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Technical guidance South Pole Climate Neutrality, Climate Conscious and Renewable Electricity labels
2 | South Pole
Technical Guidance | South Pole Climate Neutrality, Climate Conscious and Renewable Electricity Labels
“The term climate neutrality means living in a way that produces no net greenhouse gas (GHG) emissions. This should be achieved by reducing your own GHG emissions as much as possible and using carbon offsets to neutralise the remaining emissions.”
Kick the Habit, A UN Guide to Climate
Neutrality, United Nations Environment
Programme (UNEP), 2008
Technical Guidance | South Pole Climate Neutrality, Climate Conscious and Renewable Electricity Labels
South Pole | 3
ContentsIntroduction 5
Background 5
Purpose 5
Approach and guiding principles 5
Relationship to other standards, protocols and broader context 6
Overview of the labelling process 6
South Pole Climate Neutrality labels 7
How to achieve a Renewable Electricity label 8
The seven steps to achieving a Climate Neutrality label 9
Step 1: define subject and level 9
Step 2: quantify GHG emissions 10
Step 3: develop a GHG emissions reduction plan and set targets 11
Step 4: perform efforts to reduce GHG emissions 11
Step 5: offset unavoidable emissions 12
Step 6: Climate Neutrality label issued and communication 12
Step 7: annual review 12
Technical annex 13
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Technical Guidance | South Pole Climate Neutrality, Climate Conscious and Renewable Electricity Labels
Technical Guidance | South Pole Climate Neutrality, Climate Conscious and Renewable Electricity Labels
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BackgroundSouth Pole has provided certification for climate neutrality for companies, products and events for several years. In September 2018, the criteria were reviewed and updated in order to align with new international standards and an evolving market. This document explains the new criteria, as first described in October 2018. This is version 1.41, dated March 2020, which introduces the Climate Neutral Operations label for financial institutions.
PurposeThis guidance document describes the prerequisites for the different South Pole labels with an emphasis on Climate Neutrality.
The purpose of this document is to provide transparency on the prerequisites and the process for the different South Pole “Climate Neutrality”, “Climate Conscious” and “Renewable Energy” labels. This document is written for companies and organisations who are seeking to understand the criteria in more detail, including the underlying approach and principles, the labels’ relationship to other standards and protocols, and the standard process for best practice in Climate Neutrality.
Approach and guiding principlesSouth Pole offers Climate Neutrality labels for companies, products and events, as well as Renewable Energy labels for companies and events. Clients can also receive a ‘Climate Conscious’ label to verify that they have purchased certified carbon credits – regardless of the amount or the underlying accounting principles.
By contrast, the South Pole Climate Neutrality labels are closely aligned with international standards such as PAS 20602 – the leading international standard for demonstrating carbon neutrality, developed in 2014 by the British Standards Institution (BSI). The underlying greenhouse gas (GHG) accounting must follow recognised international standards such as the GHG Protocol3 or ISO 14064-14.
The principles of the GHG Protocol provide the basis for achieving the South Pole Climate Neutrality and Renewable Energy labels. In addition, and in reflection of South Pole’s commitment to long-lasting impact, the South Pole labels include the principle of ‘Conservativeness and Continuity’. In sum, the seven principles listed below underpin this approach.
1. Relevance: the reporting entity’s GHG inventory should properly reflect the GHG emissions of the product, company or event and serve the users with satisfactory information for decision-making.
2. Completeness: the reporting entity accounts for and reports all GHG emission sources and related activities that are applicable within the specified boundary. Any specific exclusion should be disclosed and specified.
3. Consistency: the reporting entity uses consistent methodologies that allow for and enhance the comparability of emissions over time. The reporting entity also continuously and transparently documents changes that might occur in the methodology, inventory boundary or data, or any other relevant changes that might be applicable within this context.
4. Transparency: the reporting entity addresses all relevant issues in a factual and coherent manner, based on a clear audit trail. The reporting entity also discloses any relevant assumptions and appropriately references accounting and calculation methodologies, and data sources used.
