Welcome back to our continuing journey into sustainability and environmental

innovation. Today, we focus on one of the most urgent, practical, and action-driven
aspects of our climate responsibility—Carbon Footprint Management.
Let’s start with a question:
Do you know how much carbon was emitted to make your breakfast this morning?
The toast, the eggs, the coffee—all of these have hidden emissions behind them:
from farming, packaging, transport, refrigeration, and even your own stove.

This is what we call a carbon footprint—the total greenhouse gas emissions

associated with a product, service, or activity, measured in carbon dioxide equivalent
(CO₂e).
Why Does Carbon Footprint Management Matter?
We’re now living in a climate-critical decade. If we want to limit global warming to
below 1.5°C, we must halve global emissions by 2030 and reach net zero by 2050.

But here's the truth:

"We cannot reduce what we do not measure."

That’s why learning how to manage carbon footprints is so important—not just for
climate scientists, but for you—the next generation of product designers, engineers,
 business owners, and sustainability champions.
Singapore Context: What Are We Doing?
In Singapore, the Carbon Pricing Act is already in force, and businesses that emit over
25,000 tonnes of CO₂e per year must report and pay carbon tax.

Carbon footprint management is no longer a “good to have”—it’s a compliance

requirement and a business opportunity.

Green jobs are growing, carbon consultants are in demand, and even companies like
DBS, Grab, and Shopee are disclosing their carbon impact and working toward net
zero.
Final Thought: Your Role as a Student and Future Leader
"Carbon footprint management is not just about numbers on a spreadsheet—it’s
about making invisible emissions visible, so that we can change the way we design,
build, sell, and live.

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Before we dive into the technical aspects of carbon footprint management, let’s take a
moment to understand what you’re expected to learn and take away from this
chapter.
By the end of this session, you should be able to:

1. Understand the significance of carbon dioxide and greenhouse gas concentrations in

the atmosphere.
We’ll examine how GHG emissions contribute to climate change, why the 1.5°C
warming limit matters, and how rising emissions affect global systems—from
extreme weather to sea-level rise.

2. Identify and describe the seven key greenhouse gases.

These include carbon dioxide (CO₂), methane (CH₄), nitrous oxide (N₂O), and
fluorinated gases like HFCs, PFCs, SF₆, and NF₃. You’ll learn where they come from—
such as fossil fuel burning, agriculture, and refrigerants—and their relative global
warming potentials (GWP).

3. Explain what “CO₂ equivalent” or CO₂-eq means.

This concept allows us to compare the climate impact of different gases on a
common scale. For instance, one tonne of methane has 25 times the warming effect
 of one tonne of carbon dioxide.

4. Relate carbon footprint management to global climate goals.

You’ll understand the purpose of the Paris Agreement and how countries like
Singapore contribute through their Nationally Determined Contributions (NDCs),
including carbon tax and net-zero targets.

5. Measure emissions using the Greenhouse Gas Protocol.

We’ll cover Scope 1, Scope 2, and Scope 3 emissions—what they are, how to identify
them, and how businesses collect and calculate this data.

6. Understand and apply international standards like ISO 14064.

These provide a structured, auditable method for quantifying, reporting, and
verifying emissions. It’s especially relevant for companies that want to meet
regulatory or investor expectations.

7. Calculate carbon footprints using real-world activity data.

You’ll learn how to use emission factors to convert activities like electricity use or
business travel into tonnes of CO₂e, using data like fuel consumption, invoices, and
utility bills.

8. Understand how businesses use carbon data to take action.

Carbon footprinting supports decarbonisation. It helps companies plan emissions
reductions, communicate climate efforts, improve operational efficiency, and comply
with sustainability reporting frameworks like CDP, TCFD, and SBTi.

These outcomes are more than academic—they equip you to engage meaningfully in
climate action and to bring sustainability thinking into your future careers, no matter
the industry.

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Let’s begin by taking a closer look at the first chart, titled “Global Monthly Average
Carbon Dioxide Concentration.”

What you’re seeing here is a consistent upward trend in the concentration of carbon
dioxide (CO₂) in the atmosphere from 1980 to 2020.

In 1980, the average global CO₂ level was just under 340 parts per million (ppm). By
2020, it has exceeded 410 ppm. That’s nearly a 21% increase in just 40 years.
Notice the “wiggly” pattern on the graph—those are seasonal variations, but the overall
direction is clearly upward, which scientists call the Keeling Curve. This tells us one
critical message:
"Human activities—like burning fossil fuels, deforestation, and industrial processes—are
consistently releasing more greenhouse gases into the atmosphere than the Earth
can absorb."

Now let’s connect this to the second chart, which shows Annual Global Greenhouse Gas
Emissions in Gigatonnes of CO₂-equivalents and the different climate futures
depending on our choices.

