Knowing the Carbon Footprint of Organization
Carbon Footprint of Organization (CFO) is the quantity of GHG emissions and removals as a result of an organization’s activities, demonstrated in terms of tonne or kilogram of carbon dioxide equivalent.
The CFO is recognized as an important tool in quantifying and reporting GHG emissions and removals from an organization’s activities and is applicable for both public and private organizations (i.e. Government agencies, industries and services). The CFO can deliver explicit reporting, international standardized verification and utility basis in setting an organization’s GHG emissions reduction target, management and conducting GHG reduction initiatives at various levels, including organization, sector and country. Apart from that, the CFO can also expand its role to promote a low-carbon concept for the organization or low emission products manufacturing by improving its facilities and practice as well as carbon offsetting.
The Thailand Greenhouse Gas Management Organization (Public Organization) or TGO has promoted the CFO implementation project focused on promoting targeted organizations in conducting their GHG disclosure and verification. The project aims to follow tasks, including, 1) capacity building on quantifying GHG emissions and removals from production processes and services in order to initiate effective GHG reduction approaches for organizations, 2) strengthening environmental performance and building up capability on global market competitiveness of organizations for both industrial and business sectors, and 3) preparing GHG reporting readiness for industries and services in case that the government has to deploy the mandatory GHG reporting policy in the future and to create accessibility for the Thai voluntary carbon market.
Conducting a CFO an organization to consolidate its GHG emissions and removals into its inventory within its operational boundary. These GHG emissions and removals can be categorized into 3 scopes which are,
Scope 1, Direct GHG emissions/ removal include GHG emissions/removal from sources owned or controlled by the organizationsuch as stationary combustion, mobile combustion, fugitive emissions and others
Scope 2, Energy indirect GHG emissions are GHG emissions from the generation of purchased electricity, heat or steam consumed by the organization
Scope 3, Other indirect GHG emissions are GHG emissions other than energy indirect emissions resulting from an organization’s activities, but arising from sources that are owned or controlled by other organizations.
Which organizations can conduct the CFO
The CFO is applicable for all those organizations intending to increase their process efficiency, to reduce their operation cost and GHG emissions. Organizations conducting CFO can identify the hot spot emissions sources from their activities and explore their relevant mitigation approaches.
At the international level, large organizations have recognized and conducted CFO in order to demonstrate their environmental and social responsibility through relevant climate action, such as public disclosure of sustainability information or annual report to Carbon Disclosure Project (CDP) and Down Jones Sustainability Indices (DJSI) via CDP information. The DJSI then conduct their ranking and provide this information for those investors who are interested long term investment on those businesses focusingon sustainability.
The Thai CFO quantification standard
The Thailand Greenhouse Gas Management Organization (Public Organization) or TGO has developed the CFO quantification guidelines for those Thai companies that intend to quantify and certify their CFO under the TGO’s CFO scheme. These guidelines were developed in accordance with ISO 14064-1, Greenhouse gases - Part 1: Specification with guidance at the organization level for quantification and reporting of greenhouse gas emissions and removals.
Apart from that, to increase the CFO scheme’s reliability and credibility, TGO has initiated a third party verification system in accordance with ISO 14065. The CFO verification shall be conducted by eligible legal entities accredited by an accreditation system conforming to and recognized by the International Accreditation Forum or the Thai National accreditation body, the National Standardization Council of Thailand.