HKScan's calculations and reporting conform to the guidelines set out in the Greenhouse gas protocol.
The GHG Protocol is guided by the following principles: relevance, completeness, consistency, transparency and accuracy. To help delineate direct and indirect emission sources, improve transparency, and provide utility for different types of target groups, three “scopes” are defined for GHG accounting and reporting purposes:
Scope 1 – Direct GHG Emissions: GHG emissions that occur from sources that are owned or controlled by the company, for example emissions from boilers and vehicles.
Scope 2 – Purchased electricity, direct heating, direct cooling and steam: GHG emissions from generation of purchased electricity, direct heating, direct cooling and steam used by the company.
Scope 3 – Other indirect GHG emissions: all other GHG emissions that occur as a consequence of the activities of the company. In the picture below the 15 activity categories in scope 3 are presented, for instance business travel, purchased transports and the use of sold products.
The categorization of the scope depends on if the company chose to have a financial control approach or an operational control approach. For a lessee of a car, as an example, the GHG emissions when driving are scope 3 with a financial control approach and scope 1 with an operational control approach. For the rental company it is the other way around.
Emissions in scope 2 can be calculated according to two different methods:
Market-based method, the CO 2e intensity of purchased electricity depends on the trading of guarantees of origin. This means that if the company purchases electricity with guarantees of origin of hydro power, the company shall calculate the emissions for electricity from the emission factor for hydro power. If the company purchases electricity that is unspecified the emission factor of the residual mix shall be used.
Location-based method, the CO 2e intensity of purchased electricity only depends on the total production mix of the grid. This means that the system of guarantees of origin is neglected.
The scope and premises of HKScan’s calculations
HKScan discloses its scope 1 and scope 2* GHG emissions, whereby the control approach is the “operational control approach”. For this reason the following emission sources are included:
- Boilers at the production sites and farms (scope 1)
- Purchased electricity (scope 2)
- Purchased district heating and steam (scope 2)
- Leakage of refrigerants (scope 1)
- Leakage of CO 2 when using CO2 for freezing and anaesthesia (scope 1)
- Car travel (scope 1)
- In-house transports, for example forklift trucks (scope 1)
*) For calculating scope 2 emissions, HKScan has chosen the “Market-based method”.