Reducing Greenhouse Gas Emissions Overview

Good morning. Welcome to this lecture 5 for the week 3 of this ongoing online course which is on understanding and reducing greenhouse gas emissions and we are focusing on scope. 1 and 2 emission reduction through building design and construction. So, this is a continuation of the previous two lectures where we are trying to identify and determine the scope of scope 1, 2, and 3 GHG emissions. Now, quickly looking at a recap of what we have done previously and then going ahead with what we are going to be doing today. So, we saw how to set up the boundaries, how to identify the organizational and operational boundaries. So, that was where we identified where to act, where is the intervention going to happen. And once we had done that, once we had also prepared the inventory accounted for where the emissions are coming from and we identified specifically, we then identified the positions places where we need to act and then how to act. So, what are the kind of interventions that are going to take place? So, we discussed that and then specifically we understood that what is the scope of scope 1, 2 and 3 emissions, understanding them, identifying which emissions will go as scope 1, scope 2 and 3. and scope 3 emissions. We also looked at the different categories. So, within scope, scopes were further detailed defined as categories. So, there were more number of categories, 6 categories in which we clearly identified and divided the emissions which were eventually culminating in 3 scopes, scope 1, 2 and 3. And then we also saw what are the challenges in identifying different emissions, different scopes. Now, we have talked theory. Theoretically about these I continue to give you some examples if it is an IT industry or a fuel selling company or a government manufacturing company. But here today we are going to see some real case studies. So, these are accounted case studies. So, today what we are going to see is examples of different projects for all the three scopes scope 1, 2 and 3 and these are accounted projects. So, all this while we have been. been talking about quantification of accounting and reporting. Keeping in mind the principles of GHG protocol that are there where we talked about the transparency, we talked about the completeness. So, all those principles being in place how different companies have already been doing. the reporting on GHG emissions for their companies. These are some of the properly documented examples that we are going to see today. So, this is the first example that I am picking up and this is for US healthcare. So, there are GHG protocol scopes for US healthcare. Now, through these examples we are going to clearly identify which emissions are going in scope 1, 2 and 3 and how have they defined. And we will see clearly that some emissions which are scope 1 or 2 for a particular company could actually become a scope 3 for some other company and that is the whole ecosystem of this identification of scope. And as I had mentioned earlier if we see if all the companies across the world or in a nation continue to address their scope 1 and 2 automatically the scope 3 for somebody else will be taken care of. So, primarily identifying the scope 1 and 2 correctly, identifying the scope 3 also correctly, but intervening in 1 and 2 scope 1 and 2 will give us a significant success. So, looking at this US healthcare and the way they have defined scopes as per GHG protocol. So, let us start with scope 1. Now, in scope 1 what they have which are the direct emissions? Now, we know clearly. First is these facilities. So, we basically have the facilities which are Basically, the hospitals, the care units, the medical care units that they have. So, the direct emissions that are coming from them are the direct scope 1 emissions. Now, it does not include the emissions due to purchased electricity. So, there is a lot of electricity that is going to be consumed, a lot of heating, cooling that is going to be used in these buildings. So, unless there is a direct consumption of fuel, it is not the direct emission. So, in the facilities where for example, a lot of medicines are used, a lot of chemicals are used in the medical processes, the incinerator might be used on the hospital premise. So, all the emissions resulting from the activities from the facilities are counted here. We also have anaesthetics here we are talking about the medical in the medicine use. And then we also have the fleet and leased vehicles because hospitals often have fleet fleets of vehicles especially the ambulances and the vehicles for transporting doctors and the medical staff in case of emergencies. So, the emissions which are resulting directly due to the consumption of fuel in these vehicles is part of scope 1. So, this is scope 1 for US healthcare as they have identified. Now, looking at scope 2 very simple the indirect emissions due to the electricity consumption or purchased heating or cooling. which is going in these facilities which are owned is part of scope 2. So, we are mainly looking at electricity and steam here. So, scope 2 is often very simple it is the emissions which are taking elsewhere due to the energy that is going to be consumed in the facility on site. So, once we have defined scope 1 and 2 a lot of these activities and the emissions which are both downstream and upstream. Now, here if you will see for this case of US healthcare they have not identified the emissions as downstream emissions or upstream emissions. All they have done is they have put the rest of the indirect emissions in scope 3. So, if you look at this food and catering. So, if it is leased the food is being prepared somewhere and it is brought to be given to patients in the canteen. So, All that food and catering in different canteens is part of this. If you look at that the medicines which are being manufactured elsewhere and brought here. If you look at the say business travel, the staff commuting, the freight transport, the construction of the building that has happened already. So, there is embodied energy that is in it and that is causing the indirect emissions or it is also the emissions during the construction. which has already taken place. So, they have put all of these in scope 3 also IT waste and a lot of these heads they have put all of them in scope 3 of indirect emissions. And also there are certain scopes which they have identified which is outside the GHG protocol, but they have recognized that which is their patient and visitor travel. So, sometimes the patients will be travelling on their own to reach the medical facility. So, they have identified this which is not falling under scope 1, 2 and 3. In fact, it is not part of the scope of the group here US healthcare, but yet they have identified it and once they have identified they will be also going ahead with the measurement protocol. So, how to identify, how to calculate quantify the emission which is happening because of this? Because, of each one of these heads accounting proper accounting of these emissions and then once we have accounted for it we have identified the base here as we have seen earlier. We will go ahead and intervene through policy and its implementation to reduce the emissions in each of these categories. So, this is the case of US healthcare. Let us look at another one this is for a dairy farm. And this is a grass to gate carbon footprint kind of you know boundary where a farm has multiple different types of components which are put together. So, if there is farming which is happening on the farm, there is there could be certain carbon sink in the form of a grove or a little forest on the farm itself. There are animals. There are organic waste products which are there as part of the dairy practice. There is processing of that and all of them they have emissions which are released as the processes continue to go on. So, if you remember when we were talking about direct emissions, we were talking about process emissions and then we had stationary emissions and mobile emissions. Now, if we look at the dairy farm here. We can clearly see that the process emissions are different from the industrial units which normally we understand that GHG protocol might be applied only to the industrial units or corporates or service sector. But here when they applied it to a dairy farm the processes are pretty much organic in nature, but they also cause emissions and that is what has been identified. It's a beautiful thing. In this example is that while they have identified the scopes, they have also identified the scopes in upstream, in downstream and upstream and the on farm on during the process of this whole activity this process. So, looking at the direct emissions first the scope 1 emissions first which are. resulting from the on-farm activities. So, we have machineries, the emissions resulting from machinery. So, there are tractors and a lot of other machinery which is running on fuel and causing emissions. Then we also have emissions due to animals. So, animals are the resources that are there on the farm, they are living stock, but yet they contribute towards the emissions significantly. We are also looking at for example, the different types of products that are going there. For example, if we are using some chemical