Full transcript
0:00foreign
0:09[Music]
0:25good morning welcome to the fourth
0:28lecture of week three of this ongoing
0:30course on understanding and reducing
0:32greenhouse gas emissions and here we are
0:35focusing on scope 1 and 2 emission
0:37reduction through building design and
0:39construction I'm your instructor
0:40professor of lokita agrawal associate
0:43professor at Department of architecture
0:44and planning IIT rootkeep in this
0:47particular lecture we are going to
0:49continue the discussion which we were
0:51having yesterday which was understanding
0:53the scope 1 2 and 3 emissions and prior
0:57to that we had discussed about very
1:00briefly what one two three scope
1:02emissions are but we were primarily
1:05understanding how to identify and fix
1:08the organizational boundary and the
1:11operational boundary which will tell us
1:13where to act so we will know exactly
1:16where to act when we understand the
1:19organizational boundary and then how to
1:21act what exactly do we need to do is
1:25after identifying the organizational
1:27boundary that we go forward to
1:30identifying operational boundaries and
1:33understanding the specific processes and
1:35activities that take part within this
1:38boundary and there with each activity we
1:42will know the associated emissions now
1:45whether these emissions fall into scope
1:471 2 or 3 is a later part but before we
1:51do that before we categorize these
1:53emissions into these Scopes and we will
1:55understand what these Scopes are but
1:58prior to that we have to clearly know
2:00what are these emissions where are they
2:03coming from now that we have already
2:05seen so in this particular lecture We
2:08are continuing the previous discussion
2:10and going forward with understanding
2:12defining clearly which emissions fall in
2:15scope 1 2 and 3 and then we will also
2:19understand the challenges in addressing
2:21these different Scopes today we will
2:24cover this much and then continue
2:25continuing with the same topic we will
2:27go forward to the last lecture of this
2:30week three where we will look at the
2:33examples of scope 1 2 and 3 projects so
2:37starting with understanding scope 1 2
2:39and 3 emissions in this lecture today so
2:43as I had clearly mentioned earlier also
2:45very briefly that scope 1 emissions are
2:48the direct emissions that are occurring
2:51in the processes within the boundary
2:54organizational and operational boundary
2:56of a company that is wanting to disclose
2:59the emissions now why what would that
3:01mean what are these direct emissions so
3:04there are broadly four categories in
3:06which you can understand that these
3:08emissions largely in majority of the
3:10companies these scope 1 emissions will
3:12fall in these four major categories the
3:15first one which is actually mentioned
3:17here as fourth is what I will tell you
3:19first here and this is the easiest to
3:22understand these are the process
3:24emissions process processes for example
3:27we have an industry we are manufacturing
3:30any product maybe we are manufacturing
3:32some chemical products we are processing
3:35food we are making Fabrics so there are
3:39some direct emissions which are
3:40occurring because of the process that is
3:43happening there may be mixing of
3:45chemicals so some chemical gases are
3:47released or because of processing of
3:50food there are certain gases that are
3:53released these are the direct process
3:56emissions which are taking place as part
3:59of the manufacturing process this is
4:02what will come in scope 1 emission these
4:05are directly happening within the
4:07facility which is under the direct
4:09control of this company so all such
4:12process emissions will come under the
4:15scope 1 emissions and this is one of the
4:18most significant part of the overall
4:21emissions one two and three scope one
4:24two and three emissions so this process
4:27emissions form one of the most
4:29significant part of the emissions for
4:32some Industries for some companies not
4:35all if we do not have manufacturing for
4:38example if it is just a service provider
4:41company there the process emissions
4:43might be significantly low there the
4:46scope 3 might go higher which we will
4:49come to so these are process emissions
4:51very simple to understand
4:53very simple to identify also which are
4:56happening there and as part of the
4:58process of manufacturing is what we are
5:01talking uh covering within this process
5:03emissions industrial processes other
5:06than these this process emission there
5:08are three categories again significant
5:10ones which contribute to direct
5:12emissions first one is stationary
5:14combustion for example the fuels or
5:17heating sources so all the fuels which
5:20are combusted within these facilities
5:22directly for for anything they could be
5:26providing serving as fuel for something
