIMATED
LEADERSJL*
U.S. Environmental Protection Agency
Step 2 - Calculate Greenhouse Gas Emissions
A. SOURCES COVERED BY THE INVENTORY
CALCULATOR FOR LOW EMITTERS
Emission sources of all six major GHGs are accounted for in
the inventory: carbon dioxide (C02), methane (CH4), nitrous
oxide (N20), hydroflurocarbons (MFCs), perfluorocarbons
(PFCs), and sulfur hexafluoride (SF6).
Based on key characteristics of emissions sources, such
as the control the organization has to affect them, the GHG
Protocol organizes sources into the following three categories,
or "scopes":
• Scope 1: emissions from sources that the company owns
or controls, like natural gas-fired boilers or vehicle fleets.
These are also called "direct emissions".
• Scope 2: emissions that are a consequence of the
operations of the company, but occur at sources owned
or controlled by another company, most typically
electricity, heat, or steam. These are also called "indirect
emissions".
• Scope 3: indirect emissions that are not covered in
Scope 2, such as employee travel and product transport.
In Climate Leaders, these are considered "optional
emissions." Guidance on identifying and quantifying
Scope 3 emissions, and identifying possible advantages
of reporting them, is provided.
The Climate Leaders Inventory Calculator for Low Emitters
("Calculator") allows the user to estimate GHG emissions from
Scope 1, Scope 2, and Scope 3 sources. Companies using
this guide will likely find that most of their emissions come
from building heating and cooling, fleet vehicles, electricity
use, and employee travel.
Some industrial sectors, such as pulp and paper, cement,
chemicals, and iron and steel, may have sector-specific
emission sources that are not covered by the Calculator. To
quantify these emissions, refer to sector-specific guidance
developed by EPA for the Climate Leaders program at www.
epa.gov/climateleaders/resources/sector-specific.html. Other
organizations, such as WRI/WBCSD, have a full list of sectors
with sector-specific emissions and guidance on calculating
emissions from industrial processes.
-------
&EPA
GUIDE TO GREENHOUSE GAS MANAGEMENT FOR SMALL BUSINESS & LOW EMITTERS
Calculate Greenhouse
Gas Emissions
CLIMATED
LEADERSJL*
U.S. Environmental Protection Agency
B. USING THE INVENTORY CALCULATOR FOR
LOW EMITTERS
The Calculator is a Microsoft Excel workbook separated into
the following sections:
• Introduction to the Calculator
• Summary of company total emissions
• Data entry and calculation for Direct Emissions sources
• Direct 1.0: Stationary Combustion
• Direct 2.0: Mobile Sources
• Direct 3.0: Refrigeration and Air Conditioning Leakage
• Direct 4.0: Fire Suppression Systems
• Direct 5.0: Gas Waste Streams
• Data entry and calculation for Indirect Emissions sources
• Indirect 1.0: Purchases of Electricity
• Indirect 2.0: Purchases of Heat or Steam
• Data entry and calculation for Optional Emissions sources
• Optional 1.0: Employee Business Travel
• Optional 2.0: Employee Commuting
• Optional 3.0: Product Transport
• Conversion Factors - common units of measurement
How to Use the Calculator and Guide
Data collected by the company for each emission source
can be entered into the orange boxes within the Calculator.
The Calculator uses Climate Leaders emission factors to
automatically calculate GHG emissions totals in the blue and
green colored boxes within the workbook. Blue and green
summary boxes represent the required and optional emission
portions of the company GHG inventory, respectively. Totals
are calculated in metric tons of C02 equivalent (C02e), which is
the standard unit for comparing the degree of potential climate
impact caused by emissions of different GHGs. The total C02e
emissions are summarized for all sources at the company on
the Summary sheet in the workbook.
Reminder: It is important to pay attention to units (e.g., cubic feet,
gallons). The units from the data collected must match the units in
the Calculator for that particular data requirement. For example, fuel
usage for vehicles must be entered into the Calculator in gallons.
For situations where the data collected does not match the units
in the Tool, please refer to the 'Conversion Factors' section in the
Calculatorto locate a conversion factor to convert the data to the
appropriate units.
