Simplified Guide to Greenhouse Gas Management for Organizations


SEPA CENTER FOR CORPORATE

CLIMATE
LEADERSHIP

U.S. Environmental Protection Agency

Supporting organizations in GHG measurement and management • www.epa.gov/climateleadership

Simplified Guide to Greenhouse Gas
Management for Organizations

vvEPA

United States
Environmental Protection
Agency

August 2022

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Table of Contents

Introduction	1

1.1. This Guide	1

Step 1 - Get Started	3

A.	Greenhouse Gas Inventories Defined	3

B.	Principles of Greenhouse Gas Accounting	3

C.	Choosing a Base Year	4

D.	Identifying Organizational Boundaries	4

Step 2 - Calculate Greenhouse Gas Emissions	5

A.	Sources Covered by the EPA Simplified GHG Emissions Calculator	5

B.	Using the Calculator	5

C.	Identifying Emission Source Types (Operational Boundaries) and Quantifying Emissions	6

Step 3 - Create a GHG Inventory Management Plan (IMP)	14

A.	Documenting Inventory Procedures	14

B.	GHG Inventory Management Plan	14

Step 4 - Set a Target and Track Progress	16

A.	Annual GHG Inventory Summary and Target Tracking Form	16

B.	Setting a GHG Reduction Target	16

C.	Determining the Type of Target	16

D.	Going Carbon Neutral	17

E.	EPA Resources for Reducing GHG Emissions	17

References	18

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Introduction

oduction

Organizations can take a leading role in helping the United States reduce the risks 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 an organization's GHG emissions. It was developed by the
Environmental Protection Agency's (EPA's) Center for Corporate Climate Leadership (the Center) to address the growing
interest by low emitters on this topic. The accompanying Simplified GHG Emissions Calculator (Calculator) and Simplified
Inventory Management Plan (IMP) Form are available for download to create a comprehensive climate change
management strategy.

Using these tools will enable low emitters, such as office-based organizations, suppliers, small businesses, and public
institutions to:

•	Create a comprehensive inventory of all GHG emissions,

•	Develop a GHG Inventory Management Plan (IMP) for data consistency over time, and

•	Set a GHG reduction target and track progress towards that target.

1.1. This Guide

This guide walks the user through the following four key steps, including the use of tools designed to assist
organizations. These tools and guidance are intended for organizations calculating emissions from U.S.-based
operations. All tools are available at the Center for Corporate Climate Leadership website. Additional technical resources
for managing GHG inventories are also available.

Step 1: Get Started

•	Greenhouse Gas Inventories Defined

•	Principles of Greenhouse Gas Accounting

•	Choosing a Base Year

•	Identifying Organizational Boundaries

Step 2: Calculate Greenhouse Gas Emissions

•	Tool: Simplified GHG Emissions Calculator

•	Sources Covered by the Calculator

•	Using the Calculator

•	Identifying Emissions Source Types (Operational Boundaries) and Quantifying Emissions
Step 3: Create a GHG Inventory Management Plan (IMP)

•	Tool: Simplified Inventory Management Plan (IMP)

•	Documenting Inventory Procedures

•	Inventory Management Plan for Low Emitters

•	Additional Inventory Management Plan Tools

1

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Introduction

Step 4: Set a Reduction Target and Track Progress

•	Tool: Inventory Summary and Target Form

•	Annual Greenhouse Gas Inventory Summary and Target Tracking Form

•	Setting a Greenhouse Gas Reduction Target

•	Determining the Type of Target

•	Going Carbon Neutral

•	EPA Resources for Reducing Greenhouse Gas Emissions

2

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Step 1 - Get Started

Step 1 - Get Started

A. Greenhouse Gas Inventories Defined

Many organizations are developing GHG inventories. An inventory is a list of emission sources and the associated
emissions quantified using standardized methods. EPA inventory guidance 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 is the global standard for calculating corporate 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 seven major GHGs: carbon dioxide (C02), methane (CH4), nitrous oxide (N20),

• hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), sulfur hexafluoride (SF6), and nitrogen trifluoride (NF3).

iples of Greenhouse Gas Accounting

The GHG Protocol is based on five principles. When in doubt about applying the tools explained in this guide to
ambiguous issues or situations, refer 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 organization and serves
the decision-making needs of internal and external users.