fertilizer. Now, due to the reaction of that fertilizer on ground on the land, there might be certain emissions that are happening. So, identifying them and then also also counting accounting that and reporting it. So, then we also have for example, carbon pools. So, they might be talking about the forested areas which might be absorbing a lot of emission that is happening. So, the values may not always be positive, they can be negative, they can act as sinks, they might be sequestering a lot of emissions that are happening, carbon dioxide, trees can absorb sequester a lot of carbon dioxide. So, that will also be carbon dioxide. counted towards it, how much of GAG emission is resulting directly in the on farm activities is what they have counted here. Now, looking at the upstream activities, so the activities which are you know contributing towards the creation of the product is what we are talking as upstream. Now here the simple scope 2 which we have understood in other cases also. is purchased electricity, steam, heating and cooling for use on the farm. So, there might be a cold storage. So, they might be either cooling the cold storage using electricity or they might be purchasing the heating or cooling depending upon the climate where it is situated. They could there is a direct consumption of electricity on farm. So, all that which is going to be purchased from somewhere and used on the farm not causing direct emissions. causing emission somewhere is part of scope 2 upstream activities simple to understand. So, scope 1 and scope 2 which is indirect they are simple. Now the remaining scope 3 will be both in upstream as well as downstream activities. So, we have scope 3 indirect, but not happening on ground directly for example, purchased goods and services. So, we are purchasing say synthetic fertilizer. The emissions which are. resulting from the fertilizers used on ground and the chemical reactions that take place and the emissions that are there, they will be counted as direct emissions. But the emissions which are there due to manufacturing of the fertilizer itself is part of scope 3 indirect emissions. So, purchase goods and services, fuel and energy related activities, there could be waste which is generated during the upstream activities. And transport and distribution which we have seen. We also have downstream activities and scope 3 indirect emissions as part of that. So, for a dairy farm it could be processing of the sold products. So, sold products are there. The transportation and distribution of the sold products. So, the farm is processing and then it is selling the products. So, the selling of the products the transportation that is going in the fuel that is going to be consumed. And, the emissions that are going to be resulting as part of that is going in the scope 3 indirect emissions again, but downstream activities. So, we have end of life treatment of sold products, it could be all that is within the purview of the company, here the dairy farm. Now, a lot of companies might not have a policy where they are talking about end of life treatment of the products. Here it will not be the scope of their within. within the scope 3 GHG emissions, but wherever they are taking care of it will be part of their emission calculation. There could also be franchises as we have already talked about where specifically, so all the maintenance the facility is being owned and maintained by somebody else, it is just that the products are being sold. So, part of those emissions will be counted towards the GHG emissions scope 3 for this particular. So, these are all the scope 3 indirect emissions that we are talking about for a dairy farm. Let us look at another example. Now here we are talking about in general the universities. So, academic institutes and it is easier to understand because it is like a service. Now here if we see again scope 1, 2 and 3 they have divided clearly and there can always be discussions on what to be put in scope 2, 3. Scope 3 indirect emissions and what we put in scope 1 direct emissions or you know discussion between there is a very thin line and it depends upon our understanding. So, there we have to sometimes discuss and there may be conflicting categories. Now scope 1 direct emissions are often. Clear, because we know that the assets, the resources that we own and the ones which are causing emissions directly which we can clearly identify are scope 1. So, what we are talking about? If the campus has its own power plant often in the colder countries in the colder regions they have boilers to provide for heating and which is consuming the electricity or some other fuel directly there. If it is electricity. It goes the emissions goes in scope 2, but if some other conventional fuel is burnt to provide for the heating then that is going to be accounted for here in direct emissions. Then we will be having campus fleet of vehicles and the maintenance vehicles all of that the emissions resulting from that is scope 1. Now in case of India, Indian universities also have hostels which have their own canteens and messes. So, the emissions which are taking place there it might be they might be using LPG or some other fuels might be used. If it is not electricity all those emissions which are resulting will also be counted here. This is all scope 1 direct emissions. Scope 2 indirect emissions Again simple electricity that is going to be purchased from the grid. So, that is scope 2 simple to understand. Now, scope 3 could be really wide the scope could be really wide. Now, here what all are we covering? We are covering the. There could be air travel. So, we have talked about it earlier also there could be travel because of academic purposes. So, all that travel is going to be in scope 3 indirect emissions. For example, we have commuter vehicles, we have vehicles transportation which is going to be used for collecting and disposing the waste to the facility for recycling or for processing all those vehicles which we have seen earlier also. So, all those vehicles which are transporting people or waste or some other product they are all going to be covered in scope 3 indirect emissions. What we also have is which is very interesting is the campus buildings here. Now, why is campus buildings they have been included in scope 3 indirect emissions? Because if we look at. Leave aside the processes for example, you might be saying that there is a chemistry lab, there is a chemical engineering laboratory or there is a small furnace in the metallurgy department. Now, the emissions that are coming from them are direct emissions, but the campus buildings other than those direct emissions they have been put in scope 3 indirect emissions. Why? Because the buildings themselves are not creating they are not resulting in emissions. All the direct emissions we would have already included in scope 1. The electricity that is going to be used in these campus buildings is going in scope 2. So, what is the emission that is going in scope 3 indirect emission? The indirect emissions and the campus building there is because of the material, the embodied energy that has gone in. The emissions that have resulted during the process of construction. Because, these are owned assets had they been rented or leased buildings then they would not come here or depending upon the agreement some percentage of it will be counted. But if it is an owned building which often in case of Indian campuses it is the case then it is going in scope 3. But one thing which we have to very clearly understand and it is easier to understand from this particular example is. When we say very simply we have you know kind of understood all the purchase electricity is scope 2 but where is this purchase electricity going and if I have to reduce my scope 1 and scope 2. Scope 3 I cannot do much we can do but it is all either upstream or downstream and there is a lot of there are a lot of different stakeholders who are involved when we want to go and target the scope 3 emissions. Now, what we can really do is scope 1 direct emissions a lot of them are process emissions and emissions resulting from the owned fleet. Scope 2 is where we have a lot of scope actually. So, what we are seeing here is that the buildings for example, they consume electricity and buildings in today's campuses are the biggest guzzlers of energy electricity. Most of our buildings are now air conditioned in India. And, when we are talking about the indirect emissions from electricity 90 percent of this electricity is actually going into maintaining the thermally comfortable environment inside the buildings. So, what can we do about it? How can we reduce that? If we make our buildings comfortable, thermally comfortable which are. We do not require mechanical systems for maintaining comfort which are passively cooled or heated depending upon the climate that we are in. We will be able to reduce the requirement of electricity itself and thereby reducing the scope to indirect emissions. When we say now in for this for doing this reducing the demand for electricity in maintaining a comfortable building. When we are talking about that we are only talking about the operational energy. We are not talking about the energy that has already been embodied into it or the amount of emissions that have already