CCP GHG Protocol & Scope 1-2-3 2 — Questions and Answers
Question 1: A company purchases renewable energy certificates (RECs) to cover its electricity use. Under the GHG Protocol market-based method, how does this affect its Scope 2 emissions?
- Scope 2 emissions are reduced to zero for the covered electricity (Correct answer)
- Scope 2 emissions are moved to Scope 3 Category 1
- RECs have no effect on Scope 2 under market-based accounting
- RECs reduce Scope 1 emissions proportionally
Correct answer: Scope 2 emissions are reduced to zero for the covered electricity
Under the GHG Protocol market-based method, RECs retire contractual claims to renewable generation attributes, allowing the purchaser to claim zero Scope 2 emissions for covered electricity.
Question 2: Which GHG Protocol standard specifically addresses how companies should account for and report emissions from their value chain?
- The GHG Protocol Corporate Standard
- The GHG Protocol Scope 3 Standard (Correct answer)
- The GHG Protocol Project Protocol
- The GHG Protocol Policy and Action Standard
Correct answer: The GHG Protocol Scope 3 Standard
The GHG Protocol Corporate Value Chain (Scope 3) Standard provides guidance specifically for measuring and reporting Scope 3 value chain emissions.
Question 3: Under the GHG Protocol, which consolidation approach requires a company to account for emissions from operations where it has the majority of financial risks and rewards?
- Operational control
- Equity share
- Financial control (Correct answer)
- Contractual control
Correct answer: Financial control
The financial control approach requires consolidation of emissions from operations where the company has financial control, typically defined as the majority of risks and rewards of ownership.
Question 4: A manufacturer's Scope 3 Category 11 emissions cover which activity?
- Business travel by employees
- Use of sold products by end customers (Correct answer)
- Upstream transportation of raw materials
- Employee commuting
Correct answer: Use of sold products by end customers
Scope 3 Category 11 (Use of Sold Products) covers emissions generated by end users during the lifetime use of products sold by the reporting company.
Question 5: When using the location-based method for Scope 2 accounting, what emission factor does a company apply?
- The supplier-specific emission factor from the electricity provider
- The average grid emission factor for the region where electricity is consumed (Correct answer)
- The global average electricity emission factor
- The emission factor of the company's on-site generation
Correct answer: The average grid emission factor for the region where electricity is consumed
The location-based method uses average grid emission factors for the geographic area (country, region, or sub-region) where electricity is consumed.
Question 6: Which of the following is classified as a Scope 1 emission source for a manufacturing facility?
- Electricity purchased from the grid
- Steam purchased from a third-party utility
- Natural gas combusted in on-site boilers (Correct answer)
- Emissions from contracted logistics providers
Correct answer: Natural gas combusted in on-site boilers
Combustion of natural gas in on-site boilers is a direct emission source owned or controlled by the company, making it Scope 1.
Question 7: The GHG Protocol requires companies to report on which gases as a minimum for Scope 1 and 2 inventories?
- Only CO2
- CO2 and CH4
- The six gases covered by the Kyoto Protocol (Correct answer)
- All gases in the IPCC AR6 basket
Correct answer: The six gases covered by the Kyoto Protocol
The GHG Protocol requires reporting on the six greenhouse gases covered under the Kyoto Protocol: CO2, CH4, N2O, HFCs, PFCs, and SF6.
CCP GHG Protocol & Scope 1-2-3 2
A company purchases renewable energy certificates (RECs) to cover its electricity use.
Under the GHG Protocol market-based method, how does this affect its Scope 2 emissions?