Carbon Management Principles Resources

Measure

You can’t manage what you can’t measure

The first step in managing carbon emissions is to develop a greenhouse gas (GHG) inventory to measure your carbon footprint. A carbon footprint is the total set of GHG emissions caused directly and indirectly by your business. Understanding your carbon footprint will help identify the major sources of GHG emissions, and assist in their management and reduction over time.

It is best practice to have your inventory verified by an independent third party to ensure reliability and confidence in the data. An increasing number of companies are publicly reporting their GHG emissions for transparency.

For a discussion of this step, read the Carbon Management Principles Discussion Paper (PDF file, 520KB).

 

Resources for measuring GHG emissions:

• Developing corporate GHG inventories
• Information documents for GHG inventory management
• Verification of GHG inventories
• Public reporting

 

Worksheets for calculating GHG emissions:

• Refrigerants (PDF file, 192KB).
• Electricity (PDF file, 213KB).
• Flights (PDF file, 142KB).
• Office Paper (PDF file, 186KB).

 

Developing corporate GHG inventories

Australian best practice

Australian Government Department of Climate Change guides and tools:

• National Greenhouse Accounts (NGA) Factors Emissions factors for developing Australian inventories.

• Emissions calculator a simple spreadsheet tool for developing GHG inventories.
• OSCAR – a web-based data collection tool for recording of energy, waste and greenhouse data for Government programme reporting. (requires username and password).

International best practice

• WRI/WBCSD GHG Protocol – an internationally recognised methodology for calculating GHG emissions.
• WRI/WBCSD calculation tools – for calculating GHG emissions. Each tool comprises a guidance section and automated worksheets.
• ISO 14064 series – international standard for calculating GHG emissions.
• IPCC methodology reports – for national GHG inventories but can also be useful at the corporate level:

• Good Practice Guidance and Uncertainty Management in National Greenhouse Gas Inventories
• Revised 1996 IPCC Guidelines for National Greenhouse Gas Inventories

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Information documents for GHG inventory management

• EPA Victoria’s Greenhouse Inventory Management Plan outlines how EPA developed an inventory to go carbon neutral.

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Verification of GHG inventories

• Department of Climate Change’s panel of independent verifiers under Greenhouse Challenge Plus.
• Energy Efficiency Opportunities Energy Services Directory.

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Public reporting

• National Greenhouse and Energy Reporting System – Australian system for reporting and disclosure of GHGs, abatement actions, and energy consumption and production by corporations from 1 July 2008.
• Carbon Disclosure Project – promotes and enables public disclosure of GHG emissions information from the world's largest companies.
• Global Reporting Initiative – developed a sustainability reporting framework to measure and report economic, environmental, and social performance.
• VicSuper Carbon Count – a report on the importance of disclosing carbon emissions for Australian business, including an analysis by Trucost on the carbon emissions, exposures, intensities and disclosure levels of the S&P ASX200.
• Green marketing and the Trade Practices Act (ACCC) - This guide is to educate businesses about their obligations regarding environmental claims under the Trade Practices Act 1974.
• Carbon claims and the Trade Practices Act (ACCC) - This guide is to inform businesses about their obligations under the Trade Practices Act 1974 (the Act). It examines some issues surrounding carbon offset and neutrality claims, and how they are affected by the Act.

Set Objectives

What do you want to achieve?

A key step in your carbon management strategy is to set goals or targets to manage GHG emissions.

Develop your goals by assessing the carbon risks and opportunities for your business. This will give you a starting point on what goals are appropriate for you.

Set clear and measurable short or long-term goals in line with your company’s strategic objectives. Use your emissions inventory to report and track progress towards your goals.

Compare your emissions profile to others in your industry sector. Benchmarking will help you identify best practice and provide the opportunity to strategically position your company as a leader on climate change.

For a discussion of this step, read the Carbon Management Principles Discussion Paper (PDF file, 520KB).

Resources for setting objectives:

• Reports on risks and opportunities
• Australia
• International
  
  
• Tools for assessing risks and opportunities
• Setting targets and goals
  

Information on understanding climate risk and opportunities

Reports on climate risks and opportunities:

Australia

Business risk and opportunity

• Garnaut Climate Change Review Draft Report to the Commonwealth, State and Territory Governments of Australia. .
• An Australian Cost Curve for Greenhouse Gas Reduction (McKinsey and Company)
• Understanding the Potential to Reduce Victoria’s Greenhouse Gas Emissions  (Victorian Government Department of Premier and Cabinet).
• CDP 5 Report for Australia and New Zealand (Carbon Disclosure Project).
• Carbon value. Robust carbon management – a framework to protect and enhance shareholder value in response to climate change(PricewaterhouseCoopers)
• Carbon value. Robust carbon management – a framework to protect and enhance shareholder value in response to climate change (PricewaterhouseCoopers).
• Climate change and the ASX100. An assessment of risks and opportunities (Citigroup).
• Identifying Carbon Value: The carbon responsiveness of ASX 200 Stocks (Reputex)
• Climate change: Current accounting and tax issues for Australian Business Leaders (KPMG).
• Infrastructure and climate change risk assessment for Victoria – report to the Victorian Government 2007– part 1 and part 2 (Victorian Government).

