Vega Carbon Audit 0809 v51a

Prepared by: Gavin Pereira, Environmental Director (Carbon Reduction Institute), with data collection assistance

from Robert Nugent (Vega Colour Group)

Authorised by: Andrew Barson, Projects Director, Carbon Reduction Institute

Note: Changes from version 2 include updated references and numbers for waste conversion and the corresponding changes

that this had in Vega’s carbon footprint. Changes from version 3 include updated emission factors for ground travel

CARBON REDUCTION INSTITUTE

Carbon Audit Report 2008/2009 Vega Colour Group Version 5.1 June 2010

Carbon Reduction Institute Pty Ltd 13, 38-46 Albany Street- St Leonards – NSW - 2065 P: +61 2 9439 9990 - F: +61 2 9439 5550 - W: www.noco2.com.au ABN 26 122 969 233

Executive Summary

The Carbon Reduction Institute recently completed a re-audit of the greenhouse gas emissions produced from the

operations of Vega Colour Group. Vega Colour Group obtained a carbon audit of its operations for compliance

with the Carbon Reduction Institute’s LowCO2 standard. The base-year for this audit was 2006/2007. This re-audit

examines Vega Colour Group’s carbon footprint for the 2008/2009 financial year. The purpose of this audit is to

determine Vega Colour Group’s retrospective and future requirements in maintaining its LowCO2 certification.

The Carbon Reduction Institute’s audits follow the standards outlined by the World Business Council for

Sustainable Development’s Greenhouse Gas Protocol Corporate Accounting and Reporting Standard (GHG

Protocol). The GHG Protocol gives guidance at the company/organisational level for the establishment of

greenhouse gas inventories. The GHG inventory within this audit is prepared in accordance with the requirements

of ISO 14064-1.

In calculating the emissions from Vega Colour Group’s operations, the Carbon Reduction Institute applied a series

of different published Life Cycle Emission factors to calculate the emissions impact of travel, electricity, fuel

usage, waste water and waste. The emissions sources included in this study are shown in the table below.

Table 1: Emissions sources studied

Scope(s) Source Emissions Type

Scope 1 & 3 Fuel *Direct and Indirect emissions from burning combustible fuels within onsite

machinery and company owned vehicles

Scope 2 & 3 Electricity *Indirect emissions from the burning of coal and gas at power plants to

produce purchased electricity

Scope 3 Waste *Methane emissions from the decomposition of waste in landfill, and from

decomposition of organics in waste water

Staff Ground and Air

Transport

*Fuel combustion – Direct and indirect CO2e emissions from car and air travel

From this greenhouse emissions audit it is concluded that the operations of Vega Colour Group produced the

equivalent of 2,632.37 tonnes of CO2 equivalent greenhouse gas (CO2-e) over 2008/2009 financial year from the

above emissions sources. Table 2 and Figure 1 below show a summary of the emissions produced from each

source from the 2006/2007 financial year and the 2008/2009 financial year.

Table 2: Summary of Emissions by Source

Scope Emission Source 2006-2007 2008-2009 % difference

Scope 1&3

Ground Travel and Onsite Fuels 169.70 395.50 133.05%

Natural Gas 0.40 0.05 -87.54%

Scope 2 & 3 Electricity 2,152.87 2,163.92 0.51%

Scope 3

Flights 4.00 3.43 -14.34%

Solid Waste 203.63 68.26 -66.48%

Waste Water 1.91 1.22 -36.17%

Total 2,532.51 2,632.37 3.94%

Carbon Reduction Institute Pty Ltd

Suite 13, P: +61 2 9439

Figure 1: Breakdown of Emissions by Source (2008/2009)

This audit found that Vega Colour Group had

tonnes in 2008/09.

The main source of emissions reduction were from the reduction in Solid Waste disposed. Solid Waste emissions

decreased significantly by 66.48% from 203.63 tonnes CO

the reduced amount of waste disposed and the reported change of the emission factor by the Department of

Climate Change from 1.66 tonnes CO2e per tonne of waste to 1 tonne CO

Ground Travel and Onsite Fuel emissions represented the largest increase in emissions from 169.70 tonnes CO

last year to 395.5 tonnes CO2e this year.

travel is the major reason for the increase. It also rose due to t

higher combustion of ULP were responsible for this increase. A rise in emission factors for petrol and ethanol

blended fuel as reported by the Department of Climate Change co

Travel emissions.

Although Vega Colour Group reduced its electricity use by

emissions increased from 2,152.87 tonnes CO

Climate Change reported an increase of Victoria’s Scope 3 electricity emission factor from 0.08 kilogram CO

year to 0.11 kilogram CO2e this year. Thus, the increase of Vega Colour Group’s electricity emissions is due to

Victoria’s higher Scope 3 electricity emission factor compared to last year. The decrease in electricity use is a

positive step achieved by Vega Colour Group but electricity use may be further reduced through continuing work

towards greater energy efficiency, demand management and improved staff behaviour.