happened. That is definitely going in the scope 3 where we are talking about the materials that have gone in. Comparing for example, concrete block, AAC block or concrete block with that of compressed stabilised earth block. CSEB. Now, the amount of emissions, GAG emissions that have taken place in manufacturing of this concrete block vis-a-vis the CSEB block there is a huge difference because of the raw product, the products that have gone into making of these blocks. So, it uses AAC block or concrete block will use cement and concrete. That itself has resulted in a lot of GHG emissions. So, it is a significant emission, but it is passing through different vendors there is a long chain which we are talking about. So, these are all going in scope 3, but if we look at the thermal performance of these. For example, I have I put an insulation synthetic insulation it might not be resulting in direct emissions on site or but it is surely it must have resulted in scope 3 not comparing that only comparing the thermal performance of two materials. So, if we select the right kind of materials for a building appropriate in this context we will be impacting the scope 2 emissions directly. So, that is what we will continue in the weeks further. How building design and construction is going to impact scope 1 and 2 emissions and how to reduce the scope 1 and 2 emissions by designing the building and constructing it appropriately for the context and also environmentally conscious. Because some things are generic irrespective of the context. For example, if we use materials which are highly energy intensive. For example, metals, for example glass which are processed in industries they require very high temperatures to be processed or a lot of energy to be processed to be used in a particular form. All these materials would have very high scope 3 emissions result which are attached to them which are linked to them. But the other part is the scope 2. So, scope 2 is where appropriateness of the material will come. Scope 3 is where the choice of material irrespective of its context will come. So, this was for university greenhouse gas emissions and through that I have tried to tell you the significance of building design and construction when we are talking about the GHG emissions, scope 1 and 2 particularly. This is another example which is scope 1, 2 and 3 emissions for a tile manufacturing plant. Now, what have they? Considered here as part as scope 1 emissions which are the direct emissions, combustion of the fuel for firing kilns and drying kilns. So, if you have So, this is not for an Indian manufacturing plant tile manufacturing plant, but usually if you look at kilns in India. So, what they usually have is they are primarily one that they are running on the conventional fuel so far. So, a lot of coal and wood and a lot of other material is burnt directly and there are these huge chimneys which let out the emissions higher into the sky. Now, here all this fuel that is burning is causing direct emissions on site. So, which is the significant part and it is part of it can be classified as process emissions because there is this process of manufacturing which is happening. So, for most of the industries process emissions will be the biggest, they will be the most significant part of the direct emissions. Then we also have Emissions from on-site machinery such as loaders, forklifts, tractors could be there, there could be mixers a lot of other machinery which is again which might be run on sometimes it might be run on electricity then it does not count towards direct emissions. But if it is run on some other fuel for example, diesel a lot of times these machines are run on diesel then they are counted towards direct emissions. And The emissions could be as a result of certain processes, chemical processes. For example, in this case calcination as a process will release certain amount of gases and that is again part of process. So, these are process emissions. Then there is also emissions from handling and disposal of waste materials such as dust. Dust and sludge which is generated during the production of tile is also counted as direct emission. So, dust is also part of. the emission that they are counting. However, if we look at the classification of GHG emissions then dust will directly not be counted as a GHG emission. However, for them to reduce they have identified that as part of scope for them to reduce and there could be methods to suppress that. Now, if we look at scope 2 emissions then again simply we are talking about purchase electricity from the grid which further may be generated using. either fossil fuels or renewable sources of energy it could be any. So, the emission factor of electricity might vary, but we will put electricity in scope 2 emissions. Then again scope 2 emissions, emissions from the transmission and distribution T and E losses of electricity which will again be it can be counted as part of the emission factor of electricity. So, in India when we get the emission factor, so what we normally do sometimes we can only Add the emission factor to the number of units which are consumed at the facility itself and then add T and D losses separately or we can multiply it by a factor to take into account the T and D losses and then multiply it by emission factor to get the total emissions due to the electricity from the generation point to the consumption in our facility. So, both of these will be part of scope 2 emissions. three emissions again which are indirect that is transportation of raw materials. They could be coming from different places. Transportation of the finished product, finished tile that is again the upstream and then from production of packaging materials. So, there is a lot of packaging material which is coming in cardboard boxes, plastic wrapping you know. So, all these packaging material is also being manufactured somewhere. Then From extraction and production of raw material if it is not happening on the site itself a lot of times for example, for a tile manufacturing plant the raw material will be coming from somewhere from outside from some distant place. So, transportation of that is already included also its extraction at that place will also be counted in the scope 3 indirect emissions. Then once we have identified these scope 1, 2 and 3. And three, we can then also see the potential, the possibility of reducing each type of emission. So, first is this identifying where it is, then quantifying how much of the emission is happening at each of these points for each of these activities and then going ahead discussing how we can reduce the emission. And then very clearly we talked that there will be some transition costs. from shifting from one type of machinery to the other type of machinery or replacing the fuel. All those will require some costs to be incurred, transitional costs. And we have already discussed why we would still do it, but that is how people are doing it. And the first point is identifying where the emissions are and going ahead with accounting. Then for different organizations also we have certain examples. For example, the national grid, this is what they have done. Understanding again. upstream and downstream and also during the operations. So, you will often see that for an organization like national grid, they are talking about the gas leaks which we have talked about as fugitive emissions when we were talking about the direct emissions. So, fugitive emissions where the gas leaks are happening and we also discussed about why it is important to control them. So, they are talking about the leaks in their. in their systems which might be significant that is why it finds a clear mention in the direct emissions and other than that the fuel use for the transportation fleet and its you know combustion. So, this is all which is being covered in the direct emissions, but if we look at the upstream we have the use of electricity for different purposes, we have business travels, we have employees commuting, we have the waste management, waste generation all this is upstream and downstream we have the selling of gas which is their product and it is used by the consumers. So, this is how they have very clearly identified and defined, but during the operations one thing which we do not find probably because the assets are very low resources are less is. Also in the scope to indirect upstream emissions is where the buildings are because a lot of building assets will be resulting in the scope to indirect emissions here. This is for companies like Apple here. Now, here a lot of emissions are actually resulting from the processes. This is manufacturing process, product manufacturing. The product manufacturing is owned by Apple, if it is owned by Apple all the emissions that are happening there or if you remember we talked about the control. How much control does the parent company which is reporting for GHG emissions has on the subsidiary companies? In that case for example, a company is manufacturing a particular product a part of the product only for Apple. as a company then the 100 percent emissions resulting from them. So, the 100 percent emissions resulting from that vendor company is also going to be counted as direct emissions for this company and it is part of process