2. Completeness: Account for and report on all GHG emission sources and activities within the chosen inventory
boundary. Disclose and justify any specific exclusions.

LEASED ASSETS: The organizational boundary approach will help determine which operations to include that
are not fully owned and operated by the reporting organization under a scope 1 and 2 inventory, such as
leased office space or fleet vehicles. When using an operational control approach a general rule of thumb for
leases suggests that if the organization has access to the data (e.g., pays the utility bills or purchases gasoline),
those operations are under its control and should be included in the inventory as scope 1 or 2 emissions.
Organizations 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.
See more information on the General Help sheet in the Calculator or the GHG Protocol guidance on leased
assets. Emissions from leased assets that do not fall within an organization's boundary can be included in the
inventory as scope 3 emissions sources.

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.

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

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Step 1 - Get Started

accuracy to enable users to make decisions with reasonable assurance as to the integrity of the reported
information.

C. Choc iii1 : ' ¦1 r

For the inventory, collect data for a full year of operating activities. Many GHG emissions reporting programs require
reporting on a calendar year basis, but another 12-month period such as a fiscal year may be preferable for some
entities. The emissions calculated from these 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 to provide a meaningful comparison; therefore, choose a
recent year. For example, for an organization starting this process in 2020, collecting data for a base year of
2019 will likely provide the most robust data for its inventory.

tifying 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:

• The equity share approach accounts for GHG emissions based on the organization's share of equity (typically by
percentage ownership) in a facility or operation.

• The control approach is divided into either financial or operational control: Under financial control, include
operations for which the organization has the ability to direct financial and operating policies with a view to
gaining economic benefits from those activities.

o Under operational control, include operations for which the organization has full authority to implement
operating policies.

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Step 2 — Calculate Greenhouse Gas Emissions

f-y- - /icuL'i'* i¦ anhouse Gas Emissions

A.	Sources Cover the EPA Simplified GHG Emissions Calculator

Emission sources of all seven major GHGs are accounted for in an inventory: C02, CH4, N20, HFCs, PFCs, SF6, and NF3.
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 organization 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 organization but occur at sources owned or
controlled by another organization, most typically electricity, heat, or steam. These are also called indirect
emissions.

•	Scope 3: Indirect emissions that are not covered in scope 1 or 2, including business travel, employee commuting,
and product transport. Guidance on identifying and quantifying scope 3 emissions and identifying possible
advantages of reporting them, is provided in the calculator.

The Calculator allows the user to estimate GHG emissions from scope 1, scope 2, and scope 3 sources. Organizations
using this guide will likely find that most of their emissions come from building heating and cooling, fleet vehicles,
electricity use, and employee travel.

For those in the industrial sector, such as pulp and paper, cement, chemicals, and iron and steel, you may have sector-
specific emission sources that are not covered by the Calculator. Instead, look to EPA's Greenhouse Gas Reporting
Program which provides guidance and tools that can aid in the calculation and reporting of these emissions. Other
organizations, such as the GHG Protocol and industry associations, provide tools and guidance on calculating emissions
from industrial processes.

B.	Using th ulator

The Calculator is a Microsoft Excel workbook separated into the following sections:

•	Introduction to the Calculator

•	Boundary Questions

•	Summary of Organization's Emissions

•	Data entry and calculation for scope 1 emissions sources

o	Stationary Combustion

o	Mobile Sources

o	Refrigeration and Air Conditioning Leakage

o	Fire Suppression Systems

o	Purchased Gases

•	Data entry and calculation for scope 2 emissions sources

o	Purchases of Electricity

o	Purchases of Steam or Heat

•	Data entry and calculation for scope 3 emissions sources

o	Employee Business Travel

o	Employee Commuting

o	Upstream Transportation and Distribution

o	Waste

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Step 2 — Calculate Greenhouse Gas Emissions

• Purchased Offsets

• Unit Conversions

• Heat Content

• Emission Factors

• Help Sheets

How to Use the Calculator and Guide

Data collected by the organization for each emission source can be entered into the orange boxes within the Calculator.
The Calculator uses emissions factors from EPA's Emission Factors Hub to automatically calculate GHG emissions totals
in the blue and green colored boxes within the workbook. Blue and green summary boxes represent the scope 1 & 2 and
scope 3 portions of the organization 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 organization 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 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 Calculator to locate a 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 organization
in collecting data and calculating the emissions from that source. These headings are:

• DEFINITION: Here the user will find the definition of the emission source.

