CDP Guidance

7/31/2019 CDP Guidance

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Guidance forresponding

companies: moduleguidanceSupply Chain Module 2012

Carbon Disclosure Project

[email protected] +44 (0) 20 7970 5660www.cdproject.net


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ContentsSM0: Introduction..................................................................... 3

General Guidance......................................................................................... 3

Specific Question Guidance........................................................................ 3

SM1: Allocating your Scope 1, 2 and 3 emissions to your

customers.................................................................................. 4


Specific Question Guidance........................................................................ 4

SM2: Collaborative opportunities ............................................. 9


Specific Question Guidance......................................................................... 9

SM3: Your engagement with your suppliers............................... 10

Question Pathway......................................................................................... 10



SM4: Emissions over the lifecycle of goods and services........... 12



The copyright to CDPs annual questionnaire/s is owned by Carbon Disclosure Project, a registered

charity number1122330 and a company limited by guarantee, registered in England number 05013650.

Any use of any part of the questionnaire, including the questions, must be licensed by Carbon Disclosure

Project. Any unauthorized use is prohibited and Carbon Disclosure Project reserves the right to protect its

copyright by all legal means necessary. Contact [email protected] for details.


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SM0: Introduction

General Guidance

Companies answering this information request fall into two groups:

A) Companies that have already received an information request from CDP on behalf of investors. This was

sent in February this year.

B) Companies that were not sent this earlier request and for whom this request from CDP, on behalf

of customers, is the first they have received this year.

Companies in Category A

Companies in this category will be presented with the introduction page that they completed in

answering the information request from investors. Companies should click on Save to trigger the

appearance of the supply chain module. Please note, this page cannot be edited.

At the first question of the supply chain module, companies will have the opportunity to add additional

introductory text specifically about the data given in this module. This may be useful as companies in this

category often respond to the investors at a corporate group level, answering the main body of the

questionnaire from this perspective. However, this request from a customer to answer the CDP

questionnaire via the Supply Chain program may come through at a subsidiary level.

If a subsidiary is asked, they are not required to re-do the response that has already been completed

by the parent company. However, the subsidiary is asked to complete the supply chain module,

providing information tailored to their requesting customer as much as possible. In this case, you might

wish to provide an introduction specific to the subsidiary that is answering the supply chain module. This is

entirely optional. If you wish to do so, please provide the information in answer to question SM0.0.

Companies in Category B

You will have already seen the introduction page at the start of the questionnaire. If you wish to do so,

please provide an additional introduction to the information in the supply chain module in answer to

question SM0.0.

Please note that the Supply Chain module is not currently scored. This applies to companies in bothcategory A and category B.

Specific Question Guidance

Please give your answer in the text box provided in the ORS, using no more than 5,000

characters.

If you answered this question last year, you can transfer your answer into this years questionnaire

and adapt it as necessary. If you do want to do this, press the Copy from last year button at the

end of the webpage, but, you must this before you have entered anything on this webpage.


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SM1: Allocating your Scope 1, 2 and 3emissions to your customers

General Guidance

Emissions from suppliers are often greater than the purchasing organizations own emissions and the

Supply Chain Member(s) requesting your GHG emissions data would like to better understand the entire

impact of their organization on climate change not just their own direct emissions. The questions below

are designed to help you communicate the allocation of emissions from your company to your

customer(s).

The ability to transfer your answers from last years response into this years questionnaire is not available

on this section as the list of requesting members may have changed from last year to this.


Please

select

requesting

member

Scope 1

emissions in

metric

tonnes

CO2e

Scope 2

emissions

in metric

tonnes

CO2e

Major

emission

sources

Scope 3

emissions

from

purchased

goods &

services

in metrictonnes

Scope 3

emissions

from

upstream

transportation

& distribution

in metrictonnes CO2e

Scope 3

Emissions

from waste

generated in

operations

in metric

tonnes CO2e

Uncertainty

(+/-%)Verified Please

Give

details

Please note that this question has changed from last year. Three additional columns regarding the allocationof Scope 3 emissions have been added.

Column 1 Please select requesting member: Please note that this table is designed so that only thecustomer that you select in column 1 will be able to see the data relevant to them. If you enter ananswer without selecting a requesting member, your answer will not be viewable at all.

Any data or attachments added to the Further Information field at the end of the page will be viewable by

requesting members. If you choose to make your response public, all text and attachments in the

Further Information fields will be placed on our public website.

