Greenhouse Gas Overview and Inventory

MORNING AND AFTERNOON SESSIONS

GHG Emissions Overview

The GHG Protocol defines emissions in three scopes to help organizations understand the boundaries of their emissions

• Emissions “scopes” categorize the sources of emissions in an organization

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• Depending on the vantage point, one organization might define emissions from the same source by a different scope (e.g. emissions caused by burning natural gas for electricity could be called Scope 1 by the power supplier and Scope 2 by the electricity user)

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• Many organizations calculate and report scopes 1 and 2 using original source data but rely on estimates for scope 3

Scope 1 Emissions

Scope 1 emissions are caused by the emitter burning fuels and releasing gases in day-to day operations

Stationary Combustion

Emissions from fossil fuel combustion at stationary emissions sources such as buildings or generators

Mobile Combustion

Emissions from burning diesel or gasoline in vehicles with internal combustion engines

Fugitive Emissions

Greenhouse gases leaking from processes like refrigeration and manufacturing

Forest, Land, and Agricultural (FLAG) Emissions

Emissions from changes in land use or management and land-based carbon sinks

�Emissions

=

��Fuel used (gal, therms, etc.)

��Emission Factor (mtCO2e/unit)

X

CO2e

�Emissions

=

��Refrigerant leakage (lbs)

��Emission Factor (Global Warming Potential)

X

CO2e

�Emissions

=

��Fuel used (Gallons)

��Emission Factor (mtCO2e/unit)

X

CO2e

�Emissions

=

​

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Activity Data (e.g. kg of fertilizer)

��Emission Factor (mtCO2e/unit)

X

CO2e

Lafayette’s main Scope 1 emission sources

Scope 2 Emissions

Scope 2 emissions are indirect emissions caused by the purchase of electricity or steam from a third party. There are two

methodologies to calculate these emissions, location-based (utilizing grid average emission factors) and market-based

(incorporating market instruments and residual mix emission factors).

4

��Metered electricity consumption (MWh)

X

��eGRID emission factor (MTCO₂e/MWh)

��Organization’s Scope 2 Emissions

=

Represents grid average emissions factor without factoring any contractual purchase and is not supplier-specific

X

​

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Organization’s Scope 2 Emissions

=

Represents emission factor associated with grid after all RE has been claimed. RE purchases are removed to avoid double-counting. This can vary based on the data hierarchy

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RECs purchased

(MWh)

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Residual mix factor

�Metered electricity consumption (MWh)

-

Location Based

Market Based

*REC = Renewable Energy Credit, certifies 1 MWh of RE usage. A REC is a type of Environmental Attribute Credit (EAC)

Scope 3 Emissions

Scope 3 emissions are the most difficult to quantify, so the GHG protocol provides guidance on how to define emissions in an organization’s value chain

CATEGORY 3 Fuel & energy-related activities (not included in scopes 1 or 2) Upstream emissions of purchased fuels and electricity (extraction, production, & transportation of fuels consumed by the emitter).

CATEGORY 1 Purchased goods and services Emissions from activities up to manufacturing of raw materials, parts & containers / packaging materials.

CATEGORY 2 Capital goods Extraction, production, and transportation of capital goods purchased or acquired

CATEGORY 4 Upstream transportation & distribution Transportation and distribution of products and services purchased by the organization between the organization’s major suppliers and its own operations (in vehicles and facilities not owned or controlled by the organization).

CATEGORY 5 Waste generated in operations Disposal and treatment of waste generated during operations (in facilities not owned or controlled by the emitter).

CATEGORY 6 Travel Transportation of employees for business-related activities in non- organization owned vehicles.

CATEGORY 7 Employee commuting Transportation of employees between their homes and their worksites (in vehicles not owned or operated by the organization).

CATEGORY 8 Upstream leased assets Operation of assets leased by the organization in the reporting year and not included in scope 1 and scope 2.

Upstream

Indirect GHG emissions occurring before organization’s operations

Relevant to Lafayette

Partially included already

Although Second Nature only requires Commuting and Air Travel categories to be reported, a significant portion of Lafayette’s emissions come from other categories. Inclusion in GHG inventory ensures alignment with best practices

Scope 3 Emissions

Scope 3 emissions are the most difficult to quantify, so the GHG protocol provides guidance on how to define emissions in an organization’s value chain

CATEGORY 9 Downstream transportation & distribution Transportation and distribution of products sold by the emitter between its operations and the end consumer (if not paid for by the emitter)

CATEGORY 10 Processing of sold products Processing of intermediate products sold by downstream companies (e.g., manufacturers).

CATEGORY 11 Use of sold products End use of goods and services sold by the organization.