• COLLECT: Here the user will find information on what data should be collected about the emission source.

• QUANTIFY: Here the user will find the information needed to enter the data into the Calculator 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 section in the Calculator before entering the data. Remember to enter data
covering a full year.

C. Identifying Emission Source Types (Operational Boundaries) and Quantifying Emissions
Scope 1 Direct Emissions

Scope 1 GHG emissions occur from sources that are owned or controlled by the organization. Examples include boilers
used to heat buildings, refrigerant leakage from air conditioners, or travel in a fleet vehicle. Scope 1 sources may also
include leased vehicles or equipment for which the organization pays the fuel bills or can access the fuel use data.

Within the Calculator, sources are categorized into five types of scope 1 sources: stationary combustion, mobile sources,
refrigeration and air conditioning equipment, fire suppression equipment, and purchased gases. While most
organizations will have at least some scope 1 emission sources, it is possible for an office-based organization to have few
or none.

• Stationary Combustion

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Step 2 — Calculate Greenhouse Gas Emissions

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 facility. Sources of data can vary, but the data are often provided by the utility company that
supplies the fuel to the organization. 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: Enter the data into the appropriate, orange-colored boxes of the Calculator section titled Stationary
Combustion. Once the data are entered into the Calculator, the C02e emissions are calculated and summarized
in the blue-colored box.

• Mobile Source Emissions

DEFINITION: Mobile sources, like organization-owned cars and heavy-duty vehicles, generate emissions by
burning fuel. The fuel usage for any vehicle that is included within the organization's selected boundary
approach should be reported in this section as scope 1 emissions.

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 can be determined from vehicle records. Mileage or fuel use can also be estimated based on vehicle fuel
economy from the manufacturer or www.fueleconomv.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 Mobile
Sources. If the organization 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 are entered
into the Calculator, the C02e emissions are calculated and summarized in the blue-colored box. As required by
GHG Protocol these emissions are only calculated for the combustion of the fuel (e.g., tank-to-wheel).

• 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 in facilities or vehicles 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 Refrigeration and AC 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 are 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.

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Step 2 — Calculate Greenhouse Gas Emissions

QUANTIFY: Enter the data into the appropriate, orange-colored boxes of the Calculator section titled
Refrigeration and AC. Once the data are entered into the Calculator, the C02e emissions are calculated and
summarized in the blue-colored box.

• 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., HFCs, C02) emitted from fire suppression devices during use, maintenance, and disposal.

COLLECT: Choose one of three different calculation methods available in the Fire Suppression 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 are 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 Fire
Suppression. Once the data are entered into the Calculator, the C02e emissions are calculated and summarized
in the blue-colored box.

• Purchased Gases

DEFINITION: Industrial gases are sometimes used in processes such as manufacturing, testing, or laboratory
uses. For example, C02 gas is often used in welding operations. These gases are typically released to the
atmosphere after use. Any releases of the seven major greenhouse gases (C02, CH4, N20, PFCs, HFCs, SF6, and
NF3) must be included in the GHG inventory. Ozone depleting substances, such as CFCs and HCFCs, are regulated
internationally and are typically excluded from a GHG inventory or reported as a memo item.

COLLECT: Determine if C02, CH4, N20, PFCs, HFCs, SF6, or NF3 are used in processes such as those mentioned
above. If so, collect the mass of gas purchased. If data are not available in mass units, the user may need to
convert from volume to mass using the density of the specific gas.

QUANTIFY: Enter the data into the appropriate, orange-colored boxes of the Calculator section titled Purchased
Gases. Once the data are entered into the Calculator, the C02e emissions are calculated and summarized in the
blue-colored box.

