(C6.4a) Provide details of the sources of Scope 1 and Scope 2 emissions that are within your selected reporting boundary which are not included in your disclosure.
Question dependencies
This question only appears if you select “Yes” in response to C6.4.
Change from last year
Modified question
Rationale
In some cases it can be difficult to gather data for all sources. Circumstances where this might be the case include sources in countries or small facilities where data acquisition is difficult or unreliable. Structural changes to the organization including mergers, acquisitions and divestments can also be reasons where emissions data are not included in your disclosure. This question enables companies to report where these sources are not included in the disclosure and thus provides data users transparency into reported emissions inventories.
Response options
Please complete the following table. You are able to add rows by using the “Add Row” button at the bottom of the table.
| Source | Relevance of Scope 1 emissions from this source | Relevance of location-based Scope 2 emissions from this source | Relevance of market-based Scope 2 emissions from this source (if applicable) | Explain why this source is excluded | Estimated percentage of total Scope 1+2 emissions this excluded source represents | Explain how you estimated the percentage of emissions this excluded source represents |
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Text field [maximum 2,400 characters] | Numeric field [enter a value of 0-100 with no decimal places] | Text field [maximum 2,500 characters] |
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Requested content
Source (column 1)
- Use this text field to name and briefly describe the source you are excluding. E.g. a geographic region, business activity, or type of facility.
Relevance of Scope 1 emissions from this source (column 2)
- No emissions excluded – select this option if you have excluded Scope 2 emissions from this source and reported this exclusion in the relevant column of this table (C3 or C4), but you have not excluded Scope 1 emissions from this source.
- No emissions from this source – select this option if you have excluded Scope 2 emissions from this source and reported this exclusion in the relevant column of this table (C2 or C3), but you do not have Scope 1 emissions from this source.
- Emissions are not relevant – select this option if you have excluded Scope 1 emissions which you have identified as not relevant from this source.
- Emissions are relevant but not yet calculated – select this option if you have excluded Scope 1 emissions from this source, you have identified these emissions as relevant, but you have not calculated them.
- Emissions from this source are relevant and have been calculated, but are not disclosed – select this option if you have excluded from your CDP response Scope 1 emissions from this source that you have calculated and identified as relevant.
- Emissions excluded due to a recent acquisition or merger – select this option if you have excluded Scope 1 emissions from this source due to an acquisition or merger that has taken place during the reporting period.
- Emissions are not evaluated – select this option if you have excluded Scope 1 emissions from this source but have not evaluated the relevance of these emissions.
Relevance of Scope 2 (location-based or market-based) emissions from this source (column 3 and 4)
- No emissions excluded – select this option if you have excluded Scope 1 emissions from this source and reported this exclusion in column 2 of this table, but you have not excluded Scope 2 emissions from this source.
- No emissions from this source – select this option if you have excluded Scope 1 emissions from this source and reported this exclusion in column 2 of this table, but you do not have Scope 2 emissions from this source.
- Emissions are not relevant – select this option if you have excluded Scope 2 emissions which you have identified as not relevant from this source.
- Emissions are relevant but not yet calculated – select this option if you have excluded Scope 2 emissions from this source, you have identified these emissions as relevant, but you have not calculated them.
- Emissions from this source are relevant and have been calculated, but are not disclosed –select this option if you have excluded from your CDP response Scope 2 emissions from this source that you have calculated and identified as relevant.
- Emissions excluded due to a recent acquisition or merger – select this option if you have excluded Scope 2 emissions from this source due to an acquisition or merger that has taken place during the reporting period.
- Emissions are not evaluated – select this option if you have excluded Scope 2 emissions from this source but have not evaluated the relevance of these emissions.
Explain why this source is excluded (column 5)
- Use this text field to describe why the source is excluded and its significance.
- Note that this question asks you to report only excluded sources of emissions. If you select 'No emissions excluded' or "No emissions from this source" for every column in every row indicating that there are no sources of emissions that have been excluded from your reported Scope 1 or Scope 2 figures in C6.1 and 6.3, you should review your answer to C6.4 and select "No".
Estimated percentage of total Scope 1+2 emissions this excluded source represents (column 6)
- This column is presented if any option other than “Emissions excluded due to recent acquisition or merger” or “Emissions are not evaluated” is selected in column 2, and in either column 3 or column 4.
- This figure should be estimated using the following formula:
Estimated percentage of total Scope 1+2 emissions the excluded source represents = 100% x (Estimated Scope 1+2 emissions the excluded source represents) / (Total gross Scope 1+2 emissions reported in C6.1 and C6.3)
- If you have calculated the Scope 1+2 emissions from the excluded source, use the formula above to provide the percentage of your total, gross, global Scope 1+2 emissions in the reporting year that the excluded source represents.
- If you have not yet calculated Scope 1+2 emissions from the excluded source, or if activity data is unavailable, you may estimate the Scope 1+2 emissions for the excluded source. You should choose an estimation approach that is appropriate to your sector, organization, the excluded source, and the data available. For example, absolute Scope 1+2 emissions could be estimated using the Scope 1+2 emissions intensity of a similar source for which data is available, such as an industry-average emissions intensity for the type of source excluded per e.g. unit revenue, floor area, or FTE employee, or using proxy data and rough estimates. Ensure to be transparent in column 7 with regards to the estimation approach (what is estimated and how), and the data used for the estimation.