CATEGORY 12 End-of-life treatment of sold products Waste disposal and treatment of products sold by the company at the end of their life.

CATEGORY 15 Investments Operation of investments (including equity and debt investments and project finance), not included in scope 1 or scope 2.

Downstream

Indirect GHG emissions occurring after an organization’s operations

Relevant to Lafayette

Partially included already

CATEGORY 14 Franchises Operation of franchises, not included in scope 1 and scope 2 – reported by Franchisor.

CATEGORY 13 Downstream leased assets Operation of assets owned by the emitter (lessor) and leased to others, not included in scope 1 and scope 2 – reported by lessor.

Although Second Nature only requires Commuting and Air Travel categories to be reported, a significant portion of Lafayette’s emissions come from other categories. Inclusion in GHG inventory ensures alignment with best practices

Lafayette’s GHG Emissions Over Time

Highlights

• Scope 1 emissions have remained relatively stable, whereas Scope 3 emissions have increased due to new emission sources being added.
• Scope 2 market-based emissions have reduced to zero due to the purchase of RECs through a Virtual Power Purchasing Agreement.
• Expect Scope 3 emissions in 2024 to increase significantly following this scope of work due to the inclusion of new categories and new data for existing categories.

*2024 Scope 3 calculations are in progress, will increase significantly

Lafayette Market-Based Emissions

Source: Lafayette Office of Sustainability; Lafayette SIMAP

Lafayette uses a reporting platform called SIMAP, which is used by higher education institutions to report against a global accounting framework (World Resources Institute)

Lafayette Scope 1 & 2 GHG Emissions

As part of CAP 2.0, Lafayette addressed Scope 2 emissions with a Virtual Power Purchase Agreement

Lafayette Scope 3 GHG Emissions

Lafayette utilizes SIMAP, a GHG accounting platform developed for higher education institutions

Lafayette Scope 3 GHG Emissions

Lafayette utilizes SIMAP, a GHG accounting platform developed for higher education institutions

*The SIMAP calculation methodologies for Category 12 and 15 are extremely limited. SIMAP indicates that it will add more data entry options for these categories in the future.

Calculation Maturity of Scope 3

Scope 3 emissions are difficult to quantify, but there are higher levels of calculation maturity to which Lafayette can aspire

Principles

Increasing Complexity

Increasing Certainty

Use actual activity

data and full cradle

to gate life cycle

data provided by

others in the supply

chain. Often

requires supply

chain engagement

Use actual activity

data and generic

emission factors

from relevant

sources to calculate

emissions

Use spend as proxy

for activity data and

applies generic

emissions factors –

referred to as

“economic

environmentally

extended input

output” (EEIO)

analysis

Screening

Average

Use higher quality data for

activities where more accurate

data can be easily obtained.

Variety of approaches may be

used across GHG inventory.

Specific

Use higher quality data for

activities that are most

significant in size, risks and

opportunities.

Lafayette’s current maturity

GHG Inventory Improvements

Calculating GHG inventories is an iterative process, with many guidelines and methodologies constantly in flux. It is best practice to review methodologies and assumptions every year, and view this process with a growth mindset

• Improving the robustness of Lafayette’s inventory is crucial for setting a solid baseline and utilizing it as a tool to track and record decarbonization initiatives over time

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• Lafayette should work towards tracking and including activity data wherever SIMAP offers an activity data upload option for Scope 3 (i.e., Category 1 Food Weight)

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• This will both improve the precision of Lafayette’s GHG inventory and provide a better mechanism to track scope 3 decarbonization initiatives
• For example, if spend is the only data being utilized, then the only way to reduce emissions is to reduce spend

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• SIMAP indicates within several categories (i.e., categories 12 and 15) that they will add more data entries in the future. Lafayette should communicate with SIMAP about when these improvements will take place and plan accordingly

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GHG Protocol Revisions

The GHG protocol provides the foundation for GHG accounting and reporting

• In November of 2022, the World Resources Institute (WRI) began collecting public input on the GHG Protocol to be used in revising the existing guidance documents

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• They are changing 4 guidance documents:
• Corporate Accounting and Reporting Standard
• Scope 2 Guidance
• Scope 3 Guidance
• Land Sector and Removals Guidance

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• Technical Working groups are currently convening to determine future of the standards

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Lafayette Impact: As we work through CAP 3.0 decarbonization strategy, we will continue monitoring GHG protocol revisions that may impact long-term applicability (i.e., solution geography/durability, interim carbon targets)

Emissions Compared to Peers

Lafayette’s emissions are higher than their peers, but others are not reporting Scope 3 category 1 emissions

Scope 1

Scope 2

Scope 3