5:28for example there could be a small
5:30handicraft Factory which is working with
5:32glass now to heat up the glass to melt
5:36the glass and to to give it a shape this
5:39continuous heating is required which is
5:42where the conventional fuel is going
5:45maybe not electricity but the
5:47conventionally coal is going to be used
5:49all the emissions resulting from burning
5:52of that fuel for processes or for
5:56heating or conditioning they are going
6:00to be counted towards scope 1 emissions
6:02directly missions and under the category
6:05stationary combustion the second one is
6:08a mobile combustion so this stationary
6:10combustion is actually taking place at a
6:13unit at a stationary unit the second one
6:16is mobile combustion which is largely
6:19coming from transportation for example
6:21we have Fleet of buses which is what we
6:23were discussing in previous lectures
6:25also so we have a fleet of buses which
6:28is required which is used to bring the
6:30employees to the office now all the
6:33combustions which are taking all the
6:35emissions which are taking place because
6:37of combustion of fuel conventional fuel
6:40it could be petrol diesel CNG LPG these
6:44are all coming under mobile combustion
6:46and these are scope one emissions direct
6:48emissions from the facility which is
6:51owned and directly controlled by the
6:54company in case we have an electric
6:57vehicle Fleet so we were discussing that
6:59also if we have an electric vehicle
7:01Fleet in that case we we are not burning
7:04we are not burning the fuel directly
7:07at our facility or within the purview of
7:12our organizational boundary in that case
7:14the electricity is being purchased from
7:16somewhere and the combustion of
7:18electricity is not causing any emissions
7:20direct emissions at our facility but
7:23where the electricity is being produced
7:26there are some emissions are happening
7:28and that we will consider in scope 2 the
7:31indirect emissions but direct emissions
7:32will happen only when this Fleet of
7:35transportation is running on
7:38conventional fuel so this is what and
7:40often this is a major source of emission
7:44direct emissions mobile combustion most
7:47of the companies a lot of companies they
7:49have big Transportation fleets there are
7:52buses and variety of cars and huge
7:55number of cars given to the employees
7:57and you know their managers and
8:00Executives or this entire fleet when
8:04owned and controlled by the company will
8:07come and under the mobile combustion now
8:11the fourth one which we are looking at
8:13here is the fugitive emission and these
8:16are the leaks from greenhouse gases for
8:19example there is a cold storage now
8:21there could be a company which owns a
8:24large number of cold storages and how
8:27are cold storage is maintained at a
8:30certain degree ah temperature it is with
8:33the help of a very elaborate system of
8:36refrigeration cooling chilling now that
8:39requires certain refrigerants which are
8:43again greenhouse gases they have very
8:45high global warming potential we've
8:48already seen that so now these gases
8:50when they are inside they are inside a
8:52closed loop but there are chances that
8:54they might get leaked often at home also
8:58you might have observed the cases where
9:01your air conditioner the gas from air
9:03conditioner leaks and the air
9:05conditioner stops working okay one we
9:07are consuming electricity to run that
9:09air conditioner which is coming from
9:11somewhere that is one type of emission
9:13going into scope two but the gas that
9:16has leak whatever small amount of gas it
9:19was it has already leaked to the
9:21environment it has been emitted in the
9:23environment and when that gas leaked the
9:26emission that is happening because of
9:28that leak is coming into the purview of
9:32this fugitive emission and right now
9:35when you are at your home where you are
9:37directly observing we have very limited
9:40amount of limited number of these
9:43equipment which are consuming or which
9:47are having these refrigerants or gases
9:49ah which can be categorized as
9:52greenhouse gases but when we are talking
9:54about industrial units when we are
9:56talking about manufacturing plants
9:58bigger units there we might have
10:01processes which involve using these
10:04refrigerants and these greenhouse gases
10:06in a very large quantity there a small
10:09amount of leak implies a significant
10:12amount of emission and how do we know
10:14that how would companies know that the
10:16gas has leaked because there is a
10:18certain pressure that has to be
10:19maintained and we know the total volume
10:21so the processes and in the maintenance
10:24process to continue to run the plant at
10:27a certain efficiency these pressures and
10:30the volume of the gas that is inside the
10:33system in a closed loop is constantly