5. Accuracy: the reporting entity ensures that data, accompanying methodologies and assumptions made during GHG calculations and reduction efforts are accurate and relevant, as well as that any claims made are both factual and credible.
6. Conservative estimation: when making estimations, the reporting entity maintains a conservative approach and ensures that neither the GHG impacts nor the emissions reduction potential are understated.
7. Continual improvement: the reporting entity aims towards continual improvements in GHG accounting and reduction potential.
1 The following main updates have been made so far: Version 1.2: Adjusted criteria for investments; Version 1.3: Addition of the label “Climate Neutral Site” and expansion of the “Climate Neutral Company” label to “organisations2 PAS 2060 Standard for Carbon Neutrality (2014) British Standards Institution, Published by BSI Standards Limited.3 Greenhouse Gas Protocol: a corporate reporting and accounting standard, developed by the World Business Council for Sustainable Development (WBCSD), Geneva, Switzerland and World Resources Institute (WRI), Washington D.C., 2004. 4 ISO 14064-1 International Standard for GHG Emissions Inventories and Verification (2006) International Organization for Standardization,
Geneva, Switzerland.
Introduction
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Technical Guidance | South Pole Climate Neutrality, Climate Conscious and Renewable Electricity Labels
Relationship to other standards and protocols and broader contextThis document incorporates existing best practices for the measurement and monitoring of GHG emissions, as well as the design and certification of emission reduction projects. In terms of GHG measurements, this document is aligned with the GHG Protocol Corporate Standard (including Scope 2 guidance), GHG Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard5, GHG Protocol Product Standard,6 Environmental Product Declarations7 and the principles of PAS 20508 for products and services. For climate-neutral claims, the South Pole Climate Neutrality labels have similar requirements as the PAS 2060 and the CarbonNeutral Protocol.9
Overview of the labelling process
Perform efforts to reduce GHG emissions and follow up on this annually
Offset all unavoidable direct and material indirect emissions
Communicate climate neutrality and positioning
Perform annual review
Quantify with GHG emissions
Develop a GHG emissions reduction plan and set targets
Define subject and level
Step 1
Step 2
Step 3
Step 5
Step 6
Step 7
Step 4
5 Greenhouse Gas Protocol, Corporate Value Chain (Scope 3) Accounting and Reporting Standard (2011) World Business Council for Sustainable Development, Geneva, Switzerland and World Resources Institute, Washington D.C.6 Greenhouse Gas Protocol, Product Life Cycle Accounting and Reporting Standard (2011) World Business Council for Sustainable Development (WBCSD), Geneva, Switzerland and World Resources Institute (WRI), Washington D.C. 7 Environmental Product Declaration (Environdec), International EPD® System, International EPD AB, https://www.environdec.com8 PAS 2050 Standard for Carbon Neutrality (2011) British Standards Institution, Published by BSI Standards Limited.9 Natural Capital Partners (2018) CarbonNeutral Protocol, https://www.carbonneutral.com/certification
https://www.environdec.comhttps://www.carbonneutral.com/certification
Technical Guidance | South Pole Climate Neutrality, Climate Conscious and Renewable Electricity Labels
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Label nameLevel of alignment with international standards
Boundary
Climate Neutrality labels (for companies and organisations)
Closely aligned with PAS 206011
Covers emissions from company operations, but excludes emissions from products such as raw materials, from the use of products and the end-of-life treatment of sold products. Investments, if relevant, should be assessed but do not need to be offset.
Closely aligned with PAS 2060Same scope as Climate Neutral Company but covering one site, for instance one facility or store.
Closely aligned with PAS 2060 Covers emissions from a product’s life- cycle
Closely aligned with PAS 2060Covers emissions from events, including the attendees
Aligned with the CarbonNeutral Protocol
Covers emissions from the organisation of an event, excluding the attendees.
Climate Neutrality labels (only for financial institutions)
Closely aligned with PAS 2060 in many aspects. This label is only available for financial institutions
Same scope as Climate Neutral Company but no GHG footprinting of the Scope 3 category investments is required. It is, however, mandatory to engage in climate-related work in the portfolio, for example in Task Force on Climate-related Financial Disclosure (TCFD) activities.