We see four main trajectories:

• No Climate Policies (in pink) – If we take no action, emissions continue to rise and
we're looking at 4.1 to 4.8°C warming by 2100.
• Current Policies (orange) – Even with the policies in place today, we still end up with
2.5 to 2.9°C warming, far beyond safe levels.
• Pledges & Targets (blue) – If countries fulfill their current commitments, we may
limit warming to around 2.1°C.
• 1.5°C Pathway (green) – The most optimistic scenario, where emissions decline
rapidly and reach net-zero by around 2050, keeping warming under the most critical
threshold.

What Does the 1.5°C Target Mean?

The 1.5°C goal comes from the Paris Agreement, where nearly every country agreed to
limit global warming to “well below 2°C” and pursue efforts to limit it to 1.5°C.
But this isn’t just a random number.

Scientists, including the IPCC, have shown that warming beyond 1.5°C brings drastically
higher risks, such as:
More extreme heatwaves, droughts, and floods
Faster ice sheet melting and sea level rise
Greater loss of biodiversity and food insecurity
Tipping points that could lead to irreversible climate feedback loops

Correlation Between the Two Charts

So how are these two charts related?
The first chart tells us how much CO₂ is building up in the atmosphere.
The second chart shows us the consequences of that buildup depending on what we do
next.
More emissions → higher concentra ons → greater warming.

It’s a clear cause-and-effect relationship, supported by decades of climate science and

atmospheric data.
The longer we allow GHG concentrations to rise unchecked, the more we lock in higher
temperatures, and the more difficult and expensive it becomes to reverse the
damage.
Understanding these graphs is the first step. What comes next is applying this knowledge
to track emissions, design low-carbon systems, and help your future employers or
businesses stay on the 1.5°C path—not the 4°C disaster.

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In this section, we’re going to explore the seven major greenhouse gases, or GHGs,
identified under the Kyoto Protocol. These gases all contribute to global warming—
but not all in the same way. Some are naturally occurring, others are synthetic. Some
stay in the atmosphere for a decade, others for thousands of years.
Let’s dive into each one—and more importantly, understand where they come from and
how we can tackle them in real-world business and industrial settings.
1. Carbon Dioxide (CO₂)
Let’s start with the most well-known gas—carbon dioxide. CO₂ is released when we burn
fossil fuels like coal, oil, and natural gas.
Think of power plants, vehicle exhaust, or industrial furnaces. Even deforestation
adds to the problem because fewer trees means less CO₂ is absorbed.
In Singapore, we generate over 95% of its electricity from natural gas. The power and
manufacturing sectors are our biggest CO₂ emitters. Companies like Sembcorp
Industries and Keppel are investing in solar farms and importing low-carbon
electricity through regional power grids to reduce CO₂ emissions.
What can we do?
We can reduce CO₂ emissions by switching to renewable energy like solar and wind,
increasing energy efficiency, and using technologies like carbon capture and storage
that trap CO₂ before it reaches the atmosphere.
2. Methane (CH₄)
Methane is over 25 times more potent than CO₂ over a 100-year period.
It comes from gas pipeline leaks, rice paddies, livestock digestion, landfills, and even
sewage.
Solutions?
Install anaerobic digesters to turn methane into biogas, seal off landfill sites, improve
farm waste management, and use AI and IoT solutions for pipeline leak detection.

3. Nitrous Oxide (N₂O)

This one’s common in agriculture. Farmers use nitrogen-based fertilisers, which break
down and release N₂O. It’s also found in aerosol products and some combustion
processes e.g. Vehicle Tailpipe.
To reduce N₂O:
Encourage precision agriculture—using just enough fertiliser. We can also shift to
organic composting and invest in low-emission vehicles (e.g. electric vehicle) that
produce fewer N₂O by-products.

4. Sulphur Hexafluoride (SF₆)

SF₆ is a synthetic gas used as an insulator in electrical switchgear. It's extremely
effective—but also one of the most potent GHGs, with a global warming potential
over 23,000 times that of CO₂.
What’s the fix?
Use alternatives like green gas (g³) or sealed switchgear, and make sure SF₆ is
recovered and recycled instead of vented into the atmosphere.

5. Hydrofluorocarbons (HFCs)
You’ll find HFCs in air conditioners, refrigerators, and fire extinguishers. Though better
than CFCs, they’re still serious contributors to climate change.
How to reduce?
Use natural refrigerants like CO₂ or ammonia, and phase out high-GWP HFCs in line
with the Kigali Amendment. Also, proper recycling of appliances prevents HFC leaks.

6. Perfluorocarbons (PFCs)
These are released mostly in aluminium production and semiconductor manufacturing.
They persist in the atmosphere for thousands of years.
Industry can act by:
Improving smelting processes, using plasma abatement, or installing scrubbers and
thermal oxidisers to break down the gases before they escape.
In Singapore, we don’t produce aluminium, but PFCs are emitted by semiconductor
plants in Singapore.
Companies like GlobalFoundries and Micron are taking steps to minimise PFC
emissions with plasma abatement systems and by recycling process gases.