10:36monitored and we need to refill the gas
10:38the amount of gas refill which is being
10:41done is also the amount of gas which has
10:44already lived into the environment all
10:47these emissions will be covered under
10:49the fugitive emission now when I am
10:52saying that when we are discussing about
10:54reporting these emissions direct
10:57emissions as a company I want to
11:00calculate I want to measure
11:03calculate and then report the emissions
11:06whether they be scope 1 2 or 3 we have
11:09to always remember the five principles
11:12gag protocol bases itself on and one of
11:16that would become here as transparency
11:19how transparent we are in reporting now
11:23as a facility if I am not very careful
11:26as an industry if I am not very careful
11:28about how the gases are leaking out of
11:30my my closed loops and my closed systems
11:33that and if I am transparently reporting
11:36that would also tell the world about the
11:40carelessness of a company probably now
11:43here when a company chooses to make
11:47public its emissions to declare its
11:49emissions it also has to go back and
11:52check its processes and that is what the
11:54intent of JG protocol is that when we
11:57have to report something we will be more
11:59careful we will be more cautious that
12:02such emissions are not happening and we
12:05will gradually work towards reducing
12:07these emissions so transparency is
12:10required if you really want to make this
12:12the following of gag protocol successful
12:15the protocol as a document is a well
12:18made document but the whole point is in
12:22successful implementation of it and it
12:24can only be successfully implemented if
12:26we have we are following the principles
12:28of ghg protocol so this is what scope
12:31one emission is the direct emissions
12:34resulting directly emitting from the
12:37company owned and controlled resources
12:40only then we move to the scope 2
12:43indirect emissions which are resulting
12:46from the own resources again so direct
12:49emissions are also from the resources
12:52which are controlled and owned by the
12:55company scope 2 emissions which are
12:58indirect emissions are also from the
13:00company owned so what we have broadly
13:04there are two categories one the
13:07purchased electricity and the other one
13:10the purchase Heating and Cooling so
13:12there is no direct emission which is
13:15happening at the facility within the
13:18organizational and operational boundary
13:19of the company it is emission which is
13:23happening somewhere but because of the
13:25activity which is happening within my
13:27organizational boundary so for example
13:29when I say electricity purchase of
13:32electricity so I might be having for
13:34example a garment Factory now in my
13:37garment Factory every everything all the
13:39machines are running on electricity all
13:42the stitching all the weaving everything
13:45is happening on machines which are
13:49running on electricity now there might
13:52not be direct emissions resulting from
13:55the process the manufacturing process of
13:58this garment but the machines which are
14:01running on electricity this electricity
14:03is actually being produced somewhere we
14:06are using a cleaner fuel but the
14:08emissions which are happening when the
14:09electricity is being produced is accrued
14:12to my credit my company is credit
14:14because I am using that electricity
14:16these are indirect emissions now the
14:20emission Factor would change from
14:21country to country from region to region
14:23usually in a country and we had
14:26discussed this in earlier lectures also
14:28usually within a country we keep the
14:30emission Factor as the same when we are
14:33talking about purchasing electricity and
14:36calculating emissions from it so how do
14:39we do that it is a very simple process
14:41but the background study that is a
14:44detailed study so electricity is still
14:48across the world being produced largely
14:50from conventional sources either it is
14:53produced from coal by bordering coal
14:55thermal power plants or gas
14:58a significant portion and which is
15:00growing is also coming from the
15:03renewable sources of energy for example
15:05solar wind biomass now all these have
15:09different emission factors so depending
15:12upon the percentage of the total
15:14electricity that is coming now we are
15:17talking about Nation at large so for
15:20example hundred percent of the
15:22electricity that is being produced in a
15:24in a country we will actually look at
15:27what percentage is coming from coal
15:29because when the electricity is produced
15:31from coal it has a different emission
15:33Factor the gases which are going to be
15:35released to the environment are higher
15:38in the case of conventional fuels while
15:41they are lower but percentage wise we
15:44will put all of that in the formula and
