Greenhouse Gas Emissions Assessment - Compliance or New Opportunities?
Client
The company extracts and processes raw materials in many regions of Russia. As a result of its activities, significant emissions of pollutants into the atmosphere are generated, which has a negative impact on the environment. The company sells its products in Russia and exports them to many foreign markets, including European ones.
Problem
The planned introduction of restrictions on the carbon footprint of products in Europe, the adoption by the Russian authorities of mandatory reporting on greenhouse gas emissions and payments for them, will significantly limit the possibility of selling the company's products. In order to adapt to the upcoming new conditions and understand how to manage its negative impact, the company needs to have reliable information about its greenhouse gas emissions.
The company turned to us, as an organization with experience in calculating greenhouse gas emissions and managing climate issues, to assess greenhouse gas emissions in accordance with Russian and international requirements.
Solution
The situation was complicated by the fact that each production facility of the company has complex technological processes and consumes third-party electrical and thermal energy. The company owns several such facilities in different regions of Russia. In addition to this, numerous suppliers and buyers work with it and it uses complex logistics schemes for the supply of raw materials and products.
Using international and Russian methods as a basis, we estimated greenhouse gas emissions in the following areas:
Scope 1. An assessment was made of direct greenhouse gas emissions, namely the emissions from facilities owned by the company.
Scope 2. An estimation of indirect energy emissions of greenhouse gases, meaning the emissions from the consumption of third-party heat and electric energy, was carried out.
Scope 3. Other indirect greenhouse gas emissions were assessed, these being emissions from the extraction and production of raw materials, fuels and services, including transportation, outsourcing, etc.
CDP. CDP. In addition, it turned out that the company has been receiving requests for reporting in the climate area from the CDP platform for several years, but did not respond to them, therefore, as part of the calculation of greenhouse gas emissions, climate reporting was prepared in two versions: in Russian for use by the company and English for placement on the CDP platform.
Result
- Greenhouse gas emissions estimates were carried out. The company obtained indicators of greenhouse gas emissions in three areas: direct emissions, other energy emissions and other indirect emissions. Thanks to this, it prepared for the introduction of mandatory reporting on greenhouse gas emissions in Russia and for more complicated regulations related to the export of products to Europe.
- Climate reporting was compiled and provided to the international aggregator. The company submitted a report to the CDP and received a rating high enough for first reporting. This contributed to the improvement of the company's image in the climate area.