The label is an intermediary step to the Climate Neutral Company label for financial institutions12.
Other climate action labels (no claim to climate neutrality)
NoCovers any emissions that the reporting entity defines and offsets with South Pole-certified carbon credits
Yes, RE100 Covers all electricity consumed
South Pole labelsSouth Pole labels with their defined boundary:
See technical annex for further clarifications and guidance.
10 If more appropriate, e.g. in case of an NGO, “company” may be exchanged for “organisation”11 South Pole’s label requirements differ on some smaller points, mainly on the Scope 3 categories Investments and Purchased goods and services.
Details of the requirements can be found in the technical annex.12 This label has been introduced in order to acknowledge the challenges that go along with performing a meaningful and accurate portfolio analysis. This label will provide recognition to the work undertaken by achieving climate neutrality for the company operations.
by South Pole
ClimateConsciousCertified carbon offsets
10
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Technical Guidance | South Pole Climate Neutrality, Climate Conscious and Renewable Electricity Labels
How to achieve a Renewable Electricity label
For the Renewable Energy label, the boundaries should cover the reporting entity’s operations and include all electricity consumption. The entire operation is defined, as per the GHG Protocol, as all Scope 2 emissions relating to the reporting entity’s activities and any Scope 1 emissions relating to the generation of electricity by the entity. To obtain the label, all (100%) electricity needs to come from renewable sources and evidence of this, in the form of contracts or certificates, must be provided.
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The seven steps to achieving a Climate Neutrality label
Step 1: define subject and levelThe boundary setting should follow the approach and guidance of the GHG Protocol. The reporting period and baseline year should be clearly stated. Usually, the footprint covers operations from the previous calendar year.
Operational and organisational boundaries should be clearly defined, and the selected approach should be explained with reasons for its selection. The system boundaries depend on which label is sought. If the reporting entity chooses to exclude certain sources of emissions, this must be explained.
For the Climate Neutral Company label, the boundaries should cover the company’s operations and preferably follow the control approach. Purchased raw materials for products do not need to be included here, only goods and services used for the company’s operations. For companies with significant investments, the GHG impact of the investments should be assessed but this does not need to be offset.
For the Climate Neutral Operations for financial institutions label, the GHG impacts of the investments do not need to be assessed but it is required that the institution engage in climate-related work within the portfolio, e.g. in TCFD activities.
For the Climate Neutral Products label, a GHG inventory is conducted from a life-cycle perspective and the system boundaries can either be cradle-to-gate13 or cradle-to-grave,14 depending on what is deemed to be material in each instance. The GHG inventory is conducted over a functional unit. The functional unit provides the basis for the footprints’ inputs and outputs. A functional unit can be the amount, volume or corresponding unit defining the function of the product (e.g. one (1) serving of a meal, one (1) kWh of electricity or one (1) bicycle).
Perform efforts to reduce GHG emissions and follow up on this annually
Offset all unavoidable direct and material indirect emissions
Communicate climate neutrality and positioning
Perform annual review
Quantify with GHG emissions
Develop a GHG emissions reduction plan and set targets
Define subject and level
Step 1 Step 2 Step 3 Step 5 Step 6 Step 7Step 4
The following section describes the seven steps that need to be followed in order to achieve a Climate Neutrality label.
13 Cradle-to-gate means the assessment covers a partial product life cycle from resource extraction to factory or retailer gate. The use and disposal phases of the product are omitted.14 Cradle-to-grave means that the assessment covers the full product life cycle from resource extraction to end-of life, including the use and disposal phases.
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Technical Guidance | South Pole Climate Neutrality, Climate Conscious and Renewable Electricity Labels
For Climate Neutral Events, the boundaries should cover the planning, marketing and execution of the event, including emissions from transport and accommodation for both organisers and attendees. For the Climate Neutral Event Organisation label, the attendees’ activities, including their travel, can be excluded.
