APPENDIX Corporate GHG Inventorying and Target Setting Self-Assessment Beta V1.0 April 2020 SERIV CENTER FOR CORPORATE CLIMATE LEADERSHIP U.S. Environmental Protection Agency Supporting organizations in GHG measurement and management • www.epa.gov/climateleadership ------- APPENDIX: CORPORATE GHG INVENTORYING AND TARGET SETTING SELF-ASSESSMENT: VI.0 Purpose of this Self-Assessment and How it Can Lead to Action Companies are often in a stronger position to improve their greenhouse gas (GHG) management efforts once they understand their relative performance compared to their peers. In response to stakeholder interest, this Beta Version 1.0 Self-Assessment is designed to help companies estimate, at a high level, how their GHG inventorying and target-setting approaches compare to large peer companies representing different industry sectors. Once companies estimate how their key GHG measurement and target-setting efforts compare to their peers, they can evaluate, in greater detail, how other companies approach GHG inventorying and target setting. Helping companies locate their GHG management efforts within the broader market may spur competition, garner internal support for widening the scope of their GHG inventories or setting more aggressive GHG reduction targets, and prioritize resources to implement GHG reduction activities. • Entry-level: For companies beginning to address their GHG emissions, this resource aims to help them identify which inventorying and target-setting actions reflect common business practices today and provide them with a roadmap for developing their own inventories and setting targets. • Intermediate: For companies further along their sustainability journey, this self- assessment can validate more advanced inventorying and target-setting behaviors that position them to deepen GHG emission reductions. • Advanced: For leading companies, this resource can also validate their efforts and encourage them to explore implementing more cuttingedge GHG management efforts, eventually pushing such innovations into the mainstream and sharing practices with others. As more companies inventory the full breadth of their GHG emissions, set ambitious targets, and implement strategic and management decisions that drive down emissions, more companies can leverage lessons learned and become leaders themselves. ------- APPENDIX: CORPORATE GHG INVENTORYING AND TARGET SETTING SELF-ASSESSMENT: VI.0 Methodology This Beta Version 1.0 Self-Assessment was developed by analyzing data to determine what proportion of companies are implementing different practices within key GHG inventorying and target-setting approaches practiced in the market today. While some target-setting measures may be more feasible in some industries over others, practices featured in this self-assessment can apply across all sectors. • Dataset: The dataset is driven by publicly disclosed data on GHG inventorying and target setting from 565 companies within the S&P500 and Fortune 500 as reported to CDP, a global platform featuring corporate greenhouse gas (GHG) emissions data from nearly 7,000 companies. The dataset includes some of the largest global publicly traded companies and privately held companies spanning various industry sectors. All companies in the dataset publicly disclosed at least some information, thus helping to establish a range of inventorying and target-setting efforts across industries. o Self-Reported Data: CDP maintains granular data for companies' scope 1, scope 2, and, where available, scope 3 emissions reported at an organizational or financial level. Companies self-disclose their GHG emissions, and many companies also include third-party verification to either limited or reasonable levels of assurance. EPA did not further verify the data, o Data Vintage: EPA evaluated data reported in CDP's 2018 Climate Change questionnaire, which includes 2017, and some 2018, calendar or fiscal year data, o Additional Data and Analysis: Given the data vintage, EPA assessed the public platform RE100 pledge to update the number of companies pledging 100% renewable energy targets, as of late March 2020. To assess the extent to which corporations set other renewable energy targets, EPA analyzed green power usage as a percentage of overall electricity usage from Fortune 500 companies participating in its Green Power Partnership that also overlapped with the CDP dataset. • Further Insights: In assessing which inventorying and target-setting behaviors reflected different ambition levels, EPA also leveraged its experience working with companies directly through its ENERGY STAR and Green Power Partnership programs for approximately two decades, observations of broader market trends in corporate GHG management over the past decade, and direct discussions with companies and other key stakeholders who work with companies on GHG inventorying and target setting in the past 24 months. • A list of all companies included in the dataset is available below. Of note, EPA did not evaluate companies' emissions reductions themselves, as such data are difficult to meaningfully assess when companies represent different sectors, may be structured too differently to be comparable, or may have different GHG inventory baseline years against which to measure progress. Resources Each GHG management practice featured includes resources companies can consult to improve their GHG inventorying and target-setting efforts. POWERED BY CDP DATA 2 ------- Inventorying and Reporting ------- APPENDIX: CORPORATE GHG INVENTORYING AND TARGET SETTING SELF-ASSESSMENT: VI.0 Key Findings on Corporate GHG Inventorying & Reporting The findings below reflect how many companies in the dataset