7. Nitrogen Trifluoride (NF₃)

NF₃ is used in producing electronic goods like display screens and solar panels. It’s 17,000

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 times more warming than CO₂ and rising due to tech demand.
What to do?
Replace it with lower-impact alternatives, ensure tight leak control, and apply
thermal destruction units to neutralise the gas after use.

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Before we go deeper into carbon accounting and greenhouse gas management, we need
to understand two very important terms that will appear throughout this chapter:
• CO₂-equivalent (CO₂-eq)
• Global Warming Potential (GWP)
Let’s break them down

What is Global Warming Potential (GWP)?

GWP is a measure that tells us how much heat a greenhouse gas traps in the
atmosphere over a specific period—usually 100 years—compared to carbon dioxide
(CO₂).
By definition:
Carbon dioxide has a GWP of 1.
Other gases are compared against this baseline.

Let me give you a few examples:

Methane (CH₄) has a GWP of about 25. That means 1 tonne of methane warms the
planet 25 times more than 1 tonne of CO₂ over 100 years.
Nitrous oxide (N₂O) has a GWP of around 298.
Some synthetic gases like SF₆ have GWPs over 23,000!
This is why even small leaks of certain industrial gases can be more harmful than tons of
 CO₂ emissions.

What is CO₂-equivalent (CO₂-eq)?

Now, to make reporting and comparison easier, we convert all GHG emissions into a
common unit: carbon dioxide equivalent.
CO₂-eq tells us:
“How much CO₂ would have the same warming effect as this other gas?”
In other words:
CO₂-eq = amount of gas emitted × its GWP

Example:
If a factory releases 10 tonnes of methane, the CO₂-equivalent would be:
10 × 25 = 250 tonnes of CO₂-eq
This lets us compare and add up different greenhouse gases on a single scale—very
useful for carbon footprinting, national inventories, or climate reporting.

Now, so why does this matter?

Companies, governments, and organisations need to track all types of emissions, not just
CO₂.
Using GWP and CO₂-eq:
• Helps standardise carbon accounting
• Makes multi-gas emissions comparable
• Informs better policy, pricing, and reduction strategies
So remember:
• GWP is the impact rating of the gas.
• CO₂-eq is the standardised unit used to report emissions.
Both work hand-in-hand to help us understand and manage climate impact accurately.

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We’re diving into one of the most pivotal international agreements that shapes global
climate action—the Paris Agreement, adopted in December 2015 at the COP21 UN
Climate Conference in Paris, France.

1. Limiting Global Warming to 1.5°C

At the heart of the Paris Agreement is the goal to:
“Hold the increase in global average temperature to well below 2°C above pre-industrial
levels, and pursue efforts to limit the temperature increase to 1.5°C.”
The difference between 1.5°C and 2°C is not small—it can determine the survival of
entire ecosystems, low-lying island nations, and millions of vulnerable people.
A rise beyond 2°C increases the risk of:
• Heatwaves becoming deadly
• Coral reefs dying off
• Crop yields declining
• More intense and frequent natural disasters
The UN Intergovernmental Panel on Climate Change (IPCC) reports that global emissions
must be halved by 2030 and reach net-zero by 2050 to stay within 1.5°C.

2. Net Zero Emissions Between 2050 and 2100

The agreement urges countries to reach peak greenhouse gas emissions as soon as
 possible, and achieve a balance between emissions and removals (this is what we
call net-zero) in the second half of this century.
Countries are encouraged to act based on their “common but differentiated
responsibilities and respective capabilities”—recognising that while climate change
affects everyone, not all countries contributed equally to the problem.

3. Nationally Determined Contributions (NDCs)

Under the Paris Agreement, every country must submit a plan called a Nationally
Determined Contribution, or NDC.
These are national action plans that outline how each country will reduce greenhouse gas
emissions, and adapt to climate change impacts.
Important features of NDCs:
• They are country-led, reflecting national priorities and contexts.
• They must be submitted every 5 years and become progressively more ambitious.
• Countries must report transparently on progress through a common enhanced
transparency framework.
Singapore’s NDC commits to:
• Peak emissions by 2030 (65 MtCO₂e)
• Halve emissions by 2050
• Achieve net-zero emissions by 2050
4. Cooperation Between Nations
The Paris Agreement introduces voluntary cooperation through:
• International carbon markets (Article 6)
• Non-market approaches like joint research, knowledge transfer, and sustainable
development strategies
This flexibility allows developed and developing countries to work together—one might
fund a renewable energy project in another country and claim some of the emission
reductions.
The goal is to drive cost-effective global reductions while supporting low-emission
development.

5. Finance, Technology, and Capacity Building

According to the United Nations Framework Convention on Climate Change (UNFCCC),
the Paris Agreement recognises that developing countries need support to transition
to low-carbon economies and to build resilience to climate change.
Therefore:
• Developed countries are expected to provide USD 100 billion per year in climate
finance until 2025 (with a new goal beyond 2025).
• Funding includes grants, concessional loans, equity, and guarantees
• Technology development and transfer is supported through the Technology
Mechanism
• Capacity-building initiatives help developing countries strengthen their institutional
and technical capabilities

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 6. Adaptation & Resilience
The agreement places equal importance on adaptation as on mitigation.
Nations are asked to:
• Develop National Adaptation Plans
• Share knowledge on climate risks
• Enhance early warning systems, climate-resilient infrastructure, and disaster
preparedness
• For vulnerable countries—like small island states and least developed nations—these
measures are vital to prevent loss of life and damage to livelihoods.