The quantified carbon footprint should cover at least 95% of the emissions from the company, product or event. Any Scope 1, 2 or 3 emission sources estimated to be material (i.e. more than 1% of the total carbon footprint) should be taken into consideration, unless there is evidence demonstrating that this would not be technically feasible, practicable or cost effective. Any exclusion of an emission source plus the reason for the exclusion must be documented.
The climate neutral status is maintained throughout the specified period with regard to the reporting period and boundaries. The status cannot be transferred to additional entities or time periods that are not included in the initial boundary setting. A company, product or event that is deemed to counteract a sustainable development can be denied the Climate Neutrality label.
See Technical Annex for further clarifications and guidance.
Step 2: quantify GHG emissionsThe quantification of a company, product or event’s GHG emissions should cover the relevant gases mentioned in the Kyoto Protocol (i.e. carbon dioxide (CO
2), methane (CH
4), nitrous
oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons
(PFCs),sulphur hexafluoride (SF6)) and nitrogen trifluoride (NF
3).
The GHG accounting should follow the recommendations of the GHG Protocol Corporate Standard and Corporate Value Chain Accounting and Reporting Standard, ISO 14064-1, GHG Protocol Product Standard, PAS 2050, ISO 14067 or similar.
The GHG accounting should cover:1. direct emissions from sources controlled and/or owned
and operated by the reporting entity (e.g. stationary and mobile combustion, refrigerant leakage and emissions from chemical processing in owned or controlled equipment (Scope 1).
2. indirect emissions from purchased electricity, heating and cooling (Scope 2).
3. indirect emissions from business travel (Scope 3), including all life- cycle emissions and the full climate impact. Both well-to-tank (WTT) and tank-to-wheel (TTW)16 emissions must be included for all means of transport, as well as a radiative forcing factor17 of at least 1.9 for flight emissions.
4. other emissions material for the reporting entity (Scope 3) (e.g. purchased goods and materials, commuter travel, goods transport, waste disposal, water usage and other categories presented in the table below).
See Technical Annex for the specific requirements per label.
Upstream or downstream
Scope 3 category
Upstream scope 3 emissions
1. Purchase good and services2. Capital goods3. Fuel and energy-related activities (not
included in scope 1 or scope 2)4. Upstream transportation and distribution5. Waste generated in operations6. Business travel7. Employee commuting8. Upstream leased assets
Downstream scope 3 emissions
9. Downstream transportation and distribution
10. Processing of sold products11. Use of sold products12. End-of-life treatment of sold products13. Downstream leased assets14. Franchises15. Investments
16 Well-to-tank (WTT) includes all emissions from the extraction, production and transportation of the fuel. Tank-to-wheel (TTW) includes all the direct emissions from burning the fuel.17 Radiative forcing (RF) is a factor that is added to the direct carbon dioxide emissions from flights to account for the increased impact on climate due to the high altitude emissions of particles and gases.
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Since the GHG inventory relates to a specified time period, it is calculated ex-post and based on actual historical data. If actual consumption data is not available, estimation approaches in accordance with the GHG Protocol can be applied. Direct emissions and indirect emissions from electricity, heating and cooling (Scope 1 and 2) should be as exact as possible. The calculation of other material emissions (Scope 3) can be reasonably estimated. In accordance with the GHG Protocol, the estimates should be conservative. The reporting entity should use data for a quantification that reflects uncertainties and does not underestimate the GHG emissions or overestimate the emission reductions.
All calculations and estimation methods, assumptions and approximations should be accounted for and documented. If possible, the quality of the accounting should improve from each reporting period to the next.
The reporting entity is responsible for presenting its GHG emissions estimate in a report. The report should include:
1. all direct and indirect emissions included in the estimate, presented by Scope.
2. explanations concerning the calculation and estimation methodology, boundary settings and emission factors.
3. measures performed to reduce the company, product or event’s climate impact.
If the reporting entity has conducted its GHG emissions estimate independently or through a third party, South Pole will audit the estimate and accompanying report to certify that it complies with South Pole criteria. The audit should ideally include a review of all documentation (e.g. receipts, bills and email confirmations from providers, property managers, etc.) containing information on actual usage data. In case this documentation is not available, potential outliers should at least be controlled.