implement key GHG inventorying and reporting activities. A detailed examination of sector-based activities is also included below. Figure 1: Corporate GHG Inventorying and Reporting^ Company tracks and publicly records energy usage Calculates + publicly discloses GHG emissions from operations and purchased electricity Calculates + publicly discloses some value chain GHG emissions Has analyzed climate-related opportunities that could have a substantive business impact Engages value chain on climate-related issues Receives third party verification of its GHG emissions from all operations and purchased electricity + publicly discloses results Receives third party verification of its value chain GHG emissions + publicly discloses results 0 200 400 600 Number of Companies 3 ------- APPENDIX: CORPORATE GHG INVENTORYING AND TARGET SETTING SELF-ASSESSMENT: VI.0 A. GHG Inventorying and Reporting: Scope 1 and 2 From CDP Question C6.1: What were your organization's gross global scope 1 emissions in metric tons C02e? From CDP Question 6.3: What were your organization's gross global scope 2 emissions in metric tons C02e? Since the release of the GHG Protocol Corporate Accounting and Reporting Standard nearly two decades ago, thousands of companies annually report on their GHG emissions. Many leading companies also disclose their GHG emissions publicly, which helps hold them accountable to their emission reduction targets and GHG reductions over time. Most companies in the dataset (84%) responded affirmatively to calculating and publicly disclosing scope 1 and scope 2 emissions. The vast majority, at a minimum, measure and report their energy use (89%). Reporting of scope 1 and scope 2 emissions is more common in specific sectors. For example, in Figure 2: Percentage Of Companies Reporting Scope 1 And 2 Emissions By Sector, 69% of industrial companies in the dataset report scope 1 and scope 2 emissions, whereas 95% of companies in the communication services sector do so. In EPA's experience working with companies via its partnership programs, a significant number of leading companies have reported full scope 1 and 2 inventories for several years, some for over a decade. Figure 2: Percentage of Companies Inventorying and Reporting Scope 1 and 2 Emissions by Sector Communication Services Consumer Discretionary Consumer Staples Energy Financials Health Care Industrials Information Technology Materials Real Estate Utilities 20% 40% 60% 80% 100% Participation Percentage Reporting " Not Reporting ------- APPENDIX: CORPORATE GHG INVENTORYING AND TARGET SETTING SELF-ASSESSMENT: VI.0 Figure 3: Percentage of Companies Tracking Energy Usage by Sector Communication Services Consumer Discretionary Consumer Staples Energy Financials Health Care Industrials Information Technology Materials Real Estate Utilities 0% 95% 94% 94% 88% 98% 92% 73% 91% 92% 93% 96% 20% 40% 60% 80% 100% Participation Percentage 11% 89% Companies Tracking Energy Use Companies Not Tracking Energy Use 5 ------- APPENDIX: CORPORATE GHG INVENTORYING AND TARGET SETTING SELF-ASSESSMENT: VI.0 B. Inventorying & Reporting Scope 3 Emissions & Supplier Engagement From CDP Question C6.5: Account for your organization's scope 3 emissions, disclosing and explain any exclusions. From CDP Question C12.1: Do you engage with your value chain on climate-related issues? Since the 2012 release of the Greenhouse Gas Protocol Corporate Value Chain (Scope 3) Standard and Technical Guidance for Calculating Scope 3 Emissions, more companies have estimated or calculated the GHG emissions in their value chains. For many companies, up to 90% of their full GHG emissions footprint lies outside their owned and operated facilities. Approximately three-quarters of the dataset responded affirmatively to calculating and publicly disclosing some scope 3 emissions. Of the Guidance's 15 categories of scope 3 emissions, the most often reported categories include business travel (51%), purchased goods and services (31%), fuel and energy related activities (31%) and employee commuting (30%) (See Figure 5: Percentage of Scope 3 Categories Reported). Since 2013, the scope 3 emissions reported increased on average by 13-14% for both U.S. and global companies.1 More advanced companies have inventoried all scope 3 emission sources—a laborious and often complex undertaking—and/or explained where GHG emissions in the supply chain are considered de minims or cannot be calculated. In addition, programs such as the Science-Based Targets Initiative (SBTi)2 and ISO 14064-1 are beginning to use significance of scope 3 impacts to determine which scope 3 emissions to report. More companies are also directly engaging their suppliers to measure, report, and reduce GHG emissions. Nearly, 62% companies reported that they engage their value chain on climate- related issues. Other companies have gone further to integrate supplier performance on GHG management into business decisions. 1 https://www.greenbiz.com/report/2019-state-green-business-report Greenbiz's State of Green Business report examines trends and metrics assessing how companies address environmental challenges. GreenBiz produced the 2019 report in partnership with Trucost, part of S&P Global, without EPA's involvement. GreenBiz's analyzed dataset may differ from the one used to develop this self- assessment. 2 The Science-Based Targets Initiative is a joint effort of CDP, the UN Global Compact (UNGC), the World Resources Institute (WRI) and WWF to enable leading companies to set ambitious corporate GHG reduction targets. 