Scope 2 Indirect Emissions

Scope 2 indirect emissions are emissions from energy (e.g., electricity, heat, and steam) consumed in owned or
controlled equipment or operations but generated by another entity other than the reporting organization. For example,
although the reporting organization may own equipment that consumes electricity, like office computers and copy
machines, a power plant operated by a third-party is likely burning fuel to generate the electricity that the reporting
organization uses to operate its equipment. Therefore, the indirect emissions of the reporting organization are the
direct emissions of the third-party that operates the power plant.

For many organizations, purchased electricity is the largest source of indirect GHG emissions and the most significant
opportunity to reduce those emissions. The Calculator section on scope 2 emissions has two types: purchases of
electricity and purchases of steam.

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Step 2 — Calculate Greenhouse Gas Emissions

Guidance released in early 2015 requires organizations to report two scope 2 totals: location-based and market-based.
This is referred to as dual reporting. The organization should quantify and report both totals in its GHG inventory. The
location-based method considers average emission factors for the electricity grids that provide electricity. The market-
based method considers contractual arrangements under which the organization procures power from specific sources,
such as renewable energy. For contractual arrangements to be included as market-based emissions, they must meet the
quality criteria outlined in the guidance document and also on the Market-Based Method Help sheet in the Calculator.
Market-based emission factors can be entered based on the organization's contractual arrangements and on the
availability of factors. The Calculator is set up such that if no market-based factors are entered, it will calculate them as
equal to location-based, based on the requirements of the scope 2 guidance.

More information is available in the EPA Greenhouse Gas Inventory Guidance document, Indirect Emissions from
Purchased Electricity.

• Purchases of Electricity

DEFINITION: GHGs are emitted when fossil fuels are combusted to generate electricity. Organizations account
for their responsibility for these emissions by reporting them as scope 2 emissions.

COLLECT: Collect electricity purchase information in units of kWh for each facility. The organization's best data
source is typically its electricity bill or invoice. Data on any contractual arrangements, such as for renewable
energy certificates (RECs) or utility green power products, should also be collected. This should include the units
(e.g., kWh, MWh), as well as the relevant emission factors. These purchases should be separately accounted for
using the appropriate market-based emissions factor. See help sheet in the Calculator for how to enter these
data.

In the Calculator, there is a map at the bottom of the Electricity section which divides the United States into
subregions based on the electric grid. Select the subregion(s) in which the organization's facilities are located to
determine the correct emission factors 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 to find the correct subregion.

QUANTIFY: Enter the data into the appropriate orange- and yellow-colored boxes of the Calculator section title
Electricity (Table 1) if market-based factors are applicable. Once the data are entered into the Calculator, the
C02e emissions are calculated and summarized in the blue-colored boxes at the bottom of the sheet.

• Purchases of Steam or Heat

DEFINITION: Similar to electricity production, GHGs are emitted when fossil fuels are combusted to generate
steam or heat. If the reporting organization purchases steam or heat, the emissions are accounted for as scope 2
emissions.

COLLECT: Determine the amount of steam purchased, the types of fuel that the steam supplier uses to generate
the steam, and either the emission factors provided by the steam supplier or the boiler efficiency. If values for
boiler efficiency are unavailable, a default of 80 percent is provided in the Calculator.

QUANTIFY: Enter the data into the appropriate orange- and yellow-colored boxes (Table 1) of the Calculator
section titled Steam. Once the data are entered into the Calculator, the C02e emissions are calculated and
summarized in the blue-colored boxes at the bottom of the sheet.

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Step 2 — Calculate Greenhouse Gas Emissions

Scope 3 Indirect Sources

Scope 3 indirect emissions are a consequence of the activities of an organization but are not owned or controlled by the
organization. Organizations may choose to report these emissions sources, which include employee commuting or
transporting products to market using contract carriers. While not all organizations choose to report scope 3 emission
sources, estimating these emissions provides a more complete picture of the organization's climate change impact
and offer the organization more opportunities to reduce emissions. For example, if employee commuting emissions are
included, it may also be beneficial to report the emission reductions from implementing a telecommuting or employee
carpool program.