15:46get an average emission factor for per
15:49unit of electricity consumed now when we
15:53produce electricity so approximately
15:56three units of electricity produced will
15:59actually be equal into one or one and a
16:02half unit of electricity consumed at the
16:05consumer end a lot of Transportation
16:08distribution losses are there in when we
16:11are consuming electricity that is also
16:13accounted for so we are taking into
16:16account the transmission and
16:19distribution losses of electricity so
16:22one unit consumed here at the consumer n
16:24would probably mean two units produced
16:27and for those two units produced we will
16:30actually be looking at the emissions
16:32which are happening because of different
16:34types of fuels that are being consumed
16:36but all these are indirect emissions
16:39which are not happening within my
16:41organizational boundary but the
16:44electricity that is consumed within my
16:46organizational boundary comes with an
16:48emission factor which is my indirect
16:51emission and the same is for heating and
16:53cooling in India we might not have seen
16:56the central heating or District Heating
16:59and Cooling but in especially in colder
17:02countries where we have Central
17:04facilities District Heating and Cooling
17:06facilities we where Heating and Cooling
17:08could be purchased or may be a very
17:11large facility where they have a central
17:13heating and cooling facility and IT
17:16Supplies Heating and Cooling there again
17:18we will look at the emission factor
17:21which is associated with the heating and
17:24cooling in turn for example if the if
17:27the heating is being provided by burning
17:30the conventional fuel centrally in the
17:32district there the units of heating that
17:35have been purchased depending upon the
17:38efficiency or your requirement will
17:41again be multiplied with an emission
17:43Factor depending upon the fuel that is
17:46used to produce the heating or to enable
17:48cooling so this is what we are talking
17:50about in scope 2 dire indirect emissions
17:53but only from the owned facilities which
17:56are so here which is directly consumed
17:59but the emissions are produced somewhere
18:02this is under indirect emissions now you
18:04might be thinking that a company the
18:06processes they release far more
18:09emissions you know there are so many
18:11processes that emit greenhouse gas gases
18:15where do they go they go the remaining
18:18indirect emissions they go in scope
18:21three emissions which are from resources
18:24which are not owned by the company which
18:26are not within my organizational
18:29boundary but I am taking the products
18:34the manufactured goods as raw materials
18:36into my industry for example again
18:39giving you an example of say a garment
18:42Factory or maybe a food processing
18:44Factory now here in my factory I might
18:47be processing food for example I might
18:51be making bread now the raw material for
18:54that bread is wheat wheat flour which is
18:58coming from somewhere it might be milk
19:01which is coming from somewhere or oil
19:03which is coming from somewhere now that
19:05is not happening here the production of
19:08that production and processing of that
19:11raw material for example wheat flour it
19:14is happening at some other facility the
19:17direct emissions from that facility will
19:20be partly counted into the indirect
19:23emissions of not owned resources here so
19:26we are talking about the entire value
19:29chain now this is one of the most
19:32debated and argued scope scope 3 in that
19:36direct emissions that how much of those
19:39indirect emissions be counted in my my
19:42scope in in my kitty that is where we
19:46are having still a lot of discussion and
19:48a lot of clarity is still needed
19:50discussions more discussions are needed
19:52but if I have to put it simply if all
19:56companies across the world take care of
19:59their scope 1 and scope 2 emissions
20:02which is direct emission which is going
20:05into the manufacturing process also so
20:07all the emissions which are resulting
20:08from the manufacturing process and all
20:11the direct emissions plus the indirect
20:14emissions from my own resources they are
20:19eventually going to become scope 3 for
20:22somebody else some other company so if I
20:25am able to handle my scope 1 and 2 and
20:28every other company is able to reduce
20:30their scope 1 and 2 emissions together
20:33collectively we will actually be
20:36addressing the scope 3 because the
20:38product which is being manufactured here
20:41is either upstream or Downstream value
20:45chain part of upstream or Downstream
20:47value chain for some other company so it
20:50will be adding to the scope 3 of
20:52somebody so that is where currently we
20:56have agreed so we clearly know that gig
20:58protocol is not a mandatory protocol as
21:02of now it is still involuntary stage so