If requested, South Pole can assist clients with the GHG emissions estimate. South Pole can also provide calculation tools, emission factors and advice concerning boundary settings.
Step 3: develop a GHG emissions reduction plan and set targetsCompanies and organisations should commit to developing a GHG emissions reduction plan and setting GHG emission targets in order to achieve net zero emissions over time. Measures should be identified and implemented to reduce their sources of significant GHG emissions (e.g. energy use, mode of travel and/or selection of suppliers)18. South Pole can provide a list of suggested measures and provide support with developing a GHG emissions reduction roadmap.
18 A reduction plan should include a time plan, a list of reduction measures, how they will be implemented, and the estimated reduction volume in terms of absolute or intensity-based reductions.19 A market-based approach reflects emissions from the electricity that companies have purposefully chosen, in contrast to a location-based method, which reflects the average emissions intensity of the grid on which the energy consumption occurs.
In its annual review, South Pole will assess the list of identified measures and the implementation efforts. Pursuing science-based targets is strongly recommended, thereby achieving alignment with the Paris Agreement.
Event organisers should have a plan, some targets or a vision for how they reduce emissions from repeated events. Product developers should have a target or aim for reductions if they are redesigning their products. They can also reduce the calculated emissions by, for example purchasing clean electricity.
Step 4: perform efforts to reduce GHG emissionsCompanies and organisations should undertake efforts to reduce their GHG emissions if they wish to be awarded a Climate Neutrality label. To fulfil the requirements for reducing emissions, an emissions reduction plan will need to be developed for the first period for which a GHG inventory is undertaken and climate neutrality is sought. For continued climate-neutral claims over several time periods, emissions reduction efforts should be measured and documented. Where it is not possible to buy renewable electricity directly, the purchase of Renewable Energy Certificates (RECs) to cover company or supplier electricity emissions is an approved way of reducing the emissions in Scope 2 and Scope 3, since this can be accounted for under the market-based approach19 using specific electricity emissions. This effort can also be communicated by the South Pole Renewable Electricity label.
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Technical Guidance | South Pole Climate Neutrality, Climate Conscious and Renewable Electricity Labels
Step 5: offset unavoidable emissionsParticipants should offset all remaining direct and indirect emissions from purchased electricity, heating and cooling, business travel and any other material indirect emissions. This should be done by purchasing credits from third-party verified emissions reduction projects in accordance with high quality standards, such as the Gold Standard, Verified Carbon Standard or the Kyoto Protocol’s Clean Development Mechanism. The credits from these projects shall only be issued after the associated emissions reductions have taken place, ex-ante carbon credits cannot be used under the Climate Neutrality labels. It should be clear that the offsetting credits are legally attributed, have a clear record of ownership from the project owner and thereafter, that they are measurable, permanent and additional. The offsetting credits must be retired no later than 12 months after the end of the reporting entity’s reporting period. As an alternative to offsets, biogas certificates that meet the requirements of national and international labels can also be purchased for offsetting the emissions from the fossil gas used.
Step 6: Climate Neutrality label issued and communicationThe Climate Neutrality Label will be issued by South Pole once it is demonstrated that all of the above requirements have been met. The fulfillment of the label criteria and issuance of a label is at South Pole’s discretion. A reporting entity gains the climate-neutral status for the time period that follows the reporting period (e.g. the reporting period 01/01/2018-31/12/2018 would provide the reporting entity with the Climate Neutral label in the year 2019 and the climate neutral status for the period of 2019).
The reporting entity’s Climate Neutral status can be used in external communication efforts. Participants are awarded the Climate Neutral logo and a certificate displaying the Climate Neutral status, as issued by South Pole.
The reporting entity is responsible for ensuring that the use of the logo complies with South Pole’s criteria. To use any of the labels, a summary of the GHG footprint, including a description of the boundary setting, the total emissions, emission-intensity metrics, planned emissions reduction activities20 and information concerning the emissions offset and the offsetting project should be made publicly available to relevant stakeholders. This can be done either by CDP reporting, Global Reporting Initiative (GRI) sustainability reporting or the publication of a GHG accounting report summary.