Each emission source type described in this section of the
guide is divided into three headings to assist the company in
collecting data and calculating the emissions from that source.
These headings are:
• DEFINITION: Under this heading, the user will find the
definition of the emission source.
• COLLECT: Here the user will find information on the data
needed to collect for the emission source.
• QUANTIFY: Here the user will find the information
needed to enter the data into the Calculator in order to
calculate emissions from the emission source. Entries
are made into the ORANGE COLORED BOXES in the
Calculator.
For some sources, the Calculator provides several options for
calculating emissions, based on data availability. Make sure
to read the instructions at the top of each tab in the Calculator
before entering the data. Remember to enter data covering a
full calendar year.
-------
&EPA
GUIDE TO GREENHOUSE GAS MANAGEMENT FOR SMALL BUSINESS & LOW EMITTERS
Calculate Greenhouse
Gas Emissions
i
CLIMATED
LEADERSJL*
U.S. Environmental Protection Agency
C. IDENTIFYING EMISSION SOURCE TYPES
("OPERATIONAL BOUNDARIES") AND
QUANTIFYING EMISSIONS
Direct Emissions (Direct 1.0-Direct 5.0)
Direct GHG emissions occur from sources that are owned or
controlled by the company. Examples include boilers used
to heat buildings, refrigerant leakage from air conditioners,
or business travel in a company-owned car. Direct emission
sources may also include leased vehicles or equipment for
which the company pays the fuel bills or can access the fuel
use data.
Within the Calculator, sources are categorized into five types
of direct sources: stationary combustion, mobile sources,
refrigeration and air conditioning equipment, fire suppression
equipment, and gas waste streams. While most companies
will have at least some direct sources, it is possible for an
office-based organization to have few or no direct emission
sources.
Direct 1.0: Stationary Combustion
DEFINITION: Combustion emission sources are stationary
sources that combust fuel, like a natural gas hot water heater
for an office building or an oil burning boiler. Emissions result
from the actual combustion of the fuels to produce useful
products, like heat and hot water.
COLLECT: To account for these sources, collect information
about the type of fuel used and the quantity of fuel combusted
at each source. Sources of data can vary, but the data is often
provided by the utility company that supplies the fuel to the
company. A monthly natural gas bill, for example, can be used
to provide information regarding how much natural gas was
purchased for the previous billing cycle.
QUANTIFY: After the data has been collected, it should be
entered into the appropriate orange colored boxes of the
Calculator section titled "Direct 1.0". The fuel type can be
selected from the form. After the data is entered into the
Calculator, the C02 equivalent emissions are displayed in the
blue colored box.
Direct 2.0: Mobile Source Emissions
DEFINITION: Mobile sources, like company owned cars and
heavy duty vehicles generate emissions by burning fuel.
COLLECT: Determine the types of vehicles, types and
amount of fuel, and the miles driven for each vehicle or vehicle
type. Data sources vary but fuel usage is often determined
from fuel receipts or purchase records, and mileage from
vehicle records. Mileage or fuel use can also be estimated
based on vehicle fuel economy from the manufacturer or www.
fueleconomy.gov if the other data sources are not readily
available.
QUANTIFY: Enter the data into the appropriate orange
colored boxes of the Calculator section titled "Direct 2.0".
If the company owns or leases biofuel or ethanol vehicles,
the percentage of biologically-based fuel should be entered
into the boxes provided; default values are available if
needed. Once the data is entered into the Calculator, the C02
equivalent emissions are calculated and are summarized in
the blue colored box. Biomass emissions are calculated and
summarized in the green colored box, and are typically not
summed into the company's total GHG emissions because
they are considered to be a net zero emission source.
Direct 3.0: Refrigeration and Air Conditioning Leakage
DEFINITION: Refrigeration and Air Conditioning (AC)
Equipment sources can vary in size based on the type of
organization. Emissions from refrigeration and AC devices
-------
&EPA
GUIDE TO GREENHOUSE GAS MANAGEMENT FOR SMALL BUSINESS & LOW EMITTERS
8
Calculate Greenhouse
Gas Emissions
CLIMATED
LEADERSJL*
U.S. Environmental Protection Agency
are caused by the leakage of chemicals with global warming
impact during use, maintenance and/or disposal of the device.