Column 2 Scope 1 emissions in metric tonnes CO2e: This column will accept numbers up to999999999999. It will not accept decimal places or commas.An explanation of what falls into Scopes 1 and

2 can be found in the GHG Protocol Corporate Standard

http://www.ghgprotocol.org/standards/corporate-standard .

Column 3 Scope 2 emissions in metric tonnes CO2e: This column will accept numbers up to999999999999. It will not accept decimal places or commas.


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Column 4 Major emission sources: Describe the sources of emissions for which you have provided a figure.

For example, ovens, driers or kilns at a factory, powering production lines, air travel for company employees,

lighting and heating in shops or offices, electricity for data centers, etc. The list of potential sources is

extensive. This column will take up to 2,500 characters.

Columns 5 Scope 3 emissions from purchased goods & services in metric tones CO2e, column 6 Scope

3 emissions from upstream transportation & distribution in metric tones CO2e, and column 7 Scope 3

emissions from waste generated in operations in metric tonnes CO2e will take numbers up to999999999999.They will not accept decimal places or commas. See below for further information onestimating your Scope 3 emissions.

Column 8 Uncertainty (+/-%): Give the degree of confidence that you have in the figures expressed as a

percentage, e.g. you estimate that they are accurate to +/- 15%. This column will accept numbers up to

999999. It will not accept decimal places or commas.

Column 9 Verified: Has the allocation of emissions to your customers been externally verified? Externallyverified means by a third party organization, independent of the company. Please select from yes or no.

Column 10 Please give details: Please provide additional information that would be useful to your

customer. Bear in mind that subsequent questions cover some aspects of the approach you may have used

in allocating emissions, but will also be visible to anyone with access to your response, so please assign

information to the most appropriate question. If you have any information to provide to a

specific customer, enter it in this column on the appropriate line. Any generic information should be entered

in your subsequent answers.

This column will accept a text answer of up to 2,500 characters.

You can enter more than one row of data by using the Add Row button to the bottom right of the table

in the ORS.

Trying to estimate how many of your emissions result from your customers purchases from you can be

difficult. Helping companies to meet that challenge is one of the motivations behind the development of a

new standard by the World Resources Institute and the World Business Council for Sustainable

Development - the partnership that created The GHG Protocol Corporate Standard.

The standard is called the Corporate Value Chain (Scope 3) Accounting and Reporting Standard. It is

written for companies trying to calculate their Scope 3 emissions, but the procedures within it can be

used by suppliers of those companies in assessing how many of their (the suppliers) GHG emissions are

associated with their customers purchases. In other words, the standard can be used by suppliers or by

customers.

It can be found here: http://www.ghgprotocol.org/standards/scope-3-standard

It contains information that will help you in deciding how to link a portion of your emissions to your

customers purchases from you (see chapter 8). If you only had one customer, this would be an easy

process and all of your Scope 1, 2 and 3 emissions would feed into your customers Scope 3

calculations. However, this would be a very unusual situation. Most companies have more than one

customer and therefore attributing emissions to the purchases of each of them is more complicated. We

use the term allocate for this process although the new GHG Protocol standard uses it in a more

technical sense:

Allocation is the process of partitioning GHG emissions from a single facility or other system (e.g., activity,

vehicle, production line, business unit, etc.) among its various outputs.

Allocation isnecessarywhen:

A single facility or other system produces multiple outputs, and


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Emissionsare only measured for the entire facilityor system as a whole

The standard is talking about the process of deciding how to divide - partition - emissions between

different goods and services.

However, if you know, for example, that so many metric tonnes of coal or so many kilowatt hours of

electricity have been used in producing a particular customers goods or in providing services to a

particular customer, then all of the emissions from burning that coal or associated with using that

electricity can be linked to that customers purchases, i.e. you avoid allocation in the technical sense of

having to partition emissions. We would ask that you use that data to complete the table in SM1.1.

The situation just described would require a procedure that would enable you to know much coal had

been combusted to make a particular customers products or electrical sub-meters that were read when

the workfor a customer started and when it ended. There are other ways to avoid this partitioning process

and these are covered in the section 8.2 of the standard Avoid Or Minimize Allocation If Possible.

However, measurements may not be made at that level of detail. You may know how much electricity

a particular production line used in the last quarter or how much gas was used last year to heat your

companys offices, but during those time periods work was done for more than one customer and so the

emissions associated with that electricity and gas have to be allocated between more than one customer.

Chapter 8 explains the different approaches that can be taken to do this.

Remember that although the document is written from the perspective of a customer calculating their

Scope

3 emissions and thinking what to do with the data from their suppliers, the techniques described can also

be used by the supplier in deciding how to allocate their emissions to customers the situation you are in.