21:05the world has kind of agreed to First
21:08Look at scope 1 and 2 emissions and then
21:10gradually move on to the scope three
21:12emissions but what all would this scope
21:15three cover scope 3 would cover the
21:18emissions which are resulting from the
21:19extraction and production of purchased
21:22materials and fuels now we we will be
21:25talking about building materials ah
21:27building design and construction now
21:29when we say building construction there
21:31are materials that are going into it and
21:33the choice of materials will impact my
21:35scope 3 emissions so while the emissions
21:39are not happening on my site it they are
21:44happening indirectly at somebody else's
21:46site but my choice of selection of
21:49materials will determine what the scope
21:523 indirect emissions at non-owned
21:55resources will be for example if I have
21:58to make a wall now I have the option of
22:02making the blocks as a cscb compressed
22:06and stabilized Earth blocks which
22:08require no firing no fuel is required
22:11very minimal amount of stabilizer which
22:15might be cement which that might be
22:18added and the clay the mud that is
22:21procured from the site itself now the
22:24emissions which are associated with the
22:27cseb and compare that with an autoclaved
22:30aerated concrete block AAC block now
22:33there the emissions which is the AAC
22:36block is completely made out of cement
22:38so if we compare the emissions of these
22:41two blocks none of this is going to be
22:44manufactured on my site they might be
22:47giving me similar thermal performance so
22:50that my operational energy is the same
22:52but the embodied energy which is
22:54associated with these two products two
22:57different products will result in will
23:00give me the scope 3 emissions that my
23:03company will also be declaring so the
23:08choice of material what we have the
23:10entire value chain and the choices that
23:13I have through my entire value chain
23:15will determine these indirect emissions
23:18so we're talking about the extraction
23:20and production of purchased materials
23:22and fuels then we are talking about
23:24transport related activities so it could
23:26be transportation of goods materials it
23:29could be transportation of purchase
23:30fuels also so fuel itself has to be
23:33transported there could be travels for
23:36employees for business purposes for
23:39commuting from to and from from work for
23:42example now for this particular point if
23:45you remember we did discuss about what
23:48if I don't own and I rent a facility so
23:52I may be subletting the work to somebody
23:54else a third party who will be
23:57responsible for providing the
23:58transportation services for my employees
24:01bringing them from home to work and back
24:06now in the that case neither is a direct
24:09emission because I don't own that Fleet
24:11nor is it indirect emission because I
24:13don't have an EV or anything like that
24:16now where does it go but it is still
24:18part of my broader boundary it is part
24:21of my value chain so the third party
24:24which is providing the service to me
24:26though so it's just on rent but the
24:29emissions the direct emissions resulting
24:31from that third party is also going to
24:34accrue here under my scope 3 indirect
24:37emissions that's what we are talking
24:38about transportation of sold products
24:41transportation of waste of all the
24:43transport related activities which are
24:46least which are not directly under the
24:48control of the company they will all be
24:52added to scope 3 emissions this is part
24:55of the value chain both Upstream
24:57Downstream and the third one is
24:59electricity related activities which are
25:01not included in scope 2. for example if
25:05we have the electricity which is
25:07requiring extraction production and
25:09transportation of the fuels which are
25:11consumed in generation of electricity so
25:13generation of electricity Plus in scope
25:163 we will also be looking at the
25:18extraction production and transportation
25:20of the fuel which is going in producing
25:22electricity so scope 3 is really wide
25:25because we are ideally we should be
25:28making it as comprehensive as possible
25:30covering all the possible emissions that
25:33might be taking place we will also be
25:36talking about generation of electricity
25:38that is consumed and reported by the end
25:41user so that is also coming in your in
25:44your scope three activities these are
25:47electricity electricity related
25:49activities not included in scope 2 which
25:52is part of this scope three we also have
25:55indirect emissions or scope 3 emissions
25:57resulting from least assets franchisees
26:01outsourced activities so very large
26:04multinational companies they will not
26:06always always have assets which are
26:09owned they could be leased assets or