Step 7: annual reviewThe above steps should be reviewed and documented annually.
20 The reduction plan should include a time plan, a list of reduction measures, how they will be implemented, and the estimated reduction volume in terms of absolute or intensity-based reductions.
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Technical Annex
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Technical Guidance | South Pole Climate Neutrality, Climate Conscious and Renewable Electricity Labels
Technical AnnexThe following table details the sources of GHG emissions that should be accounted for in order to achieve South Pole’s Climate Neutrality or Climate Conscious labels. The emission source categories shown are those that are relevant for the scopes of the labels.
Emission source category Definition Applied accounting principle
Scope 1
Direct emissions from stationary sources
Emissions from stationary combustion owned or controlled by the company
Should be included in the accounting
Direct emissions from mobile sources
Mobile combustion from company owned or controlled vehicles
Should be included in the accounting
Fugitive emissions
Refrigerant leakage from cooling systems, emissions from other equipment such as CO
2 tanks or leaking
methane tubes
Should be included in the accounting
Physical or chemical processing
Emissions resulting from the manufacturing or processing of chemicals and materials (e.g. cement, aluminium, adipic acid, ammonia manufacture and waste processing)
Should be included in the accounting
Scope 2
Emissions from the generation of purchased electricity, heat, steam and cooling
Purchased electricity, heat, steam and cooling, and type of source (e.g. grid/renewable or natural gas/district heating/other)
Should be included in the accounting
Scope 3
Purchased goods and services
Purchased goods and services material for company operations
Should be included in the accounting
Raw materials for production of products are excluded as they are covered by the Climate Neutral Product label.
Capital goods
Extraction, production and transportation of capital goods purchased or acquired by the company in the reporting year
Should be included in the accounting if they are material for company operations and they are emissions that the company can reasonably influence. For instance, office buildings are excluded. Offsetting is not required unless the emissions are central to the company footprint and business model.
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Emission source category Definition Applied accounting principle
Fuel and energy-related activities
Upstream life-cycle emissions from energy carriers and fuels, and transmission and distribution losses
Should be included in the accounting
Upstream transportation and distribution
Transportation and distribution of goods and services to the company
Should be included in the accounting
Waste generated in operations
Emissions from waste management of operational waste
Should be included in the accounting
Business travelAccommodation and travel of employees/contractors
Should be included in the accounting
Employee commutingEmployee travel between home and work
Recommended in the accounting process, but offsetting is not required
Upstream leased assets
Operation of assets leased by the company (lessee) in the reporting year and not included in Scope 1 and Scope 2
Should be included in the accounting if its material for company operations
Downstream transportation and distribution
Transportation and distribution of products sold by the company
Should be included in the accounting if its material for company operations
Downstream leased assetsOperation of assets owned by the company (lessor) and leased to other entities, not included in Scope 1 and 2
Should be included in the accounting if its material for company operations
FranchisesOperation of franchises in the reporting year, not included in Scope 1 and Scope 2 – reported by franchisor
Should be included in the accounting if they are material for company operations
Investments
Operation of investments not included in Scope 1 and 2
Applicable to investors and companies which provide financial services
Should include equity investments, debt investments and project finance under the company’s financial control
Should be included in the accounting if its material for company operations. Emissions from controlled investment portfolios, if material, need to be accounted for with a respective coverage and within a near term time horizon. The accounting should follow the GHG Protocol guidance. The resulting investment emissions need to be included in the GHG reduction plan. However, to be “neutral”, a company does not need to offset the entire investment related footprint.