In the Calculator, sources are categorized into four types of scope 3 sources most commonly reported: employee
business travel, employee commuting, waste, and upstream transportation and distribution. Additionally, the Calculator
has space to report Offset purchases if these are applicable to your business.

• Employee Business Travel

DEFINITION: Employee business travel emissions differ from the required mobile source emission reporting in
that they account for employee business travel in vehicles not owned or leased by the organization, such as
taxis, trains, commercial airplanes, and personal vehicles used for sales.

COLLECT: Collect information about employees' business travel methods. For travelers that use a personal
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 travel 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 1-3) of the Calculator section
titled Business Travel. Once the data are entered into the Calculator, the C02e emissions are calculated and
summarized in the green-colored box.

• 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 vehicles not owned or leased by the organization,
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 should be selected from the
Calculator options and an estimate of the passenger mileage data provided for each.

QUANTIFY: After the data have been collected, enter the data into the appropriate, orange-colored boxes
(Tables 1-2) of the Calculator section titled Employee Commuting. Once the data are entered into the Calculator,
the C02e emissions are calculated and summarized in the green-colored box.

• Upstream Transportation and Distribution

DEFINITION: Emissions from the transportation and distribution of product and material shipments between
origin and end customer, via vehicles not owned or leased by the organization. For example, the organization

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Step 2 — Calculate Greenhouse Gas Emissions

could hire another company to transport product from the manufacturing location to distribution centers or
final markets. (Note: if an organization owns or leases the trucks or other transport vehicles, these would be
part of its scope 1 mobile source emissions.) Another example of upstream transportation and distribution is
paying a courier to transport documents from one office to another.

COLLECT: Collect information about shipment methods (on-road 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. As defined in the Calculator Product Transport Help sheet, ton-miles are calculated by multiplying
the weight transported by the distance of each individual shipment. If the vehicle mileage option is chosen, then
the organization 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 organization need only enter the total ton-miles traveled.
For product transport via freight rail, waterborne, or air transport, the organization should enter the total ton-
miles data.

QUANTIFY: Enter the data into the appropriate, orange-colored boxes (Tables 1-2) of the Calculator section
titled Upstream Transportation and Distribution. Once the data are entered into the Calculator, the C02e
emissions are calculated and summarized in the green-colored box. The emissions are only calculated for the
combustion of the fuel (e.g., tank-to-wheel) for this scope 3 category.

• Waste

DEFINITION: Scope 3 emissions from waste include the disposal and treatment of waste generated in the
reporting organization's operations during the reporting year in facilities not owned or controlled by the
reporting organization. These emission factors align with the requirements of the GHG Protocol Scope 3
Standard. The emission factors do not include any avoided emissions impact from any of the disposal methods.
All the factors presented include transportation emissions, which are optional in the Scope 3 Calculation
Guidance, with an assumed average distance traveled to the processing facility. AR4 GWPs are used to convert
all waste emission factors into C02e.

COLLECT: Collect information on the amount of weight disposed at your facilities, by the type of waste (plastics,
paper, etc.) and disposal method (recycling, incineration, etc.). Refer to the Emission Factors worksheet in the
Calculator for a complete list of materials and available disposal methods.

QUANTIFY: After the data have been collected, enter the data into the appropriate, orange-colored boxes (Table
1) of the Calculator section titled Waste. Once the data are entered into the Calculator, the C02e emissions are
calculated and summarized in the green-colored box.

• Purchased Offsets

DEFINITION: Offsets are project-based direct emission reductions, avoidance, and/or removals that occur
outside the organizational boundary of the reporting organization. It is best practice if offsets are quantified
using a methodology approved by an offsets certification program, such as the Verified Carbon Standard or the
Climate Action Reserve. Offsets can be purchased by an organization to offset emissions from scope 1, scope 2,
and scope 3emission sources. Renewable energy certificates (RECs) are not project offsets and do not convey a
direct emissions reduction to their owner. RECs are measured in MWh units, whereas project offsets are
measured in tons of direct emission reductions.