Another point to remember is that the new standard is called the Scope 3 standard because it is written

from the perspective of your customer, investigating emissions outside of its organisational boundary.

However, it contains advice to help you, the supplier, to allocate your Scope 1, 2 and 3 emissions not justyour Scope 3 emissions.

When allocating emissions, use emissions data that is as specific as possible to the products that your

customer has purchased from you. This is particularly important in the case of companies that are

diversified and produce a wide range of very differentproducts. See the box on the next page.


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Box 1 shows the order of preference for different types of data. It is an adaptation of table 7.7 in the Scope

3 standard.

1. Activity-, process- or production line -level

dataGHG emissions for the activities, processes,

or production lines that produce the product of

interest

2. Facility Level Data GHG emissions for the facilities or operationsthat produce the product of interest

3. Business Unit Level Data GHG emissions for the business units thatproduce the product of interest

4. Corporate Level Data GHG emissions for the entire corporation

Box 2 on the next page - then shows possible options for allocating the emissions data, based on

table 8.1 of the GHG Protocol Scope 3 standard. To learn more about considerations in deciding whichequation to use, refer to chapter 8: http://www.ghgprotocol.org/standards/scope-3-standard


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Physical

AllocationAllocating the emissions of an activity based on an underlying physical relat ionship

between the multiple inputs/outputs and the quantity of emissions generated

MassMass of co-products

Volume

Volume of cargo transported

Number of

units

Number of units shipped

EnergyEnergy content of heat & electricity co-products

Chemical Chemical composition of chemical co-products

Other factors

Protein content of food co-products, floor space occupied by products

Other formulas

Economic

AllocationAllocating the emissions of an activity based on the market value of each

output/p roductMarket Value Market value of co-products

When determining the market value, companies should use the selling price (i.e., the

price the customer pays to acquire products from the supplier), rather than the

suppliers production cost (i.e., the costs incurred by the suppler to manufacture its

products).

Other methods Allocating the emissions of an activity based on industry-specific or company-specific allocation methods

Other factors Other formulas

Please note that the rest of your answers in this question can be viewed by any requesting members, not

only those selected in column 1 of the table at SM1.1.


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Companies often have many different sources of emissions. This question seeks to understand how you

have selected major emission sources. The GHG Protocol Corporate Standard

(http://www.ghgprotocol.org/standards/corporate-standard) says that companies should report on all

emissions within their chosen organizational boundary. This defines the sources of emissions on which you

are going to report. There are three options: sources in which the company has an equity share; sources

over which the company has financial control; sources over which the company has operational control.

If you exclude any sources within the boundary, you are asked to disclose and justify those exclusions.

However, it may simply be that you have been limited by your knowledge of potential emission sources or

made assumptions about which sources were the largest. Please explain the thinking behind yourselection including the difficulties that you encountered.

Remember, your answer to this question will be visible by all parties with access to your response so you

may only want to provide generic information.

Please give a text answer using no more than 5,000 characters.


Please explain how you have allocated emissions to your customer. You may have used your own (primary)

data in answering this question.Alternatively, you may have relied on publications that give industry-average

(secondary) data for particular materials or processes or you may have used a mixture of both. Please make

the origin of data clear.









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SM2: Collaborative opportunitiesGeneral Guidance

There is no general guidance for this question. The ability to transfer answers from last years response to this

years questionnaire is not available on this question as the list of requesting members may have changed

last year to this.


Please select requesting member Details of proposal

Select from the list of organizations that have

requested that you complete this module.

A text answer of up to 2,500 characters.

Please provide information/suggestions to your customer on how you could work with them to reduce GHG

emissions through, for example:

Changes to the design or specification of a product or processes to produce it. If you are a

service organization, you may have a proposal that would reduce the amount of GHGs

associated with the provision of that service. For example, a marketing company maysuggest replacing leaflets with a means of getting a message out that is less GHG intensive.

The development of joint emissions reduction targets Opportunities to reduce emissions associated with the use of the goods/services you provide

to your customer Opportunities to reduce the emissions associated with the transport of the goods/services you

provide to your customer Opportunities to lightweight/improve/reduce the packaging of the products you sell to your

customer

Please do NOT include details of existing commercial offerings of which your customer will already be

aware. Use this as an opportunity to think about new ways that you can work with your customer to

reduce the emissions associated with the goods and services you provide to your customer. However,

you should not feel obliged to complete this question if you do not have any proposals.

Please note that this table is designed so that only the customer that you select in column 1 (Pleaseselect requesting member) will be able to see the data relevant to them. If you enter an answer without

selecting a requesting member, your answer will not be viewable at all.

