Value Chain Emissions Accounting Framework Owen Hewlett, Chief Technical Officer, Gold Standard

Value Chain Interventions: Emissions Accounting + Reporting towards performance targets

SUSTAINABLE SUPPLY CHAINS - INTERVENTIONS How can companies account, report and be recognised for their supply chain interventions? Phase 1 - Development of accounting and reporting guidance for interventions, compatible with GHG Protocol and Science Based Targets Enable corporates to claim the maximum credible benefit of their interventions and report towards performance targets Incorporate biological sequestration and develop a soil carbon guideline

VALUE CHAIN INTERVENTIONS EMISSIONS ACCOUNTING A sector-neutral accounting + reporting framework providing guidance on how companies can reflect their value chain interventions towards GHG corporate inventory performance targets’

INTERVENTION ACCOUNTING Corporate Scope 3 inventory Best practice guidance for intervention accounting and how to incorporate into corporate reporting

INTERVENTION ACCOUNTING GUIDELINE Example - Corporate implements a series of restoration projects, maximising soil sequestration Part 1 - How to account for intervention emissions (boundary, scope, baseline, MRV etc) Part 2 - How to include intervention emissions in corporate report (substitution) Part 3 - How to communicate about the intervention and its relationship with carbon credits

SOIL CARBON GUIDELINE How to quantify (measure, monitor, report, verify) carbon sequestered in soil for reporting emissions towards performance targets

RAISING AMBITION – WHAT’S NEXT? Completion of accounting & reporting framework and soil guidance Seek ‘Built on GHG Protocol’ status + acceptance for Science Based Targets Phase 2 development of further sector guidance and pilot certification Develop applicability under other SDG impact areas Scale up Join us!

GOLD STANDARD NETWORK PLATFORM JOIN US GOLD STANDARD NETWORK PLATFORM Bringing together stakeholders who seek to pioneer innovative solutions that help meet the ambition of the Paris Agreement and the SDGs A platform for open innovation that facilitates connection and engagement with Gold Standard and fellow stakeholders Opportunities for collaboration at different levels Concrete benefits for participants and targeted Partner Programs

PHASE II WORKING GROUP PROGRAM 5 THEMATIC SESSIONS 1. Measurement and quantification Quantify Scope 3 project emission reductions 2. Reporting Report in line with GHG Protocol and SBT 3. Boundaries and Claims Claim direct contributions to targets 4. Shared Value Calculation Generate credible economic value estimates 5. Certification Trajectories Introduction and case studies/pilot projects** * Accessible at an additional fee of 10k **Individual certification trajectories may follow from the general program, at a (discounted) fee determined on case-by-case basis HOW TO GET INVOLVED PHASE II IMPLEMENTATION PARTNERS Test in corporate contexts and provide feedback for possible adjustments Access capacity building and support for the application of the framework Co-develop context-specific applications/ best-practice case studies WHO SHOULD JOIN Corporates with significant scope 3 emissions and/or targets first working group focused on FMCG & agri value chains – kick off June 2018

owen.hewlett@goldstandard.org