They are often small sources for office-based organizations.
For example, a small office building may have one rooftop air
conditioning unit while a grocery store chain may have several
rooftop air conditioning units per store as well as a multitude of
other refrigeration equipment.
COLLECT: Choose one of three different calculation
methods available in the "Direct 3.0" section of the
Calculator. The types of refrigerants along with the data
needs for each method are listed in the Calculator. Data
for these sources is often collected from maintenance
and inspection records, work orders, or invoices from
contractors that service this equipment. Refrigerants not
included on the list may be chemicals that do not need to
be included in the inventory. For example, ozone depleting
substances, such as chlorofluorocarbons (CFCs) or "freon"
and hydrochlorofluorocarbons (HCFCs), are regulated
internationally and are typically excluded from a GHG
inventory or reported as a memo item.
QUANTIFY: Enter the data into the appropriate orange colored
boxes of the Calculator section titled "Direct 3.0". Once
the data is entered into the Calculator, the C02 equivalent
emissions are calculated and summarized in the blue colored
box.
Direct 4.0: Fire Suppression Systems
DEFINITION: Fire Suppression emission sources can range
in scale from a small portable fire extinguisher to a large scale
fire suppression system for an office building or warehouse.
The emissions are caused by chemicals (e.g., MFCs or
C02) emitted from fire suppression devices during use,
maintenance, and disposal.
COLLECT: Choose one of three different calculation methods
available in the "Direct 4.0" section of the Calculator. In each
method, choose the types of fire suppression gases used and
then gather the corresponding emissions data. Data for these
sources is often collected from maintenance and inspection
records, work orders, or invoices from contractors that service
this equipment.
QUANTIFY: Enter the data into the appropriate orange colored
boxes of the Calculator section titled "Direct 4.0". Once
the data is entered into the Calculator, the C02 equivalent
emissions are calculated and summarized in the blue colored
box.
Direct 5.0: Gas Waste Streams
DEFINITION: Gas waste stream emission sources are sources
that combust waste gas streams using a combustion device,
like a flare or thermal oxidizer. These are uncommon sources
for most office-based organizations.
COLLECT: Collect information about the volume (standard
cubic feet) of gas waste that was combusted. Because of
the variable nature of the composition of waste gas streams,
the user will also need to find out what chemicals are present
in the gas waste stream, and the quantity of each chemical.
Please note that two other data needs, oxidation factor and
gas density, should be also collected if practicable; however,
default values can be used if needed. The oxidation factor
accounts for the amount of carbon in the fuel that is converted
to C02 during combustion.
QUANTIFY: Enter the data into the appropriate orange colored
boxes of the Calculator section titled "Direct 5.0". Once
the data is entered into the Calculator, the C02 equivalent
emissions are calculated and summarized in the blue colored
box.
-------
&EPA
GUIDE TO GREENHOUSE GAS MANAGEMENT FOR SMALL BUSINESS & LOW EMITTERS
Calculate Greenhouse
Gas Emissions
USING PORTFOLIO MANAGER WITH THE
CLIMATE LEADERS CALCULATOR
ENERGY STAR Portfolio Manager is an interactive energy
management tool that allows an organization to track and
assess energy consumption across its entire portfolio of
buildings in a secure online environment. Companies can
transfer their Portfolio Manager data into the Climate Leaders
Calculator to help calculate their company-wide GHG
emissions.
To transfer the correct data from Portfolio Manager to the
Calculator, the company should log in to Portfolio Manager
and request an Energy Performance Report. The report
should include Summary Site Electric and Site Natural Gas
Use data for the reporting calendar year. All facilities in
the portfolio that fall under the company's organizational
boundary approach for Climate Leaders should be included.
The report is automatically generated and sent to the email
address specified in Portfolio Manager.
Once the report is received, the company should input the
data into the Climate Leaders Calculator as follows:
For natural gas usage,
1. Open the tab "Direct 1.0" of the Calculator.
2. Enter a Source ID number.
3. Under Source Description, enter "Portfolio Manager
Energy Performance Report".
