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Greenhouse Gas (GHG) Baselining 101:

Demystifying Scope 1, 2 & 3

Emissions Measurement

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Hosted by:

US/Can B Corp Climate Collective’s (BCCC)

Climate Action Group, Measure Committee &

B Lab

April 7th, 2021

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Note: This meeting will be recorded.

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Completing an Emissions Estimate

Pancho Gomez, All Good Products

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Peer Coaches Share Best Practices

Aileen Lerch, Allbirds

Kevin Lee, Dr. Bronner’s

Jack Statham, Chandos

Pablo Paster, SouthPole

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Value of completing an Emissions Estimate

Mike McGrory, B Lab

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Context Setting

Kim Coupounas, B Lab

Jennifer Cooper, Native Energy

Next Steps and Q&A

All presenters

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Preparing for an Emissions Estimate

Henkel Smith, Offset Alliance

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Agenda

Feel free to submit questions (please lead with your name and company) via the chat window throughout the presentation for the Q&A portion afterwards.

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Mike McGrory

Senior Standards Analyst

B Lab Standards Trust

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bcorporation.net

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© B Lab 2021

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Setting the Stage:

Mobilizing the

Global B Corp Community

on Climate

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Kim Coupounas

B Lab

Co-Chair, B Global Climate Task Force

Jennifer Cooper

Vice President, Native, a public benefit corporation

Chair, Climate Action Group, B Corp Climate Collective

Photo credit: Apollo 17

whose.land

native-land.ca/

The current economic system

is failing,

creating devastating

negative impacts.

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Meeting the Moment

bcorporation.net

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© B Lab 2021

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The richest 26 people own as much wealth as 3.8 billion people.

The UN declared that we have

12 years

to prevent irreversible �climate impacts.

30 million

people are enslaved �in forced labor.

More than

80%

of the world’s original

forests are gone.

Every year

1.3 billion tons

of food are wasted as some 2 billion people

suffer from hunger and malnutrition.

Meeting the Moment

bcorporation.net

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© B Lab 2021

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The Global Pandemic has laid bare the inequities of the system.

Across the globe

movements for �Climate Justice +

Racial Justice

are gaining momentum.

https://docs.google.com/presentation/d/1y-dv0c_d89jVocfBbcOVoGfXKAErqpLACiIbnqlab2s/edit?ts=601f24af#slide=id.gb9ab2d80b0_0_33

Meeting the Moment

bcorporation.net

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© B Lab 2021

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“Climate change is the greatest existential threat of our time, its impacts are felt in all countries across the world and will impact each and every one of us. If urgent action is not taken to meet the 1.5 degree target mapped out in the Paris Climate Agreement, these effects will only worsen.” - The Elders

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The Largest Corporations - and those who BUY from them - are largely to blame for the climate crisis.

100 companies are responsible for over 70% of global greenhouse emissions.

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Culpability: BUSINESS

© B Lab 2020

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“Our house is on fire—let's act like it…”

- Greta Thunberg, global climate activist

Photo credit: Michael Campanella/Getty Images

Context

In December 2019, at COP25 in Madrid, the B Lab global network and global B Corp community committed to collective and immediate action to halt and reverse the current climate trajectory and to build an an inclusive, equitable and regenerative economic system for all people and the planet. We not only called on our community of B Corps, but all businesses to champion meaningful climate solutions to secure the health of people and our home planet for future generations.

Commitments & Statement: 500+ B Corps Commit to Net Zero by 2030

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© B Lab 2020

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bcorporation.net

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Setting the Ambition Trajectory in 2019: Net Zero by 2030

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• At the UN’s COP 25 in Madrid, 533 B Corps from 33 countries committed to Net Zero by 2030 for Scope 1, 2 and 3 emissions. Now >800 B Corps + >1000 companies.
• Largest and most aggressive climate commitment to date by group of businesses
• 20 years ahead of Paris Agreement 2050 targets

The Commitment

• Timeline: 2030
• For Scope 1, Scope 2, and most relevant Scope 3 emissions
• Achieved first by eliminating emissions wherever possible
• Recommended use of Science-Based Targets to achieve reduction strategy
• For any emissions that cannot be eliminated, use of Verified Gold Standard offsets may be used, emphasizing carbon removal and projects
• Annually report in a public forum on progress against commitment

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Our Bold Ambitions by COP26 (November 2021)

Redefine Leadership

Drive Climate Action Centered in Justice

Change the Rules of the Game

1. Update B Corp Standards
2. Aggressive B Corp Decarbonization
3. Net Zero for all B Lab/Sistema B entities

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• Equip companies for Climate Action, Advocacy, + Justice (including B Climate Tools Base, playbooks)
• Track their progress
• Deepen impact of B Corp Climate Collective

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• Partner to Advocate for Policy Change and corporate stakeholder governance that speeds transition to a zero carbon economy (e.g. Better Business Act - UK, White House Initiative)

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Enabling Strategies: Fundraising, Communications/Thought Leadership, Standards/SDG Integration,

Data/Tech/Website, BLG + GP + CTF Staffing/Resourcing

https://www.bcorpclimatecollective.org/tools

© B Lab 2020

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bcorporation.net

What Is It?