emissions. The emissions that are resulting during the process of manufacturing. So, this is the highest and improvement in the processes and emissions during processes emissions will. bring a lot of reductions to the emissions for apple. Now, this is all direct this is going to be the scope 1. However, what they have actually identified here is product life cycle emissions and they have calculated it as scope 3 which implies that a lot of this product manufacturing is not being done directly by the company itself and they are purchasing. the product and probably assembling it. So, depending upon the agreements that they have the emissions will be put in the different categories. What they are covering as part of the scope 3 emissions if you see it is business travel and commute which often we will find the material recovery, the transportation of the product, the use of the product. So, all of that is put in scope 3. the indirect emissions where the company does not have control. However, this product manufacturing needs to be checked and verified depending upon the agreements. So, probably the agreements in place they have such an agreement where the facility the vendor is free to manufacture the product and manufacture it for other companies also. A similar thing is done here for Microsoft cloud. Now here as we would see scope 2 indirect again we can see power. Now scope 1 direct emissions now here you can clearly see the data centers. So, the data centers for Microsoft cloud. They have been covered as scope 1 direct emissions and for a lot of companies especially the IT companies and the corporates which have huge corporate houses, the buildings, the data centers all of them and the emissions resulting from them directly direct emissions they are going to be part of the scope 1 direct emissions. And then we have for example, diesel generator or there might be warehouses where a lot of direct emissions due to machinery due to. different equipment that might be used there will result in scope 1 direct emissions. What they have put in scope 2 again is simple the power, but we have to remember where is this power, this electricity going when we are talking about the facility. It is largely going in either the buildings or the processes. So, for example, in case of an IT building IT company. There are buildings plus there are a lot of equipment that is consuming electricity, computers a lot of computers are there which consume electricity. All that is part of your scope 2 emissions the electricity that is consumed. So, any reduction in that any reduction in this electricity that is going to be consumed will result in scope 2 emission reduction. And then scope 3 we have upstream and downstream both for example, hardware disposal. That is what they are talking about and here they are talking about manufacturing, manufacturing of the different hardware, the transportation, the raw material extraction which is down the line and that is all part of the indirect emissions which is leading to the manufacturing and making of the product that Microsoft cloud is selling. This is another very interesting example which is carbon footprint of an airport. Now, here if you see scope 1 emissions are from direct energy production and transport if there is energy production at the site itself and then the transport. So, airports have a lot of transportation that is happening on ground for managing all the activities there. There are cargos, there is a lot of people transportation that is happening. So, a lot of this transportation and the emissions resulting from them is. the direct emission for the airport scope 1 emissions which is significant here we are seeing 13 percent of the direct emissions are there. Indirect emissions from energy procurement 4 percent only, but the indirect emissions from the airport business. Now, you have to clearly understand that all the aircrafts that are coming in and going out are not owned. there is no control of the airport over those companies and their aircrafts. That is all going in scope 3 emissions. But in case we were talking about an airline carrier, a company which runs which provides the airline services for them the emissions will be put in the direct emission category. Because the all the emission that is resulting from this. flying of the aircrafts is a direct emission. So, I hope it is making us a little clear as to what to be put in scope 1, 2 and 3. This is another example, this is a real estate company Mahindra and Mahindra and they committed to science beta space targets initiative and they want to reduce their scope 1 and 2 emissions by around 47 percent. Now, for a real estate company A lot of emissions which are the direct emissions are going to be due to the construction of the real estate that they are selling as product. So, during the construction of the building for all other businesses, we always considered the emission during the construction of the building as scope 3 emission indirect emission for other businesses. But for the real estate company. The emissions which are resulting during the construction are going to be incorporated as part of direct emissions. But the operational energy that is going to be used in running the buildings will not be counted as part of scope 2 for them. So, I hope I am making this distinction clear. I will explain once more. For example, I am a developer, I am a real estate company for example, Mahindra and Mahindra and I am making a huge office building. Now, during the construction of this office building, the materials that are going in and the emissions that are happening on the site are the direct emissions for this company, the developer company. Once this product is complete now this building is a product for me and I have sold it or I have leased it to some third party and how the third party uses this building operates it. So, the energy that it consumes is going to be scope 3 for me because it is the downstream. I have already sold the product and it is going to be used by the consumer. It is still scope 3 emission for me. But not the scope 1 or scope 2 for me. Scope 2 will be only the electricity that I have consumed during the making of this product during the consumption or for my headquarters or for my site offices. So, electricity that is going there going to be consumed there the indirect emissions from that are my scope 2. But all the operations of these buildings are going to be scope 3. But for somebody else for. another corporate which leases this office building from me it is going to be scope 2. So, that is the difference that we are looking at. One last example that I am going to take here today is that of IKEA. So, IKEA here what we have shown that they also considered and they have to the customer travel to IKEA stores was considered is considered as part of scope 3. So, IKEA as a business was concerned about this and the choice of location of the store of IKEA. So, depending upon from where all will people travel to the IKEA store and contribute to the scope 3 emissions was considered as part of the policy for GAG emission reduction under scope 3 because the choice of store will eventually govern that. But other than that the operations of the store and the electricity consumed in that will be going in scope 2. The direct emissions if any resulting from this facility whatever small amount there could be waste production and other things they are going to be scope 1. But a lot of emissions are actually going in the scope 3 category because they are selling their the products in their stores. and not really manufacturing a lot of it. The products that they are directly manufacturing will also be counted towards the process emissions, the emissions that are resulting from that. So, this is an interesting thing where a store in its policy, a company in its policy considered how the customer is going to travel to its store. So, choosing the locations wisely so that the scope 3 emissions reduce is an interesting policy initiative or reflection in policy for the intent of GHG emission reduction. So, with this I will close and I am hoping that by this time all of us are fairly clear as to what is scope 1, 2 and 3 of GHG emission reduction. In the coming week in the week 4 we will be talking about the accounting methods, different accounting methods that are there. We will look at some examples of how the accounting has been done. by different companies. So, for now we saw that which emission is going into which scope. After this the next part is to quantify that, identify the base here, quantify, calculate how much emissions of emissions are happening. And then we will move on to policy initiatives, what to do. Now, we know how much is it, what to do, how to do, how to act. So, that will be the next part and then we will start focusing on the building design and construction and how it is going to affect scope 1 and 2 and how we can reduce it. So, from a generic broad understanding we will be narrowing it down to only building design and construction and how we can reduce scope 1 and 2 in building design and construction which can again fall in scope 1, 2 or 3, but primarily we will be focusing on 1 and 2. With this Thank you very much for joining me today. Enjoy the weekend and we will meet again in the next week. Bye bye.