6 ------- APPENDIX: CORPORATE GHG INVENTORYING AND TARGET SETTING SELF-ASSESSMENT: VI.0 Figure 4: Percentage of Companies Publicly Disclosing Scope 3 Emissions Communication Services Consumer Discretionary Consumer Staples Energy Financials Health Care Industrials Information Technology Materials Real Estate Utilities ¦ 79% 72% 0% 20% 40% 60% 80% Participation Percentage 38% 62% 100% Reporting > Not Reporting Figure 5: Percentage of Scope 3 Categories Reported Business travel Purchased goods and services Employee commuting Fuel-and-energy-related activities Waste generated in operations Upstream transportation and distribution Downstream transportation and distribution Capital goods Use of sold products End of life treatment of sold products Upstream leased assets Downstream leased assets Investments Processing of sold products Other (downstream) Franchises Other (upstream) 51% 0% 10% 20% 30% 40% 50% 60% Participation Percentage 7 ------- APPENDIX: CORPORATE GHG INVENTORYING AND TARGET SETTING SELF-ASSESSMENT: VI.0 C. Third-Party Verification From CDP Question C10.1: Indicate the verification/assurance status that applies to your reported emissions. Third-party verification of GHG inventories helps companies establish credibility for their climate-related disclosures. Over the past decade, third-party verification of GHG inventories have become established service offerings. In the dataset analyzed, 50% of companies have had their scope 1 and scope 2 emissions verified by a third party. In some instances, companies will pursue third-party verification and share results with investors or customers but may not publicize their GHG inventories. In other instances, companies who do not publicly report full or partial GHG inventories, may still decline third-party verification for cost or other reasons. Fewer companies (39%) pursue verification of scope 3 emissions, possibly because they lack data to complete a full scope 3 inventory or lack confidence in their estimates, thus not warranting third-party review and public reporting. Based on insights gleaned from stakeholders familiar with different levels of assurance for third-party verification, most companies pursue third-party verification to at least a limited level of assurance, whereas reasonable levels of assurance from an accredited third-party verifier is activity typically seen only in advanced companies.3 CDP does not differentiate between limited and reasonable assurance in scoring methodology when evaluating companies' climate-related disclosure and performance. Figure 6: Percentage of Companies that Receive Third-Party Verification for Scope 1 and 2 Inventories Communication Services Consumer Discretionary Consumer Staples Energy Financials Health Care Industrials Information Technology Materials Real Estate Utilities 58% 43% 56% 44% 52% 80% 87% 0% 20% 40% 60% 80% 100% Participation Percentage 50% 50% Conducts Third-Party Verification Does Not Conduct Third-Party Verification 3 More information on limited and reasonable levels of assurance can be found in the ISO 14064-3:2019 standard. 8 ------- APPENDIX: CORPORATE GHG INVENTORYING AND TARGET SETTING SELF-ASSESSMENT: VI.0 Figure 7: Percentage of Companies that Receive Third-Party Verification for Scope 3 Inventories Communication Services Consumer Discretionary Consumer Staples Energy Financials Health Care Industrials Information Technology Materials Real Estate Utilities 73% 73% 30% 0% 20% 40% 60% 80% 100% Participation Percentage 61% 39% Conducts Third-Party Verification Does Not Conduct Third-Party Verification 9 ------- APPENDIX: CORPORATE GHG INVENTORYING AND TARGET SETTING SELF-ASSESSMENT: VI.0 D. Analysis of Business Impacts From CDP Question C2.4: Has your company identified any climate-related opportunities with the potential to have a substantive financial or strategic impact on your business? From CDP Question C2.4a: Provide details of opportunities identified with the potential to have a substantive financial or strategic impact on your business (Opportunity types are listed in the 2018 and 2019 CDP Climate Change Questionnaire as: resource efficiency, energy source, products and services, markets, resilience). From CDP Question (C3.1a): Explain how climate-related issues are integrated into your business objectives and strategy. Typically, once companies have become more experienced in assessing their GHG impacts, they are better positioned to assess climate-related strategic or financial opportunities, especially those pertaining to their energy use and/or GHG emissions. Opportunities may include cost reductions from energy and resource efficiency, development of new products and services which may gain the company access to new markets, and cleaner energy sources. From the dataset, 66% companies have analyzed and publicly reported at least some of these financial or strategic impacts (See Figure 8: Percentage Of Companies That Analyzed Climate- Related Opportunities That Can Have A Substantive Financial Or Strategic Impact On Their Business). In addition to evaluating climate-related opportunities, companies are increasingly assessing their climate-related transition risks. The Task Force on Climate Related Financial Disclosure (TCFD)'s reporting framework, launched in 2017, provides companies guidance for developing a materiality assessment of their climate risk to demonstrate how climate change affects companies, their contribution to climate change, and how they will insulate themselves from the physical, financial, reputational, and regulatory risks posed by climate change. While few companies have completed and publicly reported a materiality assessment at this time, more companies are beginning to develop TCFD reports in response to growing investor expectations for companies to develop and disclose any substantive climate-related financial