7. Global Stocktake
Every five years, starting in 2023, the Global Stocktake will assess collective progress
toward achieving the Paris Agreement's long-term goals.
This process:
• Informs countries' next NDCs
• Encourages transparency and accountability
• Drives ambition across all sectors
In summary,
• the Paris Agreement is a legally binding global framework to limit global warming to well
below 2°C, ideally 1.5°C
• It establishes a cycle of ambition, action, and transparency
• It requires all nations to take action, while offering support to developing countries
• It encourages collaboration through finance, technology, and capacity-building
• And it aims to build a future that is both climate-resilient and low-carbon

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In this segment, we’ll take a close look at Singapore’s Nationally Determined
Contributions (NDCs)—that is, the climate action plans Singapore submitted to the
United Nations Framework Convention on Climate Change (UNFCCC) between 2015
and 2025.
These NDCs are Singapore’s official pledges under the Paris Agreement to reduce its
greenhouse gas emissions and contribute to global climate efforts.

Let’s walk through the key milestones and targets year by year.
• 2015: First NDC Submission
Singapore submitted its first NDC in July 2015, ahead of the Paris Agreement.
The main commitment was:
• Reduce Emissions Intensity by 36% from 2005 levels by 2030.
• Emissions intensity refers to the amount of carbon dioxide emitted per
dollar of GDP. So this target meant that even if the economy grows, the
emissions per unit of economic output would fall significantly.
In addition:
• Stabilise emissions with the aim to peak around 2030.
This showed Singapore’s intention to allow emissions to grow in the short term, but to
stop increasing them after 2030.
This submission reflected Singapore’s national constraints: we are a small, densely
 populated country with limited land, no natural renewable energy sources like hydro
or wind, and high dependency on imported fossil fuels.
• 2020: Enhanced NDC Submission
In March 2020, Singapore updated and enhanced its NDC, as required by the Paris
Agreement.
This submission included a clearer absolute target:
Singapore will limit its greenhouse gas emissions to 65 million tonnes of CO₂-equivalent
(MtCO₂e) by 2030.
This marked a shift from a relative “intensity-based” target to an absolute emissions cap,
which allows for clearer measurement and comparison.
Additionally, Singapore reaffirmed:
• Its intention to peak emissions by 2030
• Continued use of market-based mechanisms, such as carbon trading
• Stronger investments in research and innovation, and energy efficiency
This enhanced NDC showed greater transparency, alignment with the UN's common
reporting formats, and Singapore’s readiness to be part of global climate leadership.

• 2021–2022: National Initiatives to Support NDCs

During this period, Singapore introduced or strengthened several policies that support its
NDC targets:
Carbon Pricing Act: Implemented in 2019, but in 2022, Singapore announced a
progressive increase in the carbon tax:
• From S$5/tonne to S$25/tonne in 2024
• Up to S$45 in 2026–27
• And potentially up to S$80 by 2030
GreenPlan 2030: Launched in 2021, it reinforces our NDC goals by setting sectoral targets
across energy, transport, buildings, and waste.
Electric Vehicles (EV) Roadmap: To phase out internal combustion engines by 2040, and
support EV infrastructure deployment.
Tuas Nexus and SolarNova projects: Major infrastructure efforts to decarbonise energy
and waste management systems.

• 2022: Announcement of Net Zero Target

In October 2022, during the UN Climate Change Conference, Singapore made a new
announcement:
Singapore will achieve net zero emissions by 2050.
This was formally submitted as part of Singapore’s Long-Term Low Emissions
Development Strategy (LEDS).
This decision aligns Singapore’s trajectory with the Paris Agreement’s global goal of
limiting warming to 1.5°C.
To support this:
• Singapore will halve emissions to 33 MtCO₂e by 2050, from the 2030 peak.
• Residual emissions will be neutralised through carbon capture and credible
offsets.

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• 2025 (Upcoming Submission)
By 2025, Singapore is expected to submit a new or updated NDC, in line with the Paris
Agreement’s 5-year cycle.
While details are not finalised yet, the 2025 NDC will likely:
• Reaffirm the 65 MtCO₂e 2030 cap
• Reflect carbon tax enhancements
• Incorporate sectoral decarbonisation strategies from energy, transport, and
industry
• Demonstrate implementation progress toward net-zero by 2050
Singapore’s NDC journey reflects a progressive shift:
• From relative intensity targets to absolute emissions caps
• From emissions “peaking” to net-zero commitments
• And from general policies to clearer, sector-specific strategies

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As a small, highly urbanised, and resource-constrained island nation, Singapore is
especially vulnerable to climate change—from rising sea levels to water insecurity
and extreme weather events.
But climate change isn't just a future problem. It’s already here—and we have a narrow
window to act.
To meet our national targets—peaking emissions around 2030 and achieving net-zero by
2050—Singapore needs every sector to play a part.
And that starts with leadership.