So, this is a continuation of the previous two lectures where we are trying to identify and determine the scope of scope 1, 2, and 3 GHG emissions. Now, quickly looking at a recap of what we have done previously and then going ahead with what we are going to be doing today. So, we saw how to set up the boundaries, how to identify the organizational and operational boundaries. So, that was where we identified where to act, where is the intervention going to happen.

And once we had done that, once we had also prepared the inventory accounted for where the emissions are coming from and we identified specifically, we then identified the positions places where we need to act and then how to act. So, what are the kind of interventions that are going to take place? So, we discussed that and then specifically we understood that what is the scope of scope 1, 2 and 3 emissions, understanding them, identifying which emissions will go as scope 1, scope 2 and 3. and scope 3 emissions.

We also looked at the different categories. So, within scope, scopes were further detailed defined as categories. So, there were more number of categories, 6 categories in which we clearly identified and divided the emissions which were eventually culminating in 3 scopes, scope 1, 2 and 3. And then we also saw what are the challenges in identifying different emissions, different scopes.

Now, we have talked theory. Theoretically about these I continue to give you some examples if it is an IT industry or a fuel selling company or a government manufacturing company. But here today we are going to see some real case studies.

So, these are accounted case studies. So, today what we are going to see is examples of different projects for all the three scopes scope 1, 2 and 3 and these are accounted projects. So, all this while we have been. been talking about quantification of accounting and reporting.

Keeping in mind the principles of GHG protocol that are there where we talked about the transparency, we talked about the completeness. So, all those principles being in place how different companies have already been doing. the reporting on GHG emissions for their companies.

These are some of the properly documented examples that we are going to see today. So, this is the first example that I am picking up and this is for US healthcare. So, there are GHG protocol scopes for US healthcare. Now, through these examples we are going to clearly identify which emissions are going in scope 1, 2 and 3 and how have they defined.

And we will see clearly that some emissions which are scope 1 or 2 for a particular company could actually become a scope 3 for some other company and that is the whole ecosystem of this identification of scope. And as I had mentioned earlier if we see if all the companies across the world or in a nation continue to address their scope 1 and 2 automatically the scope 3 for somebody else will be taken care of. So, primarily identifying the scope 1 and 2 correctly, identifying the scope 3 also correctly, but intervening in 1 and 2 scope 1 and 2 will give us a significant success. So, looking at this US healthcare and the way they have defined scopes as per GHG protocol. So, let us start with scope 1. Now, in scope 1 what they have which are the direct emissions?

Now, we know clearly. First is these facilities. So, we basically have the facilities which are Basically, the hospitals, the care units, the medical care units that they have.

So, the direct emissions that are coming from them are the direct scope 1 emissions. Now, it does not include the emissions due to purchased electricity. So, there is a lot of electricity that is going to be consumed, a lot of heating, cooling that is going to be used in these buildings.

So, unless there is a direct consumption of fuel, it is not the direct emission. So, in the facilities where for example, a lot of medicines are used, a lot of chemicals are used in the medical processes, the incinerator might be used on the hospital premise. So, all the emissions resulting from the activities from the facilities are counted here. We also have anaesthetics here we are talking about the medical in the medicine use.

And then we also have the fleet and leased vehicles because hospitals often have fleet fleets of vehicles especially the ambulances and the vehicles for transporting doctors and the medical staff in case of emergencies. So, the emissions which are resulting directly due to the consumption of fuel in these vehicles is part of scope 1. So, this is scope 1 for US healthcare as they have identified. Now, looking at scope 2 very simple the indirect emissions due to the electricity consumption or purchased heating or cooling.

which is going in these facilities which are owned is part of scope 2. So, we are mainly looking at electricity and steam here. So, scope 2 is often very simple it is the emissions which are taking elsewhere due to the energy that is going to be consumed in the facility on site. So, once we have defined scope 1 and 2 a lot of these activities and the emissions which are both downstream and upstream.

Now, here if you will see for this case of US healthcare they have not identified the emissions as downstream emissions or upstream emissions. All they have done is they have put the rest of the indirect emissions in scope 3. So, if you look at this food and catering. So, if it is leased the food is being prepared somewhere and it is brought to be given to patients in the canteen.

So, All that food and catering in different canteens is part of this. If you look at that the medicines which are being manufactured elsewhere and brought here. If you look at the say business travel, the staff commuting, the freight transport, the construction of the building that has happened already.

So, there is embodied energy that is in it and that is causing the indirect emissions or it is also the emissions during the construction. which has already taken place. So, they have put all of these in scope 3 also IT waste and a lot of these heads they have put all of them in scope 3 of indirect emissions.

And also there are certain scopes which they have identified which is outside the GHG protocol, but they have recognized that which is their patient and visitor travel. So, sometimes the patients will be travelling on their own to reach the medical facility. So, they have identified this which is not falling under scope 1, 2 and 3. In fact, it is not part of the scope of the group here US healthcare, but yet they have identified it and once they have identified they will be also going ahead with the measurement protocol. So, how to identify, how to calculate quantify the emission which is happening because of this?

Because, of each one of these heads accounting proper accounting of these emissions and then once we have accounted for it we have identified the base here as we have seen earlier. We will go ahead and intervene through policy and its implementation to reduce the emissions in each of these categories. So, this is the case of US healthcare.

Let us look at another one this is for a dairy farm. And this is a grass to gate carbon footprint kind of you know boundary where a farm has multiple different types of components which are put together. So, if there is farming which is happening on the farm, there is there could be certain carbon sink in the form of a grove or a little forest on the farm itself. There are animals. There are organic waste products which are there as part of the dairy practice.

There is processing of that and all of them they have emissions which are released as the processes continue to go on. So, if you remember when we were talking about direct emissions, we were talking about process emissions and then we had stationary emissions and mobile emissions. Now, if we look at the dairy farm here.

We can clearly see that the process emissions are different from the industrial units which normally we understand that GHG protocol might be applied only to the industrial units or corporates or service sector. But here when they applied it to a dairy farm the processes are pretty much organic in nature, but they also cause emissions and that is what has been identified. It's a beautiful thing.

In this example is that while they have identified the scopes, they have also identified the scopes in upstream, in downstream and upstream and the on farm on during the process of this whole activity this process. So, looking at the direct emissions first the scope 1 emissions first which are. resulting from the on-farm activities. So, we have machineries, the emissions resulting from machinery.

So, there are tractors and a lot of other machinery which is running on fuel and causing emissions. Then we also have emissions due to animals. So, animals are the resources that are there on the farm, they are living stock, but yet they contribute towards the emissions significantly.

We are also looking at for example, the different types of products that are going there. For example, if we are using some chemical fertilizer. Now, due to the reaction of that fertilizer on ground on the land, there might be certain emissions that are happening.