impacts, including transition risk impacts. Additionally, with the release of Sustainability Accounting Standards Board (SASB)'s reporting standards in late 2018 that complement TCFD reporting, stakeholders anticipate seeing annual increases in investor-focused reporting on climate- related risk and opportunities according to widely accepted frameworks. Future versions of this self-assessment can examine corporate disclosure on climate-related transition risk. 10 ------- APPENDIX: CORPORATE GHG INVENTORYING AND TARGET SETTING SELF-ASSESSMENT: VI.0 Figure 8: Percentage of Companies that Analyzed Climate-Related Opportunities that can have a Substantive Financial or Strategic Impact on their Business Communication Services Consumer Discretionary Consumer Staples Energy Financials Health Care Industrials Information Technology Materials Real Estate Utilities ¦ 74% 71% 173% ¦ 81% 93% 78% 0% 20% 40% 60% 80% 100% Participation Percentage 34% 66% Reporting ¦ Not Reporting 11 ------- Target Setting ------- APPENDIX: CORPORATE GHG INVENTORYING AND TARGET SETTING SELF-ASSESSMENT: VI.0 Key Findings for Trends in Corporate Target Setting to Reduce GHG Emissions The findings below reflect how companies in the dataset are setting targets to reduce their GHG emissions. A detailed examination of activities is also included below in Figure 9: Corporate Target Setting To Reduce GHG Emissions, which shows the percentage of companies in the dataset that have absolute GHG emission reduction targets (44%), scope 3 targets (12%) and renewable energy use targets (8%), respectively. Figure 9: Corporate Target Setting to Reduce GHG Emissions Set an absolute GHG emissions reduction target for its operations and purchased electricity 44% Set a value chain GHG emissions reduction target 12% Set a 100% renewable energy use target 8% I 0 100 200 300 400 500 Number of Companies 600 12 ------- APPENDIX: CORPORATE GHG INVENTORYING AND TARGET SETTING SELF-ASSESSMENT: VI.0 A. Scope 1 and 2 Emissions Reduction Targets CDP Question C4.1a: Provide details of your absolute emissions target(s) and progress made against those targets. CDP Question C4.1b Provide details of your emissions intensity target(s) and progress made against those target(s). For nearly 20 years, EPA has engaged companies to develop GHG emission reduction targets or created resources to help them do so. Starting in 2009, EPA observed that, increasingly, companies set absolute reduction targets to decouple production of goods and services from emissions growth. While many leading companies have set an absolute reduction target----44% of the dataset recorded setting an absolute scope 1 and/or scope 2 emission reduction target (.Figure 10: Percentage Of Companies By Sector With Emissions Intensity Vs Absolute Reduction Targets)—companies also continue to set ambitious intensity targets that lead to substantial reductions. Within the past few years, companies have increasingly participated in the Science-Based Targets Initiative (SBTi); more than 800 companies across sectors and geographies have developed or pledged to develop a Science-Based Target.4 According to the SBTi, targets adopted by companies to reduce greenhouse gas (GHG) emissions are considered "science- based" if they aligned with climate science to limit global warming to well-below 2°C above pre- industrial levels and pursue efforts to limit warming to 1.5°C. Companies participating in the SBTi can set intensity-based targets for scope 1 and 2 emissions only if they result in absolute emission reductions in line with climate scenarios for keeping global warming to well below 2°C or when they are modelled using an approved sector pathway. Until recently, SBTi recognized new targets consistent with the level of decarbonization required to keep global temperature increase to 2°C compared to preindustrial temperatures. As Figure 11: Percentage of Companies by Sector with Absolute Reduction Targets shows, many companies across several sectors have set absolute reductions targets, with a growing number developing reduction targets aligned with current climate science. Fewer companies to date have had their targets approved by the SBTi. Currently, a handful of leading companies are setting net zero targets to demonstrate their corporate climate commitments. Most of these companies have several years of experience developing full scope 1, 2 and 3 inventories and setting absolute GHG reduction targets to allow them to understand investments and efforts needed to achieve such ambitious measures. As companies begin to use various terminology to describe their net zero or greater commitments-- including terms such as 'carbon neutral' or 'carbon negative,'-- greater clarification is needed to accurately describe this emerging level of ambition. 4 Companies committing to a Science Based Target current as of March 15, 2020. A complete list of companies who have committed to set Science Based Targets: https://sciencebasedtargets.org/whv-set-a-science-based-target/ 13 ------- APPENDIX: CORPORATE GHG INVENTORYING AND TARGET SETTING SELF-ASSESSMENT: VI.0 Figure 10: Percentage of Companies by Sector with Emissions Intensity vs. Absolute Reduction Targets Communication Services Consumer Discretionary Consumer Staples Energy Financials Health Care Industrials Information Technology Materials Real Estate Utilities 0% 53% 53% 49% 31% 38' 38% 64% 61% 60% 63% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Participation Percentage Intensity Targets i Absolute Targets 14 ------- APPENDIX: CORPORATE GHG INVENTORYING AND TARGET SETTING SELF-ASSESSMENT: VI.0 Figure 11: Percentage of Companies by Sector with Absolute Reduction Targets 53% Communication