(C7.9a) Identify the reasons for any change in your gross global emissions (Scope 1 and 2 combined), and for each of them specify how your emissions compare to the previous year.
Question dependencies
This question only appears if you select “Increased”, “Decreased” or “Remained the same overall” in response to C7.9.
Change from last year
No change
Rationale
When investigating how year-on-year gross global emissions (Scope 1 + 2 combined) have changed, CDP and its investors are interested in changes at a granular level; thus allowing CDP’s data users to gain an insight into factors than have contributed to these changes.
Connection to other frameworks
SDG
Goal 7: Affordable and clean energy
Response options
Please complete the following table:
| Reason | Change in emissions (metric tons CO2e) | Direction of change | Emissions value (percentage) | Please explain calculation |
|---|---|---|---|---|
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Change in renewable energy consumption |
Numerical field [enter a number from 0-999,999,999,999 using a maximum of 3 decimal places and no commas] |
Select from:
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Numerical field [enter a number from 0-999 using a maximum of 4 decimal places and no commas] |
Text field [maximum 2,400 characters] |
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Other emissions reduction activities |
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Divestment |
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Acquisitions |
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Mergers |
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Change in output |
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Change in methodology |
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Change in boundary |
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Change in physical operating conditions |
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Unidentified |
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Other |
Requested content
General
- Categorize the changes that have occurred in your gross global emissions. You are asked to break down all the different factors that have influenced any overall change in Scope 1+2 emissions; whether increasing or decreasing factors.
- Break down each applicable factor, describe each in a separate row, and provide the value for the change in overall emissions that is attributed to each of the factors.
- Even if companies have experienced no change overall or an increase in absolute emissions for Scopes 1 and 2, companies should still disclose reduction activities.
- In the unlikely event that companies have genuinely not experienced any change in any of the categories, they should complete the row “Other”, specifying “No change” in the text box provided and then enter 0 in column 2 ‘Emissions value (percentage)’.
- Emissions reduction activities could arise from a number of different sources, including reductions in energy consumption or lower emission equipment/processes. If your emissions have changed compared to the previous reporting year due to several emissions reduction activities, you should aggregate the emissions change that occurred due to these activities and provide this information in row 2 in C7.9a.
- Any changes in emissions that are attributed to a decline or an increase in your business output (products or services) due to the COVID-19 pandemic should be reported using row “Change in output”. Please state how your output was affected in “Please explain calculation”.
Reason (column 1)
- This column is fixed; however, if a row does not apply to you, for example, your company did not experience any mergers or acquisitions during the reporting year, leave that row blank.
- Further details on each of the options are provided below:
- Change in renewable energy consumption (row 2)
- Report the change in your organization's emissions because of the consumption of self-generated or purchased renewable energy.
- In cases where you have renewable energy, you may include this on the provision that you have accounted for those renewable energy purchases in your market-based Scope 2 figure reported in C6.3 and the purchases reported here were additional purchases in the reporting year.
- Due to the change in accounting practices around Scope 2 with the addition of Scope 2 market-based emissions and low-carbon energy, companies may see their Scope 2 emissions decrease. Any change in Scope 2 emissions due to the change in accounting method from Scope 2 location-based to Scope 2 market-based should not be reported here, but rather under “Change in methodology” (see below).
- CDP requires disclosure of gross emissions. Gross means total emissions before any deductions or other adjustments are made to take account of offset credits, avoided emissions from the use of goods and services, and/or reductions attributable to the sequestration or transfer of GHGs.
- Other emissions reduction activities (row 3)
- This refers to changes in emissions that have occurred because of proactive emissions reduction initiatives or activities, for example those listed in question C4.3b, other than those caused by a change in renewable energy consumption (which should be reported in the row ‘Change in renewable energy consumption’).
- Divestment (row 4)
- This refers to changes that occur as a result of selling off certain aspects of the businesses.
- Acquisitions (row 5)
- This refers to changes that occur as a result of purchasing or obtaining another company/subsidiary/facility.
- Mergers (row 6)
- This refers to changes that occur as a result of business mergers.
- Change in output (row 7)
- This refers to changes that occur as a result of changes (increases or decreases) in your business output (i.e. a product or service); this could be, for example, organic growth, purchase of additional facilities due to business expansion, declines in sales due to a global recession, or release of a new product.
- Change in methodology (row 8)
- This refers to changes that occur due to modifications in the way that the inventory is calculated, for example, changes in emissions factors used or changes in methodology protocol followed.
- Companies that have amended their Scope 2 emissions figure as a result of the changes in Scope 2 accounting practices for low carbon energy should report this here.
- Change in boundary (row 9)
- This refers to changes in the boundary used for your inventory calculation, i.e. changing from financial control to operational control. This option could also apply if you have incorporated facilities into your inventory that were excluded in previous years.
- Change in physical operating conditions (row 10)
- This refers to changes in weather that have a significant influence on how the company operates, but that cannot be accounted for under the other options available, e.g. increase production of hydroelectricity because of increased rainfall.
- Unidentified (row 11)
- Complete this row if you are not able to identify the reason for the change in emissions from year to year.
- Other (row 12)
- Complete this row if there is an alternative reason(s) for the change. Where you have used this option, please provide details of the reason(s) for the change in the ‘Please explain’ column.
Direction of change (column 3)
- Enter the direction of change of gross global (Scope 1 + Scope 2) emissions due to the reason specified, i.e. increased; decreased, or; No change.