Australian Emissions Trading Scheme

• Carbon Pollution Reduction Scheme - The Australian Government is establishing a Carbon Pollution Reduction Scheme as part of an effective framework for meeting the climate change challenge.
• Emissions Trading Scheme Discussion Paper (Garnaut Climate Change Review).

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International

• Stern Review on the Economics of Climate Change (UK).
• Climate Changes your business: review of the business risks and economic impacts at sector level (KPMG)
• Getting ahead of the curve: corporate strategies that address climate change (Pew Centre, US).
• The Cost of Climate Change: What We’ll Pay if Global Warming Continues Unchecked (NRDC and Tufts)
• Adapting to Climate Change: a business approach (Pew Centre, US)
• Innovations Review: Making green the new business as usual (Environmental Defense Fund)

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Tools to assess carbon risks and opportunities:

• Global Environment Management Initiative – online tool to calculate your climate risks and opportunities.
• Cool business guide – worksheets to assess your carbon risks and opportunities.
  
  

Setting GHG targets and goals

• WRI/WBCSD GHG Protocol – guidance on setting a GHG target.
• US EPA Climate Leaders – Goal Setting Fact Sheet
• Carbon Down Profits Up – (The Climate Group) list of leading companies, cities, states/regions and companies targets/reduction goals and cost savings worldwide.
• Getting to zero: defining corporate carbon neutrality. - A report on what should support claims of carbon neutrality.

 

Avoid and reduce

Can you avoid generating emissions?
Can you change your activities to reduce your emissions?

After measuring your carbon footprint and determining objectives, identify actions to reduce GHG emissions. Steps that reduce emissions while also reducing costs can be found in most areas of operations, from building design to employee behaviour.

Avoid

The best way to reduce your carbon impact is to avoid generating GHG emissions directly from your site and indirectly from energy use. Avoiding GHG emissions also helps to minimise other environmental impacts, and to reduce energy and other resource costs. It also may help to reduce carbon exposure and business risk.

Reduce

For a discussion of this step, read the Carbon Management Principles Discussion Paper (PDF file, 520KB).

Resources for avoiding and reducing GHG emissions:

• Guidance documents
• Reducing emissions from energy use
  • Buildings
  • Transport
  • Energy Efficient Products
    
    
• Reducing emissions from water
• Reducing emissions from waste
• Reducing emissions from the supply chain
• Behaviour Change

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Guidance documents

• Environment and Resource Efficiency Plans Resources - The Environment and Resource Efficiency Program Toolkit provides businesses with procedures, case studies and other guidance to achieve resource and cost savings
• World Resources Institute – Hot Climate, Cool Commerce: A Service Sector Guide to Greenhouse Gas Management.
• Department of Climate Change resources:
• energy efficiency resources online
  
  
• Moreland Energy Foundation Energy Saving Information Kit for Business – fact sheets.
• Energy and management toolkit – (Sustainability Victoria and EPA Victoria).

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Reducing emissions from energy use

• Grow Me The Money – Joint intitative of Victorian Employers’ Chamber of Commerce and Industry and EPA designed to help Victorian businesses improve their environmental impact and save money doing it.
• Department of Climate Change Greenhouse Challenge Plus energy audit tools
• Sustainability Victoria ResourceSmart Business fact sheets for reducing emissions.
• Sustainability Victoria – Manufacturing Directory.
• Energy Efficiency Opportunities (EEO) program:

•  Energy Services Directory - to assist corporations, when planning, conducting and implementing EEO assessments, to locate and engage external service providers.
• The Energy Savings Measurement Guide - a best practice guide to assist companies estimate, measure, evaluate and track energy savings.
  
  
• Energy Transformed: Sustainable Energy Solutions for Climate Change Mitigation – an online text book for industry, governments, business and households on energy efficiency, low carbon technologies, renewable energy and sustainable transport to help achieve a sustainable energy future.

