GH1: Greenhouse Gas Emissions – Above Green

(points determined by materiality)

Intent

The intent of this indicator is to assess the entity’s measurement of greenhouse gas (GHG) emissions. GHG emissions are the primary driver of anthropogenic climate change and a critical source of local, regional, and global environmental impacts. GHGs may result from the consumption or generation of energy, or from processes that produce GHGs directly, such as the production of cement. Evaluating direct and indirect GHG emissions (or Scope 1 and 2 emissions) has become the norm for organizations. Additionally, an increasing number of organizations is looking at emissions throughout their value chains (Scope 3 emissions).

Requirements

Select Yes or No: If selecting “Yes”, the entity must be actively tracking and reporting on all of the mandatory reporting metrics (indicated by the dark green cell outline).

Can the entity report on greenhouse gas emissions?

Yes
- Can the entity report on scope 3 greenhouse gas emissions?
  - Yes
  - No
- Scope 2 emissions reporting - Indicate which of the following approaches was used to calculate the scope 2 emissions reported above:
  - Locations-based
  - Market-based
  - Mix of location-based and market-based
- External review - Has the data reported above been reviewed by an independent third party?
  - Yes (provide evidence indicating where the relevant information can be found)
    - Externally checked
    - Externally verified - Using: [insert scheme name]
    - Externally assured - Using: [insert scheme name]
  - No
- Science-based Targets - Are any of the targets reported in the table above approved by the Science-Based Targets Initiative?
  - Yes - Select the metric(s) for which the target has been approved by the SBTI.
    - Scope 1 (total)
    - Scope 2
    - Scope 3
    - Total scope 1+2
    - Total scope 1, 2, +3
    - Gross GHG emissions intensity (/GAV)
    - Gross GHG emissions intensity (/revenue)
    - Gross GHG emissions intensity (/output)
  - No
- EXCEPTIONS - Does the entity’s data reported above cover all, and only, the facilities (as reported in RC3) and activities (RC4) for the entire reporting year (EC4)? (for reporting purposes only)
  - Yes
  - No
    - Please indicate which facilities, activities and/or time periods are additional or excluded from the data reported above
      
      ________________________
No
- Provide additional context for the answer provided (not validated, for reporting purposes only)
  ________________________

Changes: Scope 1 emissions are now broken down into three metrics (“Emissions from combustion of fuels”, “Process emissions”, “Fugitive emissions”) in accordance with the GHG Protocol. A new table has been added that allows participants to provide a breakdown of scope 3 emissions. A new metric has been added “Net GHG emissions (Scope 1, 2 + 3). New questions have been added on scope 2 emissions calculation methodology and science-based targets.

Prefill: The cells in the column “Previous-year performance” have been prefilled with the 2019 Assessment response where metrics have remained the same. Data has not been prefilled for new metrics or metrics that have substantially changed relative to the 2019 Assessment.

Performance Tables

Total greenhouse gas emissions table Complete the table as follows:

Previous-year performance (2018): This column shows the reported performance for the previous year (2018). If a metric is new or has changed substantially compared to last year’s Assessment, or if there is no data available for the entity for the previous year, ‘N/A’ is shown. It is not possible to enter any data into this column.
Reporting-year performance (2019): Enter data for the performance during the reporting year for each metric where available.
- Scope 1 (total) = “Emissions from combustion of fuels” + “Process emissions” + “Fugitive emissions”
- Total scope 1 + 2 = “Scope 1 (total)” + “Scope 2”
- Scope 3 = “Total” (from Scope 3 emissions table)
- Total Scope 1, 2 + 3 = “Total Scope 1 + 2” + “Scope 3”
- Net GHG emissions (Scope 1 + 2) = “Total Scope 1 + 2” - “On-site offsets” - “Offsets purchased”
- Net GHG emissions (Scope 1, 2 + 3) = “Total Scope 1, 2 + 3” - “On-site offsets” - “Offsets purchased”

It is mandatory to enter data for all metrics highlighted with a green border.
‘Zero’ is an acceptable answer if it is true and accurate. If the entity cannot provide all of the mandatory data then it must select “No” for the overall indicator.
“Emissions avoided* (renew. energy export)” applies to the export of renewable energy (see EN1) only. Only entities in the primary sector ‘Renewable Power’ should report this metric. Offsets should be reported under “On-site offsets” or “Offsets purchased”.
Calculated total cells: Certain performance cells are automatically calculated based on inputs to other performance cells within the table or inputs to another indicator. The equations for these calculated cells are:

Reporting-year target (2019): Enter the targets that were applicable for the reporting year for each metric, where available.

