When looking at the GHG emissions data announced by Honda, you notice that "scope 3, category 11 (product use)" emissions account for 87% of the total. Why is that?
Kimura Honda announced category 11 separate from all of the other categories in scope 3. There are 15 categories altogether. Category 11 emissions are emissions from product use, in other words, emissions that occur when customers use Honda products. This category is the largest source of emissions for Honda, representing 87.0% of all emissions. By disclosing this figure separately, Honda is saying that category 11 emissions are its biggest concern.
If you are wondering why category 11 is the largest, well this is because it includes not only GHGs that were emitted in fiscal 2012 but also estimates of all GHGs that products sold in fiscal 2012 will emit in the future. For example, when a Japanese customer buys a Honda automobile, we expect that customer to drive their car about 10,000 kilometers every year for about 15 years. Category 11 is where all the emissions during that time are calculated.
Why do the fiscal 2012 GHG emissions include estimates of future emissions?
Kimura The thinking behind scope 3 is not when emissions happened, but rather what emissions will eventually result from a company's activities in a certain time period.
Honda delivered roughly 25 million automobiles, motorcycles, and power products to customers around the world in fiscal 2012. All of these products will continue to be used by customers and will continue to emit GHGs until they are no longer usable. These emissions are a consequence of Honda having sold its products in fiscal 2012.
What are the advantages of calculating GHG emissions according to the GHG Protocol?
Ijima Using this standard allows us to disclose accurate, reliable data in a format that is easy to understand. There are advantages to doing this both for the company that announces the data and third parties that use the data.
However, it is important to keep in mind that the GHG Protocol is not for comparing different companies. In other words, the standard is not for comparing figures from Company A with figures from Company B. It is only for accurately comparing and evaluating the effectiveness of initiatives at Company A between years.
If Company A knows that GHG emissions in a certain area of its operations dropped by 30% from the previous year, then it is easier to devise a strategy for reducing emissions in other areas of operations in subsequent years. Third-party users of this data, which includes shareholders and other investors and customers who buy Company A's products, can then accurately assess Company A's efforts.
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