That’s why GreenGov.SG was launched—to position the public sector as a role model in
sustainability.
By walking the talk, the government can:
• Set a high standard for businesses and the private sector
• Drive market demand for greener products and services
• Build public trust by embedding sustainability into national systems and daily
operations
Most importantly, it sends the message that sustainability isn’t just a slogan—it’s
operational, measurable, and actionable.

EXCEL: Setting Ambitious Targets for the Public Sector

Under the EXCEL pillar, the public sector is committing to measurable performance
improvements:
• Reduce energy and water use by 10% by 2030, compared to average levels from
2018 to 2020.
• Reduce the amount of waste disposed of by 30% by 2030, using 2022 as the
baseline.
• Set even more ambitious goals than national targets in areas like:
• Buildings
• Information and communications technology (ICT)
• Public transport
• Solar deployment and energy use
These targets will apply to all public sector infrastructure and operations, including
schools, hospitals, military facilities, and government buildings.
The aim is clear: to lead by example, not by exception.

ENABLE: Shaping a Sustainable Economy and Citizenry

The ENABLE pillar is about using public sector influence to shape markets and behaviour:
• Government agencies are now required to buy products that meet high
sustainability or resource-efficiency standards.
• When awarding contracts, they must consider companies’ sustainability practices—
not just price or function. This encourages vendors to green their supply chains if
they want to do business with the government.
• It’s a smart way to push sustainability through procurement.
There’s also a focus on public education—showcasing sustainability practices in
community spaces like hawker centres and town centres, helping citizens see and
understand sustainability in action.

EXCITE: Empowering Public Officers to Lead the Change

Lastly, the EXCITE pillar is about motivating public servants to be change agents.
• Officers are encouraged to share best practices and implement ground-up solutions
in their agencies.
• Those with ideas are given support to prototype and lead green initiatives within
their teams or ministries.
This culture of innovation turns sustainability from a top-down directive into a bottom-
up movement—fueled by passion, creativity, and ownership.

In short:
• GreenGov.SG is about making the public sector a leader in climate action.
• It aims to peak emissions around 2025 and achieve net-zero around 2045—5 years
ahead of the national target.
• It is built on three pillars:
• EXCEL – Set bold and measurable targets
• ENABLE – Embed sustainability in procurement and community engagement
• EXCITE – Empower public officers to champion change

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Now, how might a company manage and reduce their carbon emissions in a structured
and effective way.

This slide presents a 6-step framework that you can apply whether you're working in a
manufacturing firm, logistics provider, tech company, or even in the public sector.
We’ll go step-by-step and relate it to real-world actions in a company.

Step 1: Measure Your Carbon Emissions

The first step is always to measure.
“You can’t manage what you don’t measure.”
This means collecting data about where emissions come from—things like:
• Electricity bills
• Fuel use
• Business travel
• Waste generated
• Emissions from your suppliers
This process is often called a GHG Inventory, and it helps the company understand
where emissions are highest, and what the risks and opportunities are.

Step 2: Set Emission Targets

Once you know your baseline, the next step is to set a reduction target. This could be:
• A percentage reduction over a period (e.g. 30% by 2030)
• Or an absolute target like “no more than 500 tonnes of CO₂e per year.”
Setting targets provides direction and accountability. It signals that the company is
serious about climate action.

Step 3: Reduce Absolute Emissions Within Operations First

Now this is key.
“Absolute emissions” refer to the total quantity of greenhouse gases a company emits,
regardless of production size or revenue.
This is different from “emissions intensity,” which measures emissions per unit of
output.
For example:
If your company emitted 1,000 tonnes of CO₂ last year and 800 tonnes this year, your
absolute emissions have decreased by 200 tonnes.
At this stage, the company should focus on:
• Switching to renewable energy
• Improving energy efficiency
• Electrifying vehicle fleets
• Cutting unnecessary travel or waste
Important: Always try to reduce what you directly control before using any form of
offset.

Step 4: Use Carbon Credits to Remove What You Can’t Avoid

Sometimes, it’s not yet possible to fully eliminate all emissions—especially in industries
like aviation, construction, or chemicals.
This is where carbon credits come in.
A carbon credit represents one tonne of CO₂ removed or avoided elsewhere in the
world.
Companies can buy carbon credits to offset their unavoidable emissions, such as:
• Supporting a reforestation project in Indonesia
• Investing in wind farms in India
• Or funding methane capture in landfills
But remember: Offsets should only be used after you’ve reduced as much emissions as
possible.

Step 5: Continue Year-on-Year Improvements

Managing emissions isn’t a one-time activity.
Sustainability is a continuous long-term process. It is like running a marathon.
Companies should keep improving by:
• Setting new goals
• Expanding their reduction efforts to include suppliers (Scope 3 emissions)
• Working with logistics, packaging, or IT vendors to reduce upstream and downstream
impact
This ensures the company is constantly aligned with climate science, regulations, and

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 stakeholder expectations.