Natural Gas

0.0%

Electricity

82.2%

Emissions by Source for Vega Colour Group

Carbon Reduction Institute Pty Ltd - ABN 26 122 969 233

, 38-46 Albany St. – St Leonards – NSW – 2065 39 9990 - F: +61 2 9439 5550 - W: www.noco2.com.au

: Breakdown of Emissions by Source (2008/2009)

This audit found that Vega Colour Group had increased its footprint from 2,532.51 tonnes in 2006/2007 by 99.86


decreased significantly by 66.48% from 203.63 tonnes CO2e last year to 68.26 tonnes CO


e per tonne of waste to 1 tonne CO2e per tonne of waste.

emissions represented the largest increase in emissions from 169.70 tonnes CO

e this year. A change in the emission factor for accounting for the carbon in vehicle

he increase. It also rose due to the inclusion of diesel from delivery trucks and


blended fuel as reported by the Department of Climate Change contributed slightly toward increasing Ground

Although Vega Colour Group reduced its electricity use by -29,048.89 kWh compared to last year, electricity

emissions increased from 2,152.87 tonnes CO2e last year to 2,163.92 tonnes CO2e this

Climate Change reported an increase of Victoria’s Scope 3 electricity emission factor from 0.08 kilogram CO

e this year. Thus, the increase of Vega Colour Group’s electricity emissions is due to

oria’s higher Scope 3 electricity emission factor compared to last year. The decrease in electricity use is a


demand management and improved staff behaviour.

Ground Travel

15.0%

Flights

0.1%

Solid Waste

2.6%

Waste Water

0.0%


Page 1

.au

increased its footprint from 2,532.51 tonnes in 2006/2007 by 99.86


last year to 68.26 tonnes CO2e this year. This is due to


e per tonne of waste.

emissions represented the largest increase in emissions from 169.70 tonnes CO2e

A change in the emission factor for accounting for the carbon in vehicle

he inclusion of diesel from delivery trucks and


ntributed slightly toward increasing Ground

29,048.89 kWh compared to last year, electricity

e this year. The Department of

Climate Change reported an increase of Victoria’s Scope 3 electricity emission factor from 0.08 kilogram CO2e last

e this year. Thus, the increase of Vega Colour Group’s electricity emissions is due to

oria’s higher Scope 3 electricity emission factor compared to last year. The decrease in electricity use is a


demand management and improved staff behaviour.

Waste Water


Page 2


Suite 13, 38-46 Albany St. – St Leonards – NSW – 2065 P: +61 2 9439 9990 - F: +61 2 9439 5550 - W: www.noco2.com.au

ISO 14064 Verification Statement

This report has been prepared in accordance with the requirements of ISO 14064.1. An independent third party

(SGS Australia) verification statement is attached as an Appendix (Appendix A) which can be found at the end of

this report. The independent verification statement should be read in conjunction with this report.

Page 3



Contents

1. Introduction ........................................................................................................................................... 1

2. Emissions Audit Methodology ............................................................................................................... 2

2.1 GHG Protocol ................................................................................................................................ 2

2.1.1 Emissions Boundaries ............................................................................................................ 2

2.1.2 Organisational boundaries .................................................................................................... 2

2.1.3 Operational Boundaries ......................................................................................................... 3

2.2 NoCO2 Certification Program ........................................................................................................ 4

3. Vega Colour Group’s Greenhouse Gas Emissions Inventory ................................................................. 6

3.1 Scope 1 Emissions ......................................................................................................................... 7

3.1.1 Gas ................................................................................................................................................ 7

3.1.2 Emissions from LPG and ULP ................................................................................................. 8

3.2 Scope 2 Emissions ................................................................................................................................ 8

3.3.1 Scope 3 Emissions from Purchased Fuels and Electricity ...................................................... 9

3.3.2 Emissions from waste .......................................................................................................... 10

3.3.3 Emissions from Waste Water .............................................................................................. 10

3.3.4 Emissions from Staff Travel ................................................................................................. 11

5. Monitoring, Reducing and Offsetting Your Emissions ......................................................................... 15

References ................................................................................................................................................... 16 Appendix A: Independent Verification Statement 20

List of Figures Figure 1: Breakdown of Emissions by Source (2008/2009) ............................................................................................................ 1 Figure 2: NoCO2 Emissions Chart ................................................................................................................................................... 4 Figure 3: LowCO2 Emissions Boundaries ........................................................................................................................................ 5 Figure 4: Breakdown of Emissions Sources ..................................................................................................................................... 7 Figure 5: Gas consumption histogram from supplied bill ............................................................................................................... 7

List of Tables Table 1: Emissions sources studied ................................................................................................................................................. 0 Table 2: Summary of Emissions by Source ...................................................................................................................................... 0 Table 3: Services and products data provided to CRI ..................................................................................................................... 6 Table 4: Summary of emissions by source ...................................................................................................................................... 6 Table 5: Emissions from Gas Consumption ..................................................................................................................................... 8 Table 6: Scope 1 Emissions from Combustion of LPG and ULP ....................................................................................................... 8 Table 7: Electricity Used by Vega Colour Group in the 08-09 financial year .................................................................................. 9 Table 8: Scope 3 Emissions Purchased Fuels and Electricity ........................................................................................................... 9 Table 9: Waste Calculations ......................................................................................................................................................... 10 Table 10: Emissions impact from decomposition of waste water ................................................................................................ 11 Table 11: Distances to Vega Offices from each Postcode Location .............................................................................................. 12 Table 12: Emissions from Commuting to and From Work ............................................................................................................ 12 Table 13: Final Emission Calculations from Commuting............................................................................................................... 13 Table 14: Kilograms of CO2e per passenger.km............................................................................................................................ 13 Table 15: Air Travel Emissions Summary ...................................................................................................................................... 14 Table 16: Vega Colour Group: Carbon Footprint Whilst LowCO2 certified ................................................................................... 15

List of Equations Equation 1: Emissions from Gas Usage .......................................................................................................................................... 8 Equation 2: Emissions from Electricity Usage ................................................................................................................................. 8 Equation 3: Scope 3 Air Travel Emissions Formula ....................................................................................................................... 13

Page 1



1. Introduction

The Carbon Reduction Institute welcomed Vega Colour Group into the NoCO2 certification program in August

2008. In doing so, CRI undertook an audit of the greenhouse gas (GHG) emissions produced from the operations

of Vega Colour Group for the purpose of reducing and offsetting these emissions.