A target can be interpolated from a future-year target.
A target (or the future-year target from which it is derived) must be formally adopted. This means that the entity must have set and communicated the target at least internally, and has implemented, or is preparing, actions to achieve the target.

Future-year targets: Enter the relevant year for which the targets are set at the top of the column and enter the future-year targets for each metric where available.

A target must be formally adopted.
The target must be set for any future year that is not the reporting year.

Note: all values reported in the Total greenhouse gas emissions table should be absolute (i.e. equal or greater than zero).

Scope 3 greenhouse gas emissions table: Complete the table as follows:

Previous-year performance (2018): This column shows the reported performance for the previous year (2018). If a metric is new or has changed substantially compared to last year’s Assessment, or if there is no data available for the entity for the previous year, ‘N/A’ is shown. It is not possible to enter any data into this column.
Reporting-year performance (2019): Enter data for the performance during the reporting year for each metric where available.

‘Zero’ is an acceptable answer if it is true and accurate. If the entity cannot provide any values, it must select “No” for the overall indicator.
Calculated total cells: Certain performance cells are automatically calculated based on inputs to other performance cells within the table or inputs to another indicator. Totals are the sum of all metrics in that table.

Note: all values reported in the the Scope 3 greenhouse gas emissions table should be absolute (i.e. equal or greater than zero).

Greenhouse gas emissions intensities table: Intensity metrics provide a basis for comparing and benchmarking ESG performance. Intensity metrics are not mandatory and not scored in 2020. The table should be completed as follows:

Previous-year performance (2018):This column shows the reported performance for the previous year (2018). If a metric is new or has changed substantially compared to last year or is new, or if there is no data available for the entity for the previous year, ‘N/A’ is shown. It is not possible to enter any data into this column.
Reporting-year performance (2019):Intensity performance metrics are calculated automatically as follows:

Gross GHG emissions intensity (/GAV) = “Total Scope 1 + 2”/GAV. Gross Asset Value (GAV) is reported in RC2 (Economic size) and is converted from millions to units within the calculation.
Gross GHG emissions intensity (/Revenue) = “Total Scope 1 + 2”/Revenue. Revenue is reported in RC2 (Economic size) and is converted from millions to units within the calculation.
Gross GHG emissions intensity (/Output) = “Total Scope 1 + 2”/Output. Output is reported in OI1 and is specific to the entity’s primary sector as reported in RC3 (Sector & geography).
Net GHG emissions intensity (/GAV) = “Net GHG emissions (Scope 1 + 2)”/GAV. Gross Asset Value (GAV) is reported in RC2 (Economic size) and is converted from millions to units within the calculation.
Net GHG emissions intensity (/Revenue) = “Net GHG emissions (Scope 1 + 2)”/Revenue. Revenue is reported in RC2 (Economic size) and is converted from millions to units within the calculation.
Net GHG emissions intensity (/Output) = “Net GHG emissions (Scope 1 + 2)”/Output. Output is reported in OI1 and is specific to the entity’s primary sector as reported in RC3 (Sector & geography).

In some cases, the calculated cells may show as ‘Not applicable’. This is either due to:

the participant not reporting the input data (within the indicator);
the participant not reporting on the relevant denominator (GAV/Revenue/Output);
there being no output metric applicable to the entity’s primary sector.

Reporting-year target (2019): Enter the targets that were applicable for the reporting period for each metric, where available.

A target can be interpolated from a future-year target.
A target (or the future-year target from which it is derived) must be formally adopted. This means that the entity must have set the target at least internally and has implemented or is preparing actions to achieve the target.

Future-year targets: Enter the relevant year for which the targets are set at the top of the column and enter the future-year targets for each metric where available.

A target must be formally adopted.
The target must be set for any future year that is not the reporting year.

Scope 2 Emissions Reporting

Select one of the options Select the applicable answer. The emissions methodology must apply to the reported Scope 2 emissions in the table Total greenhouse gas emissions. This question is for reporting purposes only.

External Review

Select Yes or No: If selecting “Yes”, state whether the data submitted has been checked, verified or assured (select one option; the most detailed level of scrutiny to which the data was subjected). Participants should select the appropriate checkbox(es):

Externally checked: should be selected when a third party has reviewed the data in a structured and consistent process.
Externally verified: applies to instances where a third party has reviewed the data against an existing scheme. When this checkbox is ticked, participants should select the scheme name from the dropdown.
Externally assured: applies to instances where a third party has reviewed the data against an existing scheme. When this checkbox is ticked, participants should select the scheme name from the dropdown.