Who Created It?

Who Is It For?

Why Is It Needed?

Free, open source library of expert-curated tools for taking climate action, advocacy, justice

Toolkits, resources, case studies, reports, etc

Filterable, downloadable

B Corps contributed many of the tools!

B Climate Tools Base

“Oxford Net Zero” = interdisciplinary initiative @ Oxford focused on informing effective + ambitious climate action in businesses, institutions and governments.

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“White labeled” for B Lab / BCCC / B Global Climate Task Force

Business leaders (esp CSR) from ALL B Corps + ALL companies

Any size, sector, geography

Engaged in leading or operationalizing climate action efforts

At ALL phases of the Net Zero journey

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“How” = the hardest part for most businesses

Comprehensive “one-stop-shop”

Soup-to-nuts searchable database of tools designed to make the Net Zero journey more accessible / doable

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© B Lab 2020

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bcorporation.net

BCCC Advisory Councils

(by market)

B Lab Net Zero Team

“Our collective response to the climate emergency requires deep, consistent collaboration, knowledge sharing, and active learning that’s rooted in trust and community.”

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© B Lab 2020

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bcorporation.net

Context Setting - Overview of the BCCC Climate Action Group

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Jennifer Cooper, Native

Launched measure & reduce guide in 2019!

More B Corps & community of practice in 2020!

Measurement & action centered in justice

© B Lab 2021

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bcorporation.net

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Introduction - Importance of creating an “all-in” emissions estimate

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Mike McGrory, B Lab

Helpful reference point for bottom-up analysis

One step closer to putting price on Carbon

© B Lab 2021

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bcorporation.net

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Preparing for an emissions estimate

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Henkel Smith, Offset Alliance

© B Lab 2021

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bcorporation.net

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Preparing for an emissions estimate

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Henkel Smith, Offset Alliance

• Based on WIOD, Open IO, US Bureau of Economic Analysis
• Online & free for public use
• Vendor neutral

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© B Lab 2021

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bcorporation.net

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Creating An Account with the GHG Protocol / Quantis Scope 1-3 Evaluator

Visit the Quantis Scope 1-3 Evaluator found at (https://quantis-suite.com/Scope-3-Evaluator/)

The info you’ll need:

• Facilities sq ft / employee count
• Expenses (purchased goods, utilities, business travel, etc)
• Finished goods information

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Pancho Gomez, All Good

© B Lab 2021

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bcorporation.net

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Facilities & Purchases

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Pancho Gomez, All Good

© B Lab 2021

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bcorporation.net

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Transportation & Travel

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Pancho Gomez, All Good

© B Lab 2021

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bcorporation.net

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Results

Your emissions estimate will be automatically calculated in the Results tab.

We recommend noting down your Scope 1, 2, and 3 emissions totals for input into the Air and Climate section of the B Corp Impact Assessment.

Members of the B Corp Climate Collective are also encouraged to share their emissions totals with the Climate Action Group which maintains a table of emissions outputs from different calculators to help with calibration.

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Pancho Gomez, All Good

© B Lab 2021

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bcorporation.net

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Best practices from US and Canada BCCC Coaches

• Start with free tools then lean on experts to focus on your high emissions areas
• Reference tools that are used in your sector

• Measurement helps to evaluate impact of strong practices
• Can be an art and a science
• Evaluating Scope 3 emissions with suppliers helps build their measurement capacity
• Direct relationships with raw materials suppliers helps enable better footprint measurements

• Utilize the baseline estimate to determine the largest emissions sources
• Identify areas where company has control or influence

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Aileen Lerch, Allbirds

Jack Statham, Chandos

Kevin Lee, Dr. Bronner’s

Get started!

Identify the hot spots

Dig into the details

© B Lab 2021

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bcorporation.net

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Centering All Climate Action in Climate Justice

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Kim Coupounas

B Lab

Co-Chair, B Global Climate Task Force

There is no such thing as a single-issue struggle because we do not live single-issue lives.