Explain how you estimated the percentage of emissions this excluded source represents (column 7)
- This column is presented if any option other than “Emissions excluded due to recent acquisition or merger” or “Emissions are not evaluated” is selected in column 2, and in either column 3 or column 4.
- Explain how you calculated the estimated percentage of your total, gross, global Scope 1+2 emissions that the exclusion represents, including details of any emissions estimations and the estimation approach used.
- State whether you used the location-based or market-based Scope 2 figure from C6.3 in your calculation.
Example response
Worked example of excluded sources
In this instance presume that the company has selected ‘“Operational control’” in C0.5. Note that this example company response would be ineligible for the climate change A List due to excluded, relevant emissions and unevaluated, potentially relevant emissions.
| Source | Relevance of Scope 1 emissions from this source | Relevance of location-based Scope 2 emissions from this source | Relevance of market-based Scope 2 emissions from this source (if applicable) |
Explain why this source is excluded | Estimated percentage of total Scope 1+2 emissions this excluded source represents | Explain how you estimated the percentage of emissions this excluded source represents |
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| Four manufacturing facilities in Asia. | Emissions are not evaluated. | Emissions are relevant but not yet calculated. | Emissions are relevant but not yet calculated. | At present, we are only able to disclose our emissions from our European operations, but not our Asian operations. In terms of Scope 1 emissions, we are aware that our manufacturing operations may be associated with leakage of refrigerants, however we have not yet had the capacity to investigate and evaluate this thoroughly. In terms of Scope 2 emissions, we do have records of how much electricity we purchase in our four Asian facilities, but we have not yet adopted an approach to account for the associated Scope 2 emissions. As we have operations in Europe, where there are contractual instruments, we have also calculated a market-based figure. While there are no contractual instruments for our Asian operations, we are still unable to provide a market-based figure for those operations. |
21% | We used a benchmarking approach to estimate the emissions for our four manufacturing facilities in Asia. We have ten European facilities of a similar size, age and build, for which we have calculated our scope 1 and 2 location-based emissions. We used their emissions data as a proxy to estimate the emissions of the four Asian facilities based on the floor area. Total scope 1 + 2 (location-based) for 10 European factories = 150,000tCO2e Total floor area for 10 comparable European facilities = 4000m2 Total floor area for 4 Asian facilities = 1000m2 Estimated emissions for 4 Asian facilities = 150,000 x (1000/4000) = 37,500tCO2e Estimated percentage of total Scope 1+2 emissions = 100% x 37,500/(37,500+150,000) = 20% |
Additional information
Relevance in GHG reporting
- The GHG Protocol’s Corporate Value Chain (Scope 3) Accounting and Reporting Standard (page 24) provides the following definition of relevance for GHG reporting: “A relevant GHG report contains the information that users – both internal and external to the company – need for their decision making. Companies should use the principle of relevance when determining whether to exclude any activities from the inventory boundary. Companies should also use the principle of relevance as a guide when selecting data sources. Companies should collect data of sufficient quality to ensure that the inventory is relevant (i.e., that it appropriately reflects the GHG emissions of the company and serves the decision-making needs of users) (...) and should not exclude any activities from the inventory that would compromise the relevance of the reported inventory.”
- A practical rule of thumb often applied to evaluate the relevance of an emissions’ source or activity is to consider the sources that contribute to 95% of the emissions inventory once sources are listed by the size of emissions. This rule is of practical value in particular when a low number of sources contribute to a large proportion of the total emissions while a large number of sources contribute to a small percentage of emissions. In order to utilize the 95% threshold, the emissions from all sources or activities need to be quantified or estimated to ensure they meet this threshold. Relevance should apply not only to the size of emissions, but also other criteria, such as the potential to drive emissions reductions, the cost-benefit of gathering the data, stakeholder expectations, and potential uses of the data.
- Relevance of emissions should not be limited to sustainability topics that have a significant financial impact on your organization, or “materiality”.
- Examples of circumstances where the reasons for excluding known emissions sources from the GHG statement may not be reasonable include:
- The entity has relevant Scope 1 emissions but only includes Scope 2 emissions in its CDP disclosure.
- The boundary has been defined, but particular geographies within the boundary are not being reported although they represent relevant emissions; and
- The emissions reported exclude business divisions/areas of business with relevant emissions which are only a small proportion of the total emissions included in the GHG statement (i.e., once emissions are quantified at a sufficient level of quality they should be included in the inventory, even if they represent only a small share of the total).
Methodologies for estimating emissions from excluded sources
- Where verifiable data is not available, organizations may estimate emissions data by:
- Direct comparison: using data from another comparable time period to fill the gap for the excluded source e.g. emissions from the same time period in another year.
- Pro-rata extrapolation: using average data from one period of time to estimate data for another shorter period e.g. using average daily emissions from 1st January to 30th November to estimate emissions for 1st to 31st December.
- Benchmarking: using emissions or activity data for one asset or business activity as a proxy to estimate emissions or activity data for another asset or business activity e.g. using the annual emissions of one office to estimate emissions from another office of similar size, age or build.