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Technical Guidance | South Pole Climate Neutrality, Climate Conscious and Renewable Electricity Labels
Emission source category Definition Applied accounting principle
Scope 1
Direct emissions from stationary sources
Emissions from stationary combustion owned or controlled by the company
Should be included in the accounting
Direct emissions from mobile sources
Mobile combustion from company owned or controlled vehicles
Should be included in the accounting
Fugitive emissions
Refrigerant leakage from cooling systems, emissions from other equipment, such as CO
2 tanks or
leaking methane tubes
Should be included in the accounting
Physical or chemical processing
Emissions result from the manufacturing or processing of chemicals and materials (e.g. cement, aluminum, adipic acid, ammonia manufacture and waste processing)
Should be included in the accounting
Scope 2
Emissions from generation of purchased electricity, heat, steam and cooling
Purchased electricity, heat, steam and cooling, and type of source (e.g. grid/renewable or natural gas/district heating/other)
Should be included in the accounting
Scope 3
Purchased goods and services
Purchased goods and services material for company operations
Should be included in the accounting
Raw materials for the production of products are excluded as they are covered by the Climate Neutral Product label.
Capital goods
Extraction, production and transportation of capital goods purchased or acquired by the company in the reporting year
Should be included in the accounting if they are material for company operations and they are emissions that the company can reasonably influence. For instance, office buildings are excluded. Offsetting is not required unless the emissions are central to the company footprint and business model.
21
21 This label’s rationale is to acknowledge the challenges that go along with performing a meaningful and accurate portfolio analysis. This label will provide recognition for the work undertaken by achieving climate neutrality for the company’s operations.
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Emission source category Definition Applied accounting principle
Fuel and energy-related activities
Upstream life-cycle emissions from energy carriers and fuels, and transmission and distribution losses
Should be included in the accounting
Upstream transportation and distribution
Transportation and distribution of goods and services to the company
Should be included in the accounting
Waste generated in operations
Emissions from waste management of operational waste
Should be included in the accounting
Business travelAccommodation and travel of employees/contractors
Should be included in the accounting
Employee commutingEmployee travel between home and work
Recommended in the accounting process, but offsetting is not required
Upstream leased assets
Operation of assets leased by the company (lessee) in the reporting year and not included in Scope 1 and Scope 2
Should be included in the accounting if it is material for company operations
Downstream transportation and distribution
Transportation and distribution of products sold by the company
Should be included in the accounting if it is material for company operations
Downstream leased assetsOperation of assets owned by the company (lessor) and leased to other entities, not included in Scope 1 and 2
Should be included in the accounting if it is material for company operations
FranchisesOperation of franchises in the reporting year, not included in Scope 1 and Scope 2 – reported by franchisor
Should be included in the accounting if it is material for company operations
Investments
Operation of investments not included in Scope 1 and 2.
Applicable to investors and companies which provide financial services
Should include equity investments, debt investments and project finance under the company’s financial control
Does not need to be included, but the financial institution should engage in work on their portfolio, e.g. in TCFD activities.
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Technical Guidance | South Pole Climate Neutrality, Climate Conscious and Renewable Electricity Labels
Emission source category Definition Applied accounting principle
Scope 1
Direct emissions from stationary sources
Emissions from stationary combustion owned or controlled by the company and used in the production process
Should be included in the accounting
Direct emissions from mobile sources
Mobile combustion from company- owned vehicles used in the production process
Should be included in the accounting
Fugitive emissions
Refrigerant leakage from cooling systems, emissions from other equipment (e.g. CO
2 tanks or leaking
methane tubes) used in the production process
Should be included in the accounting
Physical or chemical processing
Emissions result from the manufacturing or processing of chemicals and materials (e.g. cement, aluminium, adipic acid, ammonia manufacture and waste processing related to the production process)
Should be included in the accounting
Scope 2
Emissions from generation of purchased electricity, heat, steam and cooling
Purchased electricity, heat, steam and cooling, and type of source (e.g. grid/renewable or natural gas/district heating/other) used in the production process
Should be included in the accounting
Scope 3
Purchased goods and services
Raw materials and purchased goods and services material to the production process
Should be included in the accounting
Capital goods
Extraction, production and transportation of capital goods purchased or acquired for the production process.
