Energinet Environment Reporting
What is the purpose of environment reporting?
The purpose of preparing an environment report for your own company is to contribute
to making society more sustainable and make the company more conscious of its
environmental impact. This should be done internally through internal control and HSE
(Health, Safety and Environment), and externally with reference to purchases,
energy consumption, transport, waste management and aesthetics.
The Environment Report: The Environment Report provides a survey of a company's
resource consumption relative to waste, energy, transport and more. It makes it possible
to compare the situation from one year to the next. The report will make the management more aware of improvements of the environment.
The Environment Report also has as its goal to provide the municipal authorities with information about what is happening in the companies and to make a basis on which to create national statistics regarding improvements as to energy, waste and so on The Accounting Act requires that information regarding circumstances in the company which may cause considerable impact on the environment is to be presented.
Companies have a duty to inform as to which environmental impacts the company causes or may cause. The companies also have a duty to inform about the measures which are implemented or are planned implemented to prevent and/or reduce the environmental impact.
Energinet offers you, not only reporting relative to CO2,
but also relative to the GHG protocol and
EN ISO 14964-1:2012.
We now offer reporting for all customers whether they have
small local environment reporting requirements or
Energinet has been developed on the basis of the GHG Protocol.
The GHG Protocol is the official international standard for calculation of greenhouse gas emissions. This is the most widely used accounting standard for calculation of the company’s CO2 emissions. This standard is also the basis on which the Klimakompasset’s CO2 calculator is built on.The ISO 14064 standards for the preparation and verification of CO2 accounts. The standard is based on the GHG Protocol, but may be also be verified by external parties.If you want to calculate the CO2 emissions for individual products, you may either use the ISO 14040 standards or the PAS 2050 (which is currently being prepared). Both require that you assess the whole life cycle of the products.
Source: NHO (Confederation of Norwegian Enterprise)
The Greenhouse Gas Protocol (the GHG Protocol) is an internationally acknowledged tool that is used to calculate and report on greenhouse gas emissions. The tool is increasingly being used to meet new regulatory requirements which are designed to result in economic growth in a less carbon intensive direction, and to promote innovation and leadership in the business community.
As Energinet has been developed on the basis of the GHG Protocol, the carbon emissions are qualified in various manners.
See the illustration above.
In Energinet, carbon emissions are classified as direct and indirect emissions. In the Greenhouse Gas Protocol (The GHG Protocol), they are defined as follows:
Direct greenhouse gas emissions are emissions from sources which are owned or controlled by the organization liable to report.
Indirect greenhouse gas emissions are emissions which are the consequence of the activity of the organization liable to report, but stem from sources which are owned or controlled by another entity.
These direct and indirect emissions are further divided up into three broad scopes or areas (Scope 1, 2, and 3) related to emission sources, which contribute to establishing the company's emissions reduction goal. The definition of the three scopes is as follows:
Scope 1: All direct emissions of greenhouse gases. This applies to emissions which are the consequence of activities in the company.
Scope 2: Indirect emissions from the consumption of purchased electricity, heating, cooling and steam and more and includes emissions from entities from which your company buys products and services.
Scope 3: Other indirect emissions, such as extraction and production of purchased materials and fuel, transport related activities in vehicles which are not owned or controlled by the organization liable to report, electricity related activities which are not covered in Scope 2, outsourced activities, waste management etc.
In Energinet, all registered meters which have been included in a defined Scope group and CO2 equivalent, will be automatically included.
Most meters will be registered in Scope 1.
All other emissions are registered manually such as for example air travels and more.
Procedure in Energinet:
1. Editing of meters to be included in the report
Only the meters which may be defined as being in one of the 3 Scopes may be included in the report.
Select the meter to be included by entering the meter under the energy/production block – select edit meter
2. Select the type of Scope the meter is to be linked to in the pull-down menu for GHG Scope.
Normally, your meters will be placed under Scope 1, which is defined as “Company facility” buildings and own vehicles. In the pull-down menu, you will find all selection types listed with the applicable Scope which the GHG standard contains. Select the correct type and go further down the page to enter the CO2 factor.