Services Consumer Discretionary Consumer Staples Energy Financials Health Care Industrials Information Technology Materials Real Estate Utilities 16% 18% 17% 16% 11% 13% 25% 44% 37% 47% 31% 64% 24% 8% 6% 26% 9% 3%l 24% 18% 39% 38% 49% 24% 5% 2< 40% 26% 31% 13% 7% 60% 63% 0% 10% 20% 30% 40% 50% 60% 70% Participation Percentage i Has an absolute scope 1 and/or scope 2 target Has an absolute scope 1 and/or scope 2 target and is considered to be a science based target Has an absolute scope 1 and/or scope 2 target that has been approved as science-based by the Science Based Targets Initiative 15 ------- APPENDIX: CORPORATE GHG INVENTORYING AND TARGET SETTING SELF-ASSESSMENT: VI.0 B. Scope 3 Emissions Reduction Target CDP Question C4.1: Did you have an emissions target that was active in the reporting year? CDP Question C4.1a: Provide details of your absolute emissions target(s) and progress made against those targets. CDP Question C4.1b Provide details of your emissions intensity target(s) and progress made against those target(s). For most sectors, the biggest sources of GHG emissions lie in their upstream and downstream value chains, outside their operational or financial control. As companies become more experienced with developing scope 3 inventories and assessing the GHG impacts of their upstream and downstream suppliers, some have taken steps to publicly announce targets to reduce emissions across their entire value chain. Leading companies set GHG reduction targets that tackle the largest sources of their scope 3 category emissions, often the manufacture and transport of their goods and services or employee travel, depending on the sector. Notable examples of companies with supply chain GHG reduction efforts include Walmart's Project Gigaton, HP's scope 3 target announced in 2015, and Apple's supplier engagement program that includes efforts to reduce upstream supply chain energy impacts in other countries. Developing and publicly announcing a scope 3 reduction target is challenging, as reflected in the dataset, where only 12% of companies assessed set a scope 3 reduction target. However, prior to developing value chain reduction targets, companies often have already begun engaging their suppliers to measure and report emissions, as 62% of reported that they engage their value chain on climate-related issues. The SBTi requires companies to include scope 3 emissions reductions in their science-based targets if more than 40% of a company's total GHG footprint is found in its value chain. In developing an SBTi-approved science-based target, companies must set one or more emission reduction targets and/or supplier or customer engagement target that collectively covers at least 2/3 of total scope 3 emissions in conformance with the GHG Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard. Despite only 12% of companies analyzed in the dataset having reported scope 3 reduction targets, over 800 companies globally have developed or committed to develop a science-based target through SBTi, many of which will include scope 3 reductions. 16 ------- APPENDIX: CORPORATE GHG INVENTORYING AND TARGET SETTING SELF-ASSESSMENT: VI.0 Figure 12: Percentage of Companies with Scope 3 Reduction Targets (by sector) Communication Services Consumer Discretionary Consumer Staples Energy 0% Financials Health Care 0% Industrials Information Technology Materials Real Estate Utilities 12% 13% 15% 0% 10% 20% 30% 40% Participation Percentage Has a Scope 3 Target Does Not Have a Scope 3 Target Figure 13: Breakdown of Scope 3 Targets (by sector) Communication Services Consumer Discretionary Consumer Staples Energy 0% Financials Health Care 0% Industrials Information Technology Materials 1351 2% Real Estate Utilities 0% 5% ¦ Has an absolute scope 3 target 7% 21% 15% 13% 15% 10% 15% 20% Participation Percentage 25% 30% Has an absolute scope 3 target and is considered to be a science based target Has an absolute scope 3 target that has been approved as science-based by the Science Based Targets Initiative 17 ------- APPENDIX: CORPORATE GHG INVENTORYING AND TARGET SETTING SELF-ASSESSMENT: VI.0 C. Renewable Energy CDP Question C4.1: Did you have an emissions target that was active in the reporting year? CDP Question C4.1a: Provide details of your absolute emissions target(s) and progress made against those targets C4.1b: Provide details of your emissions intensity target(s) and progress made against those target(s) CDP Question C4.2: Provide details of other key climate-related targets not already reported in question C4.1/a/b. Renewable energy plays a key role in the shift to a low carbon economy. Companies globally are committing to setting ambitious renewable energy targets, with over 2265 companies having set 100% renewable energy procurement targets through the RE100 initiative.6 In the dataset analyzed, 8% of companies have committed to setting 100% renewable energy use target,7 however, this number is expected to grow steadily as more companies announce ambitious targets. Whereas many companies use the term "100% renewable energy," a more accurate term might be a "100% renewable electricity target," as many companies seek to mitigate their scope 2 emissions with this target and often use "energy" and "electricity" interchangeably. Renewable electricity is a subset of renewable energy. Further clarification is needed across programs and initiatives on whether "100 renewable" targets apply only to electricity purchased or all forms of energy. Committing to 100% renewable energy use can be easily achievable for some sectors, namely those that purchase large amounts of electricity (e.g., datacenters) but challenging for other sectors (e.g., some