RoundtableonCorporateCarbonActionInAgriculturalSupplyChains

UpdateonSBTiPedroFaria,CDP

TARGETSETTINGANDACCOUNTINGINAGRICULTURALSUPPLY-CHAIN

EMMANUELLEAOUSTIN,CEO

15NOVEMBER2017– COP23- BONN

HOWQUANTISLEADSANDSUPPORTSMULTI-STAKEHOLDERSINITIATIVESTODRIVECHANGE

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https://quantis-suite.com/Scope-3-Evaluator/

TARGETSETTINGANDACCOUNTINGINAGRICULTURALSUPPLY-CHAIN•

Scope3EvaluatorAtooltohelpcompaniesgetstartedwithScope3 accounting

• TheScope3Evaluatorisafree,web-basedtoolanyonecanusetoeasilypreparearoughestimateoftheirScope3carbonfootprint,includingall15categoriesidentifiedbytheGHGProtocol.

• Itisdesignedtobeatoolthatcanprovideafootprintforanycompany,inanysectorwithinafewhoursofdataentry(plustimeneededtocollectthedatatoinclude).

5

WorldFoodLCADatabaseDeliveringsoundenvironmentalsustainabilitydata

Before Now✚ Country-averagedatasets✚ Archetypesrepresentativeofspecificprocesses&practices✚ About800+datasetsintotal

TARGETSETTINGANDACCOUNTINGINAGRICULTURALSUPPLY-CHAIN•

6

LUCGuidanceInitiativeforharmonizedmethodologyforemissionaccountingfromLUC

6TARGETSETTINGANDACCOUNTINGINAGRICULTURALSUPPLY-CHAIN•

40+Collaborators

14Recommendations

CORPORATE SCOPE 3 REPORTING PROGRAM

IETA, COP 23 – Nov 15th 2017

CORPORATE SCOPE 3 REPORTING PROGRAM

SCOPE 3METHODOLOGICAL FRAMEWORK LINKING PROJECT ACCOUNTING AND CORPORATE REPORTING

• Ensure recognition for impacts achieved by Scope 3 interventions

• Defining accounting rules for GHG accounting of scope 3 interventions in line with GHG Protocol and Science-based Targets

• Starting in agricultural sector

• SDG impact quantification• Rigour in safeguarding principles

KEY ISSUES The concepts of producing Scope 3 accounts and project emissions reduction calculations are both well established. Their working together to produce dual accounting however is somewhat more complex given the differing nature of metric and approaches. A number of key issues are likely to arise to be resolved by the project as follows (not exhaustive):

Scope3 ERReporting

Reportingprinciples-confidence,

materialityetc

PresentationofdualreportsforSBT

Apportionmentofreportsanddouble

counting

Alignmentofbaselines Claims:

Attributionalownership-resultsbasedfinance

Dealingwithimpermanence

Recognitionofexistingtools,methodologies

STRATEGIC PARTNERS (PHASE I)

WFLDB

Quantis LUC-GHG

Scope3Ag/SoilC– GoldStandardMOU

Ecofys REthermalGHG

GHGProtocol

SBTInitiative

Impact

FactorDBM

T

FTM/CFT/etc

Data

Method

Overarching

Activity

REProcurement

Seq.Offsets

LivelihoodsFund(L3F)andOtherfieldlevelprojects

Deforestationstrategy

SoilHealthPartnership

InternalImpact

Databases

DirectValueChain

Sequ

estration

Redu

ction

IndirectValueChain

Key

ACRInsetting

InternationalPartnershiponInsetting(IPI)

2.Whataresomekeyapproachesfordemonstratingprogresstowardscope3emissionstargets?

ØDiscussants:MaryGrady,AmericanCarbonRegistry,Winrock,andAlbericPottier,PurProjet

ØHighlightedapproach: JeffBernicke,NativeEnergy

V A L U E C R E A T I O N T H R O U G H I N S E T T I N G1 3 T i m e s M o r e V a l u e C r e a t i o n

INSETTING

OFFSETTING

Potential ROI of 68%

3.Howdowehandleattributionandwhenisdouble-countingokay?

ØDiscussant: PankajBhatia,WRI

ØHighlightedapproaches:GHGProtocolupdate(Pankaj);KatherineNeebe,WalmartGigatonProject

4.Howdoweaccountforforestsandlandusechangeandsequestration?

ØDiscussants: ChrisZganjar,TNCandEmmanuelleAoustin,Quantis

Ø Highlightedapproaches:QuantisdLUC/iLUCguidance;JonathanShopley,NaturalCapitalPartners

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LUCGuidanceInitiativeforharmonizedmethodologyforemissionaccountingfromLUC

17LUCGUIDANCE•

40+Collaborators

14Recommendations

18

19

Customizedproject Commodity- ortopic-focusedproject

Type Tailoredtoindividualneedandaddressingspecifictopicrelevanttocompany

Pre-competitiveconsortiumorganizedaroundonespecificagriculturalorforestrycommodity

Scope&topic Individualneeds Palmoil,soy,timber,rubber,cacao,etc.

Deliverables Possibledeliverables:§ Productfootprint§ Supplychainfootprint§ Targetsettingsupport

§ Identifysharedchallengeswithcommodity

§ SharekeylearningsfromapplyingGHGaccounting

§ Screeningfootprintofdefinednumberofproducts

Benefits § Integrateresultsdirectlyintocompanytargets/strategy/footprints

§ Useforinternal/externalcommunicationmaterial&casestudies

§ ProfitfromtheinvolvementofNGOs§ Receivedetailedunderstandingrelated

tothecommodityalongthevaluechainfore.g.procurementdecisionmaking

§ Haveaccesstonumberoffootprintcasestudiesthatcanbeshared

Investment Definedaccordingtothegoal&scopeoftheproject

Definedaccordingtothenumberofparticipantsjoiningtheproject

19LUCGUIDANCE•

PilotTypes:Focusonaspecificbusinesscaseorcollaboratewithothersinyoursector

LaunchpilotKick-offcalltodefinescopeandprojectgoals

ReceiveresultsPilotprojectwillexecutedaccordingtodefinedscope

ListofkeylearningsReceiveexclusivelistofkeylearningsofthefindingsfromthepilotstudies

PublicationofGuidanceCasestudieswillbeincludedinGuidanceSpring/Summer2018

Pilotphasetimeline

20LUCGUIDANCE•