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Buildings

• National Australian Built Environment Rating System (NABERS) – a performance-based rating system for existing buildings.
• Green Building Council of Australia – not-for-profit organisation committed to developing a sustainable property industry for Australia by encouraging the adoption of green building practices. Uses Green Star – An Environmental Rating System for Buildings – includes a rating tool to assess the environmental performance of buildings in a specific sector (office, retail, healthcare, education) at a distinct phase in the development cycle (design or construction and maintenance).

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Transport

• The TravelSmart program – TravelSmart can assist your workplace implement a travel plan to reduce the financial and environmental costs of travelling to, from, and for work.
• GreenWheels - ranks vehicles by their greenhouse gas emissions enabling individuals and businesses to choose low emission vehicles suitable for their use. Developed by RACV, EPA Victoria and Future Climate Australia.
• Telework Online Resource Centre resources and information for organisations and individuals considering telework initiatives.
• Green Vehicle Guide – provides information about the environmental performance of new light vehicles sold in Australia.
• Information – on how to reduce the impact of cars on the environment no matter what type of car you have or fuel you use (RACV).

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Energy Efficient products

• Energy star – international standard for energy efficient office equipment.
• Australian Government Energy Rating web site for products with energy labels and registered for minimum energy performance standards (MEPS).
  
  

Reducing emissions from water

• Victorian Water Industry Association publications.

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Reducing emissions from waste

• Environmental guidelines for reducing GHG emissions from landfills and wastewater treatment facilities (EPA publication 722).
• National Packaging Covenant – a voluntary initiative by government and industry to reduce the environmental effects of packaging on the environment.
• Waste Reduction Model (WARM) –  helps solid waste planners and organisations track and voluntarily report GHG emissions reductions from several different waste management practices (United States).
• The Waste Management Association of Australia – Australia's peak association for waste management professionals.
• Potential for Greenhouse Gas Abatement from Waste Management and Resource Recovery Activities in Australia – prepared by Warnken ISE for SITA Environmental Solutions (September, 2007)

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Reducing emissions from the supply chain

• Carbon Disclosure Project Supply Chain Leadership Collaboration (SCLC) - brings together sector leaders wishing to work through the CDP system to measure and subsequently manage emissions through the supply chain.
• Global Reporting Initiative Global Action Network for Transparency in the Supply Chain – project aimed at exploring how reporting can be improved and promote sustainability and transparency within the supply chain.

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Behaviour Change

• Communicate and educate: ResourceSmart Program fact sheet from Sustainability Victoria on how to make to staff aware of the changes made and let them know that their efforts are making a difference.

Other information

• Ecogeneration Magazine – information on developments in the sustainable energy industry, provides updates on new projects, as well as profiles of recently completed projects.

• ClimateBiz.com – online US newsletter and resource center focusing on strategies for companies seeking to reduce their climate "footprint" while saving money and increasing productivity.

Switch

Can you switch energy source so that it is less greenhouse intensive?

Look for opportunities to ensure that the primary energy source you are using is being delivered in the most GHG-efficient way. This can be delivered through renewable sources, or by exchanging fuel sources to minimise GHG intensity. The three primary areas are:

• direct renewables, such as installing solar panels at your home, office or facility
• purchased renewables from an accredited electricity retailers through the GreenPower scheme
• exchange a fossil fuel energy source to one with a lower carbon content, e.g. switch from coal-fired electricity to natural gas.

For a discussion of this step, read the Carbon Management Principles Discussion Paper (PDF file, 520KB).

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Resources for switching energy sources:

• Installation of renewable energy technologies
• Purchasing renewable energy
• Exchange for low carbon content fuels

 

Installation of renewable energy technologies

• Australian Government programs, including grants, rebates and other support.
• Current installed renewable generation in Victoria and fact sheets (Sustainability Victoria).
• Victorian Government Renewable Energy Support Fund.
• Centre for Energy and Greenhouse Technologies – provides investment funds and support services for the development of new sustainable energy technologies.
• Office of the Renewable Energy Regulator – a statutory authority established to oversee the implementation of the Australian Government's mandatory renewable energy target. Provides information about renewable energy certificates (RECs)
• Renewable Energy Generators of Australia (REGA) - the peak national body representing the leading generators, equipment suppliers and industry specialists in the zero emission electricity supply industry.
• RETScreen International Clean Energy Project Analysis Tool – (United States) – a free decision support tool that can be used worldwide to evaluate the energy production and savings, life-cycle costs, emission reductions, financial viability and risk for various types of renewable energy technologies.
• World Resources Institute (US) and the Climate Group (UK) renewable energy market development group information and tools:
  •  Green power market development group – (US and UK) commercial and industrial partnership dedicated to building corporate markets for green power
  • Green power analysis tool – analyses the economic and environmental attributes of renewable energy projects.
  • Corporate case studies in US
  • Corporate case studies in UK

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Purchasing renewable energy

• GreenPower – accredited renewable electricity products offered by energy suppliers to households and businesses across Australia.
• Green Electricity Watch – a consumer guide for choosing renewable energy products in Australia.