4. Under Fuel Combusted, select "Natural Gas".
5. Convert the Total Site Natural Gas Use from the Energy
Performance Report from therms to square cubic feet
(scf) using the conversion 1.03 therms=100 scf.
6. Input the Total Site Natural Gas Use, in scf, under
Quantity Combusted.
For electricity usage,
7. Open the tab "Indirect 1.0" of the Calculator.
8. For each building to be reported, enter a Source ID and
Source Description.
9. Determine the building's eGRID subregion using the map
in the Calculator or from the facility's summary page in
Portfolio Manager.
10. Input each building's site electricity use in kWh from the
Energy Performance Report under Electricity Purchased.
Companies can then add data from sources not included in
Portfolio Manager, such as vehicle fleets, to the Calculator and
complete their company-wide GHG inventory.
CLIMATED
LEADERSJL*
U.S. Environmental Protection Agency
-------
&EPA
GUIDE TO GREENHOUSE GAS MANAGEMENT FOR SMALL BUSINESS & LOW EMITTERS
10
Calculate Greenhouse
Gas Emissions
CLIMATED
LEADERSJL*
U.S. Environmental Protection Agency
INDIRECT EMISSIONS (INDIRECT 1.0-INDIRECT
2.0)
Indirect emissions are emissions from energy consumed in
owned or controlled equipment or operations but generated by
another company. For example, although the company may
own equipment that runs off of electricity, like office computers
and copy machines, a power plant is burning the fuel to
generate the electricity it is using. Therefore, the power plant
is the direct source of GHG emissions.
For many companies, purchased electricity is the largest
source of GHG emissions and the most significant opportunity
to reduce those emissions. The Calculator section on indirect
emissions separates indirect emissions into two types:
purchases of electricity and purchases of heat or steam.
Indirect 1.0: Purchases of Electricity
DEFINITION: GHGs are emitted when fossil fuels are
combusted to generate electricity. Companies account for
their responsibility for these emissions by reporting them as
indirect emissions.
COLLECT: Collect electricity use information in units of kWh.
The company's best data source is typically its electricity bill or
invoice.
In the Calculator, there is a map at the bottom of the "Indirect
1.0" section which divides the United States into subregions
based on the electric grid. Select the subregion(s) in which the
company's facilities are located to determine the correct C02
emissions factor to use, since different parts of the country use
different fuels to generate electricity. Multiple facility locations
can be entered as separate line items in the Calculator. If a
facility is on the border of a subregion, enter the zip code into
EPA's Power Profiler (www.epa.gov/powerprofiler) to find the
correct subregion.
QUANTIFY: Enter the data into the appropriate orange colored
boxes (Table 1) of the Calculator section titled "Indirect
1.0". Once the data is entered into the Calculator, the C02
equivalent emissions are calculated and summarized in the
blue colored box (Table 2).
Indirect 2.0: Purchases of Heat or Steam
DEFINITION: Similar to electricity production, GHGs are
emitted when fossil fuels are combusted to generate heat
or steam. If the company purchases heat or steam, the
emissions are accounted for as indirect emissions. This is an
uncommon source for most office-based organizations.
COLLECT: Determine the amount of steam purchased, boiler
efficiency, and either the emission factors provided by the
steam supplier or the types of fuel that the steam supplier
uses to generate the steam. If values for boiler efficiency are
unavailable, a default of 80% is provided in the Calculator.
QUANTIFY: Enter the data into the appropriate orange colored
boxes (Table 1) of the Calculator section titled "Indirect
2.0". Once the data is entered into the Calculator, the C02
equivalent emissions are calculated and summarized in the
blue colored box (Table 2).
OPTIONAL SOURCES (OPTIONAL 1.0-3.0)
Optional emissions are a consequence of the activities of a
company but are not owned or controlled by the company.
Companies may choose to report optional emissions sources,
which include indirect sources such as employee commuting
or transporting products to market using contract carriers.
While not all companies choose to include optional emission
sources, estimating optional emissions can provide a more
complete picture of the company's climate change impact and
offer the company more opportunities to reduce emissions.