GRESB does not require the selected standard to be specific to GHG data. As such, a standard initially designed to verify/assure non-energy data (e.g. water) can be selected as long as the same thoroughness and review criteria are applied to data reported in GH1.

Science-based Targets

Select Yes or No: If selecting “Yes”, select the checkbox(es) that apply. Any selected metric(s) must:

Have a target reported under “Reporting-year target” or “Future-year target” in the Total greenhouse gas emissions table
Have its target(s) approved by the Science-based Targets Initiative.

For more information on science-based targets, see the “References” section. This question is for reporting purposes only.

Exceptions

Select Yes or No: GRESB is seeking to standardize the scope and boundaries of reporting to allow for more accurate benchmarking and to progressively move towards scoring of performance. If the scope of the data reported for this indicator does not exactly match the reporting scope (facilities, ancillary activities and time period) as reported in “Entity and Reporting Characteristics” (EC3, RC3, RC4), then answer ‘No’ to this question and describe these exceptions in the “Exceptions” text box.

Examples are:

Temporal - A toll road includes data on energy consumption from its street lighting within its boundary but due to a data glitch, it lost this data for a two month period during the reporting year.
Physical - A power plant includes a switchyard facility within its reporting boundary but does not have data on water discharge for this facility.
Operational - An airport includes the operation of mobile equipment within its reporting boundary but not for aircraft since these are operated by airlines.

Validation

Evidence

It is optional to provide evidence of external review in the form of a third-party letter or certificate. Evidence will not be subject to manual validation for this indicator in 2020. Evidence can be provided by a hyperlink or through a document.

Hyperlink: If a hyperlink (or deep link) is provided, ensure that the relevant page can be accessed within two steps.
Document upload: Participants may upload several documents. When providing a document upload, it is mandatory to indicate where relevant information can be found within the document (e.g. for evidence relating to issue x, see section y on page z; for evidence relating to issue a, etc.).

Evidence should include:

Proof of the existence of third-party review of the data;
Clear indication that the reviewed data reflects the reported data;
A description of the type of third-party review (checked, verified or assured) and the used assurance standard (if applicable);
Proof that the data review applies to the entity.

Scoring

Materiality-based Scoring

Materiality-based Scoring: This indicator applies materiality-based scoring. The materiality weighting for this indicator is determined by the materiality level of the ‘Greenhouse gas emissions’ issue in the GRESB Materiality Assessment (RC7).

Where this issue is of ‘High’ relevance, this indicator will be weighted highly and where this issue is of ‘Medium’ relevance, it will be weighted moderately. If materiality for this issue is set at ‘No’ or ‘Low’ relevance for the entity, this indicator will not be scored. As a result, the weight of this indicator may differ for each participant based on its materiality profile. The weighting of the material (scored) indicators in the Performance Component is automatically redistributed to ensure that the Component retains its overall weighting of 50% of the Asset Assessment. For more details refer to the section on Materiality Based Scoring in this Reference Guide or download the GRESB Materiality & Scoring Tool.

Scoring of Metrics: This indicator is scored as a one-section indicator where evidence is optional. Only the metric in the performance table cells shaded in light green or orange is used for scoring:

For participants whose primary sector is ‘Renewable Power’, only the “Avoided emissions” metric in the Total greenhouse gas emissions table is scored, as indicated by orange shading of the cells.
For all other sectors, only the “Net GHG emissions (Scope 1 + 2)” metric in the Energy consumed table is scored, as indicated by green shading of the cells. The other cells shaded in green should be completed to obtain the reporting-year value for this metric.

For the scored metric, all columns (“Reporting-year performance”, “Reporting-year target” and “Future-year target”) should be completed to obtain points as follows:

60% of the indicator score will be based on the reporting of a value in “Reporting-year performance”.
20% of the indicator score will be based on the reporting of a target in “Reporting-year target”. For 2020, scoring is based on whether a target was set, not on whether the target was achieved.
20% of the indicator score will be based on the reporting of a target in “Future-year target”. For 2020, scoring will be based on whether a target was set, not on whether the entity is on track to achieve the target.

Reporting of scope 2 emissions methodology, external data review, science-based targets and exceptions are not scored in 2020.

Terminology

Carbon dioxide equivalent (CO₂e): The unit of measurement to express the Global Warming Potential (GWP) of a greenhouse gas, relative to the GWP of 1 unit of carbon dioxide (definition based on the GHG protocol).