industrial companies) that rely on thermal energy, where fewer options for commercially available and cost-effective renewable alternatives currently exist. EPA chose to analyze data from the Green Power Partnership (GPP) instead of the renewable energy purchased amounts disclosed in the CDP dataset to ensure that, absent more details, renewable energy purchases evaluated aligned with its programmatic approach. The GPP references the widely accepted U.S. voluntary market definition for green power as a subset of renewable energy representing those renewable energy resources and technologies that provide the highest environmental benefit. All GPP partners purchase green power in alignment with this definition. The majority of GPP Partners purchase green power for renewable electricity, hence the data analyzed for determining different ambition levels in the Self-Assessment best reflect setting targets for purchasing renewable electricity. As options for sourcing renewable energy have expanded in recent years, more companies are able to set increasingly ambitious procurement targets, even if they do not cover the full scope of their electricity purchases. To understand how companies' actual purchases could reflect different renewable energy target ambition levels in the market today, EPA examined 5 As of 27th February 2020, http://therelOO.org/companies 6 http://therelOO.org/companies 7 Dataset was crosschecked with RElOO's list of participating companies as of 27th February 2020 18 ------- APPENDIX: CORPORATE GHG INVENTORYING AND TARGET SETTING SELF-ASSESSMENT: VI.0 purchasing data from its Fortune 500 companies in its Green Power Partnership (GPP) that also overlapped with the dataset used for developing the self-assessment.8 GPP Partners include 16% of all Fortune 500 companies and 35% of all Fortune 100 companies; 57 GPP Fortune 500 Partners companies (or 74% of GPP Fortune 500 Partners) overlapped with the CDP dataset. On average, these GPP Partners' green power use represents 57% of their individual electricity consumption. Additionally, the average green power consumption as a percentage of total electricity used is 60% across all 75 Fortune 500 companies participating in the GPP (see end of Appendix for the list of additional companies assessed). In EPA's experience, companies newer to purchasing green power often choose to buy at a lower percentage of their overall electricity use, increasing their procurement once they gain experience with green power product options. In select cases, partners purchase green power in excess of 100% of their US organization-wide electricity use, often on behalf of third- party facilities outside their operational control. Figure 14: Percentage of Companies with 100% Renewable Energy Targets Communication Services Consumer Discretionary Consumer Staples Energy 0% Financials 20% Health Care 4% Industrials ¦ 2% Information Technology Materials 3% Real Estate ^^^^B 7% Utilities 0% 0% 10% 20% Participation Percentage 12% 30% 92% Reporting " Not Reporting 8 https://www.epa.gov/greenpower/what-green-power 19 ------- APPENDIX: CORPORATE GHG INVENTORYING AND TARGET SETTING SELF-ASSESSMENT: VI.0 Figure 15: Green Power as a Percentage of Total Electricity Purchased (dataset includes 57 green power partnership companies also in the CDP dataset) Communication Services Consumer Discretionary Consumer Staples Energy Financials Health Care Industrials Information Technology Materials Real Estate Utilities 62% 40% 53% o% ¦ I 54% 24% 68% 35% 0% 0% 77% 0% 10% 20% 30% 40% 50% 60% 70% 80% Percentage of Green Power Procurement 90% 20 ------- APPENDIX: CORPORATE GHG INVENTORYING AND TARGET SETTING SELF-ASSESSMENT: VI.0 Dataset of Companies Assessed Communication Services Alphabet, Inc.* AT&T Inc.* CBS Corp. CenturyLink" Comcast Corporation DG3 NORTH AMERICA INC Edelman Interpublic Group of Companies, Inc. Level 3 Communications, Inc. News Corp Omnicom Group Inc. PCTEL Syni verse T Mobile USA incf Twenty-First Century Fox Verizon Communications Inc. Viacom Inc. Walt Disney Company WORLDWIDE TECHNOLOGY HOLDING COMPANY Consumer Discretionary Abercrombie & Fitch Co. All Access Apparel, Inc. American Textile Company, Inc. APPLIED ACOUSTICS INTERNATIONAL Bernhardt Design a Division of Bernhardt Furniture Company Best Buy Co., Inc.*" BorgWarner Caesars Entertainment Carnival Corporation Compatico Cooper Standard Automotive Cousin Corporation of America Dana Davies Office Refurbising, Inc. Domino Foods, Inc. Dunkin' Brands Group eBay Inc.f Epic Designers Ford Motor Company Gap Inc." Garan Manufacturing Corp General Motors Company*f Goodyear Tire & Rubber Company Hanesbrands Inc. Hasbro, Inc. Hilton Worldwide, Inc.*" Hyatt Hotels JCPenney Kimball Office Kohl's Corporation Kohler Co. Krueger International, Inc L Brands, Inc. Las Vegas Sands Corporation Levi Strauss & Co. Lowe's Companies, Inc. Macy's, Inc.* Marriott International, Inc. McDonald's Corporation MGM Resorts International Multipet International National Office Furniture Neapco NIKE Inc.f" OFS Brands PACCAR Inc Pacific Market International PVH Corpf" Radio Flyer Incf Rockline Industries Royal Caribbean Cruises Ltd Shason Inc. SMART Modular Technologies Tapestry Inc Tenneco The Home Depot, Inc. Tiffany & Co. TJX Companies, Inc. Town & Country Linen VF Corporationf Visteon VIVOTEK LTD Wyndham Destinations, Inc.* Yotrio Group Yum! Brands, Inc. Consumer Staples Albertsons Companies, LLC* Alliance One International Inc. Altria Group, Inc.* ANISA INTERNATIONAL INC Archer Daniels Midland Avon Products, Inc. Bright International Corp. Brown-Forman Corporation Bumble Bee Foods LLC Bunge Campbell Soup Company Cargill" Church & Dwight Co., Inc Clorox Company Colgate Palmolive Company* Conagra Brands Inc Constellation Brands, Inc. Costco Wholesale Corporation Crown Prince Del Monte Foods Estee Lauder Companies lnc.