For example, if employee commuting emissions are included,
-------
&EPA
GUIDE TO GREENHOUSE GAS MANAGEMENT FOR SMALL BUSINESS & LOW EMITTERS
11
Calculate Greenhouse
Gas Emissions
CLIMATED
LEADERSJL*
U.S. Environmental Protection Agency
it may also be beneficial to report the emission reductions from
implementing a teleworker or employee carpool program.
In the Calculator, sources are categorized into three types
of traditional optional sources most commonly reported:
employee business travel, employee commuting, and product
transport.
Optional 1.0: Employee Business Travel
DEFINITION: Optional employee business travel emissions
differ from the required mobile source emission reporting
in that they account for employee business travel in non-
company owned vehicles such as taxis, trains, commercial
airplanes, and personal vehicles used for sales.
COLLECT: Collect information about employees' business
travel method. For travelers that use a passenger vehicle,
choose the vehicle type from the Calculator and collect data
for the vehicle miles during the reporting period. For rail, bus,
and air travel, the mode of transport and should be selected
from the Calculator options and an estimate of the passenger
mileage data provided for each.
QUANTIFY: Enter the data into the appropriate orange colored
boxes (Tables 1 -4) of the Calculator section titled "Optional
1.0". Once the data is entered into the Calculator, the C02
equivalent emissions are calculated and summarized in the
green colored box (Table 5).
Optional 2.0: Employee Commuting
DEFINITION: Employee commuting emissions differ from the
required mobile source emission reporting in that they account
for employee travel to and from work in non-company owned
vehicles including personal vehicles, buses, and trains.
COLLECT: Collect information about each employee's
commuting method. For commuters that use a personal
vehicle, the appropriate vehicle type should be selected from
the Calculator and data collected for the vehicle miles during
the reporting period. For rail, bus, and air travel, the mode of
transport and should be selected from the Calculator options
and an estimate of the passenger mileage data provided for
each.
QUANTIFY: After the data has been collected, enter the data
into the appropriate orange colored boxes (Tables 1 -3) of
the Calculator section titled "Optional 2.0". Once the data is
entered into the Calculator, the C02 equivalent emissions are
calculated and summarized in the green colored box (Table 4).
Optional 3.0: Product Transport
DEFINITION: Optional emissions from product transport
include product and material shipments by non-company
owned vehicles. For example, the company could hire another
company to transport product from the manufacturing location
to distribution centers or final markets. (Note: if a company
owns or leases the trucks or other transport vehicles, these
would be part of its direct emissions). Another example of
optional product transport is paying a courier to transport
documents from one office to another.
COLLECT: Collect information about shipment methods
(vehicle, waterborne craft, freight rail, or aircraft). For road
shipments the user may enter data based on vehicle mileage
or ton-miles of product transported. If the vehicle mileage
option is chosen, then the company should select the type of
vehicle and enter the total mileage for that vehicle type. The
ton-miles option is only applicable for heavy-duty trucks and
the company need only enter the total ton-miles traveled. For
product transport via Freight Rail, waterborne, or air transport,
the company should enter the total ton-miles data. .
QUANTIFY: Enter the data into the appropriate orange colored
boxes (Tables 1 -4) of the Calculator section titled "Optional
3.0". Once the data is entered into the Calculator, the C02
equivalent emissions are calculated and summarized in the
green colored box (Table 5).
-------
&EPA
GUIDE TO GREENHOUSE GAS MANAGEMENT FOR SMALL BUSINESS & LOW EMITTERS
12
o
Create an Inventory
Management Plan
i
CLIMATED
LEADERSJL*
U.S. Environmental Protection Agency
1
Step 3 - Create an Inventory Management Plan
A. DOCUMENTING INVENTORY PROCEDURES
An Inventory Management Plan ("IMP") is a useful tool for accurately
documenting the processes used to collect the inventory data, so
that a high quality inventory can be completed year after year. An
IMP documents the answers to questions like, "What facilities did
we include in the inventory? Which sources are included? Who in
the company collects the utility bill information? How do we account
for new facilities or acquisitions?"
Partners develop and maintain an IMP that describes their process
for completing a high-quality, corporate-wide inventory. The IMP is a
protocol developed by each company which addresses their unique
procedures for creating a credible corporate-wide GHG emissions
inventory on an annual basis.
