District heat or cooling

Where a metric is taken from a source other than Australian Sustainability Reporting Standards, identify the source and the metric taken.

GHG Protocol Scope 2 - indirect emissions from purchased electricity + steam + heating + cooling. Per the 2015 SCOPE 2 GUIDANCE, organizations must report Scope 2 using BOTH LOCATION-BASED + MARKET-BASED methods (DUAL REPORTING). PURCHASED ENERGY TYPES: (1) ELECTRICITY from utility grid; (2) STEAM from district energy or third-party generators; (3) HEATING from district heating networks; (4) COOLING from district cooling networks. LOCATION-BASED METHOD: emissions based on average emission factor of the local grid where energy is consumed; uses regional/national/sub-national grid average emission factors (e.g. EPA eGRID for US + UK BEIS + EU AIB + International Energy Agency for non-OECD); reflects physical electricity grid mix. MARKET-BASED METHOD: emissions based on contractual instruments + market choices including REC (Renewable Energy Certificates) + Guarantees of Origin (GoOs) + Power Purchase Agreements (PPAs) + supplier-specific emission factors + residual mix + green tariffs; allows reporting near-zero emissions for renewable-energy procurement; HIERARCHY: contractual instruments > supplier-specific > residual mix > location-based. DUAL REPORTING: companies must report BOTH location-based + market-based; difference indicates impact of market-based renewable energy strategies. INSTRUMENTS QUALITY CRITERIA: REC + GoO must convey attributes + be unbundled + temporally + geographically + technologically aligned + retired + tracked + not double-counted (Scope 2 Quality Criteria).

The organization shall establish, implement, control and maintain the processes needed to meet the environmental management system requirements and to implement the actions determined in clause 6, by establishing operating criteria for the processes and implementing control of the processes in accordance with those criteria; controls can include engineering controls and procedures and can follow a hierarchy such as elimination, substitution and administrative controls. It shall control planned changes and review the consequences of unintended changes, taking action to mitigate adverse effects as necessary, and shall ensure that externally provided processes, products or services relevant to the intended outcomes of the system are controlled or influenced, with the type and extent of control or influence defined within the system. Consistent with a life cycle perspective it shall establish controls as appropriate so that its environmental requirements are addressed in the design and development process for the product or service considering each life cycle stage; determine its environmental requirements for the procurement of products and services as appropriate; communicate its relevant environmental requirements to external providers including contractors; and consider the need to provide information about potential significant environmental impacts associated with the transportation or delivery, use, end-of-life treatment and final disposal of its products and services. The 8.1 processes shall be available as documented information to the extent necessary for confidence that they are carried out as planned.

Emissions shall be aggregated at organization level into six categories: direct emissions and removals; indirect emissions from imported energy; from transportation; from products used by the organization; associated with the use of the organization's products; and from other sources; in each category non-biogenic, biogenic anthropogenic and, if quantified, biogenic non-anthropogenic emissions shall be separated (Annex D); categories should be documented at facility level and subdivided (Annex B).

Emissions from imported electricity consumed shall be quantified by the location-based approach using the emission factor that best characterises the pertinent grid (dedicated line, local, regional or national average consumption mix), preferably for the reporting year; indirect emissions such as transmission losses and upstream processes should be quantified and reported separately; a market-based approach may be used where contractual instruments meet the quality criteria (convey the generation attributes, unique claim, tracked and retired, matching period, produced within the country or interconnected market; SIDS exempted from the interconnection test), and such transactions shall be documented and reported separately; the same applies to imported heating, steam, cooling and compressed air.

Establish and implement criteria for evaluating energy performance over the planned or expected operating lifetime when procuring energy-using products, equipment and services expected to have a significant impact on energy performance; when procuring products, equipment and services that have or can have an impact on SEUs, inform suppliers that energy performance is one of the evaluation criteria; where applicable define and communicate specifications for ensuring the energy performance of procured equipment and services and for the purchase of energy.