GHG Emissions and Classification

Greenhouse Gases refer to a collection of seven greenhouse gases listed in the Kyoto Protocol, i.e., carbon dioxide (CO2); methane (CH4); nitrous oxide (N2O); hydrofluorocarbons (HFCs); nitrogen trifluoride (NF3); perfluorocarbons (PFCs); and sulfur hexafluoride (SF6). These GHGs are released into the atmosphere as a result of emissions from various activities undertaken as part of several business operations and/or an entity’s value chain.

Classification

GHG Emissions are broadly classified into two sources and three reporting categories which are consistently used across these standards and/or frameworks:

Table 6-1 Classification of GHG Emissions

Source	Reporting Category
Direct Emissions	Scope 1
Indirect Emissions	Scope 2
Indirect Emissions	Scope 3

These emissions reporting categories can be distinguished based on the following definitions:

• Scope 1 – Emissions from sources that are owned or controlled by an entity
• Scope 2 – Emissions from sources that are purchased and controlled by an entity
• Scope 3 – Emissions from all other sources

These reporting categories are further sub-divided into various activities as listed below:

Table 6-2 Reporting Categories

Reporting Category	Emissions Source Activity
Scope 1	Fuels
Scope 1	Refrigerants
Scope 1	Owned Transportation
Scope 2	Electricity
Scope 2	Heat and Steam
Scope 2	District Cooling
Scope 3	Purchased goods and services
Scope 3	Capital goods
Scope 3	Fuel and energy-related activities
Scope 3	Upstream transportation and distribution
Scope 3	Waste generated in operations
Scope 3	Business travel
Scope 3	Employee commuting
Scope 3	Upstream leased assets
Scope 3	Downstream transportation and distribution
Scope 3	Processing of sold products
Scope 3	Use of sold products
Scope 3	End-of-life treatment of sold products
Scope 3	Downstream leased assets
Scope 3	Franchises
Scope 3	Investments

Emissions Calculator – GWP-based emissions

The application enables banks and financial institutions to calculate the GHG Emissions based on the 100-year Global Warming Potential (GWP) of the following greenhouse gases by using the various synthesis reports published by the Intergovernmental Panel on Climate Change (IPCC) - AR4, AR5 and AR6. This calculation is applicable to all emission categories of Scope 1, 2 and 3, wherever an emission factor is required.

Note:

This has to be calculated only for those records where we do not necessarily compute the individual/disaggregated values for each of these gases (i.e. Emission Factors are not available for these gases)

1. CH4
2. N20
3. HFCs
4. PFCs
5. SF6
6. NF3

Pre-built model/infrastructure for Emission Factor Database Sources

The application is pre-equipped to support the usage of various emission factor database sources and/or emission factors from various vendors or data providers. As part of this functionality, the solution contains pre-seeded data elements across various database sources in form of hierarchies. The following is a list of emission factor database sources for which hierarchies are pre-seeded in the application across available emission categories:

Table 6-3 Pre-seeded Emission Factor Database Sources

Emission Factor Database/Source
UNFCC
DEFRA
EPA
GHG Protocol
PCAF
IFI