3. Enter the correct CO2 factor for the meter
If you want this to apply to all historic data since the creation of the meter (since creation) for the meter, please press Save changes.
If you want another date from which the CO2 factor should apply, please press the link, enter the date and afterwards Save changes.
You may also create separate climate meters according the NS ISO 14064
Energinet has a number of new climate meters as standard meters which you may select from.
You may also create separate environment meters
Go to the energy/production block and select Add meter
Create separate climate meters in Energinet:
Select the environment meter you require from the pull-down list.
Then, select the Scope to which it should belong.
You do not have to add the CO2 factor to these as they have been defined in advance.
The environment meters have been added pursuant to ISO 14064-1:2012(E)
Now, the configuration is completed.
However, you may have emissions which are not logged by meters in Energinet or you may have GHG types which have not been configured by us in the system.
If this is the case – please go to the Environment link in the menu on the side.
Now you will see two tabs: 1. Environment data and 2. Personally defined GHG types
Tab: Registration of Environment/Climate data.
Here, you can create meters/transmitters that you want to be included in the report.
1. Select the date
2. Select the GHG type (Scope)
3. Enter Connection (for example building, function, company)
4. Enter the Consumption
5. Enter the measuring unit (for example km, litres,….)
6. Enter a comment, if any.
Tab: Custom defined GHG types / Indicators. Here, you may create and enter your custom defined GHG types.
Enter the name of the GHG type and the Scope to which it should be belong as well as the category.
Add a comment, if any.
Environment / GHG report
Go to the top tab and select Reports
You will find the Environment report at the bottom under Folder reports.
Go to the top tab and select Reports
You will find the Environment report at the bottom under Folder reports.
Here, you may:
- Determine which periods to be included
- Remove or see data in the graph in a very simple manner
- Choose from various types of diagrams
- Pre-defined tables relative to GHG Scope
- Export to Excel, PDF or send the report via e-mail to yourself or others.
GHG accounting and reporting shall be based on the following principles:
RELEVANCE Ensure the GHG inventory appropriately reflects the GHG emissions of the company and serves the decision-making needs of users – both internal and external to the company.
COMPLETENESS Account for and report on all GHG emission sources and activities within the chose inventory boundary. Disclose and justify any specific exclusions.
CONSISTENCY Use consistent methodologies to allow for meaningful comparisons of emissions over time. Transparently document any changes to the data, inventory boundary, methods, or any other relevant factors in the time series.
TRANSPARENCY Address all relevant issues in a factual and coherent manner, based on a clear audit trail. Disclose any relevant assumptions and make appropriate references to the accounting and calculation methodologies and data sources used.
ACCURACY Ensure that the quantification of GHG emissions is systematically neither over nor under actual emissions, as far as can be judged, and that uncertainties are reduced as far as practicable. Achieve sufficient accuracy to enable users to make decisions with reasonable assurance as to the integrity of the reported information.
For effective and innovative GHG management, setting operational boundaries that are comprehensive with respect to direct and indirect emissions will help a company better manage the full spectrum of GHG risks and opportunities that exist along its value chain. Direct GHG emissions are emissions from sources that
are owned or controlled by the company.1 Indirect GHG emissions are emissions that are a consequence of the activities of the company but occur at sources owned or controlled by another company.
What is classified as direct and indirect emissions is dependent on the consolidation approach (equity share or control) selected for setting the organizational
boundary (see chapter 3). Figure 2 below shows the relationship between the organizational and operational boundaries of a company.
Introducing the concept of “ scope”
To help delineate direct and indirect emission sources, improve transparency, and provide utility for different types of organizations and different types of climate policies and business goals, three “scopes” (scope 1, scope 2, and scope 3) are defined for GHG accounting and reporting purposes. Scopes 1 and 2 are carefully defined in this standard to ensure that two or more companies will not account for emissions in the same scope. This makes the scopes amenable for use in GHG programs where double counting matters.