- Audre Lorde

Quote from Audre Lorde, American author and civil rights activist from “Learning from the 60s” as part of the celebration of the Malcolm X weekend at Harvard University.

Climate Change is Profoundly Unjust

The Five Key Inequities of Climate Change

Climate Justice

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Focuses not on carbon, but on People

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• Links human rights and development
• Takes a human-centered approach to climate action
• Targets the most vulnerable people

2020 B Corp Climate Leadership Gathering @ Taos, NM

© B Lab 2020

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bcorporation.net

About the Playbook

What Is It?

A global call for businesses to center all climate action in people and justice

‘Landscape analysis’ with guidance for business leaders seeking to understand and advance climate justice

Includes insights from 40+ B Corps and deeper case studies from 4 B Corps

In dev since Sept ‘20

Sparked by BCCC Climate Justice Learning Task Force

Who’s It For?

Business leaders - esp C-Suite and CSR leaders - from companies of any size or sector

Who are engaged in leading, designing or operationalizing their company’s climate action efforts

Who want to understand the intersection of climate and social justice and shift to a human-centered approach to climate action.

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Why Now?

We’ve been trying to solve the climate crisis for 50 years,

Most efforts have failed because they’ve been divorced from the lived experience of the people being most impacted by it.

We have less than 10 years to halve global emissions. This decade is pivotal to our very survival as a species.

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Why Business?

Business is the single largest contributor to climate change.

Business impacts the lives of every person on planet earth.

Business MUST be a major contributor to the solutions to climate change and therefore MUST understand climate justice and place people and justice at the center of that work.

Very few resources exist to help.

© B Lab 2020

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bcorporation.net

Making the Mindset Shift

To Believe that You Can Only Work on Climate OR Justice is a FALSE CHOICE

© B Lab 2020

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bcorporation.net

“...it’s not choosing this or that. Or this, then that. It’s this and that.” - Sam Grant, MN350, “Black Environmentalists Talk About Climate and Anti-Racism” New York Times

It’s About This AND That

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© B Lab 2020

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bcorporation.net

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It’s About BOTH/AND

• Systemic racism and injustice have left...the most vulnerable people subject to more powerful storms and floods, intense heat waves, deadly wildfires, devastating droughts, and other threats from the climate crisis.
• This is a critical moment to define bold and equitable climate solutions that address the legacy of environmental racism while rebuilding the U.S. economy in ways that work for everyone-not just the wealthy few.…
• The defining environmental crisis of our time now demands an urgency to act.
• Yet this urgency must not displace or abandon the fundamental principles of democracy and justice. - Equitable & Just Climate

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© B Lab 2020

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bcorporation.net

How?

Start by downloading and reading the Climate Justice Playbook for Business

at www.bcorpclimatecollective.org

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Next Steps and Q&A

Take Action

• Complete your emissions baseline utilizing the BCCC Quantis Emissions Estimate Guide linked here
• Consider joining the B Corp Climate Collective and making the Net Zero by 2030 Commitment
• Center climate action in justice, download the Climate Justice Playbook linked here
• US and Canada B Corps: submit a request for a coaching call with one of today’s presenters - link here
• Non-US and Canada B Corps are recommended to post requests for assistance on the BCCC B Hive page - link here
• Join us at future BCCC events which will be included in the BCCC member newsletter and on our BCCC B Hive page

Use Resources:

• Climate Action Group’s emission management guide linked here
• B Climate Tools Base linked here

Share Feedback:

• We value your feedback and encourage attendees to fill in our post-event survey

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Feel free to submit questions via the chat window (please lead with your name and company).

© B Lab 2021

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bcorporation.net

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Additional Best Practices

1. Beware of the 80/20 rule when measuring emissions
2. Better to be approximately right versus precisely wrong
3. For air travel consider including RFI in alignment with DEFRA regulations in Europe (e.g. be wary of Airline provided emissions)
4. Important to use e-Grid factors versus state level factors

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US and Canada BCCC Coaches

Mike McGrory, B Lab

Pancho Gomez, All Good Products

Henkel Smith, Offset Alliance

Aileen Lerch, Allbirds

Pablo Paster, South Pole

Jack Statham, Chandos

Kevin Lee, Dr. Bronner’s

Jennifer Cooper, Native Energy

Best practices prepared by Pablo Paster, South Pole

© B Lab 2021

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bcorporation.net

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44

Greenhouse Gas (GHG) Baselining 101:

Demystifying Scope 1, 2 & 3

Emissions Measurement

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THANK YOU!