The initial audit considered all GHG emissions sources within the boundaries outlined in the NoCO2 program over

a one year period for the 2006/2007 financial year. Vega Colour Group then elected to attain 100% LowCO2

certification.

As part of the recertification process, CRI monitors and audit the ongoing on the continuing emissions of Vega

Colour Group, enabling Vega Colour Group to continue to maintain a carbon footprint in line with its certification.

The audit found that across the LowCO2 boundary Vega Colour Group’s emissions have increased from 2,532.51

tonnes CO2e to 2,632.37 tonnes CO2e

Page 2



2. Emissions Audit Methodology

In order for Vega Colour Group to manage the impact of its greenhouse gas emissions, it must first quantify

them. The Carbon Reduction Institute (CRI) does this by conducting an emissions audit. The methodology

underpinning this audit is identical to the methodology used in the calculation and reporting of Vega Colour

Group’s 2006/2007 GHG inventory. The methodology has been adapted from the World Business Council for

Sustainable Development’s (WBCSD) Greenhouse Gas (GHG) Accounting Protocol1. The methodology is explained

in detail in the sections below.

2.1 GHG Protocol

The protocol contains universally recognised accounting methods and boundaries that can be applied to different

levels, sizes and types of organisations when creating their GHG inventory. This includes multinational

organisations, energy intensive primary industry, as well as small to medium enterprises (SME). The protocol

defines boundaries and emissions scopes to ensure that emissions do not become double counted when many

companies start accounting for their emissions on a national, state or industry level. On an organisational level,

emission scopes and boundaries are important when compiling a GHG inventory, as they give organisations

consistency and clarity when charting their emissions liabilities.

2.1.1 Emissions Boundaries

There are two ‘types’ of boundary that must be set when compiling a GHG inventory; an organisational boundary

and an operational boundary. Organisational boundaries allow an entity to distinguish between GHG emitting

activities that are attributable to their organisation, and those that are not. Operational boundaries allow an

entity to define the emissions that they own or control and categorise them into different scopes (as either direct

or indirect). Dividing emissions up into different scopes allows an organisation to determine opportunities for

emission reductions, as well as providing knowledge as to where their emissions are occurring along the value

chain.

2.1.2 Organisational boundaries

When setting organisational boundaries, CRI applies a control rationale, which states that organisations/entities

account for emissions generated from activities over which they have direct control, rather than an equity share.2

Vega Colour Group has confirmed that it has direct control over activities at its Notting Hill site. Hence the

organisational boundary is 274 Ferntree Gully Road, Notting Hill, Victoria 3168.

The GHG protocol prescribes 2 methods when defining control; operational and financial. CRI defines control

using the operational control method. The GHG protocol defines:

Operational Control. A company has operational control over an operation if the former or one of its subsidiaries

has the full authority to introduce and implement its operating policies at the operation.3

Operational control covers activities where an organisation has authority to directly alter its emissions patterns,

be it through the implementation of policy (be it a purchasing policy, staff travel, OH&S, recruitment etc),

technology choice or through direct authority.

CRI applies this rationale as it believes that the consumer (in this case Vega Colour Group) is responsible

1WBCSD, WRI, (2004), The Greenhouse Gas Protocol, World Resources Institute and World Business Council for

Sustainable Development, Conches-Geneva, Switzerland. Available online: http://www.ghgprotocol.org 2 ibid, p17-18

3 Ibid, p 18

Page 3



for the products and services that they consume, and that the purchase is an endorsement of the methods used

to produce the goods and services consumed. This demarcation allows for easy verification for the majority of

emission sources covered in this audit; for example, the bulk of this audit can be verified through Vega Colour

Group’s utility bills and expenditure.

In some instances however, Vega Colour Group will have elements of control over activities without there

necessarily being evidence of a dollar spend within its financial accounts. A good example of such an instance is

staff travel, where many organisations can encourage a greater use of public transport and carpooling systems by

providing yearly public transport passes for staff, or linking employees that live close together for car-sharing. CRI

includes staff travel because of this; and because of the educational benefit gained by staff by incorporating their

travel behaviour into the audit.

The emissions accounting methodology described above are applied to all organisations audited within CRI’s

NoCO2 certification program. A homogenous and consistent approach in compiling greenhouse gas inventories

allows for more meaningful comparisons across industries, as well as clarity for clients communicating their

emission reduction strategies through the NoCO2 logo certification program.

2.1.3 Operational Boundaries

The main function of operational boundaries is to create different scopes for organisations to separate and define

the emissions produced from their operations. The 3 scopes are described in detail below.

• Scope 1: Direct GHG emissions - Emissions that occur from sources that are owned or controlled by the

company, for example, emissions from combustion in owned or controlled boilers, furnaces and vehicles.4

• Scope 2: Electricity indirect GHG emissions - Emissions from the generation of purchased electricity

consumed by the company.5

• Scope 3: Other indirect GHG emissions – Emissions that are a consequence of the activities of the

company, but occur from sources not owned or controlled by the company. These include emissions from

waste, the extraction and production of purchased materials; transportation of purchased fuels and

transportation of employees to and from work.6

The NoCO2 emissions chart below graphically depicts the three scopes of emissions.

