C6. Energy Consumption and Greenhouse Gas Emissions

Code 8.0

Participants shall establish and report against an absolute corporate-wide greenhouse gas reduction goal. Energy consumption and all Scopes 1, 2, and significant categories of Scope 3 greenhouse gas emissions shall be tracked, documented, and publicly reported. Participants shall look for methods to improve energy efficiency and to minimize their energy consumption and greenhouse gas emissions.

Elements to Demonstrate Compliance to RBA Code

1. Policy

Ensure the facility environmental policy includes energy consumption and greenhouse gas emissions elements including:

• a. Energy consumption and all Scopes 1, 2, and significant categories of Scope 3 Greenhouse gas (GHG) emissions are tracked, documented, and publicly reported, at least annually, against an absolute corporate-wide GHG reduction goal.

2. Procedures & Practices

Procedures & Practices are in place such that: (facility level)

• a. Scope 1 and 2 comprehend / include:
  • i. Scope 1 and 2 Greenhouse Gas emissions are documented, consumption recorded and accurate by source and with a description of its boundary.
  • ii. The sources of electricity and other energy are documented, consumption recorded and accurate by source.
  • iii. On-site combustion: oil, coal, diesel, burning of waste, natural gas, propane, garbage, etc. are included.
  • iv. Renewable energy use – if the facility purchases renewable energy through their utility company.
  • v. Significant leakage of refrigerants (from HVAC units or other refrigeration equipment), or other GHG-generating production processes (CFCs and HFCs from solvents and foams, for example).
• b. Scope 3 comprehends / includes:
  • i. Significant Scope 3 GHG categories are determined through a materiality or similar process, documented and up to date.
  • ii. Amounts of significant Scope 3 categories are tracked, documented, and up to date.
• c. Significant Scope 3 categories must at least include Category 1 (purchased goods and services) and the assessment for significance and materiality should align with the GHG Protocol Scope 3 Standard, which provides criteria to identify relevant Scope 3 activities:
  • i. Size
  • ii. Influence
  • iii. Risk
  • iv. Stakeholders
  • v. Outsourcing
  • vi. Sector guidance
• d. Publicly report of corporate-wide GHG footprint includes:
  • i. Total Scopes 1 & 2 and relevant Scope 3 as a quantitative value of total emissions.
  • ii. A percentage (e.g., "90% of last year's emissions") is unacceptable.
  • iii. The value shall represent annual emissions.
• e. The absolute reduction goal must include:
  • i. Scopes and categories covered.
  • ii. Boundaries
  • iii. Base year and target year
  • iv. Target value and target type

Example: Our target to reduce the absolute Scope 1 and 2 GHG emissions from our global operations by 25,000 metric tons CO2e by 2030, compared to 2020, representing a 25 percent reduction

3. Controls & Monitoring

Controls & Monitoring should include:

• a. Process and administrative controls are in place and effective.
• b. Ensure that there is no significant energy consumption or GHG emissions at the facility that are not tracked and recorded.
• c. Engineering controls are used where appropriate.
• d. GHG engineering control examples
  • i. Building automation technology, programmable thermostats, lighting controls, or energy-efficient heating, cooling, lighting, and ventilation technology.
  • ii. Use of on-site combustion or vehicles that are fuel efficient or use a less GHG-intensive source (e.g., natural gas, ethanol).
  • iii. Purchasing or installing on-site renewable energy.
  • iv. Use of highly efficient systems to absorb/treat cleaning agents.
  • v. Use of refrigerants with low global warming potential (GWP) in Heating, Ventilation, and Air Conditioning (HVAC) systems.

4. Records

Records are maintained including:

• a. Copies of records of the total quantity of fuel combusted on-site (or easily extrapolated from fuel bills and other purchased fuel records)
• b. Purchased energy, electricity, steam, heating, and cooling records.
• c. Current and historic Scope 1, 2 and significant categories of Scope 3 data with calculations with associated assumptions

2.0.1 (2024-01-01)

Changed

• Editorial reformat of the 8.0.0 conformance-requirement table into prose: The 8.0.0 conformance-requirement table was restructured into the Policy / Procedures & Practices / Controls & Monitoring / Records prose template. The substantive rules are identical: Scope 1, 2 and significant categories of Scope 3 tracked/documented; Scope 3 must at least include Category 1; public reporting of the corporate-wide footprint; absolute reduction goal with scopes, boundaries, base/target year, target value and type. No threshold, mandatory condition, or severity changed — editorial only.

2.0.0 (2023-09-01)

Changed

• Added mandatory Scope 3 tracking and publicly-reported absolute corporate-wide reduction target: New mandatory conformance requirements absent from 7.1.2: significant categories of Scope 3 GHG emissions must be determined through a materiality or similar process, tracked and documented, and must at least include Category 1 (purchased goods and services); and an absolute corporate-wide reduction target and performance must be publicly reported at least annually. A facility that passed 7.1.2 by tracking only Scope 1 and 2 (no Scope 3 inventory, no publicly reported absolute target) fails 8.0.0 — a prior pass can become a fail, hence major.

1.1.0 (2022-06-01)

Removed

• Provision renumbered C8 to C6 and narrowed to Scope 1 and 2 tracked and recorded: Provision renumbered C8 to C6 and narrowed to 'energy consumption and all relevant Scopes 1 and 2 GHG emissions are tracked and recorded'. The in-provision public reporting of a corporate-wide GHG footprint and the corporate GHG reduction goal were relocated to the Environment Management System provisions (C.M), and the separately rated cost-effective energy-efficiency reduction program (7.0.0 C8.2) was dropped as a standalone rated requirement, surviving only as 'engineering controls used where appropriate' site observations. Requirements were removed/relocated only; the requirement set is a strict subset of 7.0.0 — every prior pass still passes, hence minor.

1.0.0 (2021-01-01)

Changed

• Initial historical baseline — Energy Consumption and Greenhouse Gas Emissions (C8, RBA Code of Conduct 7.0): Earliest imported version of the criterion (provision C8 in VAP 7.0.0). Participants establish a corporate-wide GHG reduction goal; energy consumption and all relevant Scopes 1 and 2 GHG emissions are tracked, documented, and publicly reported against that reduction goal. Includes a corporate-level or facility-level implementation, public reporting of a corporate-wide Scope 1 & 2 footprint, and a separately rated cost-effective energy-efficiency and GHG reduction program with annual objectives, tracking, and progress monitoring.