26:12they could be franchisees so scope 3
26:15emissions would cover these emissions
26:17resulting from the least or franchisee
26:20units they will also be accrued to the
26:23to the bigger company we will see some
26:25of the examples there are some very
26:27interesting examples coming from
26:29companies which are working hard to
26:32understand where these scope 3 emissions
26:34are then use of sold products and
26:36services is also part of the indirect
26:38emissions so the kind of product that we
26:40are making it is being sold and how it
26:43is being used where it is being used is
26:45also going to bring us some scope 3
26:48emissions the waste disposal if we
26:50produce a lot of waste and how that
26:52waste is going to be disposed so for
26:54example there is a company which is only
26:57dealing with with disposal of waste or
27:00processing of waste but the waste is
27:02actually coming from 100 different units
27:05so this company which is only treating
27:08disposing the waste cannot be held
27:10responsible for causing the the
27:12emissions these emissions will actually
27:14go into the credit of the companies
27:17which have produced the waste so scope 3
27:19emissions will also be going coming from
27:22disposal of waste now this waste could
27:25be generated as part of the operations
27:28or as part of the manufacturing and
27:31production or any other thing but all
27:35the emissions resulting from waste
27:37disposal and processing they will also
27:40be counted in the scope three emissions
27:43so if we kind of put it all together to
27:46just reiterate scope one we are talking
27:50about direct emissions generated by the
27:52company facilities and vehicles here we
27:55are talking about all the processes all
27:57the industrial units are going to be
27:59part of the scope 1 emission the scope 2
28:02emission is the indirect emission
28:04produced as a result of of the purchase
28:08of electricity heating or cooling
28:10foreign organizations use so we are not
28:13talking of the industrial processes here
28:15we are only talking of the emissions
28:18which which are resulting because of the
28:20production of electricity so we are
28:22talking about thermal power plants or
28:24you know any other plant it could be
28:26solar plant or wind farm or anything but
28:29the emissions that are taking place
28:31because of the production of electricity
28:33are here the scope 3 is a very wide
28:37scope and also varied scope so all the
28:41Upstream which is suppliers and
28:44downstream which is cons customers and
28:46Distributors all the activities that are
28:49there starting from extraction of raw
28:52material to the disposal of the finely
28:55used product is all coming in scope
28:58three now that is a very large scope
29:01which we are talking about and as I said
29:04again earlier I am reiterating thing
29:07that currently the focus of majority of
29:11the companies across the world because
29:12it is a voluntary activity it is a
29:15voluntary commitment is largely on scope
29:181 and scope 2. to start with gradually
29:22we will be moving to scope 3 and scope 3
29:25to immediately address the companies are
29:28looking at the Alternatives that are
29:30available to them and the choices that
29:32they can make in selecting the raw
29:34material or the processes or the
29:37decisions that can be made upstream and
29:39downstream of the value chain so this is
29:41what scope 1 2 and 3 emissions would be
29:44now we have these three Scopes but we
29:48also have the six categories approach so
29:52here aligning with the iso 14064 the
29:56we've broken down the three Scopes into
29:59six categories so I'll take you to these
30:03six categories so the scope one will
30:06have that directly the category 1 where
30:09we are directly talking about direct gag
30:11emissions and removals that is simple
30:13which is what we have seen also fuel use
30:15refrigerant leakages direct emissions
30:18and removals from land use so
30:20agriculture forestry are all you know
30:22they are coming into this part so scope
30:251 and category 1. scope 2 all the
30:29emissions of scope 2 fall into this
30:31Category 2 where we are talking about
30:33indirect gig emissions from imported
30:35energy so basically purchased energy and
30:38its production elsewhere is what is
30:40going into Category 2 scope 1 and scope
30:43two are directly coming into category 1
30:45and Category 2 which is simple now scope
30:483 has been divided into further four
30:52more categories here so what we have
30:54here is Category 3 where we are talking
30:57about indirect gag emissions from
30:59Transportation so all the business
31:02travel staff commute Freight transport
31:05so we have seen all the indirect
31:08greenhouse gas emissions resulting from
31:10transportation of goods of people of
31:14services is going to come into this