Step 6: Become a Champion in Your Industry

Finally, the goal is not just to comply—but to lead.
Becoming a climate champion means influencing your industry to do better.
You might:
• Share best practices
• Collaborate with industry groups
• Advocate for stronger standards or policy changes
• Inspire others in your workplace to take action
Whether you’re in operations, HR, marketing, or finance—everyone has a role to play in
building a low-carbon, sustainable future.

In summary, the 6-step framework:

• Measure your carbon emissions
• Set targets that align with science
• Reduce absolute emissions in your direct control
• Use carbon credits only to address what you can’t yet eliminate
• Improve year by year—especially across your value chain
• Lead by example and become a sustainability advocate in your industry

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Let’s take a closer look at one of the most widely used tools in carbon accounting—the
Greenhouse Gas Protocol, or GHG Protocol.
You’ll see this name mentioned in almost every corporate sustainability report, climate
target, and emissions disclosure standard. So what exactly is it?

What is the GHG Protocol?

The GHG Protocol is a global standard for measuring, managing, and reporting
greenhouse gas emissions.
It was developed through a partnership between:
• The World Resources Institute (WRI), and
• The World Business Council for Sustainable Development (WBCSD).
First released in 2001, it has since become the most widely adopted framework for
governments, businesses, and organisations around the world to account for their
emissions consistently and accurately.
Think of it as the “grammar guide” for carbon accounting—it tells you what counts, what
doesn’t, and how to calculate it properly.

What Does the GHG Protocol Do?

The GHG Protocol provides:
• Standardised definitions of Scope 1, 2, and 3 emissions

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• A step-by-step method for measuring emissions
• Guidance for setting emission reduction targets
• Tools to track emissions across your value chain
It also aligns with other global initiatives such as:
• The Paris Agreement
• Science Based Targets initiative (SBTi)
• CDP, ISO 14064, and the Task Force on Climate-related Financial Disclosures (TCFD)
What Are Its Main Standards?
The GHG Protocol has several key standards, including:
1. Corporate Standard
Helps companies measure emissions across Scope 1 (direct), Scope 2 (energy use), and
Scope 3 (value chain).
2. Scope 3 Standard
Provides detailed guidance on measuring upstream and downstream emissions that
occur outside a company’s operations.
3. Product Life Cycle Standard
Focuses on the full emissions impact of a product—from raw materials to disposal—
based on cradle-to-grave assessment.
4. Project Protocol
Designed to measure GHG reductions from specific climate projects, like a solar panel
installation or forest restoration.

Why is GHG Protocol Important?

• It gives companies a credible and comparable way to report emissions
• It helps businesses find emissions hotspots and improve operations
• It’s essential for setting and verifying science-based targets
• It is used in regulatory frameworks, investor assessments, and carbon pricing
schemes around the world

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How businesses can account for their greenhouse gas emissions using the internationally
recognised GHG Protocol framework.
This method is the most widely used standard in the world for carbon footprinting, and it
helps companies measure and report their climate impact consistently.
Let’s look at the visual framework in front of us. You’ll notice it’s split into three scopes—
Scope 1, Scope 2, and Scope 3—and arranged along the company’s value chain: from
upstream suppliers, through operations, to downstream customers.

What Are GHG Emissions?

First, remember that greenhouse gas emissions include not just CO₂, but also gases like
methane (CH₄), nitrous oxide (N₂O), and industrial gases like HFCs, PFCs, and SF₆.
Each gas has a different Global Warming Potential (GWP), and all can be converted
into a common unit—carbon dioxide equivalent (CO₂-eq)—for easy comparison and
reporting.

Scope 1: Direct Emissions

Scope 1 emissions are direct emissions that come from sources owned or controlled by
the company.
Examples include:
• Burning diesel or petrol in company-owned vehicles

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• Fuel combustion in on-site boilers or generators
• Refrigerant leakage from chillers or air-conditioning systems
• Emissions from chemical processes in manufacturing
These are the easiest to track, because they happen on-site and under direct control.
If your company owns a delivery fleet, the fuel those trucks burn is Scope 1.

Scope 2: Indirect Emissions from Purchased Energy

Scope 2 covers indirect emissions from the generation of purchased electricity, steam,
heating, or cooling that the company uses.
Even though these emissions happen off-site at the power plant, your company is still
responsible for them because you’re using the energy.

So if your office or factory consumes electricity from the national grid, the emissions
associated with generating that electricity fall under Scope 2.
This is especially important in places like Singapore, where the grid still relies heavily on
fossil fuels.