So, identifying them and then also also counting accounting that and reporting it. So, then we also have for example, carbon pools. So, they might be talking about the forested areas which might be absorbing a lot of emission that is happening. So, the values may not always be positive, they can be negative, they can act as sinks, they might be sequestering a lot of emissions that are happening, carbon dioxide, trees can absorb sequester a lot of carbon dioxide.

So, that will also be carbon dioxide. counted towards it, how much of GAG emission is resulting directly in the on farm activities is what they have counted here. Now, looking at the upstream activities, so the activities which are you know contributing towards the creation of the product is what we are talking as upstream. Now here the simple scope 2 which we have understood in other cases also. is purchased electricity, steam, heating and cooling for use on the farm.

So, there might be a cold storage. So, they might be either cooling the cold storage using electricity or they might be purchasing the heating or cooling depending upon the climate where it is situated. They could there is a direct consumption of electricity on farm.

So, all that which is going to be purchased from somewhere and used on the farm not causing direct emissions. causing emission somewhere is part of scope 2 upstream activities simple to understand. So, scope 1 and scope 2 which is indirect they are simple.

Now the remaining scope 3 will be both in upstream as well as downstream activities. So, we have scope 3 indirect, but not happening on ground directly for example, purchased goods and services. So, we are purchasing say synthetic fertilizer.

The emissions which are. resulting from the fertilizers used on ground and the chemical reactions that take place and the emissions that are there, they will be counted as direct emissions. But the emissions which are there due to manufacturing of the fertilizer itself is part of scope 3 indirect emissions.

So, purchase goods and services, fuel and energy related activities, there could be waste which is generated during the upstream activities. And transport and distribution which we have seen. We also have downstream activities and scope 3 indirect emissions as part of that. So, for a dairy farm it could be processing of the sold products.

So, sold products are there. The transportation and distribution of the sold products. So, the farm is processing and then it is selling the products.

So, the selling of the products the transportation that is going in the fuel that is going to be consumed. And, the emissions that are going to be resulting as part of that is going in the scope 3 indirect emissions again, but downstream activities. So, we have end of life treatment of sold products, it could be all that is within the purview of the company, here the dairy farm. Now, a lot of companies might not have a policy where they are talking about end of life treatment of the products. Here it will not be the scope of their within.

within the scope 3 GHG emissions, but wherever they are taking care of it will be part of their emission calculation. There could also be franchises as we have already talked about where specifically, so all the maintenance the facility is being owned and maintained by somebody else, it is just that the products are being sold. So, part of those emissions will be counted towards the GHG emissions scope 3 for this particular. So, these are all the scope 3 indirect emissions that we are talking about for a dairy farm. Let us look at another example.

Now here we are talking about in general the universities. So, academic institutes and it is easier to understand because it is like a service. Now here if we see again scope 1, 2 and 3 they have divided clearly and there can always be discussions on what to be put in scope 2, 3. Scope 3 indirect emissions and what we put in scope 1 direct emissions or you know discussion between there is a very thin line and it depends upon our understanding.

So, there we have to sometimes discuss and there may be conflicting categories. Now scope 1 direct emissions are often. Clear, because we know that the assets, the resources that we own and the ones which are causing emissions directly which we can clearly identify are scope 1. So, what we are talking about? If the campus has its own power plant often in the colder countries in the colder regions they have boilers to provide for heating and which is consuming the electricity or some other fuel directly there.

If it is electricity. It goes the emissions goes in scope 2, but if some other conventional fuel is burnt to provide for the heating then that is going to be accounted for here in direct emissions. Then we will be having campus fleet of vehicles and the maintenance vehicles all of that the emissions resulting from that is scope 1. Now in case of India, Indian universities also have hostels which have their own canteens and messes.

So, the emissions which are taking place there it might be they might be using LPG or some other fuels might be used. If it is not electricity all those emissions which are resulting will also be counted here. This is all scope 1 direct emissions.

Scope 2 indirect emissions Again simple electricity that is going to be purchased from the grid. So, that is scope 2 simple to understand. Now, scope 3 could be really wide the scope could be really wide.

Now, here what all are we covering? We are covering the. There could be air travel.

So, we have talked about it earlier also there could be travel because of academic purposes. So, all that travel is going to be in scope 3 indirect emissions. For example, we have commuter vehicles, we have vehicles transportation which is going to be used for collecting and disposing the waste to the facility for recycling or for processing all those vehicles which we have seen earlier also.

So, all those vehicles which are transporting people or waste or some other product they are all going to be covered in scope 3 indirect emissions. What we also have is which is very interesting is the campus buildings here. Now, why is campus buildings they have been included in scope 3 indirect emissions? Because if we look at. Leave aside the processes for example, you might be saying that there is a chemistry lab, there is a chemical engineering laboratory or there is a small furnace in the metallurgy department.

Now, the emissions that are coming from them are direct emissions, but the campus buildings other than those direct emissions they have been put in scope 3 indirect emissions. Why? Because the buildings themselves are not creating they are not resulting in emissions.

All the direct emissions we would have already included in scope 1. The electricity that is going to be used in these campus buildings is going in scope 2. So, what is the emission that is going in scope 3 indirect emission? The indirect emissions and the campus building there is because of the material, the embodied energy that has gone in. The emissions that have resulted during the process of construction. Because, these are owned assets had they been rented or leased buildings then they would not come here or depending upon the agreement some percentage of it will be counted.

But if it is an owned building which often in case of Indian campuses it is the case then it is going in scope 3. But one thing which we have to very clearly understand and it is easier to understand from this particular example is. When we say very simply we have you know kind of understood all the purchase electricity is scope 2 but where is this purchase electricity going and if I have to reduce my scope 1 and scope 2. Scope 3 I cannot do much we can do but it is all either upstream or downstream and there is a lot of there are a lot of different stakeholders who are involved when we want to go and target the scope 3 emissions. Now, what we can really do is scope 1 direct emissions a lot of them are process emissions and emissions resulting from the owned fleet.

Scope 2 is where we have a lot of scope actually. So, what we are seeing here is that the buildings for example, they consume electricity and buildings in today's campuses are the biggest guzzlers of energy electricity. Most of our buildings are now air conditioned in India. And, when we are talking about the indirect emissions from electricity 90 percent of this electricity is actually going into maintaining the thermally comfortable environment inside the buildings. So, what can we do about it?

How can we reduce that? If we make our buildings comfortable, thermally comfortable which are. We do not require mechanical systems for maintaining comfort which are passively cooled or heated depending upon the climate that we are in. We will be able to reduce the requirement of electricity itself and thereby reducing the scope to indirect emissions. When we say now in for this for doing this reducing the demand for electricity in maintaining a comfortable building.