31:16Category 3 which is going into our scope
31:19three so very clearly if we have to see
31:22what all will come under scope 3 we can
31:25divide it into different categories and
31:27then know that which category should go
31:30where so this is Category 3 category 4
31:33is indirect gag emissions from products
31:36and organization uses for example the
31:40materials as I was mentioning so what
31:42material are we using what is the choice
31:44of our material that is going to be used
31:48for example if we have a restaurant now
31:51the kind of food products that are that
31:53are going to be used whether we are
31:55using more raw raw products or we are
31:57using more processed products that
32:00choice itself will be coming under this
32:03category 4 emissions so the emissions
32:06which are resulting from materials and
32:08waste that are generated through least
32:10assets working from home so if people
32:13are working from home and the offices
32:15are not working even then these scope 3
32:18emissions which are emitting from home
32:20because of the employee working from
32:21home will also be going into this
32:23category four so this is what we are
32:26covering as part of category 34 and the
32:28electricity tnd losses the transmission
32:30and distribution losses they are put
32:33into this category 4. so direct
32:36production the emissions resulting from
32:39direct production will go into scope 2
32:42Category 2 while the tnd losses will go
32:45into category 4 scope 3. then we have
32:47Category 5 where we are looking at
32:49indirect gag emissions from the use of
32:52products from the organization for
32:54example end of life stage emissions so
32:56what happens after the product has
32:58completed its ah its life and it has to
33:02be decomposed it has to be either
33:04recycled so end of life stage emissions
33:07Downstream franchisees the least assets
33:10so they are going to come from ah come
33:12to category five emissions from
33:15Investments so here we are largely
33:18looking at the financial institutions so
33:21the financial institutions may not be
33:23generating any direct or indirect
33:25emissions as such but the where they
33:29have invested the kind of products
33:31projects and products they have invested
33:33in will also bring them the category
33:36five emissions which will be covered in
33:38the scope three and the large last
33:40category category six is from all other
33:43sources so specific emissions or
33:45removals which cannot be recorded in any
33:48other manner they have been put in
33:50category six so this scope 3 has been
33:53further divided into four categories for
33:55ease of understanding and yet there are
33:59several forms of emissions several
34:01sources of emissions which cannot be
34:04covered in some of these categories and
34:06that is why we clearly made this
34:08category category six once we have
34:11understood this we have to and by this
34:14time you would have already understood
34:15that there are so many challenges in
34:18understanding the and addressing the
34:20different Scopes now scope 1 and scope 2
34:24comparatively are direct and they can be
34:28easily addressed because there is a
34:30Clarity of what goes where but when we
34:33talk about the scope 3 there we will
34:36have slight
34:37difficulty a challenge in first
34:41understanding that what is going where
34:43what is going to be the scope three part
34:46but once we have done that and even
34:49while we are doing that we have a lot of
34:52problem in actually measuring the the
34:55emissions for example a lot of
34:58organization majority of organizations
35:00they know of their direct emissions but
35:03they do not know how what their vendors
35:04or suppliers are doing so upstream and
35:07downstream what the the suppliers what
35:10the vendors are how they are producing
35:13their goods so their emissions might not
35:16be known to me and there is also a lot
35:19of times the smaller vendors the smaller
35:21manufacturing facilities may also not
35:23have the necessary expertise and also
35:26the the funding available to them for
35:29recording measuring the emissions for
35:32making a proper measurement and
35:35verification to follow a protocol like
35:38that so there we might have missing
35:41links in between the the value chain and
35:44especially it is happening in the scope
35:45three scope 1 and 2 which are directly
35:48under the control of the company could
35:50be easily measured and verified also but
35:54the entire value chain the scope 3 might
35:57be difficult and it is often difficult
35:59to check that so that is the first but
36:02most significant challenge of measuring
36:05and verifying the emissions the second
36:07is the need for data exchange that
36:10raises concerns about trust
36:12confidentiality and privacy the issue is
36:15most prominent for the Upstream supply