Scope 3: Indirect Emissions from Value Chain (Upstream + Downstream)

Scope 3 emissions are all other indirect emissions that occur as a result of your business
operations—but happen outside your own facilities or energy use.
They’re the most complex and often the largest part of a company’s carbon footprint.
Scope 3 is broken down into 15 categories, across upstream and downstream activities:

Upstream Activities
These are emissions before your company receives goods or services. Examples include:
• Purchased goods and services – emissions from the raw materials and
manufacturing of what you buy
• Capital goods – such as machinery or buildings
• Fuel- and energy-related activities – emissions from fuel extraction and refining,
even if not directly used by you
• Transportation and distribution – moving goods to your facility
• Waste generated in operations
• Business travel – flights, taxis, hotel stays for work trips
• Employee commuting
• Upstream leased assets – emissions from any assets you rent (e.g., co-working
offices)

Downstream Activities
• These are emissions that occur after:
• Transportation and distribution – delivering goods to customers
• Processing of sold products – e.g., if your product is an ingredient
• Use of sold products – how much energy or emissions result from customer
use
• End-of-life treatment – disposal, recycling, or incineration of your product
• Downstream leased assets, franchises, and investments your product or

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 service leaves your control. Examples include:

For example, if your company sells washing machines, the electricity used by customers
to run them for years counts as Scope 3 emissions under "Use of sold products."

Why Is This Important?

Using the GHG Protocol:
• Helps companies understand their full climate impact
• Builds trust and transparency with investors, regulators, and customers
• Prepares businesses for carbon tax, mandatory disclosures, and green finance
requirements
• Enables goal-setting and decarbonisation planning
Simply:
• Scope 1 is what you burn.
• Scope 2 is what you buy.
• Scope 3 is what you indirectly influence.

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Let’s take a deeper dive into what is often the largest and most complex category of
all—Scope 3 emissions, according to the GHG Protocol.

What Are Scope 3 Emissions?

Scope 3 emissions are all the indirect greenhouse gas emissions that occur in a
company’s value chain—but fall outside its direct control.
They’re often referred to as "value chain emissions", because they occur upstream
(before goods reach you) or downstream (after you sell your product or service).
While Scope 1 and 2 emissions are easier to measure, Scope 3 emissions can account for
over 70–90% of a company’s total carbon footprint, especially in sectors like retail,
manufacturing, finance, and logistics.

The GHG Protocol Defines 15 Scope 3 Categories

Let’s go through them—divided into Upstream and Downstream emissions.

Upstream Emissions (Before Products Reach You)

These are emissions that happen before the company takes ownership of the goods or
services.
Cat 1. Purchased Goods and Services
The emissions from producing the raw materials and goods you buy—from packaging to

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 paper to IT equipment.
Example: The CO₂ emitted during the production of your office paper or T-shirts
manufactured overseas.
Cat 2. Capital Goods
Emissions from making long-term assets like machinery, vehicles, or buildings.
For example, a construction company must account for emissions from buying cranes or
cement mixers.
Cat 3. Fuel- and Energy-Related Activities (Not Included in Scope 1 or 2)
Covers emissions from the extraction, refining, and transport of fuels or energy before
you even use it.
Think of the emissions involved in extracting natural gas or shipping oil.
Cat 4. Upstream Transportation and Distribution
Emissions from suppliers moving goods to you—whether by ship, truck, or plane.
If your goods are imported from China, this category includes the freight emissions.
Cat 5. Waste Generated in Operations
Covers landfill, incineration, recycling—basically any emissions from disposing of waste
your company generates.
Includes food waste from cafeterias, packaging waste, or chemical waste from labs.
Cat 6. Business Travel
Emissions from air travel, hotel stays, car rentals, etc., for employee business trips.
A company flying staff to overseas meetings must account for emissions from those
flights.
Cat 7. Employee Commuting
Emissions from employees travelling between home and work.
Includes buses, cars, MRTs, and carpooling. Some companies promote hybrid work to
reduce this.
Cat 8. Upstream Leased Assets
If your company rents office buildings, equipment, or warehouses, and you don’t control
the energy used, this goes under Scope 3.

Downstream Emissions (After You Sell Your Product or Service)

These are emissions that occur after your product leaves your hands—right through to
its end-of-life.
Cat 9. Downstream Transportation and Distribution
Emissions from delivering your product to customers or retailers.
Example: A food manufacturer shipping frozen goods to FairPrice stores.
Cat 10. Processing of Sold Products
If your product is used as an input into another product, emissions from that processing
count here.
For instance, selling steel to a car manufacturer—emissions from shaping that steel
count.
Cat 11. Use of Sold Products
Emissions generated when customers use your product.
If you sell TVs, washing machines, or petrol—this includes electricity or fuel burned by
the end user.

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Cat 12. End-of-Life Treatment of Sold Products
Emissions from the disposal, recycling, or incineration of your product.
Includes packaging waste, electronic waste, or even clothing disposal.
Cat 13. Downstream Leased Assets
If you own assets but lease them out (like retail outlets or machines), and you don’t
control how they’re used, their emissions are Scope 3.
Cat 14. Franchises
If you’re a franchisor (e.g., in F&B or retail), emissions from the franchisee’s operations
are counted here.
For example, a chain like McDonald’s includes the emissions from franchised outlets
under Scope 3.
Cat 15. Investments
Relevant for financial institutions—emissions from companies they finance, insure, or
invest in.
For banks, this could be the emissions of all their loan portfolios or asset-backed
securities.