Emissions value (percentage) (column 4)
- Enter the change in emissions attributed to the reason (factor) provided in column 1 as a percentage of the Scope 1 and 2 combined emissions. This value should not be greater than 999 and should not have more than four decimal places. There is no need to enter the % symbol, and direction of change will be indicated in column 3. This value should be calculated as follows:
Please explain calculation (column 5)
- Report the figures used in the calculation for the figure in the ‘emissions value %’ column. Refer to Example responses for further guidance.
- Using no more than 2,400 characters you may also use this text box to provide any additional explanation that is relevant to capture the full complexity of the emissions changes.
Note for electric utility sectors
- Variations in emissions may be attributable to changes in capacity (that translated into changes in output), plant outages (which can also translate into changes in output) and weather events (changes in physical operating conditions). If so, this should be included in your answer to C7.9a.
- You can specify the specific drivers (e.g. changes in output due to the utilization of additional capacity coming in operation) in the comment box.
Example response
Worked example of reporting change in emissions
Example 1: The gross global emissions (Scope 1 + 2) of company X for this reporting year are 208 metric tons of CO2e. Its gross global emissions for the previous reporting year were 200 metric tons of CO2e. This means that the total change in emissions is 8 metric tons of CO2e, equal to a 4% increase, according to the formula in the explanation of terms, above: (8/200) * 100 = 4%.
The change from 200 to 208 metric tons is attributed to two reasons: 1) an increase in 12 metric tons of CO2e emissions due to increased production (i.e. a change in output); and 2) an estimated reduction of 4 metric tons of CO2e achieved due to emissions reduction activities.
The emissions value (percentage) for each of these two individual factors can also be calculated using the same formula described in the guidance, above. In this example, the percentage change in emissions due to increased production is: (12/200) * 100 = 6%. This represents a 6% increase in emissions due to increased production.
The percentage change in emissions due to emissions reduction activities: (-4/200) * 100 = -2%. This represents a 2% decrease in emissions due to emissions reduction activities.
This company should respond in the following way to questions C7.9 and C7.9a:
(C7.9) How do your gross global emissions (Scope 1 and 2 combined) for the reporting year compare to those of the previous reporting year?
Increased
(C7.9a) Identify the reasons for any change in your gross global emissions (Scope 1 and 2 combined) and for each of them specify how your emissions compare to the previous year.
| Reason | Change in emissions (metric tons CO2e) | Direction of change | Emissions value (percentage) | Please explain calculation |
|---|---|---|---|---|
| Other emissions reduction activities | 4 | Decreased | 2 | Due to ‘other emissions reduction activities’ implemented during the year, despite an increase in production, emissions have not grown as high as could be expected. Last year 4 tons of CO 2e were reduced by our emissions reduction projects, and our total Scope 1 and Scope 2 emissions in the previous year was 200 tCO 2e, therefore we arrived at -2% through (-4/200) * 100= -2% (i.e. a 2% decrease in emissions). |
| Change in output | 12 | Increased | 6 | If no measures had been introduced, increased demand leading to increase output would have generated an extra 6% more of emissions. |
Example 2: Companies may be used to seeing emissions information presented graphically where reductions appear below the horizontal axis. The tables below the graph shows how this data can be used to complete question C7.9a.
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2016 gross global emissions |
What happened during the reporting year |
2017 gross global emissions |
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Other emissions reduction activities |
Acquisitions |
Change in boundary |
Other |
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Emissions value (percentage) |
-11 |
10 |
2 |
-5 |
-4 |
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Tons CO2e |
210573 |
-23163 |
21057.3 |
4211.5 |
-10542.8 |
202136 |
(C7.9a) Identify the reasons for any change in your gross global emissions (Scope 1 and 2 combined) and for each of them specify how your emissions compare to the previous year.
| Reason | Change in emissions (metric tons CO2e) | Direction of change | Emissions value (percentage) | Please explain calculation |
|---|---|---|---|---|
| Other emissions reduction activities | 23163 | Decreased | 11 | Gross Scope 1+2 emissions decreased by 11%, due to energy efficiency activities undertaken. We have achieved energy consumption reductions of 14% in New Zealand, 9% in Australia and 8% in USA. These are due to energy efficiency measurements in all our main buildings, which have obtained maximum GreenStar certification, a tri-generation plant which increased the efficiency of our largest data center, and improved metering and monitoring of energy consumption. All have led to an overall reduction of energy consumption across our offices. Changes due to variation of emission factors associated with the grid mix have also contributed to a decrease of emissions, although that is not considered here. Through these activities we reduced our emissions by 23163 tons CO 2e, and our total S1 and S2 emissions in the previous year was 210573 tons CO 2e, therefore we arrived at -11% through (-23163/210573) * 100 = -11% (i.e. an 11% decrease in emissions). |
| Acquisitions | 21057.3 | Increased | 10 | In the United States, the acquisition of a major business competitor resulted in a circa 36% increase of the emissions in the USA and a 10% increase of our gross global emissions. This is mainly the result of additional buildings being included as new sources of GHG emissions. |
| Change in boundary | 4211.5 | Increased | 2 | Emissions increased by 2% due to the inclusion of additional inventory items for our minority positions in Asia. As an example the Hong Kong office reported for the first time the emissions due to vehicle fleet and business travel. |
| Other | 10542.8 | Decreased | 5 | Scope 1 emissions for our USA operations decreased 25% compared to previous year inventory. This is equivalent to a decrease of 3100 tons CO 2e. This decrease is due to the new gas powered tri-generation plant, substituting previous fuel oil boiler. This and other changes cumulated in a decrease of 10542.8 tons CO 2e, therefore we arrived at -5% through (-10542.8/210573) * 100 = -5% (i.e. an 5% decrease in emissions). |