When we are talking about that we are only talking about the operational energy. We are not talking about the energy that has already been embodied into it or the amount of emissions that have already happened. That is definitely going in the scope 3 where we are talking about the materials that have gone in.

Comparing for example, concrete block, AAC block or concrete block with that of compressed stabilised earth block. CSEB. Now, the amount of emissions, GAG emissions that have taken place in manufacturing of this concrete block vis-a-vis the CSEB block there is a huge difference because of the raw product, the products that have gone into making of these blocks. So, it uses AAC block or concrete block will use cement and concrete.

That itself has resulted in a lot of GHG emissions. So, it is a significant emission, but it is passing through different vendors there is a long chain which we are talking about. So, these are all going in scope 3, but if we look at the thermal performance of these. For example, I have I put an insulation synthetic insulation it might not be resulting in direct emissions on site or but it is surely it must have resulted in scope 3 not comparing that only comparing the thermal performance of two materials.

So, if we select the right kind of materials for a building appropriate in this context we will be impacting the scope 2 emissions directly. So, that is what we will continue in the weeks further. How building design and construction is going to impact scope 1 and 2 emissions and how to reduce the scope 1 and 2 emissions by designing the building and constructing it appropriately for the context and also environmentally conscious.

Because some things are generic irrespective of the context. For example, if we use materials which are highly energy intensive. For example, metals, for example glass which are processed in industries they require very high temperatures to be processed or a lot of energy to be processed to be used in a particular form.

All these materials would have very high scope 3 emissions result which are attached to them which are linked to them. But the other part is the scope 2. So, scope 2 is where appropriateness of the material will come. Scope 3 is where the choice of material irrespective of its context will come.

So, this was for university greenhouse gas emissions and through that I have tried to tell you the significance of building design and construction when we are talking about the GHG emissions, scope 1 and 2 particularly. This is another example which is scope 1, 2 and 3 emissions for a tile manufacturing plant. Now, what have they? Considered here as part as scope 1 emissions which are the direct emissions, combustion of the fuel for firing kilns and drying kilns. So, if you have So, this is not for an Indian manufacturing plant tile manufacturing plant, but usually if you look at kilns in India.

So, what they usually have is they are primarily one that they are running on the conventional fuel so far. So, a lot of coal and wood and a lot of other material is burnt directly and there are these huge chimneys which let out the emissions higher into the sky. Now, here all this fuel that is burning is causing direct emissions on site. So, which is the significant part and it is part of it can be classified as process emissions because there is this process of manufacturing which is happening. So, for most of the industries process emissions will be the biggest, they will be the most significant part of the direct emissions.

Then we also have Emissions from on-site machinery such as loaders, forklifts, tractors could be there, there could be mixers a lot of other machinery which is again which might be run on sometimes it might be run on electricity then it does not count towards direct emissions. But if it is run on some other fuel for example, diesel a lot of times these machines are run on diesel then they are counted towards direct emissions. And The emissions could be as a result of certain processes, chemical processes. For example, in this case calcination as a process will release certain amount of gases and that is again part of process. So, these are process emissions.

Then there is also emissions from handling and disposal of waste materials such as dust. Dust and sludge which is generated during the production of tile is also counted as direct emission. So, dust is also part of.

the emission that they are counting. However, if we look at the classification of GHG emissions then dust will directly not be counted as a GHG emission. However, for them to reduce they have identified that as part of scope for them to reduce and there could be methods to suppress that. Now, if we look at scope 2 emissions then again simply we are talking about purchase electricity from the grid which further may be generated using.

either fossil fuels or renewable sources of energy it could be any. So, the emission factor of electricity might vary, but we will put electricity in scope 2 emissions. Then again scope 2 emissions, emissions from the transmission and distribution T and E losses of electricity which will again be it can be counted as part of the emission factor of electricity.

So, in India when we get the emission factor, so what we normally do sometimes we can only Add the emission factor to the number of units which are consumed at the facility itself and then add T and D losses separately or we can multiply it by a factor to take into account the T and D losses and then multiply it by emission factor to get the total emissions due to the electricity from the generation point to the consumption in our facility. So, both of these will be part of scope 2 emissions. three emissions again which are indirect that is transportation of raw materials. They could be coming from different places.

Transportation of the finished product, finished tile that is again the upstream and then from production of packaging materials. So, there is a lot of packaging material which is coming in cardboard boxes, plastic wrapping you know. So, all these packaging material is also being manufactured somewhere.

Then From extraction and production of raw material if it is not happening on the site itself a lot of times for example, for a tile manufacturing plant the raw material will be coming from somewhere from outside from some distant place. So, transportation of that is already included also its extraction at that place will also be counted in the scope 3 indirect emissions. Then once we have identified these scope 1, 2 and 3. And three, we can then also see the potential, the possibility of reducing each type of emission.

So, first is this identifying where it is, then quantifying how much of the emission is happening at each of these points for each of these activities and then going ahead discussing how we can reduce the emission. And then very clearly we talked that there will be some transition costs. from shifting from one type of machinery to the other type of machinery or replacing the fuel.

All those will require some costs to be incurred, transitional costs. And we have already discussed why we would still do it, but that is how people are doing it. And the first point is identifying where the emissions are and going ahead with accounting.

Then for different organizations also we have certain examples. For example, the national grid, this is what they have done. Understanding again.

upstream and downstream and also during the operations. So, you will often see that for an organization like national grid, they are talking about the gas leaks which we have talked about as fugitive emissions when we were talking about the direct emissions. So, fugitive emissions where the gas leaks are happening and we also discussed about why it is important to control them. So, they are talking about the leaks in their. in their systems which might be significant that is why it finds a clear mention in the direct emissions and other than that the fuel use for the transportation fleet and its you know combustion.

So, this is all which is being covered in the direct emissions, but if we look at the upstream we have the use of electricity for different purposes, we have business travels, we have employees commuting, we have the waste management, waste generation all this is upstream and downstream we have the selling of gas which is their product and it is used by the consumers. So, this is how they have very clearly identified and defined, but during the operations one thing which we do not find probably because the assets are very low resources are less is. Also in the scope to indirect upstream emissions is where the buildings are because a lot of building assets will be resulting in the scope to indirect emissions here. This is for companies like Apple here.

Now, here a lot of emissions are actually resulting from the processes. This is manufacturing process, product manufacturing. The product manufacturing is owned by Apple, if it is owned by Apple all the emissions that are happening there or if you remember we talked about the control.

How much control does the parent company which is reporting for GHG emissions has on the subsidiary companies? In that case for example, a company is manufacturing a particular product a part of the product only for Apple. as a company then the 100 percent emissions resulting from them.