B. INVENTORY MANAGEMENT PLAN FOR LOW
EMITTERS
The Climate Leaders Inventory Management Plan (IMP) for Low
Emitters tool is available for Partners using the Calculator to
determine their GHG emissions. The IMP for Low Emitters is
presented in a simplified format and some items in the form have
been pre-populated with default responses consistent with the
use of the Calculator. The Partner should fill out the applicable
table entries in the form. The IMP for Low Emitters tool is available
at www.epa.qov/climateleaders/partners/lowemitters.html.
The seven major components of an IMP are:
• Partner Information: Company name, address, and inventory
contact information
• Boundary Conditions: Organizational and operational
boundary descriptions
• Emissions Quantification: Quantification methodologies and
emissions factors
• Data Management: Data sources, collection process, and
quality assurance
• Base Year: Base year adjustments for structural and
methodology changes
• Management Tools: Roles and responsibilities, training, and
file maintenance
• Auditing & Verification: Auditing, management review, and
corrective action
To help the user develop a complete IMP, each of the above
components are described in more detail below. Additional
instructions for completing these components are provided in the
IMP for Low Emitters tool.
-------
&EPA
GUIDE TO GREENHOUSE GAS MANAGEMENT FOR SMALL BUSINESS & LOW EMITTERS
13
e
Create an Inventory
Management Plan
CLIMATED
LEADERSJL*
U.S. Environmental Protection Agency
Partner Information
This section provides general organizational information such
as, company name, corporate address, inventory contact and
inventory contact information.
Boundary Conditions
Emission sources to be included in a GHG inventory
depend greatly on the boundary conditions selected by an
organization. A company can use either an equity share
approach or a control approach to define its organizational
boundaries (see Step 1 of this guide for more information on
identifying organizational boundaries).
This section of the IMP should also include a list of operations
or facilities in the inventory based on the chosen organizational
boundary, as well as procedures used to identify each
operation or facility. Finally, a list of the type of GHGs emitted
from each operation or facility should be included in this
section.
Emissions Quantification
This section provides the specific methodologies and emission
factors used to estimate all of the company's GHG emissions.
A credible GHG inventory requires accurate data and verifiable
quality assurance procedures. The Climate Leaders program
has instituted inventory protocols which are based on the GHG
Protocol and default emissions factors based on U.S. and
international standards. These protocols require the collection
and reporting of the six major GHG emissions. All emissions
are reported as C02 equivalents based on the global warming
potential (GWP) value of each gas.
Data Management
A description for each data source should be included in the
IMP which also contains information on how data are gathered
from that data source, and where the data are maintained. The
data sources may be specific operations or may be emission
categories (i.e. mobile sources, refrigerants, electrical usage, etc.).
Details on any normalization factors used and quality assurance
procedures, as well as information on data security and storage
procedures should also be included for each data source.
Base Year Adjustments
A company will choose a base calendar year for their emissions
inventory, reflecting the most recent year that data are available
when the company joins the program. When a significant change
occurs that might confound the tracking of emissions over
time or progress towards goal achievement, then the company
may retroactively recalculate their base year emissions. This
recalculation may be done for significant changes to the data,
inventory boundary, methods, or any other relevant factors. The
company's best judgment is used to define the significance of any
changes that might trigger a base year adjustment. Significant
changes that may trigger a base year recalculation include:
• Structural changes to ownership or control (e.g. mergers,
acquisition, divestiture, and outsourcing and in-sourcing
of emitting activities);
• Changes in status of leased assets (ending leases or
obtaining new leases);
• Changes in calculation methodology or improvement in
the accuracy of emission factors or activity data; and
• Discovery of significant errors.
Base year emissions are not recalculated if the company makes
an acquisition or divestiture of operations that did not exist in
its base year, though historic data after the base year should be
adjusted. Base year emissions and any historic data in general
are not recalculated for organic growth or decline. The specific
corporate policies for base year adjustments due to structural or
methodology changes should be outlined in this section of the
IMP.
-------
GUIDE TO GREENHOUSE GAS MANAGEMENT FOR SMALL BUSINESS & LOW EMITTERS
14
e
Create an Inventory
Management Plan
Management Tools
The management tools serve to identify the roles and
responsibilities, training procedures and file maintenance
procedures of the company..
