Corporate sustainability efforts require fleets to measure the environmental impact of vehicle emissions. Here are 10 steps to fleet greenhouse gas accounting.
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1. What is Greenhouse Gas Accounting?
Greenhouse gas accounting is a way for companies to measure and report their emissions of greenhouse gases that contribute to global warming and climate change. By measuring these emissions, companies can begin to manage them and establish a baseline against which the success or failure of policies to reduce carbon emissions, such as the adoption of electric vehicles, can be assessed.
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2. Who sets the rules for greenhouse gas accounting?
Over 90% of Fortune 500 companies use standards set by the Greenhouse Gas Protocol (ghgprotocol.org).
By adopting this protocol, companies will be able to make sustainable decisions so that investors, unions and stakeholders can compare one company to another in the same way GAAP accounting rules allow financial comparisons. You can report your sexual performance.
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3. Why is greenhouse gas accounting important?
Companies are increasingly ambitious to reduce their carbon footprint as part of their corporate social responsibility (CSR) agenda and as a commercial imperative to meet customer demands for greener suppliers. are making efforts.
If you don’t commit to reducing your carbon footprint now, you risk people and businesses not buying your products and services. This is not required, but more and more companies are doing it.
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4. Is greenhouse gas accounting mandatory?
Announced last year and likely to come into force in 2024, the European Union’s Corporate Sustainability Reporting Directive (based on information for fiscal year 2023) will force large companies to report their environmental impact. This applies to an estimated 49,000 companies that meet at least two of the following three criteria: Net sales of EUR 40 million. €20 million on the balance sheet. and over 250 employees.
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5. How will greenhouse gas accounting affect my fleet?
Vehicles with internal combustion engines are often a major source of greenhouse gas emissions for companies.
For a comprehensive greenhouse gas account, a fleet includes WLTP emissions for all vehicles, financing methods (purchase, financing lease, operational lease), fuel type, and three greenhouse gases (carbon dioxide). You need a database for each country of operation, including: methane and nitrous oxide.
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6. Can the fleet convert fuel usage into greenhouse gas emissions?
Fuel cost provides an alternative source for calculating emissions using greenhouse gas figures produced by burning one liter of gasoline, diesel, biodiesel, bioethanol, and compressed natural gas I can do it.
However, a more detailed breakdown of fuel usage is required to use these numbers accurately.
You need a good reporting tool for vehicle usage. Alternatively, employees should submit how many miles they have driven for business, commuting, and personal use. Only business and commuting count towards a company’s carbon footprint.
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7. What are Scope 1, 2 and 3 emissions?
Scope is the basis of greenhouse gas reporting and refers to three categories of emissions.
Scope 1 refers to greenhouse gas emissions that a company emits directly, such as the fuel used in its vehicles.
Scope 2 is categorized as indirect emissions and arises from the consumption of electricity purchased by businesses, such as electric vehicle charging power.
Scope 3 covers emissions of both upstream raw materials and products purchased by a company, and downstream emissions of manufactured products. According to the Energy Advice Hub, scope 3 emissions account for 80% to 97% of the total emissions of large companies.
Today, large companies are required to report scope 1 and 2 emissions, but not scope 3. However, companies with a real determination to reach net zero need to measure their scope 3 emissions to fully understand their impact on climate change.
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8. Are fleet vehicles always scope 1?
No. Confusingly, a vehicle owned or financed by a company is scope 1, while a vehicle funded by an operating lease belongs to the leasing company and is therefore treated as scope 3.
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9. How do companies account for commuting?
Commuting counts as a Scope 3 emissions because it is considered a service that enables the business to run. This is for employees using a company car or private car, as well as traveling on buses and trains.
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10. How can the fleet build a business case for low-emission vehicles?
Due to the investment required to put the right EV infrastructure in place, such as chargers for offices and homes, and the fact that in some countries buying an EV is more expensive than a petrol or diesel car, fleets You have to accept it in the first two years. Due to the potential increase in costs, the fleet manager should change his forecast from 3-5 years to 5-10 years and EVs will be cheaper.
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