4 WBCSD, WRI, (2004), The Greenhouse Gas Protocol, World Resources Institute and World Business Council for

Sustainable Development, Conches-Geneva, Switzerland. Available online: http://www.ghgprotocol.org pp25-31 5 Ibid

6 Ibid

Page 4



Figure 2: NoCO2 Emissions Chart

The GHG protocol describes Scopes 1 and 2 as mandatory reporting categories, and Scope 3 as a voluntary

reporting category. Scopes 1 and 2 are defined within the protocol to ensure that 2 or more companies will not

account for the same emissions under the same scope.7

2.2 NoCO2 Certification Program

The NoCO2 Certification program is a logo certification system that rewards organisations that take action against

climate change. It contains 2 company certification levels: NoCO2 Certification and LowCO2 Certification.

NoCO2 Certification is awarded to organisations that force their carbon footprint to zero (otherwise known as

carbon neutral) through internal emission reductions and through the purchase of carbon credits. ‘Carbon

Neutrality”, as termed by the Carbon Reduction Institute and defined through its NoCO2 certification program,

makes it mandatory for the organisation or entity being measured to include the embodied emissions within all

products and services that they sell, as well the embodied emissions from all products and services used to deliver

their service.

“Embodied emissions” refer to the emissions generated from the extraction of raw materials, to the manufacture

and finally to the distribution of a product. All products and services require energy for production and

distribution which is most commonly provided through the combustion of fossil fuels, which results in a

greenhouse emissions impact. In order for a company to be NoCO2 certified, they must include the emissions

embodied in their consumption of products and services.

The Carbon Reduction Institute has a second tier certification called LowCO2 which excludes the supply chain

emissions impacts of an organisation’s operations. The emissions boundaries for LowCO2 certification are

depicted below.

7 WBCSD, WRI, (2004), The Greenhouse Gas Protocol, World Resources Institute and World Business Council for

Sustainable Development, Conches-Geneva, Switzerland. Available online: http://www.ghgprotocol.org, p 25

Page 5



Figure 3: LowCO2 Emissions Boundaries

This audit is for Vega Colour Group’s LowCO2 certification and includes the emissions boundaries shown in the

figure above.

The LowCO2 certification model allows large companies with significant embedded emissions in their supply chain

to effectively communicate their reduction strategy and the context through which it is has been achieved. Many

major corporations and banks are claiming to be carbon neutral without accounting for their supply chain

impacts. This effectively demeans the term ‘carbon neutral’ and lowers the value for other organisations that

have truly accounted for their emissions.

Through the use of operational control rationale, and through clear disclosure of the emissions sources included

within each certification level (as shown on the above charts), communications and claims of carbon reduction

that are made in association with the Carbon Reduction Institute are beyond criticism.

Page 6



3. Vega Colour Group’s Greenhouse Gas Emissions Inventory

Via email correspondence and the completion of surveys, CRI was able to collect information that enabled it to

create a GHG Inventory for Vega Colour Group for the 2008/2009 financial year. In creating this GHG inventory,

CRI endeavours to use the most relevant and accurate data sources available.

In calculating the emissions impact for Vega Colour Group, the Carbon Reduction Institute utilised a series of

published life cycle emissions factors to calculate the emissions from electricity usage, gas and fuel combustion,

transport, waste and waste water.

The emission amounts detailed in the calculations below are expressed in units of CO2 equivalents (CO2e). This

unit scales the impact of the emission of all greenhouse gases, including CO2 (carbon dioxide), CH4 (Methane),

N2O (Nitrous Oxide), Sulphur Hexafluoride (SF6) as well as fluorocarbons PFCs and HCFCs and expresses their

varying global warming impacts in terms of a weighted CO2 equivalent.

The greenhouse gas inventory for Vega Colour Group is prepared in accordance with the requirements of ISO

14064-1.

Table 3 below presents a summary of the services required, products consumed and the corresponding emissions

that were the result of Vega Colour Group’s operations.

Table 3: Services and products data provided to CRI

Scope(s) Source Emissions Type

Scope 1 & 3 Fuel *Direct and Indirect emissions from

burning combustible fuels in onsite

machinery and company owned vehicles

Scope 2 & 3 Electricity *Indirect emissions from the burning of

coal and gas at power plants to produce

purchased electricity

Scope 3 Waste *Methane emissions from the

decomposition of waste in landfill and

from decomposition of organics in waste

water

Staff Ground and Air

Transport

*Fuel combustion – CO2e emissions from

car, public transport and air travel

The greenhouse gas emissions were calculated for each category and service shown in the table above. A

summary of the emissions from each source can be seen below. The carbon audit found that Vega Colour Group

generated the equivalent of 2,632.37 tonnes of CO2-e over the 12 month period assessed.

Table 4: Summary of emissions by source

Scope Emission Source 2006-2007 2008-2009 % difference

Scope 1&3

Ground Travel and Onsite Fuels 169.70 395.50 133.05%

Natural Gas 0.40 0.05 -87.54%

Scope 2 & 3 Electricity 2,152.87 2,163.92 0.51%

Scope 3

Flights 4.00 3.43 -14.34%

Solid Waste 203.63 68.26 -66.48%

Waste Water 1.91 1.22 -36.17%

Total 2,532.51 2,632.37 3.94%

Carbon Reduction Institute Pty Ltd

Suite 13, P: +61 2 9439

Figure 4: Breakdown of Emissions Sources

3.1 Scope 1 Emissions

Scope 1 emissions are those produced onsite from source owned or controlled by Vega Colour Group. This

includes generators or gas used onsite and fuel in company owned vehicles.

3.1.1 Gas

The Department of Climate Change’s National Greenhouse Accounts Factors (2009)

consumed in Victoria leads to the emission of 51.6 kilograms of CO

one of its gas bills within the 2008/2009 financial year; co

calculate the total emissions from gas usage, CRI used the average daily consumption for this period and

multiplied by 365 days to account for gas consumption over the financial year. This was deemed a reason

calculation method, as the ‘gas consumption histogram’ on the bill showed that the consumption volume from

the supplied bill was identical to that of previous months. This can be shown in the image below.