Auditing and Verification
Identifies procedures for auditing (internal and external),
management review, and how corrective actions are taken.
C) ADDITIONAL IMP TOOLS
Climate Leaders also offers other tools for IMP development,
which include an IMP Checklist and sample IMPs developed
by Climate Leaders Partners. All of these tools are available
on the Climate Leaders website at http://www.epa.gov/
climateleaders/resources/index.html.
CLIMATED
LEADERSJL*
U.S. Environmental Protection Agency
-------
&EPA
GUIDE TO GREENHOUSE GAS MANAGEMENT FOR SMALL BUSINESS & LOW EMITTERS
15
6
Set a Goal & Track
Progress
CLIMATED
LEADERSJL*
U.S. Environmental Protection Agency
Step 4 - Set a Goal and Track Progress
This section provides an introduction to topics on how to reduce
greenhouse gas emissions. This section can help answer
questions like, "Now that I've calculated my GHG emissions, how
do I track these emissions from year to year?" or "How do I set a
goal to reduce my GHG emissions?"
A. ANNUAL GHG INVENTORY SUMMARY AND
GOAL TRACKING FORM
GHG emissions can be tracked annually by completing the
Climate Leaders Annual GHG Inventory Summary and Goal
Tracking Form available at www.epa.gov/climateleaders/
partners/lowem itters. htm I. The data from the Calculator
"Summary" section shows your company's GHG emissions as
C02 equivalents in metric tons, which can be entered from the
Calculator summary into the Annual Reporting Form without any
further conversions or calculations.
B. SETTING A GHG REDUCTION GOAL
Setting a goal is a tangible action that communicates to
stakeholders a company's climate strategy and commitment.
Having a target can motivate staff, help drive long-term strategies,
and save money for the company through energy efficiency projects.
A credible goal should meet the following criteria:
1. Corporate-wide: including at least all U.S. operations
2. Forward-looking: based on the most recent base year for which
data are available
3. Long-term: achieved over five to 10 years
4. Reduction from baseline emissions: expressed as an absolute
GHG reduction, a decrease in GHG intensity, or as a goal to be
"carbon neutral"
5. Aggressive: in comparison to the projected GHG performance
for the company's sector
The Climate Leaders Annual Inventory and Goal Tracking Form
can contain the company's historical data and help track progress
towards meeting an absolute, intensity-based, or carbon neutral
greenhouse gas reduction goal.
C. DETERMINING THE TYPE OF GOAL
EPA allows goals to be expressed as an absolute GHG emissions
reduction or as a decrease in GHG intensity. Absolute GHG
reduction goals compare total GHG emissions in the goal year to
-------
&EPA
GUIDE TO GREENHOUSE GAS MANAGEMENT FOR SMALL BUSINESS & LOW EMITTERS
16
Set a Goal & Track
Progress
CLIMATED
LEADERSJL*
U.S. Environmental Protection Agency
those in a base year. GHG intensity goals allow a company to
account for increases or decreases in production over time.
The ratio of GHG emissions to an appropriate normalizing
factor becomes the Partner's key performance indicator for
measuring GHG intensity. Partners with emissions primarily
from office space should use square footage of space as their
normalizing factor. Partners may choose to use number of
employees if employee business travel is a large percentage of
their total emissions.
D. GOING "CARBONNEUTRAL"
In addition to absolute and intensity-based GHG reduction
goals, some Partners set a goal to be "carbon neutral",
which is a commitment to achieve and maintain net zero
GHG emissions in a company's operations (rather than, e.g.,
products or events). A carbon neutral goal should include the
following:
1. Have a robust, transparent GHG inventory and inventory
management plan in place and include at least one
significant optional emissions source to capture the full
climate change impact of the company's operations.
2. Look for opportunities to reduce the company's internal
emissions - for example, through energy efficiency,
installing onsite renewable energy, or setting up employee
commuting programs. Set an absolute or intensity-
based internal reduction goal to motivate the company to
implement these changes.