Should be accounted for if they are material for the production process
Fuel and energy related activities
Upstream life cycle emissions from energy carriers and fuels, and transmission and distribution losses
Should be included in the accounting
Upstream transportation and distribution
Transportation and distribution of raw materials, goods and services to the production sites
Should be included in the accounting
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Emission source category Definition Applied accounting principle
Waste generated in operations
Emissions from waste management of process waste
Should be included in the accounting
Upstream leased assets
Operation of assets leased by the company (lessee) in the reporting year and not included in Scope 1 and 2, if its material for the production process
Should be included in the accounting if its material for the production process
Downstream transportation and distribution
Transportation of product to the clientShould be included in the accounting
Processing of sold products
Processing of intermediate products sold in the reporting year by downstream companies (e.g. manufacturers)
Should be included in the accounting if its material for the product
Use of sold products Emissions from the use of sold products
Should be accounted for if it is material for the product (e.g. if the product directly consumes energy or fuel or in other ways emits GHGs during its user phase)
End-of-life of sold productsWaste disposal and treatment of products sold by the company at the end of their life
Should be accounted for if it is material for the product
Emission source category Definition Applied accounting principle
Scope 1*
Direct emissions from stationary sources
Stationary combustion from sources controlled by the event
Should be accounted for
Direct emissions from mobile sources
Mobile combustion from vehicles controlled by the event
Should be accounted for
Fugitive emissions
Refrigerant leakage from cooling systems, emissions from other equipment (e.g. CO
2 tanks or leaking
methane tubes) used for and controlled by the event
Should be accounted for
*If an event is organised by a company that leases or rents the venues and vehicles, all emissions are Scope 3 emissions. If an event is organised by the event owner who has control over venues and vehicles, the emissions should be allocated between Scope 1, 2 and 3.
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Technical Guidance | South Pole Climate Neutrality, Climate Conscious and Renewable Electricity Labels
Emission source category Definition Applied accounting principle
Scope 2*
Emissions from the generation of purchased electricity, heat, steam and cooling
Purchased electricity, heat, steam and cooling, and type of source (e.g. grid/renewable or natural gas/district heating/other) used at venues controlled by the event
Should be accounted for
Scope 3
Purchased goods and services
Purchased goods and services material to the event, such as marketing material and food
Should be accounted for
Fuel and energy related activities
Upstream life-cycle emissions from energy carriers and fuels, and transmission and distribution losses
Should be accounted for
Upstream transportation and distribution
Transportation and distribution of goods and services to the event
Should be accounted for
Waste generated in operations
Emissions from waste management during the event
Should be accounted for
Business travelAccommodation and travel of employees, contractors, organisers and attendees
Should be accounted for
*If an event is organised by a company that leases or rents the venues and vehicles, all emissions are Scope 3 emissions. If an event is organised by the event owner who has control over venues and vehicles, the emissions should be allocated between Scope 1, 2 and 3.
* Emission source category Definition Applied accounting principle
Scope 1
Direct emissions from stationary sources
Stationary combustion from sources controlled by the event
Should be accounted for
Direct emissions from mobile sources
Mobile combustion from vehicles controlled by the event
Should be accounted for
*Aligned with the CarbonNeutral Protocol but not PAS 2060
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Emission source category Definition Applied accounting principle
Fugitive emissions
Refrigerant leakage from cooling systems, emissions from other equipment (e.g. CO
2 tanks or leaking
methane tubes) used for and controlled by the event
Should be accounted for
Scope 2
Emissions from the generation of purchased electricity, heat, steam and cooling
Purchased electricity, heat, steam and cooling, and type of source (e.g. grid/renewable or natural gas/district heating/other) used at venues controlled by the event
Should be accounted for
Scope 3
Purchased goods and services
Purchased goods and services material to the event such as marketing material and food, relevant to the organisation of the event
Should be accounted for
Fuel and energy related activities
Upstream life cycle emissions from energy carriers and fuels, and transmission and distribution losses
Should be accounted for
Upstream transportation and distribution
Transportation and distribution of goods and services to the event
Should be accounted for
Waste generated in operations
Emissions from waste management during the event
Should be accounted for
Business travelAccommodation and travel of employees, contractors and organisers
Should be accounted for
*Aligned with the CarbonNeutral Protocol but not PAS 2060
*
Emission source category Definition Applied accounting principle
Covers any emissions that the reporting entity defines and offsets with South Pole-certified carbon credits.
22 | South Pole
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