GHG Management for Small Businesses Manhattan Chamber of Commerce, Green Business Initiative April 6, 2010

Overview Climate Leaders: Who we are and what we do Basics: How to develop a GHG inventory Climate Leaders online tools and resources for small businesses Benefits: Save Costs: lower energy bills, increase fuel efficiencies Risk management Anticipate consumer demands Become a more competitive and preferred supplier Demonstrate leadership Internally for employees Externally in local communities and among industry peers Developing a comprehensive GHG inventory of direct emissions and indirect emissions is becoming a more common practice among large and small companies. More companies are taking steps to measure and reduce emissions in their value chains such as business travel, employee commuting and product transport.Suppliers, especially SMEs, in all sectors are beginning to measure and reduce their emissions in response to customer requests. The Climate Leaders Small Business Network: Reduces emissions among small businesses in the U.S. on an absolute basis. Helps small businesses promote accuracy and transparency in measuring and reducing emissions. Takes GHG emissions management into the mainstream of small business practices. Climate Leaders Offers small businesses: Free GHG calculator and GHG inventory management tools Training and online technical assistance to help small businesses with specific questions as they develop their GHG inventories. Public recognition for setting and achieving GHG reduction goals (EPA website, press release, sharing best practices with broader business community).

Participating in Climate Leaders is easy Submit Online Application Form at www.epa.gov/climateleaders/smallbiz/joinsmallbiz.html (no cost to join) Submit company-wide base year GHG inventory within one year of joining. Set a GHG reduction goal within one year of joining Goal must be to reduce total emissions by a minimum of 5% achieved in 5 years or less. Companies that set carbon neutral (net zero) goals must sustain carbon neutrality for a minimum of 3 years after setting a base year. 4. Receive recognition from EPA for goal achievements. Special recognition for top class of goal achievers (20% emissions reductions in 5 years and carbon neutral goals) - Additional program details available on the Climate Leaders Small Business Network website: www.epa.gov/climateleaders/smallbiz In addition to providing a company with recognition for achieving its goal, EPA will provide a Small Business Network Member with an additional special award if: • The company achieves a minimum 20% reduction in absolute emissions in 5 years or less. The company sustains carbon neutrality for a minimum of 3 years after setting a base year (for carbon-neutral goals).

Basics of Developing a GHG inventory Access EPA’s Tools and Resources for Developing a GHG Inventory

Basics of developing a GHG Inventory A GHG inventory lists all emissions sources and associated emissions quantified using the standardized methods: Required Sources Corporate-wide (all U.S. operations) 6 major GHGs: CO2, CH4, N2O, HFC, PFC, SF6 Direct emissions (Scope 1) Indirect emissions from electricity, heat, and steam (Scope 2) Optional Sources (Scope 3) International operations Offset projects Employee travel and commuting Business Transport Product transport

Developing a GHG Inventory: Define Organizational Boundaries Which facilities should you include? Equity Share Approach- by ownership OR Control Approach- by control Financial control versus operational control Approach matters most for treatment of partially owned or operated facilities (joint ventures, subsidiaries) and for lease agreements.

Developing a GHG Inventory: Definitions of Scope 1, 2 and 3 Emissions

Developing a GHG Inventory: Define Operational Boundaries Which sources of emissions should you include? Stationary Combustion of fossil fuel Process emissions (if applicable) Mobile Sources Refrigeration/AC Purchased electricity or steam Other Sources: backup generators, fuel for heating, corporate aircraft, anaerobic wastewater treatment Optional Sources (e.g., business travel)

Developing a GHG Inventory: Choose a Base Year What should be the base year? Typically the most recent year for which comprehensive data is available Companies interested in joining Climate Leaders should first consult with EPA before setting a base year. Base year Adjustments: Acquisitions/divestitures: Adjust your base year data when these occur Organic growth/decline: Do not adjust your base year data

Access Climate Leaders tools: www. epa Access Climate Leaders tools: www.epa.gov/climateleaders/smallbiz/footprint.html

Step 1: Developing your GHG Inventory Consult EPA’s Guide to GHG Management for Small Businesses & Low Emitters to get started: www.epa.gov/climateleaders/documents/resources/lowemitter_guidance.pdf

Step 1: Additional guidance for developing your GHG inventory Guidance available for assessing the emissions from: Employee Commuting, Business Travel, Product Transport Purchased Electricity Mobile Combustion (vehicles) Offsets and green power purchases Municipal solid waste landfilling Forthcoming: Meetings and Events www.epa.gov/climateleaders/resources/index.html

Step 1: Online support www.epa.gov/climateleaders/smallbiz/askaquestion.html

Step 2: Calculate Emissions How to calculate emissions: Businesses can use the EPA Climate Leaders Simplified GHG Emissions Calculator. Excel-based Free download Automatically calculates overall carbon footprint from all GHG emissions sources Access the Calculator at www.epa.gov/climateleaders/smallbiz/footprint.html

Step 3: Develop an Inventory Management Plan Document your company’s process standard operating procedures. An Inventory Management Plan: Institutionalizes inventory process Lowers costs by centralizing processes Increases accuracy and transparency Documentation of capital savings Captures continuous improvement Access the IMP at www.epa.gov/climateleaders/smallbiz/footprint.html

For more information Small Business tools and Small Business Network: www.epa.gov/climateleaders/smallbiz General Program: www.epa.gov/climateleaders Verena Radulovic Program Manager Climate Leaders Small Business Network (202) 343-9845 Radulovic.Verena@epa.gov