Any data or attachments added to the Further Information field at the end of the page will be viewable by

requesting members. If you choose to make your response public, all text and attachments in the

Further Information fields will be placed on our public website.

You can enter more than one row of data by using the Add Row button to the bottom right of the

table in the ORS.


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SM3: Your engagement with yoursuppliersQuestion Pathway

SM 3.1 Do you have a strategy for engaging

with your suppliers on their GHG emissions and

the impacts of climate change on their

business?

Yes No

SM 3.2 If so, please provide

details of this strategy.

SM 3.4 If you currently have no strategy, please explain

any plans you have to develop one in the future.

SM 3.3 To give a sense of the

scale of this engagement, please

include the number of suppliers

with whom you are engaging and

the proportion of your total spendthat they represent.

SM 3.5. If you have data on your suppliers GHG emissions and climate change

strategies, please explain how you make use of that data (for example: identifying

major GHG sources to prioritize emissions reduction actions, identifying physical risks

in the supply chain, stimulating innovation, etc).

General Guidance

Your customers want to engage with you to learn more about emissions from their immediate suppliers.

The purpose of this section is to find out what you in turn are doing to engage with your own suppliers. It

is important to your customers to understand what you are doing on this issue since your supply chain is

also their supply chain.

The ability to transfer your answers from last years response to this years questionnaire is available for

SM3.1, SM3.2 and SM3.5. Click the Copy from last year button at the end of the webpage before you

enter any data on this page.



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Please answer this question by selecting Yes or No from the drop down menu provided in the ORS. If

you answer Yes you will be directed to questions SM3.2 and SM3.3 where you will have the opportunity

to provide more details; if you answer No you will be directed to question SM3.4.

The ability to transfer your answer from last years response to this years questionnaire is available for this

question. Click the Copy from last year button at the end of the webpage before you enter any data on

this page.


Please explain how you have chosen the suppliers to contact on this issue and what your approach has

been; describe any standard letters or other means of communication that you have used and any actions

or plans that have emerged from the dialogue. It may be that your customer could benefit from yourexperience.

Please give a text answer using no more than 5,000 characters. The ability to transfer your answer from last

years response to this years questionnaire is available for this question. Click the Copy from last year

button at the end of the webpage before you enter any data on this page.


Number of suppliers Proportion of your total spend (%)

Will accept a number up to and including

1000000000000. Will not accept decimal places.

Enter the number without punctuation.

Will accept a percentage figure with up 100 &

to one decimal place. Please use a full stop

and not a comma to indicate the decimal

point.




For example, you may have suggested a change to the specification of goods or services in order to

lower GHG emissions. Examples may include using alternative materials with similar functionality but lowerembodied/associated GHG emissions or changes to the fuel used in suppliers trucks. In the case of your


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service-providers, you may have calculated that savings can be made by reducing the number of times

your service-provider travels to your premises for meetings and replacing these in-person meetings with

web-based meetings or teleconferencing.

Ifyou have identified a physical risk in the supply chain, such as a location that is vulnerable to flooding, you

may have asked your supplier if they have a strategy in place for ensuring continuity of supply to you in the

case of such an event.

Please give a text answer using no more than 5,000 characters. The ability to transfer your answer from last

years response to this years questionnaire is available for this question. Click the Copy from last year

button at the end of the webpage before you enter any data on this page.


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SM4: Emissions over the lifecycleof goods and services

General Guidance

Product footprinting methodology is currently becoming more standardized. Increasingly, also, different

elements of a product are being measured independently, allowing the final manufacturer or retailer to

more easily and accurately calculate the GHG content of a finished product.

CDP and our Supply Chain members are encouraging you to start on this path and would like to collect

from you more product specific data. If you have a full cradle to gate or cradle to grave footprint for a

relevant product, please use the tables below to provide this data.However, if you have not done a full analysis but you are able to give a breakdown for your own part of

a customers subsequent product, please also use the tables below to do so. In this case, please be

clear about the stage/s that you are describing.

The ability to transfer your answers from last years response to this years questionnaire is available for

questions in this section. Click the Copy from last year button at the end of the webpage before you enter

any data on this page.


Please note that the term products includes both services and goods. This question applies to

intermediate products as well as final products. Intermediate products need further processing or

incorporation with other products in order to make a final product that can be used by the consumer or

end customer.

You can also answer this question if you are taking measures to reduce emissions in a particular stage in

the production of goods or in the delivery of a service.

When detailing activities, please give the time-frames within which plans will be actioned and the time periodsover which you expect that the GHG savings will be realized.