3. Purchase Green Power, Renewable Energy Certificates
(RECs), and/or Offsets for the part of the inventory
not reduced through internal projects. The company
can purchase Green Power or RECs to reduce the
emissions associated with its electricity use. It can then
purchase project-based reductions ("offsets") to offset
the remaining emissions from direct, other indirect and
optional emissions sources. The Annual Inventory and
Goal Tracking Form can track these external reductions
by making an adjustment to its total emissions. For more
information on purchasing credible RECs and offsets, visit
www.epa.gov/climateleaders/resources/optional-module.
html.
£ EPA RESOURCES FOR REDUCING GHG
EMISSIONS
The following resources include tools, technologies, and case
studies to help companies meet their GHG reduction goals:
• Climate Leaders:
• Goal-setting overview
• Program information and detailed technical guidance
• Case Studies
• Energy Efficiency Resources:
• ENERGY STAR Products and Services
• ENERGY STAR Portfolio Manager for buildings (see
Box)
• ENERGY STAR Guide for Small Business
• Renewable Resources:
• EPA Green Power Partnership
• Transportation:
• SmartWay Transport Partnership
• More EPA Partnerships:
• A Business Guide to EPA Climate Partnership Programs
-------
&EPA
GUIDE TO GREENHOUSE GAS MANAGEMENT FOR SMALL BUSINESS & LOW EMITTERS 17
F. PRO POSING A GOAL TO EPA
Once a Partner has identified reduction opportunities and
developed a reduction goal that meets Climate Leaders
criteria, the Partner should fill out the Climate Leaders Goal
Proposal Template, available at www.epa.gov/climateleaders/
partners/lowem itters.htm I. and submit this to EPA. EPA
will review the Partner's goal proposal and request any
clarifications prior to approving the goal for announcement as
a Climate Leaders goal.
Set a Goal & Track
Progress
CLIMATED
LEADERSJL*
U.S. Environmental Protection Agency
-------
&EPA
GUIDE TO GREENHOUSE GAS MANAGEMENT FOR SMALL BUSINESS & LOW EMITTERS 18
Conclusion
Congratulations! Your company has calculated its greenhouse gas emissions, determined how to
manage them year after year, and developed a plan to reduce them. Thank you for reducing your
company's carbon footprint.
CLIMATED
LEADERSJL*
U.S. Environmental Protection Agency
Their footprint is getting smaller.
Yours can too.
CLIMATE
LEADERS,
ULS. Enwanrrrontol Protocnon Aaoray
-------
&EPA
GUIDE TO GREENHOUSE GAS MANAGEMENT FOR SMALL BUSINESS & LOW EMITTERS 19
REFERENCES:
IPCC (2006). 2006 IPCC Guidelines for National Greenhouse Gas Inventories. The National Greenhouse
Gas Inventories Programme, The Intergovernmental Panel on Climate Change, H.S. Eggleston, L. Buendia,
K. Miwa, T. Ngara, and K. Tanabe (eds.). Hayama, Kanagawa, Japan.
US EPA. A Program Guide for Climate Leaders. October 2006. http://www.epa.gov/climateleaders/
documents/cl programquide 508.pdf.
US EPA. Design Principles Guidance. Climate Leaders GHG Inventory Protocol. May 2005. http://www.
epa.gov/climateleaders/resources/design-principles.html.
US EPA (2007). Inventory of U.S. Greenhouse Gas Emissions and Sinks: 1990 - 2005. EPA 430-R-07-002.
US EPA. Reporting Requirements and Technical Assistance, http://www.epa.gov/climateleaders/resources/.
World Resources Institute (WRI). Working 9 to 5 on Climate Change: An Official Guide. December 2002.
http://pdf.wri.org/wri co2guide.pdf.
World Resources Institute/World Business Council for Sustainable Development. The Greenhouse Gas
Protocol: A Corporate Accounting and Reporting Standard. March 2004. http://www.ghgprotocol.org/files/
qhq-protocol-revised.pdf.
CLIMATED
LEADERSJL*
U.S. Environmental Protection Agency
-------
&EPA
United States
Environmental Protection
Agency
August 2008
EPA 43-R-08-007
www.epa.gov/climateleaders
Office of Air and Radiation
------- |