Figure 5: Gas consumption histogram from supplied bill

8 Department of Climate Change, (June 2009), National Greenhouse Accounting Factors p13

9 Supplied by Rob Nugent on behalf of Vega Colour Group

Natural Gas

0.0%



, 38-46 Albany St. – St Leonards – NSW – 2065 39 9990 - F: +61 2 9439 5550 - W: www.noco2.com.au

Emissions Sources


includes generators or gas used onsite and fuel in company owned vehicles.

National Greenhouse Accounts Factors (2009)8 states that

consumed in Victoria leads to the emission of 51.6 kilograms of CO2-e. Vega Colour Group was only able to supply

one of its gas bills within the 2008/2009 financial year; covering the period from 3/3/2009 to 4/5/2009. To


multiplied by 365 days to account for gas consumption over the financial year. This was deemed a reason



consumption histogram from supplied bill9

Department of Climate Change, (June 2009), National Greenhouse Accounting Factors p13

Supplied by Rob Nugent on behalf of Vega Colour Group

Ground Travel

15.0%

Electricity

82.2%

Flights

0.1%

Solid Waste

2.6%

Waste Water

0.0%


Page 7

.au


states that each unit of gas

e. Vega Colour Group was only able to supply

vering the period from 3/3/2009 to 4/5/2009. To


multiplied by 365 days to account for gas consumption over the financial year. This was deemed a reasonable



Waste Water


Page 8



The latest bill period is approximately equal to the previous months, with August being the exception, with a

markedly lower consumption figure. The formulae and final calculations are shown below.

Equation 1: Emissions from Gas Usage

×=

GJ

ekgCOFactorEmissionsConsumedGJUnitsofONEmissionsGasScope 2)(.1

Table 5: Emissions from Gas Consumption

Gas Type

Period Start

Date

Period Finish

Date

No of

Days Gas Usage (MJ)

Scope 1

kgCO2e/MJ

Scope 1

Emissions

tCO2e

Natural Gas 3/03/2009 4/05/2009 63 154.30 0.0516 0.01

63.00 154.30 0.01

365.00 893.96 0.05

3.1.2 Emissions from LPG and ULP

The combustion of LPG in machinery onsite, and through private vehicles owned by Vega Colour Group leads to

scope 1 greenhouse gas emissions. The quantity of each of these fuels consumed was supplied by Vega Colour

Group. Each litre of LPG has a scope 1 emissions impact of 1.59 kg CO2-e, each litre of ULP has a scope 1 emissions

impact of 2.38 kg CO2-e and each litre of diesel has a scope 1 impact of 2.7 kg CO2-e.10 The emissions impact from

Vega Colour Group’s use of ULP and LPG onsite is shown in the table below.

Table 6: Scope 1 Emissions from Combustion of LPG and ULP

Fuel Consumed (business

travel/internal use)

Cost of

fuel

bought

Litres of

fuel Per

Year

Scope 1 Emission

Factor

(tCO2e/kL)

Scope 1 Emissions

(Tonnes CO2e)

ULP $ 52,498 42,892 2.38 102.10

Diesel $ 13,069 10,627 2.70 28.67

LPG $ 5,927 4,275 1.59 6.81

137.58


Scope 2 emissions are those indirectly emitted by Vega Colour Group through its electricity usage. Electricity

generation is the world’s largest source of greenhouse gas emissions, which is due to the global economy’s heavy

reliance upon cheap electricity from coal and gas reserves. Frameworks and data sets exist both within Australia

and internationally that enable simple calculations of emissions electricity, which follow the formulae below:

Equation 2: Emissions from Electricity Usage

×=

kWh

ekgCOFactorEmissionsConsumedkWhUnitsofONEmissionsyElectricitScope 2)(.2

The Department of Climate Change’s National Greenhouse Accounts Factors which details the emission factors for

electricity used in each state. The Scope 2 emissions factor for electricity consumption in Victoria is 1.22 kgCO2-e

per kWh.11 This is around 20% higher than NSW, SA, WA and QLD due to Victoria’s use of brown coal.

Vega Colour Group provided a summary of its monthly electricity consumption, and these figures and the final

calculations are shown in the table below.

10

Department of Climate Change, National Greenhouse Accounting Factors (June 2009), p15. Calculated in kg CO2-e/L

through global warming equivalents on p51 11

Department of Climate Change, National Greenhouse Accounting Factors (June 2009), p19

Page 9



Table 7: Electricity Used by Vega Colour Group in the 08-09 financial year

Period Start

Date

Period Finish

Date

No of

Days

Electricity

Usage (kWh)

Scope 2

kgCO2e/kWh

Scope 2

Emissions

tCO2e

1/07/2008 31/07/2008 31 162,482.01 1.22 198.23

1/08/2008 31/08/2008 31 152,834.22 1.22 186.46

1/09/2008 30/09/2008 30 147,640.46 1.22 180.12

1/10/2008 31/10/2008 31 169,531.66 1.22 206.83

1/11/2008 30/11/2008 30 145,445.48 1.22 177.44

1/12/2008 31/12/2008 31 129,896.01 1.22 158.47

1/01/2009 31/01/2009 31 126,431.53 1.22 154.25

1/02/2009 28/02/2009 28 103,975.97 1.22 126.85

1/03/2009 31/03/2009 31 119,051.89 1.22 145.24

1/04/2009 30/04/2009 30 108,332.22 1.22 132.17

1/05/2009 31/05/2009 31 132,306.21 1.22 161.41

1/06/2009 30/06/2009 30 129,080.45 1.22 157.48

365 1,627,008.11 1,984.95

365 1,627,008.11 1,984.95


Scope 3 emissions are defined as indirect emissions that occur from sources offsite and include the emissions

from extracting purchased fuel and electricity; waste and waste water; staff travel and the embodied emissions of

all purchases.

