Carbon

Accounting
Measuring and reporting GHG
emissions supports sustainable
business action.

While many sources produce DEFINING AND MEASURING

greenhouse gases (GHGs), G R E E N H O U S E GA S E M I SS I O N S
commercial and industrial
sources are responsible for
the majority of emissions Globally, carbon dioxide (CO2) is the primary GHG released into the
atmosphere. Electricity generation is the principal CO2 producer
worldwide. worldwide and represents 40 percent of total GHG emissions.

As governments and leaders from public

The Greenhouse Gas Protocol, developed by World Resources Institute
and private organizations focus on solidified
(WRI), categorizes emissions as Scope 1, 2 and 3. The process defines
GHG reduction agreements, businesses
where GHG emissions originate, prevents “double counting” and
are expected to take action to reduce their
clarifies appropriate mitigation strategies for each scope.
carbon footprint. The pressure comes from
many directions:
SCOPE 1
++ industry competition
++ regulatory requirements
1 Direct GHG emissions, such as those from combustion in
boilers, furnaces or vehicles owned by an organization; for
++ customer expectations
example, on-site energy generation.
++ corporate investors
++ environmental groups
SCOPE 2
Carbon accounting is a systematic process GHG emissions that occur at a generation facility and are
for identifying, sorting and reporting a consumed by another organization; for example,
business’s GHG-producing activities. It purchased electricity.
helps organizations establish a baseline for
comparing their performance to industry
SCOPE 3
standards, set goals and track achievement.
GHG emissions that are a consequence of an organization’s
activities, but occur from sources not owned or controlled
by the organization; for example, purchased goods
production or commercial air travel.
Call us to discuss your
carbon reduction goals:
866.476.9378
New Guidelines for Scope 2 3DEGREES:
Purchased Electricity Emissions PA R T N E R S I N S U S TA I N A B I L I T Y
Carbon accounting is the first step in mitigating
corporate emissions. 3Degrees provides
In 2015 WRI released new guidance that established two methods
experience and agility to assist organizations
for corporations to calculate and report Scope 2 emissions from
anywhere along their renewable energy journey.
purchased electricity: location-based and market-based. Both
We can help you:
methods are required for reporting in the U.S., however institutions
may choose one of the two methods for corporate goal setting and
public reporting. ++ Conduct a GHG inventory based on current
standards.
++ Develop goals and strategies to reduce your
SCOPE 2 METHODS carbon footprint.
++ Source high-quality carbon offsets for
Location-based method Scopes 1 and 3.
This method can apply in all locations and employs a ++ Procure renewable energy through on- or
formula that multiplies megawatt-hours consumed by the off-site PPAs or unbundled REC purchases
grid’s average emission factors to calculate the carbon footprint, for Scope 2.
represented in pounds of CO2 per megawatt hour (MWh x emission
factor (lbs/MWh) = lbs CO2). These emissions factors:
Type of Emission Mitigation Options
++ Are calculated using the average emissions intensity of the
grid where energy consumption occurs. If this is not available,
a national emissions average1 may be used. SCOPE 1
CARBON
++ Can only be reduced by decreasing electricity consumption. Direct GHG OFFSETS
Emissions
Market-based method
When a grid supports renewable energy options, as with
every grid in the U.S., the market-based method is required.
SCOPE 2 RECS
It reflects the emissions from the electricity that a company is
Electricity - Indirect Renewable Energy
purchasing. This method:
GHG Emissions Certificates

++ Matches renewable energy certificates (RECs) from zero-

emission sources, such as wind or solar, to actual megawatt-
hour usage, resulting in zero reportable emissions. SCOPE 3
++ Requires that the reporting organization owns the REC and CARBON
Other Indirect OFFSETS
specifies how it was obtained—through a power purchase GHG Emissions
agreement (PPA), unbundled REC purchase or supplier-
specific emission rate or program2.

ADDITIONAL SCOPE 2 RESOURCES

For assistance with defining and For assistance with reporting the new For assistance with clear messaging that
calculating the new standards: standards: aligns with Green-e and WRI standards:

1
www.epa.gov/energy/egrid, 2http://www.ghgprotocol.org/node/463

3degreesinc.com • 866.476.9378