COLLECT: Quantity of offsets purchased in metric tons C02e for each offset project.

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Step 2 — Calculate Greenhouse Gas Emissions

QUANTIFY: Enter the data into the appropriate, orange-colored boxes (Table 1) of the Calculator section titled
Offsets. Once the data are entered into the Calculator, the C02e emissions are summarized in the green-
colored box.

Data Management - ENERGY STAR Portfolio Manager

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. Users can transfer
their Portfolio Manager data into the Calculator to help calculate their organization-wide GHG emissions.

To transfer the correct data from Portfolio Manager to the Calculator, the organization should log in to Portfolio
Manager, navigate to the Reports tab, and create a new report template. After naming the report template, select all
facilities in the portfolio that fall within the organizational boundary. Then select a single year for the report timeframe,
indicating the last day of the reporting calendar year. You will now select the information and metrics to include in this
report. They should include those outlined in Table 1.

After you have selected all of these metrics, click Apply the Selection, then Save the template. Once saved, the template
may be used as often as needed to generate the report. Reports may be viewed directly and downloaded as an Excel
file.

Table 1: Information to be Included in Metrics Report

Property Information

Property Name Property GFA - Self-Reported (ft2)

Scope 1 Direct Emissions Fuels

Natural Gas Use (therms or kBtu)

Fuel Oil \#1 Use (kBtu)

Fuel Oil \#2 Use (kBtu)

Fuel Oil \#4 Use (kBtu)

Fuel Oil \#5 & 6 Use (kBtu)

Diesel \#2 Use (kBtu)

Kerosene Use (kBtu)

Propane Use (kBtu)

Coal - Anthracite Use (kBtu)

Coal - Bituminous Use (kBtu)

Coke Use (kBtu)

Wood Use (kBtu)

Other Use (kBtu)

Coal - Anthracite Use (kBtu)

Scope 2 Indirect Emissions Fuels

Electricity Use - Grid Purchase (kBtu)

District Steam Use (kBtu)

District Hot Water Use (kBtu)

Greenhouse Gas Emissions

eGRID subregion

Renewable Energy & Green Power

Green Power - Onsite (kWh)

Green Power - Offsite (kWh)

Percent of RECs Retained

Once the report has been generated, the organization should input the data into the Calculator as follows:

For scope 1 direct emissions resulting from fuels combusted on site, and for each fuel type:

1. Open the Stationary Combustion section of the Calculator.

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Step 2 — Calculate Greenhouse Gas Emissions

2.	Enter a Source ID number.

3.	Under Source Description, enter "Portfolio Manager Report."

4.	Under Fuel Combusted, select the appropriate fuel.

5.	Input the amount of fuel use under Quantity Combusted. If the fuel use is in units of kBtu, divide by 1000 to
convert to mmBtu.

6.	Select the appropriate units of measure for indirect emissions resulting from the purchase of electricity, steam,
or heat.

For scope 2 indirect emissions resulting from purchased energy:

1.	Open the Electricity or Steam sections of the Calculator.

2.	For each building to be reported, enter a Source ID and Source Description.

3.	For electricity, determine the building's eGRID subregion using the map in the Calculator or from the facility's
summary page in Portfolio Manager.

4.	Input each building's Electricity Use - Grid Purchase in kWh under Electricity Purchased.

5.	Input each building's steam or heat (District Hot Water) use in mmBtu under Steam Purchased. If the steam or
heat use is in units of kBtu, divide by 1000 to determine use in mmBtu.

Organizations can then add data from sources not included in Portfolio Manager, such as vehicle fleets, to the Calculator
and complete their organization-wide GHG inventory.

13

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Step 3 - Create a GHG In ven tory Managemen t Plan (IMP)

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A. Document! entory Procedures

An IMP is a useful tool for accurately documenting the processes used to collect the GHG 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 organization collects the utility bill information?
How do we account for new facilities or acquisitions?"

Organizations 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 organization which addresses their unique procedures for creating a
credible corporate-wide GHG emissions inventory on an annual basis.

