1. Greenhouse Gases & Carbon Footprinting AIB Sustainability Essentials December 1, 2009 Jerry Hancock Vice President of Environmental and Regulatory Affairs, Flowers Foods

2. Greenhouse Gases & Carbon Footprinting  What is a greenhouse gas?  What is carbon footprinting?  How are they calculated?  What are the standards?

3.  What is a greenhouse gas (GHG)? A gas that traps heat in the atmosphere Greenhouse Gases & Carbon Footprinting

4.  What greenhouse gases do humans generate? Carbon dioxide CO 2 Methane CH 4 Nitrous oxide N 2 O Hydrofluorocarbons HFC Perfluorocarbons PFC Sulfur hexafluoride SF 6 Nitrogen trifluoride NF 3 Hydrofluorinated ethers HFE

5. A carbon footprint is measured in units of carbon dioxide equivalents Greenhouse Gases & Carbon Footprinting  What is carbon footprinting? The amount of greenhouse gases emitted into the atmosphere annually by a person, household, building, organization, or company. (Source: EPA) CO 2

6. Greenhouse Gases & Carbon Footprinting  Types of greenhouse gas emissions SCOPE 1Direct emissions SCOPE 2Indirect emissions SCOPE 3Indirect upstream/downstream emissions

7. Greenhouse Gases & Carbon Footprinting  SCOPE 1—Direct emissions Stationary combustion Boilers, furnaces, burners, turbines, heaters, incinerators, engines, flares Fugitive emissions Equipment leaks from joints, seals, packing, gaskets, coal piles, wastewater treatment, pits, cooling towers, gas processing facilities Mobile combustion Cars, trucks, buses, trains, planes, boats, ships, barges Process emissions CO 2 from calcination step in cement manufacturing and catalytic cracking in petrochemical processing; PFC emissions from aluminum smelting

8. Greenhouse Gases & Carbon Footprinting  SCOPE 2—Indirect emissions Sourced from the consumption of purchased electricity, heat, steam  SCOPE 3—Indirect upstream/downstream emissions Optional step Other indirect emissions from company activities and outsourced/ contract manufacturing, leases, franchises Expands inventory boundary to identify all relevant GHG emissions

9. Greenhouse Gases & Carbon Footprinting  How are they calculated? 1.Define methodology 2.Specify boundaries, scope 3.Collect emissions data, calculate footprint

10. Greenhouse Gases & Carbon Footprinting 1. Define methodology Consistent approach --Develop own methodology --Use recognized standard

11. Greenhouse Gases & Carbon Footprinting 2. Specify boundaries, scopes Organizational boundaries --Wholly, partially owned subsidiaries Operational boundaries --Direct GHG emissions—Scope 1 --Electricity indirect GHG emissions—Scope 2 --Other indirect GHG emissions—Scope 3

12. Greenhouse Gases & Carbon Footprinting 3. Collect emission data and calculate footprint --Identify GHG emission sources --Select calculation approach --Collect data; choose emission factors --Apply calculation tools --Roll up data to corporate level

13. Carbon Footprint Kansas Baking Co., Inc.  1 bakery  4 distribution centers Greenhouse Gases & Carbon Footprinting CO 2

14. Carbon Footprint Kansas Baking Co., Inc. Greenhouse Gases & Carbon Footprinting CO 2  Define methodology Consistent approach Use recognized standard—GHG Protocol

15. Carbon Footprint Kansas Baking Co., Inc. Greenhouse Gases & Carbon Footprinting CO 2  Specify boundaries, scopes Organizational boundaries --Kansas Baking Co. --1 bakery --4 distribution centers

16. Carbon Footprint Kansas Baking Co., Inc. Greenhouse Gases & Carbon Footprinting CO 2  Specify boundaries, scopes Operational boundaries --Direct GHG emissions—Scope 1 --Electricity indirect GHG emissions—Scope 2