Scope 3 emissions sources are assessed through the application of life-cycle emissions coefficients in the case of

travel and waste. The emissions impact and the calculations behind all scope 3 sources are depicted below.

3.3.1 Scope 3 Emissions from Purchased Fuels and Electricity

The consumption of purchased fuels and electricity has a scope 3 emissions impact. This includes the

transportation fuels and energy used to extract and refine purchased fuels. In the case of electricity, this impact

includes the emissions from electricity lost in transmission and distribution. In the case of natural gas, this

includes the emission of methane resulting from gas leaks. The scope 3 emissions from electricity, natural gas,

LPG and ULP are described in the table below.

Table 8: Scope 3 Emissions Purchased Fuels and Electricity

Energy Type Quantity Scope 3 Emissions Factor

Scope 3 Emissions

Tonnes CO2-e

LPG 4275 Litres 0.13 Tonnes CO2e/kL12

0.56

ULP 42,892 Litres 0.18 Tonnes CO2e/kL13

7.77

Electricity 1,627,008 kWhs 0.11 Tonnes CO2e/MWh14

178.97

Gas 893.96 MJs 0.0045 Tonnes CO2e/GJ15

0

Diesel 10,627 Litres 0.2 Tonnes CO2e/kL16

2.17

Total 189.47

Hence, the total scope 1 and scope 3 emissions from purchased fuels was:

12

Department of Climate Change, National Greenhouse Accounting Factors (June 2009), p19 13

Ibid, p58 14

Ibid 15

Ibid 16

Ibid

Page 10



• 109.87 Tonnes of CO2-e for ULP

• 30.85 Tonnes of CO2-e for Diesel

• 7.37 Tonnes of CO2-e for LPG

• 0.05 Tonnes of CO2-e for Natural Gas

The total scope 2 and 3 emissions impact from electricity was 2,163.92 Tonnes of CO2-e.

3.3.2 Emissions from waste

Methane gas is emitted when organic matter decomposes in landfill. As Vega Colour Group has control over its

waste habits, then the emissions impact that is caused from the land-filling of its waste must be accounted for.

The Carbon Reduction Institute collected the net waste data from Vega Colour Group in terms of the amount of

cubic meters of waste sent to landfill each week.17 The National Greenhouse Accounting Factors workbook

provides conversion factors to calculate the impact from sending a tonne of each type of waste to landfill and this

factor was applied to convert the volume of waste into a weight.18 The waste breakdown provided by Vega Colour

Group showed a mix of general office waste, and so the DECC emission factor for the decomposition of municipal

solid waste was applied.19 These figures and the final waste calculations are shown in the table below.

Table 9: Waste Calculations

No of

Bins

Bin Size

(m3)

How

often

emptied

per

week

Total

Volume of

Waste per

Year (m3)

Type of

Waste

Conversion

Factor

from m3 to

tonnes

Total

Tonnes

of

waste

Type of

Waste

Tonnes

CO2e/tonne

waste

Tonnes

CO2e

3.0 150.00 1 450

Co-

Mingled 0.1220

54.00

Municipal

Solid Waste 121

54.00

1.0 99.00 1 99

Co-

Mingled 0.12 11.88

Municipal

Solid Waste 1 11.88

1.0 11,000.00 1 11

Sludge

(Wet) 0.7222

7.92 Sludge 0.323

2.38

Total: 560 73.8 68.26

3.3.3 Emissions from Waste Water

The decomposition of organic matter in Vega Colour Group’s waste water incurs a greenhouse gas emissions

impact. According to Melbourne Water’s greenhouse and energy data, each kilolitre of water that is delivered by

Melbourne Water leads to an average emissions impact of 0.767 kilograms of CO2-e.24 Emissions from waste

water were calculated through applying this emissions factor to the amount of litres water consumed. The final

calculations are detailed in the table below.

17

Private Communication, Rob Nugent, 30th

May 2008 18

DCC, National Greenhouse Accounting Factors, p53 19

Ibid, p63 20

Department of Climate Change, National Greenhouse Accounts (NGA) Factors January 2008, p39 21

Ibid, p63 22

Ibid, p53 23

Ibid 24

Melbourne Water (2009). Online resource, accessed on the 15th October. Available at:

http://www.melbournewater.com.au/applications/annual_report_2008/envdata/env_energy.htm

Page 11



Table 10: Emissions impact from decomposition of waste water

Waste Water Emissions

Period Start Period End Waste water (kL) EF (kgCO2e/kL) Emissions (tCO2e)

Jul-08 Oct-08 443 0.767 0.34

Oct-08 Jan-09 402 0.767 0.31

Jan-09 Apr-09 349 0.767 0.27

Apr-09 Jul-09 393 0.767 0.30

Total 1,587 1.22

3.3.4 Emissions from Staff Travel

Staff travel includes all flights and private car travel incurred due to the existence of Vega Colour Group’s

operations. Consumption of public transport incurred by Vega Colour Group and its staff are not attributed to

Vega Colour Group’ as the emissions created from its consumption of public transport cannot be affected by Vega

Colour Group’ through policy, technology or through direct authority.