Companies shall separately account for and report on scopes 1 and 2 at a minimum.
Scope 1: Direct GHG emissions
Direct GHG emissions occur from sources that are owned or controlled by the company, for example, emissions from combustion in owned or controlled boilers, furnaces, vehicles, etc.; emissions from chemical production in owned or controlled process equipment. Direct CO2 emissions from the combustion of biomass
shall not be included in scope 1 but reported separately
GHG emissions not covered by the Kyoto Protocol, e.g.CFCs, NOx, etc. shall not be included in scope 1 but may be reported separately (see chapter 9 in The GHG protocol)..
Scope 2: Electricity indirect GHG emissions
Scope 2 accounts for GHG emissions from the generationof purchased electricity2 consumed by the company.Purchased electricity is defined as electricity that is
purchased or otherwise brought into the organizationalboundary of the company. Scope 2 emissions physically occur at the facility where electricity is generated.
Scope 3: Other indirect GHG emissions
Scope 3 is an optional reporting category that allows for the treatment of all other indirect emissions. Scope 3 emissions are a consequence of the activities of the
company, but occur from sources not owned or controlled by the company. Some examples of scope 3 activities are extraction and production of purchased
materials; transportation of purchased fuels; and use of sold products and services.
Identify GHG emissions sources
The first of the five steps in identifying and calculating a company’s emissions is to categorize the GHG sources within that company’s boundaries. GHG emissions typically occur from the following source categories:
• Stationary combustion: combustion of fuels in stationary equipment such as boilers, furnaces, burners, turbines, heaters, incinerators, engines, flares, etc.
• Mobile combustion: combustion of fuels in transportationdevices such as automobiles, trucks, buses, trains, airplanes, boats, ships, barges, vessels, etc.
• Process emissions: emissions from physical or chemical processes such as CO2 from the calcination step in cement manufacturing, CO2 from catalytic cracking
in petrochemical processing, PFC emissions from aluminum smelting, etc.
• Fugitive emissions: intentional and unintentional releases such as equipment leaks from joints, seals, packing, gaskets, as well as fugitive emissions from coal piles, waste water treatment, pits, cooling towers, gas processing facilities, etc.
Every business has processes, products, or services that generate direct and/or indirect emissions from one or more of the above broad source categories.
IDENTIFY SCOPE 1 EMISSIONS
As a first step, a company should undertake an exercise to identify its direct emission sources in each of the four source categories listed above. Process emissions
are usually only relevant to certain industry sectors like oil and gas, aluminum, cement, etc.
Manufacturing companies that generate process emissions and own or control a power production facility will likely have direct emissions from all the main source
categories. Office-based organizations may not have any direct GHG emissions except in cases where they own or operate a vehicle, combustion device, or refrigeration and air-conditioning equipment. Often companies are surprised to realize that significant emissions come from sources that are not initially obvious (see United Technologies case study in the GHG protocol).
IDENTIFY SCOPE 2 EMISSIONS
The next step is to identify indirect emission sources from the consumption of purchased electricity, heat, or steam. Almost all businesses generate indirect emissions due to the purchase of electricity for use in their processes or services.
IDENTIFY SCOPE 3 EMISSIONS
This optional step involves identification of other indirect emissions from a company’s upstream and downstream activities as well as emissions associated with
outsourced/contract manufacturing, leases, or franchises not included in scope 1 or scope 2.
The inclusion of scope 3 emissions allows businesses to expand their inventory boundary along their value chain and to identify all relevant GHG emissions. This provides a broad overview of various business linkages and possible opportunities for significant GHG emission reductions that may exist upstream or downstream of a
company’s immediate operations (see chapter 4 for an overview of activities that can generate GHG emissions along a company’s value chain).