So, the 100 percent emissions resulting from that vendor company is also going to be counted as direct emissions for this company and it is part of process emissions. The emissions that are resulting during the process of manufacturing. So, this is the highest and improvement in the processes and emissions during processes emissions will.

bring a lot of reductions to the emissions for apple. Now, this is all direct this is going to be the scope 1. However, what they have actually identified here is product life cycle emissions and they have calculated it as scope 3 which implies that a lot of this product manufacturing is not being done directly by the company itself and they are purchasing. the product and probably assembling it.

So, depending upon the agreements that they have the emissions will be put in the different categories. What they are covering as part of the scope 3 emissions if you see it is business travel and commute which often we will find the material recovery, the transportation of the product, the use of the product. So, all of that is put in scope 3. the indirect emissions where the company does not have control. However, this product manufacturing needs to be checked and verified depending upon the agreements. So, probably the agreements in place they have such an agreement where the facility the vendor is free to manufacture the product and manufacture it for other companies also.

A similar thing is done here for Microsoft cloud. Now here as we would see scope 2 indirect again we can see power. Now scope 1 direct emissions now here you can clearly see the data centers.

So, the data centers for Microsoft cloud. They have been covered as scope 1 direct emissions and for a lot of companies especially the IT companies and the corporates which have huge corporate houses, the buildings, the data centers all of them and the emissions resulting from them directly direct emissions they are going to be part of the scope 1 direct emissions. And then we have for example, diesel generator or there might be warehouses where a lot of direct emissions due to machinery due to.

different equipment that might be used there will result in scope 1 direct emissions. What they have put in scope 2 again is simple the power, but we have to remember where is this power, this electricity going when we are talking about the facility. It is largely going in either the buildings or the processes.

So, for example, in case of an IT building IT company. There are buildings plus there are a lot of equipment that is consuming electricity, computers a lot of computers are there which consume electricity. All that is part of your scope 2 emissions the electricity that is consumed.

So, any reduction in that any reduction in this electricity that is going to be consumed will result in scope 2 emission reduction. And then scope 3 we have upstream and downstream both for example, hardware disposal. That is what they are talking about and here they are talking about manufacturing, manufacturing of the different hardware, the transportation, the raw material extraction which is down the line and that is all part of the indirect emissions which is leading to the manufacturing and making of the product that Microsoft cloud is selling.

This is another very interesting example which is carbon footprint of an airport. Now, here if you see scope 1 emissions are from direct energy production and transport if there is energy production at the site itself and then the transport. So, airports have a lot of transportation that is happening on ground for managing all the activities there. There are cargos, there is a lot of people transportation that is happening. So, a lot of this transportation and the emissions resulting from them is. the direct emission for the airport scope 1 emissions which is significant here we are seeing 13 percent of the direct emissions are there.

Indirect emissions from energy procurement 4 percent only, but the indirect emissions from the airport business. Now, you have to clearly understand that all the aircrafts that are coming in and going out are not owned. there is no control of the airport over those companies and their aircrafts.

That is all going in scope 3 emissions. But in case we were talking about an airline carrier, a company which runs which provides the airline services for them the emissions will be put in the direct emission category. Because the all the emission that is resulting from this.

flying of the aircrafts is a direct emission. So, I hope it is making us a little clear as to what to be put in scope 1, 2 and 3. This is another example, this is a real estate company Mahindra and Mahindra and they committed to science beta space targets initiative and they want to reduce their scope 1 and 2 emissions by around 47 percent. Now, for a real estate company A lot of emissions which are the direct emissions are going to be due to the construction of the real estate that they are selling as product. So, during the construction of the building for all other businesses, we always considered the emission during the construction of the building as scope 3 emission indirect emission for other businesses.

But for the real estate company. The emissions which are resulting during the construction are going to be incorporated as part of direct emissions. But the operational energy that is going to be used in running the buildings will not be counted as part of scope 2 for them.

So, I hope I am making this distinction clear. I will explain once more. For example, I am a developer, I am a real estate company for example, Mahindra and Mahindra and I am making a huge office building. Now, during the construction of this office building, the materials that are going in and the emissions that are happening on the site are the direct emissions for this company, the developer company.

Once this product is complete now this building is a product for me and I have sold it or I have leased it to some third party and how the third party uses this building operates it. So, the energy that it consumes is going to be scope 3 for me because it is the downstream. I have already sold the product and it is going to be used by the consumer.

It is still scope 3 emission for me. But not the scope 1 or scope 2 for me. Scope 2 will be only the electricity that I have consumed during the making of this product during the consumption or for my headquarters or for my site offices.

So, electricity that is going there going to be consumed there the indirect emissions from that are my scope 2. But all the operations of these buildings are going to be scope 3. But for somebody else for. another corporate which leases this office building from me it is going to be scope 2. So, that is the difference that we are looking at. One last example that I am going to take here today is that of IKEA. So, IKEA here what we have shown that they also considered and they have to the customer travel to IKEA stores was considered is considered as part of scope 3. So, IKEA as a business was concerned about this and the choice of location of the store of IKEA. So, depending upon from where all will people travel to the IKEA store and contribute to the scope 3 emissions was considered as part of the policy for GAG emission reduction under scope 3 because the choice of store will eventually govern that.

But other than that the operations of the store and the electricity consumed in that will be going in scope 2. The direct emissions if any resulting from this facility whatever small amount there could be waste production and other things they are going to be scope 1. But a lot of emissions are actually going in the scope 3 category because they are selling their the products in their stores. and not really manufacturing a lot of it. The products that they are directly manufacturing will also be counted towards the process emissions, the emissions that are resulting from that. So, this is an interesting thing where a store in its policy, a company in its policy considered how the customer is going to travel to its store. So, choosing the locations wisely so that the scope 3 emissions reduce is an interesting policy initiative or reflection in policy for the intent of GHG emission reduction.

So, with this I will close and I am hoping that by this time all of us are fairly clear as to what is scope 1, 2 and 3 of GHG emission reduction. In the coming week in the week 4 we will be talking about the accounting methods, different accounting methods that are there. We will look at some examples of how the accounting has been done.

by different companies. So, for now we saw that which emission is going into which scope. After this the next part is to quantify that, identify the base here, quantify, calculate how much emissions of emissions are happening.

And then we will move on to policy initiatives, what to do. Now, we know how much is it, what to do, how to do, how to act. So, that will be the next part and then we will start focusing on the building design and construction and how it is going to affect scope 1 and 2 and how we can reduce it. So, from a generic broad understanding we will be narrowing it down to only building design and construction and how we can reduce scope 1 and 2 in building design and construction which can again fall in scope 1, 2 or 3, but primarily we will be focusing on 1 and 2. With this Thank you very much for joining me today. Enjoy the weekend and we will meet again in the next week.

Bye bye.

Transcript for:Reducing Greenhouse Gas Emissions Overview

Transcript for:
Reducing Greenhouse Gas Emissions Overview