Emissions avoided (renewable energy export): Relates to the emissions avoided through generation of renewable energy on site and exported off-site (sold) to customers.

Emissions from combustion of fuels: Greenhouse gas emissions that result from the combustion of fuels such as natural gas, gasoline or coal.

Fugitive emissions: Greenhouse gas emissions from intentional or unintentional releases, such as methane during transport of natural gas and HFC emissions from refrigeration equipment.

Greenhouse gas emissions: GHGs refers to the seven gases listed in the Kyoto Protocol: carbon dioxide (CO₂); methane (CH₄); nitrous oxide (N₂O); hydrofluorocarbons (HFCs); perfluorocarbons (PFCs); nitrogen trifluoride (NF₃) and sulphur hexafluoride (SF₆).

GHG offsets: A GHG (or carbon) offset represents a quantity of GHG emissions reductions, measured in units (usually metric tons) of carbon dioxide–equivalent (CO₂e), that occur as a result of a discrete project. The emissions reductions from that project can be sold to enable the purchaser/owner to claim those GHG reductions as their own. These reductions can then be used to reduce, or offset, any GHG emissions for which the purchaser is responsible.

Location-based: A method to calculate scope 2 emissions, reflecting the average emissions intensity of grids on which energy consumption occurs (using mostly grid-average emission factor data) (definition based on the GHG protocol)

Market-based: A method to calculate scope 2 emissions, reflecting emissions from electricity that the entity has purposefully chosen (or their lack of choice). It derives emission factors from contractual instruments (definition based on the GHG protocol).

Net GHG emissions: Net GHG emissions are calculated using this formula: Scope 1 + Scope 2 - On-site offsets - Offsets purchased.

On-site offsets: GHG offsets created from projects undertaken on site that sequester carbon such as tree planting. It does not include renewable energy generation or other GHG emission reduction projects.

Offsets purchased: GHG offsets created externally by third parties that are purchased to reduce the GHG footprint of the entity. These could be a range of types including renewable energy, tree planting, energy efficiency etc. This does not include renewable energy imported and consumed since this directly reduces the GHG emissions of the entity.

Process emissions: Greenhouse gas emissions that arise during chemical and industrial processes as a by-product, such as CO2 release during cement production.

Science-based targets: A target is science-based if it has been set by the Entity in line with meeting the goals of the Paris Agreement to limit global warming to below 2C above pre-industrial levels. A science-based target must have been approved by the Science-based Targets Initiative.

Scope 1 emissions: GHG emissions that arise from operations that are directly owned or controlled by the Entity (definition based on the GHG protocol). Examples include combustion of fuels in boilers, machinery or vehicles controlled by the Entity, emissions from industrial processes and fugitive emissions from Entity-controlled refrigeration equipment.

Scope 2 emissions: GHG emissions from the generation of purchased or acquired electricity and steam, heating and cooling consumed by the Entity (definition based on the GHG protocol).

Scope 3 emissions: All indirect GHG emissions not included in scope 1 or 2 that occur in the value chain of the entity, including both upstream and downstream emissions (definition based on the GHG protocol). Scope 3 emissions are typically divided into categories to facilitate reporting.

References

CDP Climate Change 2019 - Technical note on science-based targets

Eurostat - Environment Glossary

Science-based Targets Initiative - Tools and resources

WRI - GHG Protocol Scope 2 Guidance

WRI & WBCSD - Corporate Value Chain (Scope 3) Accounting and Reporting Standard

WRI & WBCSD - Technical Guidance for Calculating Scope 3 Emissions

WRI & WBCSD - The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard

Alignment with External Frameworks

CDP Climate Change 2020 - C4 Targets and performance

CDP Climate Change 2020 - C5 Emissions methodology

CDP Climate Change 2020 - C6 Emissions data

CDP Climate Change 2020 - C7 Emissions breakdown

DJSI CSA 2019 - 4.2.1 EP - Direct Greenhouse Gas Emissions (Scope 1)

DJSI CSA 2019 - 4.2.2 EP - Indirect Greenhouse Gas Emissions (Scope 2)

DJSI CSA 2019 - 4.3.4 Climate-related Targets

DJSI CSA 2019 - 4.3.6 Scope 3 GHG Emissions

GRI Standards 2016 - 305: Emissions

Relevant UN Sustainable Development Goals

SDG 9 - Industry, Innovation and Infrastructure

9.4 By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes, with all countries taking action in accordance with their respective capabilities

SDG 13: Climate Action