World Business Council for Sustainable Development Product Life Cycle Accounting and Reporting Standard Draft for Road Testing January 2010 Copyright © World Resources Institute & World Business Council for Sustainable Development, 2010 DRAFT FOR ROAD TESTING – JANUARY 2010 1 2 Table of Contents 3 4 1. Introduction .........................................................................................................................................................4 5 1.1. Introduction to Draft for Road Testing .......................................................................................................4 6 1.2 Goal and Scope of the Product Standard .................................................................................................6 7 1.3. Who should use this Standard ..................................................................................................................8 8 1.4. Choosing a Product ................................................................................................................................ 10 9 2. Principles of Product GHG Accounting ............................................................................................................ 12 10 3. Overview of Product GHG Accounting ............................................................................................................ 13 11 3.1. Key Concepts ......................................................................................................................................... 13 12 3.2. Steps to Performing a Product GHG Inventory ...................................................................................... 18 13 4. Establishing the Methodology .......................................................................................................................... 19 14 4.1. Requirements ......................................................................................................................................... 19 15 4.2. Guidance ................................................................................................................................................ 19 16 5. Defining the Functional Unit ............................................................................................................................ 22 17 5.1. Requirements ......................................................................................................................................... 22 18 5.2. Guidance ................................................................................................................................................ 22 19 6. Boundary Setting ............................................................................................................................................. 24 20 6.1. Introduction ............................................................................................................................................. 24 21 6.2. Requirements ......................................................................................................................................... 24 22 6.3. Guidance ................................................................................................................................................ 24 23 7. Collecting Data ................................................................................................................................................ 34 24 7.1. Requirements ......................................................................................................................................... 34 25 7.2. Guidance ................................................................................................................................................ 34 26 8. Allocation ......................................................................................................................................................... 47 27 8.1. Introduction: What is an Allocation Problem? ........................................................................................ 47 28 8.2. Requirements ......................................................................................................................................... 50 29 8.3. Guidance ................................................................................................................................................ 52 30 9. Assessing Data Quality and Uncertainty ......................................................................................................... 58 31 9.1. Requirements ......................................................................................................................................... 58 32 9.2. Guidance ................................................................................................................................................ 58 33 10. Calculating GHG Emissions ....................................................................................................................... 67 34 10.1. Requirements ......................................................................................................................................... 67 35 10.2. Guidance ................................................................................................................................................ 67 36 11. Assurance ................................................................................................................................................... 69 37 11.1. Introduction ............................................................................................................................................. 69 2 DRAFT FOR ROAD TESTING – JANUARY 2010 1 11.2. Requirements ......................................................................................................................................... 71 2 11.3. Guidance ................................................................................................................................................ 71 3 12. Reporting .................................................................................................................................................... 81 4 12.1. Requirements ......................................................................................................................................... 81 5 12.2. Guidance ................................................................................................................................................ 85 6 12.3. GHG assessment as an enabler for GHG reduction (section under development) ............................... 87 7 12.4. Example Summary Report ..................................................................................................................... 89 8 13. Accounting for GHG Emission Reductions (to be completed) ................................................................... 94 9 Appendix A: Data Management Plan ...................................................................................................................... 95 10 Appendix B: Additional Guidance on Collecting and Calculating Data ................................................................. 100 11 Accounting for GHG Emissions due to Land Use and Land Use Change ......................................................... 100 12 Electricity Emission Factors (to be completed) .................................................................................................. 108 13 Capital Goods (to be completed) ....................................................................................................................... 108 14 Appendix C: Product Comparisons (to be completed) .......................................................................................... 109 15 Appendix D: Life Cycle Databases (to be completed) ........................................................................................... 109 16 Appendix E: Glossary ............................................................................................................................................ 110 17 Appendix F: References ........................................................................................................................................ 118 18 19 3 DRAFT FOR ROAD TESTING – JANUARY 2010 1 1. Introduction 2 3 The Greenhouse Gas Protocol Initiative (GHG Protocol) is a multi-stakeholder partnership of businesses, non- 4 governmental organizations (NGOs), governments and others convened by the World Resources Institute (WRI), 5 a U.S. based environmental NGO and the World Business Council for Sustainable Development (WBCSD), a 6 Geneva, Switzerland-based coalition of over 200 international companies. Launched in 1998, the Initiative‘s 7 mission is to develop internationally accepted accounting and reporting standards and guidelines for corporate 8 greenhouse gas (GHG) emissions inventories and GHG projects, and to promote their use by businesses, 9 governments, NGOs and other organizations. 10 11 The GHG Protocol Initiative has previously produced the following standards and guidelines: 12 13 - GHG Protocol Corporate Accounting and Reporting Standard1 (2004) 14 - GHG Protocol for Project Accounting (2005) 15 - GHG Protocol Land Use, Land-Use Change and Forestry Guidance for GHG Project Accounting (2006) 16 - GHG Protocol Guidelines for Quantifying GHG Reductions from Grid-Connected Electricity Projects 17 (2007)