1. NRG 173: Carbon Footprints for Climate Action in Complex Organizations Spring Term 2011 Class 11 of 20 May 5, 2011 Kelly Hoell Good Company Eugene, OR

2. overview discuss assignment #1: carbon footprint and personal climate action plan discuss context for why supply chain emissions matter dive in to EIOLCA.net!

3. objectives review lessons learned from first assignment; develop a list of climate action opportunities understand context for supply chain emissions and why they are important learn to use a public-domain tool to understand supply chain emissions and inform the life-cycle of various products/industries

4. personal carbon footprint and CAP Grades and documents with tracked changes sent by e-mail. REMEMBER: you can re-write assignment to get full credit! All good docs go through iterations! This time: no points taken off for failure to send as PDF and Word doc; not including NRG 173 in subject line of e-mail; not including name or initials in document title. That will not be the case next time… Assignments not optional – must be completed. 10% taken off for late assignments.

5. supply chain: two views of US emissions calculate emissions Source: EPA’s Opportunities to Reduce Greenhouse Gas Emissions through Materials and Land Management Practices

6. they might be big they may show you additional opportunities for climate action or climate influence they may be directly tied to your organization’s mission or business model they might help you understand your organization’s cost-of-carbon risk Why do supply chain emissions matter? sense of scale for supply chain emissions

7. national emissions: USA + ~3-21% “Embodied Emissions of Trade” (Net) sense of scale for supply chain emissions

8. community emissions: Portland Metro sense of scale for supply chain emissions

9. 9/23/20159 absolute emissions: City of Hillsboro sense of scale for supply chain emissions

10. 9/23/201510 absolute emissions: OHSU sense of scale for supply chain emissions

11. options to quantify embodied emissions Building for Environmental and Economic Sustainability (BEES) Inventory of Carbon & Energy (ICE) of Building Materials process life-cycle assessment (PLCA) Economic Input-Output Life-Cycle Assessment (EIOLCA) supply chain emissions methodology

12. supply chain carbon: EIOLCA powerful web-based, public-domain tool –translates economic activity into GHG emissions (and other things) –easy to use (especially compared to the alternative) –free, based on deep research, continually updated –Website: http://www.eiolca.net/ Economic Input-Output (EIO) = –model of the US economy (and others too!) –includes 428 economic sectors (explore them all!) –based on 2002 data Lifecycle Assessment (LCA) = –details from academic and technical literature on GHG emissions (and other impact categories) supply chain emissions methodology

13. words of caution EIOLCA has limitations –a chainsaw, not a scalpel; don’t end up a bloody mess! –results capture national averages –cannot compare products within one sector –2002 data set: Inflation correction –trade not included (yet) opportunities to avoid EIOLCA altogether –if you have narrower needs with easily available data (e.g., ICE for construction materials) –if your supply chain constitutes a small portion of overall emissions (example coming) supply chain emissions methodology

14. using EIOLCA we used one equation when we wanted to calculate total cost-of-carbon financial risk we use a different one when converting dollars into CO2e

15. approach: converting dollars to CO 2 e $ = expenditure CO 2 e/$ = “carbon intensity” of expenditure CO 2 e = final estimate of total emissions in expenditure repeat this equation for each category of purchases supply chain emissions methodology

16. scope 3: supply chain calculate emissions 1.data: annual expenses by purchasing category –source: accounting department, expense report, etc. 2.emissions factors: MT CO 2 e / $ or quantity –Carnegie Mellon, Green Design Institute’s Economic Input-Output Life-cycle Assessment Model: eiolca.net –Bath University’s Inventory of Carbon and Energy (ICE) –Athena Institute –NREL: U.S. Life-cycle Inventory Database 3.unit conversions: inflation correction –Consumer Price Index –Turner Building Cost Index

17. 9/23/201517 What is analyzed in EIOLCA? supply chain emissions methodology

18. EIOLCA: an introduction key point: every sector of the economy consists of itself and bits of a bunch of other sectors

19. 9/23/201519 EIOLCA example: construction expenses The municipal government of Anywhere, OR spent $1,000,000 in construction expenses. What are the estimated upstream emissions from this construction? supply chain emissions methodology

20. EIOLCA: example supply chain emissions methodology

21. EIOLCA: example supply chain emissions methodology

22. EIOLCA: example Results: $1 million dollars of purchased “Nonresidential commercial and health care structures” (2002 dollars) results in 566 MT CO 2 e emitted in the supply chain (up to the point of purchase). supply chain emissions methodology

23. EIOLCA: example

24. examples: three industry sectors coal mining tire manufacturing flour milling Question: What does a GHG inventory of a certain thoroughness tell us? Or put it this way: how much of a sector’s life-cycle GHGs are in Scopes I and II?

25. Feel free to contact me: Kelly Hoell kelly.hoell@goodcompany.com (541) 341-GOOD (4663), ext. 217 Have a good weekend!