'entory Management Plan

The EPA's Simplified Inventory Management Plan (IMP) tool is available for organizations using the Calculator to
determine their GHG emissions. The Simplified IMP is presented in a basic format and some items in the form have been
pre-populated with default responses consistent with the use of the Calculator. The organization should fill out the
applicable table entries in the form. The Simplified IMP is available at the Center for Corporate Climate Leadership
website (under Step 3).

The seven major components of an IMP are:

1. Organization Information: organization name, address, and inventory contact information.

2. Boundary Conditions: organizational and operational boundary descriptions.

3. Emissions Quantification: quantification methodologies and emission factors.

4. Data Management: data sources, collection process, and quality assurance.

5. Base Year Adjustments: adjustments for structural and methodology changes.

6. Management Tools: roles and responsibilities, training, and file maintenance.

7. 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 Simplified IMP.

Organization Information

This section provides general organizational information such as, organization name, corporate address, 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. An organization 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.

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Step 3 - Create a GHG In ven tory Managemen t Plan (IMP)

Emissions Quantification

This section provides the specific methodologies and emission factors used to estimate all of the organization's GHG
emissions. A credible GHG inventory requires accurate data and verifiable quality assurance procedures. EPA provides
Greenhouse Gas Inventory Guidance Documents which are based on the GHG Protocol and default emission factors
based on U.S. and international standards. These protocols require the collection and reporting of the seven major GHG
emissions. All emissions are reported as C02e 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 (e.g., mobile sources, refrigerants, electrical usage). 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

An organization will choose a base year for its emissions inventory (global), reflecting the most recent year that data are
available when the organization starts reporting. When a significant change occurs that might confound the tracking of
emissions over time or progress towards target achievement, then the organization 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 organization'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 organization acquires or divests 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 business 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.

Management Tools

The management tools serve to identify the roles and responsibilities, training procedures, and file maintenance
procedures of the organization.

Auditing and Verification

Identifies procedures for auditing (internal and external), management review, and how corrective actions are taken.

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Step 4 - Set a Target and Track Progress

;Progress

This section provides an introduction on how to reduce GHG emissions and track them annually using recommended
tools. This section can help answer questions like, "How do I set a target to reduce my GHG emissions?" or "Now that
I've calculated my GHG emissions, how do I track these emissions from year to year?"

A. Annual GHG Inventory Summ eking Form

Organizations can track GHG emissions annually by completing the Annual GHG Inventory Summary and Target Tracking
Form. The data from the Calculator Summary section shows your organization's GHG emissions in metric tons of C02e,
which can be entered from the Calculator Summary into the Annual Reporting Form without any further conversions or
calculations. It is recommended that each reporting organization annually track emissions by scope. Tracking the
reporting organization's emissions intensity, such as total emissions per FTE or square foot, is also suggested, as
intensity metrics often provide more insight into changes in emissions over time than absolute emissions.

¦ . duction Target

Setting a target is a tangible action that communicates to stakeholders an organization's climate strategy and
commitment. Having a target can motivate staff, help drive long-term strategies, and save money for the organization
through energy efficiency projects. A credible target should meet the following criteria:

1. Corporate-wide: including operations within the boundary.

2. Forward-looking: based on the most recent base year for which data are available.

3. Long-term: achieved over 5 to 10 years.

4. Reduction from baseline emissions: expressed as an absolute GHG reduction.

5. Aggressive: in comparison to the projected GHG performance for the organization's sector. An aggressive level
of reduction is one that is beyond business as usual in an organization's sector. To determine whether the target
is sufficiently aggressive, a good rule of thumb is to align it with the criteria of the SBTi. Those criteria require
emissions reductions of 2.5% per year for targets that cover scope 1 and 2 emissions and emissions reductions
of 1.23% per year for targets that cover scope 1, 2, and 3 emissions.

