For this issue of Face, we gathered members of the Scope 3 Project at the Honda Environment & Safety Planning Office to ask them about their process for calculating Honda's scope 1, 2, and 3 greenhouse gas emissions. How are corporate emissions defined? What significance do the scope 3 calculations have? How will Honda manage and reduce its emissions going forward? Continue reading for answers to these questions and more.
● What is the Environment & Safety Planning Office?
Part of the Corporate Planning Division, the Environment & Safety Planning Office is the department at Honda that proposes policies for activities and initiatives related to the environment and safety. Its duties extend beyond proposals, however, encompassing a broad range of activities for implementing projects approved by the executive board, such as coordinating with other departments and managing projects to ensure that the desired results are achieved.
When Honda announced its greenhouse gas (GHG) emissions for fiscal 2012, it separated them into three categories—scope 1, 2, and 3—as recommended by the GHG accounting standard called the GHG Protocol. What is the GHG Protocol?
Masui How to reduce CO2 and other GHG emissions is one of the most talked-about environmental challenges in the world today. Every year, thousands of companies announce that they've "only emitted this much" or "cut emissions by this much." But if their methods for calculating emissions were all different—that is, if they all used different standards—there is no way to determine whether what they say is true or relevant. So all companies need to use the same standard. The GHG Protocol is right now the most widely used GHG accounting standard on a global level. The World Resources Institute, which is an environmental group based in the U.S., and the World Business Council for Sustainable Development, an organization of business leaders from about 200 international companies, worked together to develop the GHG Protocol.
Shina Since being announced in 2001, the GHG Protocol has been adopted all around the world and has become the de facto global standard. It is not only used by private companies but also serves as the basis for environmental policy in many countries. As we saw with the Kyoto Protocol and the subsequent movement to combat global warming, United Nations-based frameworks unfortunately have a difficult time making decisions. Industry needs to show leadership in reducing emissions. Otherwise it won't be able to meet the needs of the global market. That's why the GHG Protocol, which was largely developed by private interests, has become the de facto global standard.
How are scopes 1, 2, and 3 defined in the GHG Protocol?
Kimura Scope 1 emissions are emissions that are a direct result of a company's business activities. For example, emissions that come from burning fuel oil, propane, or another fuel at a manufacturing plant, or from consuming gasoline when using a company car for work both fall in this category. Scope 2 emissions are emissions that are an indirect result of a company's business activities. In other words, these emissions are produced when a company uses electricity at an office or manufacturing plant. This is based on the concept that an electric utility company emits GHGs when generating electricity at its power plant. So when Honda uses that electricity Honda is in effect indirectly emitting GHGs. And lastly, scope 3 emissions are direct emissions that take place along the company's value chain and that are not included in scope 1 and 2, for example the extraction and transportation of raw materials, and the use and end-of-life processing of products.
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