*f Farmer Brothers General Mills Inc.* Harris Tea Company HARVEST LAND CO-OP, INC. Healthy Food Ingredients Hormel Foods Hp Hood Lie INDULGENT FOODS Ingredion Incorporated Kellogg Companyf Keurig Dr Pepperf Keurig Green Mountain Kimberly-Clark Corporation* Kroger Labbeemint Mario Camacho Foods, Lie Marsf McCormick & Company, Incorporated" Molson Coors Brewing Company" Mondelez International Inc" Nordstrom, Inc. Norpac Foods, Inc. Pacific World Corporation PepsiCo, Inc. Perfection Bakeries Inc. Philip Morris International Pinnacle Foods Group Procter & Gamble Company*f Roskam Baking Company/Rothbury Farms Sensory Effects Smithfield Foods, Inc. Star of the West Starbucks Corporation*! Sysco Corporation Target Corporationf" The Coca-Cola Companyf" The J.M. Smucker Company The Kraft Heinz Company Tyson Foods, Inc. UNFI Wal-Mart Stores, Inc. Walgreens Boots Alliance Walmart, lnc.*f Energy Anadarko Petroleum Corporation Baker Hughes, a GE Company California Resources Corp ConocoPhillips CONSOL Energy Inc Devon Energy Corporation DTE Energy Company EOG Resources, Inc. Fluor Corporation Halliburton Company 21 ------- APPENDIX: CORPORATE GHG INVENTORYING AND TARGET SETTING SELF-ASSESSMENT: VI.0 Hess Corporation Occidental Petroleum Corporation Oneok Inc. PS ENERGY GROUP INC Vectren Corporation Wisconsin Energy Conservation Corporation (WECC) Financials Affiliated Managers Group AFLAC Incorporated Allstate Insurance Company American Express* American International Group, Inc. (AIG) Ameriprise Financial, Inc. Aon pic Assurant, Inc. Bank of America*f BlackRock Bloombergf BNY Mellon* Capital One Financial*! Charles Schwab Corporation Chubb Limited Cincinnati Financial Corporation Citigroup lnc.*f Citizens Financial Group Inc Comerica Incorporated Ernst & Young LLP (USA) Fifth Third Bancorp* Franklin Resources, Inc. Genworth Financial, Inc. Goldman Sachs Group lnc.*f Huntington Bancshares Incorporated JPMorgan Chase & Co.*f KeyCorp Legg Mason, Inc. Lincoln National Corporation Marsh & McLennan Companies, Inc. MetLife, Inc.* Morgan Stanleyf PNC Financial Services Groupf Principal Financial Group, Inc. Prudential Financial, Inc. Regions Financial Corporation State Street Corporation* T. Rowe Price Associates, Inc. The Hartford Financial Services Group, Inc. The Travelers Companies, Inc. U.S. Bancorp Unum Group* Voya Financial*! Wells Fargo & Company*f World Bank Group Health Care Abbott Laboratories AbbVie Inc Aetna Inc.* Agilent Technologies Inc. Allergan pic AmerisourceBergen Corp. Amgen, Inc. Anthem Incf Baxter International Inc.* Becton, Dickinson and Co. Biogen Inc.* Bristol-Myers Squibb Cardinal Health Inc. Celgene Corporation* Charles River Laboratories International Inc. Cigna Comar, Inc. CVS Health Dentsply Sirona Inc. Edwards Lifesciences Corp Eli Lilly & Co. Express Scripts Holding Company Henry Schein Inc. Hologic, Inc. Humana Inc. Johnson & Johnson*f KOBO PRODUCTS Laboratory Corporation of America Holdings MEDELA INC Medtronic PLC Merck & Co., Inc. Mettler-Toledo International Inc. Norwood Medical PerkinElmer, Inc. Pfizer Inc. Quest Diagnostics Incorporated* Regeneron Pharmaceuticals, Inc. STERIS Corporation Stryker Corporation Tenet Healthcare Corporation Tower Labs Trillium Health Care UnitedHealth Group Inc Varex Imaging Corporation Varian Medical Systems Inc VWR International LLC Waters Corporation West Pharmaceutical Services Zimmer Biomet Holdings, Inc.* Industrials 3M Company*f ABM INDUSTRIES INC American Airlines Group Inc American Cleaning Supply, Inc. Amtrak Aptiv Arconic ARTESYN EMBEDDED TECHNOLOGIES AVIOTRADE INC BECK GROUP - HC BECK Boeing Company* Brady Corporation CALIENTE CONSTRUCTION INC CAMPBELL WRAPPER CORP Cartus Central Business Forms, Inc CHA HOLDINGS Chroma Clune Construction Company CONTROLPOINT TECHNOLOGIES CORPORATE CARE CSX Corporation Cummins Inc.^ DAVEY TREE EXPERT Deere & Company Deloitte Touche Tohmatsu Limited Delta Air Lines Dover Corporation DW Morgan, LLC Eaton Corporation EMCOR Group Inc. Emerson Electric Co. EMO TRANS Expeditors International of Washington F&G CONSTRUCTION FedEx Corporation* FORGE INDUSTRIES INC General Electric Company GROUP 0, INC GZA Geoenvironmental, Inc. Hamilton Safe Company Harris Corporation Hartford Paving Harvard Maintenance, Inc. Herman Miller Hertz Global Holdings* Hi-Lex Corporation HNI Corporation Honeywell International Inc. IHS Markit Ltd. Illinois Tool Works Inc. Ingersoll-Rand Co. Ltd. Interface, Inc. Jetblue Airways Corporation Johnson Controls International PLC K&A Machine & Tool, Inc. Kansas City Southern KC Transportation Kelly Services Lennox International Inc Lockheed Martin Corporation* LOUREIRO ENGINEERING ASSOCIATES, INC. 22 ------- APPENDIX: CORPORATE GHG INVENTORYING AND TARGET SETTING SELF-ASSESSMENT: VI.0 M&M Cartage ManpowerGroup Masco Corporation MENEMSHA COMPANIES MILAN EXPRESS CO INC MILLENNIUM TECHNICAL SERVICES Modern Machine & Metal Fabricators, Inc. ModusLink Corporation Navistar International Corporation NEW ENGLAND UTILITY CONSTRUCTORS Norfolk Southern Corp. NORTHERN CLEARING Northrop Grumman Corp Northwest Seaport Alliance OMARK Consultants, Inc. Owens Corning^ Parker-Hannifin Corporation Pitney Bowes Inc. Port of Tacoma POTTERS CONSTRUCTION PRECISION PIPELINE SOLUTIONS Raytheon Company* REGAL BELOIT Republic Services, Inc.^ Rinchem Company Inc ROBIN ENTERPRISES CO Rockwell Automation Ryder System, Inc. Satellite Logistics Group SERIGRAPH, INC. SONIM TECHNOLOGIES INC Southwest Airlines Co.