 

Exchange for low carbon content fuels

• GreenWheels - ranks vehicles by their greenhouse gas emissions enabling individuals and businesses to choose low emission vehicles suitable for their use. Developed by RACV, EPA Victoria and Future Climate Australia.
• Green Vehicle Guide – provides information about the environmental performance of new light vehicles sold in Australia.
• Alternative Fuels Conversion Programme – Australian Government program to support key commercial fleet operators to trial selected alternatively-fuelled or hybrid diesel/electric engines in order to assess the commercial viability of these engine systems in heavy vehicles and to demonstrate their feasibility to the wider transport industry.

Sequester

Should you consider sequestering your emissions?

Another component of carbon management can be to reduce atmospheric GHG concentrations through natural or artificial GHG (usually carbon) sequestration.

Biosequestration is the natural absorption and storage of carbon by plants, and can be a business opportunity for farming enterprises. For most businesses however, these projects will involve purchasing offset creditsthrough offset providers.

Carbon Capture and Storage (CCS), or geosequestration,  involves direct capture of carbon dioxide from the combustion of fossil fuels or from industrial processes and the long-term storage of these emissions beneath the earth’s surface. This technology has not been applied commercially in Australia to date, but it is being tested at demonstration scale for application in the stationary energy sector. While CCS also has the potential to be developed for other industrial processes that emit GHG gases, it is likely to have limited application in the short to medium term outside the stationary energy sector.

For a discussion of this step, read the Carbon Management Principles Discussion Paper (PDF file, 520KB).

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Resources for sequestering GHG emissions:

Biosequestration

Information documents

• Victorian Greenhouse Strategy site for information on land sources and offsets.
• NSW Greenhouse Gas Reduction Scheme (GGAS) – Carbon sequestration information – forestry.
• Department of Climate Change guidance on forest sinks – information and guidance to those stakeholders interested in engaging in forest sink activities.

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Tools

• National Carbon Accounting Toolbox – provides the tools for tracking GHG emissions and carbon stock changes from land use and management.
• Australian Standard AS 4978.1-2006 Quantification, monitoring and reporting of GHG in forest projects.

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Carbon Capture and Storage (Geosequestration)

• Review of geological storage opportunities for Carbon Capture and Storage (CCS) in Victoria – this review has been undertaken to determine the potential for geological storage opportunities for CCS within the State of Victoria and its adjacent waters.
• Strategic Policy Framework for Near Zero Emissions from Latrobe Valley Brown Coal - Issues Paper – developed by the Victorian Government.
• Cooperative Research Centre for Greenhouse Gas Technologies for information and guidance on geosequestration, including information from Australia’s first demonstration project.

 

Assess

What are your residual GHG emissions?

Determine whether you have reached your goal

Now that you have gone through the process of reducing GHG emissions on - site and from activities associated with your business, refer back to your original objectives. If you are not meeting your objectives, there may be reduction opportunities you have not considered.

For a discussion of this step, read the Carbon Management Principles Discussion Paper (PDF file, 520KB).

Offset

A carbon offset is any project that indirectly “reduces” GHG emissions at one source by investing in GHG emissions reductions elsewhere. Offset products most typically involve projects that invest in renewable energy, energy efficiency and reforestation. Offset credits can be purchased from an offset scheme provider or generated from your own projects.

Adopt the step-by-step approach set out in the Carbon Management Principles by first identifying on-site emissions avoidance and reduction opportunities. This will help to provide long term environmental and financial benefits to your business and reduce the need for offsetting.

A range of offset products is emerging to help companies, governments and the community offset their GHG emissions. EPA has developed a informative Carbon Offsets web site to give companies an overview of carbon offsets and provide helpful hints to help navigate the marketplace. The web site also provides information on the range of international and Australian standards and guidance.

 

Review

What can you do differently?

Carbon management is not a static process. Regular review is essential to ensure you make the most of new practices and technologies as they emerge over time. Energy and other costs (including the cost of offsets) will change over time, necessitating regular review and continuous improvement of your carbon management strategy.

As the implementation of avoidance and reduction actions increases, the need to sequester or offset your GHG emissions should decrease, increasing environmental and business benefits over time.

For a discussion of this step, go to the Carbon Management Principles Discussion Paper (PDF file, 520KB).