36:17chain actors who must maintain trade
36:19secrets so now that is where I was
36:21talking about the principle of
36:23transparency and other principles also
36:26come into play now at one point of time
36:29we want to you know declare the
36:32emissions and along with that when we
36:34declare emissions we are also declaring
36:35the the processes that we are going
36:38through a lot of Trade Secrets on one
36:40side we want transparency on the other
36:42side it might be a business requirement
36:44the trade secret has to be maintained
36:47now where that balance has to come that
36:49is a challenge some times we want to
36:51declare and the other times of business
36:54requirement is such that we cannot
36:56declare so that is another challenge
36:59that is that is faced by a lot of
37:01companies which want to declare the
37:04third is the alignment on scope 3
37:05interventions so this is what I've been
37:08discussing that scope 3 is really wide
37:11and there is not one party as as a
37:14stakeholder there are multiple
37:15stakeholders through the entire value
37:17chain now that might there it might be
37:20difficult to bring everybody on board
37:22and align the interests and align the
37:25the interest towards reducing gag
37:28emissions people might fall out and that
37:31is what we are talking about this
37:33challenge where bringing everybody on
37:36board and to follow the same path might
37:39take time and it might not also happen
37:41easily so while scope 1 and 2 could be
37:44easier managed because there are lesser
37:47stakeholders and lesser Partners going
37:49to be party to that the scope 3 might
37:52really take a lot of time and finally
37:55the data management systems that are
37:57usually either non-existent or they
37:59cannot be scaled up with the information
38:02required for gag accounting it is it it
38:05has to be manually done and that might
38:09itself bring in a lot of anomalies or
38:13disruptions in the calculations and in
38:15also the ah the procuring and
38:18assimilation of the data so we are
38:21talking about huge data sets here
38:23because we are talking about the entire
38:25value chain when we are talking about
38:26scope one two or three emission all put
38:29together so there data management itself
38:32could be a challenge that from where all
38:34the data is coming and how the data is
38:37getting assimilated where the emissions
38:39are going to accrue and to whom and in
38:41what percentage so that data management
38:43itself could be a very big challenge so
38:47if you look at most of the challenges we
38:50will see that scope 1 and 2 are still
38:53easier done and understood while scope 3
38:57would require some more time for the
39:00industry to grow and develop in this
39:02direction of accounting and also
39:05reporting the gig emissions so if you
39:08look at the key challenges and kind of
39:11summarize them it is about
39:12inaccessibility of information in a lot
39:15of cases where measurement and
39:16verification is not being done regularly
39:18confidentiality concerns need for
39:21alignment with diverse suppliers so
39:24bringing everybody on board and
39:25following the same path unscalability of
39:28data management systems and lack of
39:30reporting standards and regulations so
39:34we still do not in large number of
39:36countries we still do not have data
39:39reporting and data reporting standards
39:41and regulations if they were in place a
39:44lot lot of data would be easily
39:45available with with the entire value
39:48chain vendors and customers but majority
39:52of the times there is this lack of
39:54Regulation and standards for reporting
39:57and which is why data is not available
39:59all these three are making currently the
40:03scope free emission reporting as a
40:06little challenging task but still a lot
40:09can be done and gradually we are making
40:11progress so as we said there are no
40:15regulated scope free emission Matrix or
40:18there is no mandate so the companies the
40:22organizations they have their own
40:24targets and they also have their own
40:26measurement sets and that is where the
40:29standards regulations and Protocols are
40:31required so that some proper
40:34standardization mechanism for reporting
40:37and also measuring is is put in place so
40:40that is all in the lecture today we will
40:43look at some of the examples of how
40:45different companies have measured and
40:49declared their emissions and how have
40:52they overcome these challenges which we
40:54have we have identified or if they have
40:57really been able to overcome the
40:59challenges we will see through the
41:01examples of scope one two and three
41:03emissions as reported by different
41:05companies so far so thank you very much
41:07for joining me today we will meet for
41:10the last lecture of this week tomorrow
41:11thank you bye
41:13[Music]
41:26thank you
41:30[Music]