Measuring and Reporting Transport Emissions Nikolas Hill, Knowledge Leader – Transport Technology and Fuels, AEA Mandatory Carbon Reporting 2012 6 November,

Measuring and Reporting Transport Emissions

Nikolas Hill, Knowledge Leader – Transport Technology and Fuels, AEA

Mandatory Carbon Reporting 2012 6 November, America Square Conference Centre, [email protected]+44 (0)870 190 6490

Introducing AEA

Global energy and climate change consultancy.

40+ years of experience working with Governments and businesses worldwide.

Specialists in a range of areas – transport, energy, environment, knowledge management.

Leading experts in emissions reporting.

Production of the Defra/DECC conversion factors since their inception.

Operation of the UK GHG emissions inventory for 30 years.

Carbon footprinting and reporting for a diverse range of customers.

Measuring and reporting GHG emissions from freight transport operations.

2

Setting the scene

The role of transport in mandatory reporting

Taking action – what are the challenges?

Identifying transport emissions

Determining emissions scope

Collecting data

Choosing emission factors

Scope 3 emissions

Benefits of reporting

3

Mandatory reporting and transport (1)

What is required?

Mandatory reporting of Scope 1 and 2 emissions:

Some, but not all, transport emissions will be included.

No geographical boundary:

Not only UK emissions, overseas travel and transport operations are also included.

4

Mandatory reporting and transport (2)

What are the implications?

Reporting on transport emissions may be new for many organisations.

Emissions reporting data will become publicly available and must be credible.

Companies will need to:

Understand which transport emissions they are responsible for globally.

Identify which of these emissions they must report.

Collect data.

Calculate emissions and include results within their reporting.

5

Taking action – what are the challenges?

Which emissions factors do I need?

What scope do my emissions fall under?

How do I collect data?

What about vehicles operating overseas?

How do I make sure I include all my emissions?

6

Sources of transport emissions

Most organisations have a number of different transport emission sources associated with their operations.

Transport emissions

Freight transport

Other supply chain

transport

Vehicle fleet

Business travel

Employee commute

Customer travel

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Identifying all of your emissions sources

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Determining scope

Your company

Scope 3 emissions

Scope 1 and 2 emissions

Owned vehicles Leased

vehicles -financial/operation control

Business travel

Staff commute

Customer travel

Leased vehicles – no financial/ operation control

Supply chain

Scope 1: Direct emissions from activities and sources you control – such as vehicles you own or operate.

Scope 2: Energy indirect emissions from purchased electricity, heat, steam or cooling.

Scope 3: Other indirect emissions which you influence but do not own or control.

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Indirect emissions from fuel production

Treatment of leased vehicles

Leased vehicles can fall under either Scope 1 or Scope 3.

Operational control: The company is responsible for operating the vehicles.

Financial control: The leased vehicles are treated as wholly owned assets for the purposes of financial accounting.

Scope 1

Leased vehicles over which the company has

operational or financial control.

Included in mandatory reporting

Scope 3

Leased vehicles over which the company has neither operational nor financial

control.

Not included in mandatory reporting

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Allocation of emissions at an airport

There are a large number of transport emissions associated with airport operations.

Only some of these will be required for inclusion under mandatory reporting.

Scope 1

Company-owned operational vehicles:

DieselGas oilLPG

Petrol

Scope 3

Air traffic movements

Business travel

Staff commute

Third party-owned operational vehicles

Passenger transport

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Collecting data

Availability of information varies between organisations.

Selection of data should be prioritised based on the level of accuracy that it provides.

Where no data is available, using

data on some-thing similar in its place,

without modification.

e.g. March data missing, replace by repeating February data without modifying

Data calculated by estimating a trend

from existing data – either to fill a gap or

project forward.

e.g. March data missing, replaced by an average of February and April

Generic or average data from published

sources representative of a

company’s operations.

e.g. manufacturer’s mpg figures for vehicles, records of average fuel price

Primary data

Secondary data

Extrapolated data

Proxy data

Most accurate

Least accurate

Data collected by directly measuring

the operation.

e.g. fuel consumption, driver hours logged, telematics data, fuel price data from invoices

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Choosing emissions factors

The Defra/DECC GHG Conversion Factors for Company Reporting provide a variety of emission factors that can be used in conjunction with different types of data.