Please select the number of products for which you will provide data, up to a limit of 20. Please provide

data for the products most relevant to the customer(s) who have asked you to complete this

questionnaire. For each product, you will be asked the following questions: SM4.2A, SM4.2B and SM4.2C.


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Name of

good/

service

Description

ofgood/

service

Total emissions in kg CO2e

per unit

+/- % change

from previous

figure supplied

Date of

previous

figure

supplied

Explanation

of change

A text

answer ofup

to 50

characters.

A text

answer ofup

to 2,400

characters.

Will accept a number up to

and including

999999999999. It will

accept up to 4 decimal

places. Please use a full

stop and not a comma to

indicate the decimal point.

Will accept a

number from

minus1000 to

plus 1000. It will

accept up to 5

decimal places.

Please use a full

stop and not a

comma to

indicate the

decimal point.

Calendar

entry

A text

answer ofup

to 2,400

characters.

Column 1: Please identify the final/intermediate product. If you are supplying data for a stage in the

lifecycle of a product, please identify it in a way that will make it easy for your customers to recognize.

Column 2: Describe the final/intermediate product for which you are supplying product lifecycle GHGdata. This may be 180 gram tube of toothpaste in a cardboard package or the design of a color A5

advertising flyer.Alternatively describe the stage(s) of the product lifecycle for which you are providing

data. Ifyou are providing data for a final or an intermediate product or only for a stage or stages of the

products lifecycle, please make this clear.

Column 3: Please give the emissions for the final/intermediate product in kgCO2e/unit of good or service.

If you are providing data for only a stage or stages of the products lifecycle, the figure you supply will be

the figure for that stage or aggregate for those stages.

Column 4: If you have previously reported a figure to CDP and are supplying an updated figure, please

give the percentage difference between the two figures. Ifthe new figure is smaller, enter a figure with a

minus sign ( - ).

Column 5: Give the date of the previous figure.

Column 6: Explain why the figure has changed.


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Please enter lifecycle stage Emissions (kg CO2e) per unit at the lifecycle stage

A text answer of up to 2,400 characters. Will accept a number up to and including 1000000000. It will accept

up to 4 decimal places. Please use a full stop and not a comma to

indicate the decimal point.

Provide the lifecycle stages that are appropriate to the final/intermediate product for which you are

providing data and give the figure in kgCO2-e per unit of good or service for that stage.

For goods, the lifecycle stages could be: raw material acquisition and pre-processing; production;

distribution & storage; use; end-of-life. You should add a row for each subsequent stage. An example of

the lifecycle stages of a service might be - in the case of a hotel stay, for instance - check in, use of room,checkout, cleaning.

You need to ensure that the total figure given in column 3 of SM4.2A equals the aggregate of figures given

in column 2 of SM4.2B. If you are providing data for a single stage in a products lifecycle, nonetheless

please repeat the data that you have provided in SM4.2A in SM4.2B.

This question requests several pieces of information that help the reader to understand exactly what

the supplied figures represent.

The question makes reference to three well-known documents:

The ISO LCA standards ISO 14040 &14044 at www.iso.org

PAS 2050, which is a publicly-available specification for assessing the lifecycle emissions of a

product.

http://www.bsi-global.com/en

/Standards-and-Publications/How-we-can-help-you/Professional-Standards-Service/PAS-2050/

The GHG Protocol Product L i f e cyc le Account ing & Repor t ing S tandard

http://www.ghgprotocol.org/feature/download-new-ghg-protocol-product-life-cycle-standard

Please name the standard that you have used or describe the internal procedure that you have developed.

Give the boundary of your assessment. Please make it clear which GHGs and GHG sources are

included in your assessment. Ifrelevant GHGs and GHG sources are excluded, please describe them

and give reasons for omissions.


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We would ask that you include a description of technical items such as the functional unit of the

product and the boundary of the product system. The terms used will vary depending on the protocol

used. For example, the GHG Protocol product standard uses the term unit ofanalysis.These terms and

considerations will be familiar to companies that have carried out product lifecycle GHG accounting, so

the intention is not to dwell on them here. If you wish to find out more, follow the links that have been

given above.

It may be that you know that the figures you have supplied are incomplete within the boundary that you

have described because you have not included data on certain sources of emissions or particular GHGs. If

this is the case, please describe and explain the omissions.

Give references to data sources used.

Please explain the sources of data that you have used in compiling your figures. In some cases, this will be

primary data. In other instances, you may have relied on secondary data such as industry average figures for

a particular process or material, drawn from databases.


CDP Guidance

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