4.17 Voluntary reporting

4.17.1 Carbon Disclosure Project

The largest globally acknowledged voluntary emissions reporting initiative is the Carbon Disclosure Project (CDP). The CDP Is backed by major investors and requests companies to annually disclose information on their management of climate change risks and opportunities as well as greenhouse gas emissions performance.

The CDP generates company scores for both disclosure and performance, awarding points for strategic and operational information, including a clear link between business strategy and emissions reductions, a demonstrated understanding of the risks and opportunities associated with climate change, absolute emissions reduction targets and initiatives, measurement and management of scope 1, 2 and 3 emissions, and progressive emissions reductions year on year.

The CDP encourages participating companies to assess their responses in accordance with the principles of the Greenhouse Gas Protocol and is recognised leading practice globally for disclosure on emissions reporting and management.

For more information, refer to www.cdp.net.

4.17.2 Carbon offsets

While the best and most cost-effective method of reducing the total emissions profile of a company is to introduce abatement measures, there are also several offset options available for companies that wish to voluntarily reduce their carbon footprint or that need to meet certain regulatory requirements.

Carbon offsets are units that represent greenhouse gas emission reductions. They can be purchased and used to cancel out or offset the emissions generated by the company’s operations.

The National Carbon Offset Standard, established by the Australian Government to encourage action to reduce carbon pollution beyond Australia’s national targets, provides guidance on what is a genuine voluntary carbon emissions offset and sets minimum requirements for calculating, auditing and offsetting the carbon footprint of a company’s operations. Eligible offset units include:

  • Australian carbon credit units issued under the Carbon Farming Initiative
  • credits issued under the Australian Government’s former Greenhouse Friendly Program
  • international units issued under the Kyoto Protocol (Joint Implementation / Clean Development Mechanisms)
  • credits issued under the Gold Standard and Verified Carbon Standard (VCS)

More information on the National Carbon Offset Standard is available on the Department of the Environment’s website: http://www.environment.gov.au/climate-change/publications/national-carbon- offset-standard-version3.

4.17.3 Value-chain emissions monitoring and reporting

There is increasing pressure on corporations to demonstrate the action that they are taking to influence their suppliers, their customers and other relevant stakeholders to reduce greenhouse gas emissions across their entire value chain.

The Greenhouse Gas Protocol’s Corporate Value Chain (Scope 3) Standard allows companies to assess their entire value chain emissions impact and identify the most effective ways to reduce emissions.

Users of the new standard can account for emissions occurring both upstream and downstream of their operations and identify strategies to partner with suppliers and customers to address climate impacts throughout the value chain.

The standard is accompanied by user-friendly calculation guidance and tools developed by the Greenhouse Gas Protocol, including supplier engagement guidance and guidance for calculating scope 3 emissions.

Share this Page