            Scope 1 OR Scope 3   Scope 3   All ScopesStandard Road Transport Fuel Conversion Factors

  CO2 CH4 N2OTotal Direct

GHG  Total Indirect

GHG  Grand Total

GHGFuel used* Total units used Units x kg CO2

per unitkg CO2e per unit

kg CO2e per unit

kg CO2e per unit  

kg CO2e per unit  

kg CO2e per unit

Petrol (average biofuel blend)*    litres   2.2332 0.0033 0.0058 2.2423  0.4750  2.7173

Petrol (100% mineral petrol)   litres   2.3051 0.0033 0.0059 2.3144  0.4638  2.7782

Diesel (average biofuel blend)*    litres   2.5636 0.0009 0.0190 2.5835  0.5837  3.1672

Diesel (100% mineral diesel)   litres   2.6569 0.0009 0.0191 2.6769  0.5644  3.2413

Compressed Natural Gas (CNG)   kg   2.7188 0.0040 0.0016 2.7244  0.4224  3.1468

Liquid Petroleum Gas (LPG)   litres   1.5301 0.0007 0.0018 1.5326  0.1918  1.7244

Total                      

            Scope 1 OR Scope 3   Scope 3   All ScopesPassenger Road Transport Conversion Factors: Diesel Cars

  CO2 CH4 N2OTotal Direct

GHG  Total Indirect

GHG  Grand Total

GHGSize of car Total units travelled Units x kg CO2

per unitkg CO2e per unit

kg CO2e per unit

kg CO2e per unit  

kg CO2e per unit  

kg CO2e per unit

Small diesel car, up to 1.7 litre or under   miles x 0.22716 0.00008 0.00285 0.23009  0.04571  0.27579    km x 0.14115 0.00005 0.00177 0.14297  0.02840  0.17137Medium diesel car, from 1.7 to 2.0 litre   miles x 0.28281 0.00008 0.00285 0.28574  0.05691  0.34265    km x 0.17573 0.00005 0.00177 0.17755  0.03536  0.21291Large diesel car, over 2.0 litre   miles x 0.37628 0.00008 0.00285 0.37921  0.07570  0.45491    km x 0.23381 0.00005 0.00177 0.23563  0.04704  0.28267Average diesel car   miles x 0.29805 0.00008 0.00285 0.30098  0.05996  0.36094    km x 0.18520 0.00005 0.00177 0.18702  0.03726  0.22428Total for diesel cars                      

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International operations

UK sources of emission factors are specific to UK vehicles and fuel mixes.

For operations overseas, it may be appropriate to source emissions factors specific to the country and/or vehicle type.

Sources include the GHG Protocol, and national equivalents to Defra/DECC: http://www.ghgprotocol.org/Third-Party-Databases/

Where no country-specific factor is available, UK factors may be used as a proxy.

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Scope 3 emissions

Scope 3 emissions will not be required for mandatory reporting.

They can be responsible for a significant proportion of total emissions, with transport playing a significant role.

These emissions are not under the direct control of the reporting company, meaning that data collection can be challenging.

Understanding Scope 3 emissions provides significant additional opportunity to reduce impact and identify cost savings.

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Collecting scope 3 transport data

DHL Express Nordic

Transportation and logistics company.

98% of emissions from outsourced transport of goods by partner firms.

Partner firms required to provide information on vehicles used, distance travelled and fuel efficiency as part of subcontract payment scheme.

Data used to calculate emissions for all outsourced transport.

European clothing retailer

Significant international freight transport requirements.

Use of logistics software data to obtain data on distances travelled.

Combined use of distance data and assumptions on vehicle type and freight tonnage to calculate emissions.

Freight found to be responsible for over 98% of total emissions within the footprint calculated.

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Benefits of reporting

Emissions reporting will bring a number of benefits:

Ability to set a baseline and track emissions reduction opportunities to drive down transport fuel costs.

Ability to benchmark against other divisions, organisations etc.

Demonstrating environmental responsibility to stakeholders and showcasing positive achievements.

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Summary

Mandatory reporting will require the inclusion of global Scope 1 transport emissions.

Companies should act now to identify which transport emissions they are responsible for, and which they will need to report.

Data availability must be assessed and suitable collection routes established.

Credible calculation methodologies will be required, including the use of appropriate emission factors.

Companies will be able to take advantage of a number of benefits related to calculating and monitoring their transport emissions.

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Any questions?

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AEANikolas HillKnowledge Leader in Transport Technology and Fuels

AEAThe Gemini BuildingFermi AvenueHarwell OxfordDidcot OX11 0QR

Tel: +44 (0)870 190 6490E: [email protected] [email protected] W: www.aeat.co.uk

Copyright AEA Technology plcThis presentation is submitted by AEA. It may not be used for any other purposes, reproduced in whole or in part, nor passed to any organisation or person without the specific permission in writing of the Commercial Manager, AEA Technology plc.