6. Include all scope 1 and 2 emissions and at least a portion of scope 3 sources.

A target can be set using either location-based or market-based emissions. If the target is for market-based emissions,
contractual instruments such as RECs and REC-based green power products can be used to reduce a reporting
organization's scope 2 emissions. RECs are tradable contractual instruments that represent the full environmental
attributes of one mega-watt hour of renewable energy generation on the electricity grid. Purchase of RECs or REC-based
green power products, such as participation in utility-sponsored green power programs, allows an organization to
associate the zero emissions rate of a renewable energy resource to their electricity use under their market-based
calculation. More information on purchasing green power is available on the EPA's Green Power Partnership website.

EPA's Annual Inventory and Target Tracking Form may contain the organization's historical data and helps track progress
towards meeting an absolute, intensity-based, or carbon neutral GHG reduction target.

C. Determining t tf Target

Targets can be expressed as an absolute GHG emissions reduction or as a decrease in GHG intensity. Absolute GHG
reduction targets compare total GHG emissions in the target year to those in a base year. GHG intensity targets allow an
organization to account for increases or decreases in production, square footage, or other metric over time. The ratio of
GHG emissions to an appropriate normalizing factor becomes the organization's key performance indicator for

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Step 4 - Set a Target and Track Progress

measuring GHG intensity. Organizations with emissions primarily from office space may choose to use square footage of
space as their normalizing factor. Organizations may choose to use number of employees if employee business travel is a
large percentage of its total emissions.

D. Going Carbon Neutral

In addition to absolute and intensity-based GHG reduction targets, some organizations set a target to be carbon neutral,
which is a commitment to achieve and maintain net zero GHG emissions in an organization's operations. A carbon
neutral target should include the following:

1. Have a robust, transparent GHG inventory and IMP in place and cover all emission sources included in the
organization's target, including major scope 3 sources.

2. Look for opportunities to reduce the reporting organization's emissions - for example, through energy efficiency,
installing onsite renewable energy and retaining renewable energy certificates (RECs), or setting up employee
commuting programs. Set an absolute internal reduction target to motivate the organization to implement these
changes.

3. Purchase green power, renewable energy certificates (RECs), and/or offsets for the reporting organization's
emissions not reduced through internal projects. The reporting organization can purchase REC-based green
power or RECs to reduce its market-based scope 2 electricity emissions. It can then purchase project offsets to
offset the remaining emissions. If this is part of the target strategy, then market-based emissions must be
reported.

E. EPA Resources for Reducing G fissions

The Center's website provides a list of resources to help organizations meet their GHG reduction targets, including those
listed below.

Visit the Center for Corporate Climate Leadership website:

• Energy Efficiency Resources:

o EPA ENERGY STAR Program
o EPA Combined Heat and Power Partnership
o Department of Energy resources

• Renewable Energy:

o EPA Green Power Partnership

• Transportation:

o SmartWay Transport Partnership

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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, https://www.ipcc.ch/report/2006-ipcc-guidelines-for-national-greenhouse"
gas-inventories/.

US EPA. Greenhouse Gas Inventory Guidance. Direct Emissions from Stationary Combustion. December 2020.

https://www.epa.gov/climateleadership/scope-l-and-scope-2-inventorv-guidance.

US EPA. Greenhouse Gas Inventory Guidance. Direct Emissions from Mobile Combustion Sources. December 2020.

https://www.epa.gov/climateleadership/scope-l-and-scope-2-inventorv-guidance.

US EPA. Greenhouse Gas Inventory Guidance. Direct Fugitive Emissions from Refrigeration, Air Conditioning, Fire
Suppression, and Industrial Gases. December 2020.

https://www.epa.gov/climateleadership/scope-l-and-scope-2-inventorv-guidance.

US EPA. Greenhouse Gas Inventory Guidance. Indirect Emissions from Purchased Electricity. December 2020.

https://www.epa.gov/climateleadership/scope-l-and-scope-2-inventorv-guidance.

US EPA (2022). Inventory of U.S. Greenhouse Gas Emissions and Sinks: 1990 - 2020.

https://www.epa.gov/ghgemissions/inventorv-us-greenhouse-gas-emissions-and-sinks.

World Resources Institute/World Business Council for Sustainable Development. The Greenhouse Gas Protocol: A
Corporate Accounting and Reporting Standard. Revised Edition, 2015.

http://www.ghgprotocol.org/standards/corporate-standard.

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