3.3.4.1 Emissions from Staff Ground Travel

CRI usually quantifies greenhouse gas emissions from vehicle travel by surveying staff about the distance travelled

and the vehicles used. However, the majority of Vega’s staff are unable to access a computer to complete a

survey. Hence, emissions from staff travel were calculated by determining the distance that each employee lives

from work through the postcode address of the staff. It was assumed that all staff travelled to work via private

vehicle. The postcode distance was multiplied by average emissions intensity per vehicle kilometre for private

vehicle travel.25 Google maps were used to calculate the distance between the postcode and the Vega Colour

Group offices, and the distance and emissions calculations are shown in the tables below.

25

Australian Government Department of Environment and Heritage (2006), National Greenhouse Gas Inventory; Analysis of

Recent Trends and Greenhouse Indicators 1990 – 2005, Australian Government, p30

Page 12



Table 11: Distances to Vega Offices from each Postcode Location

Pcode Distance PAX

Total

km Pcode Distance PAX Total km

3011 31.8 1 31.8 3162 11.8 1 11.8

3025 33.1 1 33.1 3163 9.4 2 18.8

3040 37.9 1 37.9 3165 12 1 12

3054 23.3 1 23.3 3166 4.2 2 8.4

3055 34.3 1 34.3 3167 6.8 1 6.8

3073 31.5 1 31.5 3168 3.7 1 3.7

3082 60.6 1 60.6 3170 4.8 1 4.8

3084 22.3 1 22.3 3171 6 2 12

3085 25.2 1 25.2 3173 14.5 2 29

3089 30.7 1 30.7 3174 8.6 2 17.2

3095 26.1 1 26.1 3177 16.3 1 16.3

3109 16.3 2 32.6 3178 15.1 1 15.1

3111 16.9 1 16.9 3179 8.6 1 8.6

3116 29.2 1 29.2 3180 10.7 1 10.7

3124 14.1 1 14.1 3191 16.6 1 16.6

3127 11.1 2 22.2 3193 20.1 1 20.1

3130 9.9 1 9.9 3195 12.7 1 12.7

3132 14.4 1 14.4 3196 20 2 40

3133 11.1 1 11.1 3197 28.9 1 28.9

3135 18.3 1 18.3 3198 31.8 1 31.8

3136 22.2 1 22.2 3199 32.6 1 32.6

3137 22.5 3 67.5 3201 29.9 1 29.9

3138 26.6 1 26.6 3760 56.7 1 56.7

3139 57.1 1 57.1 3761 44.8 1 44.8

3140 33.1 1 33.1 3770 40.1 2 80.2

3145 7.8 1 7.8 3805 25 2 50

3146 12 1 12 3806 27.2 3 81.6

3150 4.7 5 23.5 3807 31.2 2 62.4

3152 12.2 1 12.2 3810 41.9 2 83.8

3153 16.8 1 16.8 3915 55.6 1 55.6

3154 19.3 2 38.6 3925 104 1 104

3155 16.4 2 32.8 3931 45.2 1 45.2

3156 16 6 96 3934 51.4 1 51.4

3977 35.9 6 215.4

Total 99 2290.6

Table 12: Emissions from Commuting to and From Work

Travel Emissions (Postcoded employees)

Total kms per

week Annual km

Emission Factor (kg-

CO2e/vehicle-km)

Emission

(tCO2e)

22,906 1,099,488 0.255 280.37

Vega Colour Group informed CRI that 30% of ULP used was commuting. As these emissions were calculated from

ULP combustion in section 3.3.1.2 then the final calculations needed to balance this as shown in the table below.

Page 13



Table 13: Final Emission Calculations from Commuting

Scope 3 TCO2 Scope 1 & 3 TCO2

Surveyed 0.00 0

Postcode 280.37

ULP Paid for by Vega in

Vehicles -32.96

Balance 247.41

Hence, the final emissions from Ground Travel and Onsite Fuels, including scope 1 and scope 3 emission sources

were 395.5 tonnes of CO2e.

3.3.4.2. Emissions from Staff Air Travel

The emissions from flights taken by the Vega Colour Group were calculated with respect to the distance

between the airports, the emissions factor associated with passenger flights, the Radiative Forcing Index

factor and the Greater Circle Flight factor.

This is shown in the equation below:

Equation 3: Scope 3 Air Travel Emissions Formula

�� = �� × �� × �� × ��

The emissions factor for air travel is taken from the Department for Environment, Food and Rural Affairs

(DEFRA UK)’s data for the air passenger emission factors per passenger kilometre, and are scaled for

domestic flights, short haul flights and long haul flights in correspondence to Table 4. These figures are

influenced by the technical performance of the aircraft fleet and the occupancy/load factor of the flight.

Table 14: Kilograms of CO2e per passenger.km26

Description Distance (km)

Emissions factor

(kg-CO2e/km)

Domestic Flights 0-463 0.1753

Short Haul Flights 464-1108 0.0983

Long Haul Flights >1109 0.1106

This figure is multiplied by 3 to take into account the average extra global warming impact from flying

that occurs when greenhouse gases are released directly into the upper atmosphere. This increases

their apparent lifetime in the stratosphere, and hence their ability to accelerate global warming. This

factor (3) is known as the radiative forcing index.27

Finally it is then multiplied by 1.1 which takes into account the uncertainties of air travel distances

between airports such as indirect flight paths and delays resulting in aircraft circling airports in a holding

pattern. This factor is known as the Greater Circle Flight Factor.