17. Carbon Footprint Kansas Baking Co., Inc. Greenhouse Gases & Carbon Footprinting CO 2  Identify GHG emission sources Bakery --Combustion of fuels (natural gas, propane, fuel oil) --Fleet and employee travel --Refrigerant emissions --Purchase of electricity Distribution Centers --Combustion of fuels (space heat) --Delivery fleet and company vehicles --Purchase of electricity

18. Carbon Footprint Kansas Baking Co., Inc. Greenhouse Gases & Carbon Footprinting CO 2  Select calculation approach --Documented emission factors --Mass balance for refrigerants

19. Carbon Footprint Kansas Baking Co., Inc. Greenhouse Gases & Carbon Footprinting CO 2  Collect data; choose emission factors --Utility bills for electricity and natural gas --Invoices for propane/fuel oil for plant combustion --Refrigerant released records --Fleet fuel purchased, miles driven

20. Carbon Footprint Kansas Baking Co., Inc. Greenhouse Gases & Carbon Footprinting CO 2  Collect data; choose emission factors Utility bills for electricity used and natural gas purchased --Bakery: 12,562,156 kWh, 465,890 therms natural gas --Distribution centers: 56,251 kWh, 34,870 therms natural gas Invoices for propane and fuel oil for plant combustion --Bakery: 3,500 gal propane Refrigerant released records --Bakery: 153 lbs R-404A

21. Carbon Footprint Kansas Baking Co., Inc. Greenhouse Gases & Carbon Footprinting CO 2  Collect data; choose emission factors Fleet fuel purchased or miles driven --Distribution fleet1,500,000 miles, 215,000 gallons diesel --Route fleet3,500,000 miles, 500,000 gallons diesel --Company cars250,000 miles, 12,500 gallons

22. Carbon Footprint Kansas Baking Co., Inc. Greenhouse Gases & Carbon Footprinting CO 2  Collect data; choose emission factors Emission factors --GHG Protocol worksheets  Purchased electricity  Stationary combustion of fossil fuels  Mobile sources --CO 2 equivalent factor for refrigerants

23. Carbon Footprint Kansas Baking Co., Inc. Greenhouse Gases & Carbon Footprinting  Apply calculation tools

24. Carbon Footprint Kansas Baking Co., Inc. Greenhouse Gases & Carbon Footprinting  Apply calculation tools

25. Carbon Footprint Kansas Baking Co., Inc. Greenhouse Gases & Carbon Footprinting  Apply calculation tools

26. Greenhouse Gases & Carbon Footprinting Carbon Footprint Kansas Baking Co., Inc.  Apply calculation tools

27. Greenhouse Gases & Carbon Footprinting Carbon Footprint Kansas Baking Co., Inc. CO 2  Apply calculation tools Refrigerants --Releases of 153 lbs R 404a --Global warming potential of 404a is 3,922 lbs CO 2 e --CO 2 e= (153 lb 404a) x (3,922 lbs CO 2 e/lb 404a) = 600,006 lb CO 2 e = 272.757 tonnes CO 2 e

28. Greenhouse Gases & Carbon Footprinting Carbon Footprint Kansas Baking Co., Inc. CO 2  Roll-up data to corporate level Scope 1 Fuel Combustion2,988.409 tonnes CO 2 e Fleet Operations7,371.931 tonnes CO 2 e Refrigerant Releases 272.757 tonnes CO 2 e Scope 2 Purchased Electricity 11,281.815 tonnes CO 2 e

29. Greenhouse Gases & Carbon Footprinting Carbon Footprint Kansas Baking Co., Inc. 21,914.912 tonnes CO 2 e CO 2

30. Greenhouse Gases & Carbon Footprinting  What are the standards? GHG Protocolwww.ghgprotocol.orgwww.ghgprotocol.org Climate Saverswww.epa.gov/climatesaverswww.epa.gov/climatesavers Regional GHG Initiativewww.rggi.orgwww.rggi.org ISO 14064www.iso.orgwww.iso.org

31. Questions