* Stanley Black & Decker, Inc. Steelcasef Suez Treatment Solutions Tennant Company Terex Corporation Tessy Plastics Textron Inc. Thomson Reuters Corporation Tosoh SMD Trans-Expedite Inc. TSM CORP Turtle & Hughes ULTRA TOOL & MANUFACTURING, INC. Union Pacific Corporation United Continental Holdings United Technologies Corporation UPS W.W. Grainger, Inc. Waste Management, Inc. Wesco International Xylem Inc Information Technology Accenturef^ Actiontec Electronics Adobe, Inc.f ADTRAN INC Akamai Technologies Inc Alliance Data Systems AMKOR TECHNOLOGY INC Analog Devices, Inc. Apple lnc.*f Applied Materials Inc.* Arista Networks Autodesk, Inc.f Automatic Data Processing, Inc. Avaya^ Bel Fuse Inc. Booz Allen Hamilton Broadridge Financial Solutions Inc CA Technologies CABOT MICROELECTRONICS CORP Cavium Ciena Corp. Cisco Systems, Inc.* CommScope, Inc. CREE INC. Cypress Semiconductor Corporation Dell Technologies*! Entegris Inc Exela Technologies First Solar Inc Fiserv, Inc. Flex Ltd. Form Factor Inc. Fourstar Connections, Inc. GENESYS EUROPE LTD (Global) H&R Block Inc Hewlett Packard Enterprisef HP lnc*f Ingram Micro Inc. Integrated Device Technology, Inc. Intel Corporation* IBM* Intuit Inc.^ Iron Mountain Inc.f^ Jabil Inc. Juniper Networks, Inc. Keysight Technologies Inc Kimball Electronics KLA Kmg Electronic Materials Lam Research Corp. LATTICE SEMICONDUCTOR Leidos Lenovo Group Lexmark International, Inc. LUMENTUM Marvell Technology Group, Ltd. MasterCard Incorporated Microchip Technology Micron Technology, Inc. Microsemi Corporationf Microsoft Corporation*^ Milestone AV Technologies Moody's Corporation Motorola Solutions NetApp Inc. NVIDIA Corporation Oracle Corporation* QUALCOMM Inc. S&P Global salesforce.com*f^ Seagate Technology LLC^ SEMTECH SHI International Corp. Sungard Availability Services (Sungard AS) Sykes Enterprises Incorporated Symantec Corporation TE Connectivity Teradata Corp. Teradyne Inc. Texas Instruments Incorporated Trimble Navigation Ltd. Unisys Corporation Verisk Analytics Inc Versum Virtusa Visaf VMware, Inc Western Digital Corp Worldpay Inc Xerox Corporation* Xilinx Inc Materials Air Products & Chemicals, Inc. AK Steel Holding Corporation Alcoa Corp. American Packaging AptarGroup Ashland Global Holdings Inc Avery Dennison Corporation Axalta Coating Systems Ball Corporation BELLIS STEEL COMPANY, INC. Bemis Company Berry Global Group, Inc Birla Carbon Brewer Science Cabot Corporation Celanese Corporation Compass Minerals International Inc COX INDUSTRIES CRC INDUSTRIES INC Crown Holdingsf DowDuPont E.I. du Pont de Nemours and Company Eastman Chemical Company 23 ------- APPENDIX: CORPORATE GHG INVENTORYING AND TARGET SETTING SELF-ASSESSMENT: VI.0 Ecolab Inc. Ecova, Inc. FMC Corp Freeport-McMoRan Inc. Fujimi Incorporated Gates Corporation Genfoot America Inc Graphic Packaging Greif Inc^ GW Plastics H.B. Fuller International Flavors & Fragrances Inc.f^ International Paper Company J M HUBER KIK Custom Products LyondellBasell Industries N.V. Moses Lake Industries NDK Newmont Mining Corporation Norcom, Inc. Novelis Inc. Packaging Corporation of America PPG Industries, Inc. Praxair, Inc. Schnitzer Steel Industries, Inc. Sealed Air Corp. Sherwin-Williams Company Silgan Plastics The Dow Chemical Company* The Mosaic Company Tosoh Quartz Trinseo LLC Vulcan Materials Company WestRock Company WS Hampshire, Inc. Zatkoff Seals and Packing Real Estate AvalonBay Communities^ CBRE Group, Inc. Digital Realty Trust Inc EQUINIX, INC.f Forest City Realty Trust HCP Inc. Host Hotels & Resorts, Inc.^ JLL Kimco Realty Macerich Co. MILLENNIUM REAL ESTATE SERVICE Prologis^ Simon Property Group Ventas Inc Welltower Inc. Utilities Ameren Corporation American Electric Power Company, Inc. American Water Works Aqua America Inc. Avangrid Inc CMS Energy Corporation Covanta Energy Corporation Dominion Energy Duke Energy Corporation Eversource Energy Exelon Corporation FirstEnergy Corporation Idacorp Inc NiSource Inc. NORTHLINE UTILITIES NRG Energy Inc OGE Energy Corp. Ormat Technologies Inc PG&E Corporation Pinnacle West Capital Corporation PPL Corporation Public Service Enterprise Group Inc. Sempra Energy The AES Corporation The Southern Company WEC Energy Group Xcel Energy Inc. *Companies that are Partners in EPA's Green Power Partnership fCompanies with 100% renewable energy targets ^Companies with updated Science-Based Targets Additional Green Power Partnership Partner Companies Assessed for Renewable Energy Target Setting: BD Netflix, Inc. PayPal, Inc. / U.S. Data Centers The Hartford Financial Services Group Inc. Wynn Las Vegas United Services Automobile Association (USAA) Kohl's Department Stores Whirlpool Corporation Penske Truck Leasing Co., L.P./Penske Logistics, LLC United Natural Foods, Inc. General Dynamics Land Systems / Central Office Office Depot, Inc / Headquarters Ulta Inc. General Dynamics Land Systems / Scranton Time Warner Cable / Central Texas United Parcel Service (UPS) / Palm Springs, CA Facility 24 ------- The self-assessment and this appendix are being developed through an iterative process, and we rely on feedback from users to improve in the future. Your comments and questions can be submitted at Acknowledgments Thank you to the following reviewers for providing feedback on the development of this Corporate GHG Inventorying and Target Setting Self-Assessment Beta Version 1.0 CDP Simon Fischweicher Stephanie Lavallato Green Power Partnership, U.S. Environmental Protection Agency James Critchfield The Climate Registry Michelle Zilinskas World Resources Institute, Science-Based Targets Initiative Cynthia Cummis '5 SEPA CENTER FOR CORPORATE CLIMATE LEADERSHIP U.S. Environmental Protection Agency Supporting organizations in GHG measurement and management • www.epa.gov/climateleadership ------- |