26

Department of Environment, Food and Rural Affairs, 2008 Guidelines to Defra’s GHG Conversion Factors: Methodology

Paper for Transport Emissions Factors, available online at:

http://www.defra.gov.uk/environment/business/reporting/pdf/passenger-transport.pdf 27

Climate forcing of aviation emissions in high altitudes and comparison of metrics; An update according to the Fourth

Assessment Report, IPCC 2007, Hartmut Grassl, Max Planck Institute for Meteorology, Hamburg (2007). Available online at:

http://www.mpimet.mpg.de/wissenschaft/publikationen/papers/climate-forcing-of-aviation-emissions-in-high-altitudes-and-

comparison-of-metrics.html

Page 14



Vega Colour Group undertook a small number of flights over the reporting period, producing emissions

of 3.43 tCO2e. The full breakdown of the emissions from flights is shown below.

Table 15: Air Travel Emissions Summary

Flights for Vega Colour Group

Flight From Destination 1

Return

(Y/N)

Number of

Passengers

tCO2e of one

trip (one way)

Destination 1

Total

CO2e

(Tonnes)

1 Melbourne Gold Coast Y 1 0.49 0.97



4 Melbourne Sydney Y 1 0.26 0.51

Total CO2e: 3.43

Page 15



5. Monitoring, Reducing and Offsetting Your Emissions

This audit found that Vega Colour Group were responsible for the emission of 2,534.51 Tonnes of CO2 equivalent

greenhouse gas for the 2008-2009 financial year. Vega Colour Group’s certification commenced on the 18th of

August 2009, which meant that Vega Colour Group was certified for 87% of the year. Over the period from

18/8/2008 to 1/7/2009, Vega Colour Group’s carbon footprint was 2231.88 tonnes of CO2e. The emissions

breakdown over this period is explained in the table below.

Table 16: Vega Colour Group: Carbon Footprint Whilst LowCO2 certified

Emission Source Fin Year 0809 compliance period Method

Ground Travel and Onsite Fuels 395.50 342.40 Pro-Rata @87%

Natural Gas 0.05 0.04 Pro-Rata @87%

Electricity 2163.92 1825.86 Time Period

Flights 3.43 3.43 Time Period

Solid Waste 68.26 59.09 Pro-Rata @87%

Waste Water 1.22 1.05 Pro-Rata @87%

Total 2632.37 2231.88

As explained in the table above, most emissions sources were calculated using a pro-rata method applying an 87%

multiplier to the correlating result for the financial year. Emissions from electricity and flights were summed

during the certification period – with a pro-rata calculation for electricity to account for the August 08 bill.

During 2008/2009, Vega Colour Group purchased 2153.43 carbon credits for its LowCO2 certification. Hence, it

required an additional 78.45 carbon credits to cover its certification requirements in 2009/2010.

For the purposes of carbon offsetting and maintaining certification over 2009/10, CRI will require Vega to report

its electricity and flights emissions at the end of each financial quarter by providing bills and reports of these to

CRI. The emissions will be calculated and Vega will be required to purchase carbon credits to offset its emissions

at this time.

Other emissions will be offset based on the 08/09 figures. The emissions from other sources were equal to 468.45

tonnes of CO2-e. The carbon credits to offset these emissions will be charged quarterly for the remainder of the

financial year. We look forward to working with Vega into 2010 and beyond for a more sustainable future.



References

Department of Climate Change, June 2009, National Greenhouse Accounts (NGA) Factors, Department of Climate

Change, Canberra [Used to obtain emission factors for waste, energy and fuel]

Department of Climate Change, January 2008, National Greenhouse Accounts (NGA) Factors, Department of

Climate Change, Canberra [Used to obtain conversion factors for waste]

Department of Environment and Heritage (2006), National Greenhouse Gas Inventory; Analysis of Recent Trends

and Greenhouse Indicators 1990 – 2005, Australian Government, p30 [Emission factor for transport by private

vehicle]

Google Maps (2008), Online Resource. Viewed 15th June 2008. Available at: http://maps.google.com [Used to

calculate distances for employee travel]

GHG Protocol (2006), CO2 Emissions from Business Travel. Version 2.0. June 2006. Developed by World Resources

Institute (WRI) and copyrighted. Available at www.ghgprotocol.org [Tool for calculating emissions from business

travel]

Intergovernmental Panel on Climate Change (IPCC), 2001, Climate Change 2001: The Scientific Basis, “Aviation and

the Global Atmosphere – Chapter 8.3.3, available online: http://www.grida.no/climate/ipcc/aviation/126.htm

[Information on RFI and freight]

Intergovernmental Panel on Climate Change Fourth Assessment Report Climate Change 2007: Synthesis Report.

Viewed online, 2nd January 2008. Available at: http://www.ipcc.ch/ipccreports/ar4-syr.htm, page 6 [Effects of

climate change]

Melbourne Water (2008). Online resource, accessed on the 5th August. Available at:

http://www.melbournewater.com.au/applications/annual_report_2007/envdata/env_energy.htm [Used to

obtain emissions factor for waste water]

Rose, B.J., 2006, Background paper for the GHG-Energy Calc: a tool for self audit of domestic greenhouse

emissions [Information on fuel efficiency of passenger vehicles]

Total Environment Centre (2007), ‘Carbon Abatement and Innovation’, Emissions Trading Briefing Note 3.

Available on request at www.tec.org.au [Quote on opportunities in the carbon market]

WBCSD, WRI, (2004), The Greenhouse Gas Protocol, World Resources Institute and World Business Council for

Sustainable Development, Conches-Geneva, Switzerland. Available online: http://www.ghgprotocol.org [Carbon

Accounting Framework]

Page 17



Appendix A: Verification Statement

Vega Carbon Audit 0809 v51a

Documents

world resources

world business

vega colour

national greenhouse

carbon reduction

gas consumption

greenhouse

burning combustible