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How to apply the Greenhouse Gas Protocol to calculate emissions in two specific
sectors: retail and food preparation (such as restaurants).
We’ll walk through each part of the value chain, and classify the emissions into Scope 1,
Scope 2, and Scope 3, just as shown in this image.

1. For the Retail Sector

Imagine a grocery store or supermarket like NTUC FairPrice or Sheng Siong.
Here’s how we trace emissions across its value chain:
Upstream Scope 3
Before goods reach the store, emissions come from:
• Land use change – deforestation for farms
• Farm supplies – fertilisers, seeds, animal feed
• Farming – methane from livestock, diesel for tractors
• Transport & Processing – shipping produce to factories, energy for refrigeration
• Distribution – emissions from warehouses and trucks
• These are all indirect emissions from suppliers → Scope 3 (Upstream).
Scope 1 (Direct)
These occur within the store’s operations, under its direct control:
• Emissions from company delivery vans

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• Gas cooking appliances, if any
• Refrigerant leakage from chillers and air-con systems
This is the store’s Scope 1.

Scope 2 (Indirect - Energy)

This covers purchased electricity used to:
• Run air conditioning, chillers, lighting, and point-of-sale systems
Since the electricity is bought from the grid, this is Scope 2.

Downstream Scope 3
After the goods are sold:
• Transport – customers driving home with their groceries
• Food preparation and disposal – if products are used inefficiently or wasted at home
These are Scope 3 (Downstream) emissions—not controlled, but still influenced by the
company.

2. For Food Preparation – e.g., Restaurant or Catering Business

Now let’s look at a restaurant or hawker stall.
The upstream part is similar, but here's the distinction:
Upstream Scope 3
Includes emissions from:
• Land use change, farm inputs, and crop/livestock production
• Transportation, processing, and distribution of raw ingredients
Even before you cook the food, emissions have already occurred → Scope 3 (Upstream).

Scope 1 (Direct)
Emissions under direct control of the restaurant include:
• Gas stoves or grills
• Refrigeration systems leaking refrigerants
• Use of company-owned motorbikes for deliveries
These are counted under Scope 1.

Scope 2 (Energy)
Covers the electricity used to:
• Power kitchen equipment
• Lighting, air-conditioning, POS systems
Since this is electricity purchased, it’s Scope 2.

Downstream Scope 3
Even though the food is sold and consumed, more emissions happen:
• Transport – food delivery to customers (e.g., via foodpanda, Grab)
• Disposal – food waste sent to incineration or landfill
• Packaging – plastics or disposables used once and thrown away
All these are Scope 3 (Downstream).

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Using the GHG Protocol, we measure emissions across the entire value chain—not just
what we control, but what we influence.
• Scope 1 = What you directly burn or emit on site
• Scope 2 = Electricity you purchase
• Scope 3 = All upstream and downstream activities tied to your operations
The above examples show that by understanding the operations of a companies in the
retail and food sectors, we might be able to:
• Identify their biggest emissions sources
• Engage suppliers or customers to reduce carbon
• Report more accurately for their sustainability reporting requirement

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How to Apply the GHG Protocol in Practice
Here’s a simplified step-by-step process:
Step 1: Define your organisational boundaries
Choose whether to use:
• The operational control approach (you account for what you control),
• The financial control approach (you account for what you financially control), or
• The equity share approach (you account for your ownership percentage)
• Identify relevant emission sources
• Map out what Scope 1, 2, and 3 activities apply to your business. Not all 15
Scope 3 categories are always relevant—but many are.

Step 2: Collect activity data

Examples:
• Fuel consumption (litres)
• Electricity use (kWh)
• Number of business flights, kilometres travelled
• Tonnes of goods purchased or sold
Step 3: Apply emission factors
Multiply each activity by its emission factor to calculate CO₂e. You can use:
• IPCC emission factor databases
• Local government databases (e.g., EMA or NEA in Singapore)
• Vendor-provided or product-specific data

Step 4 (Optional): Consolidate and report

Group emissions into Scope 1, 2, and 3 categories. Present both absolute totals and
intensity metrics (e.g., kg CO₂e per unit sold).

15
Before a company can start calculating its carbon emissions, the very first step is to set its
organizational boundaries. This step defines which parts of the company you are
including in your carbon footprint, especially when it has complex ownership
structures, joint ventures, or subsidiaries.
This is crucial because who “owns” the emissions must be clear, consistent, and based
on a globally recognised standard.

The GHG Protocol provides us with two main approaches for setting these boundaries:

1. Control Approach
Under this method, the company includes 100% of the emissions from operations it
controls—even if it doesn’t own them entirely.
Control can be defined in two ways:

a) Operational Control
• The company has full authority to implement operating policies, environmental
procedures, or safety rules.
• This means it manages day-to-day decisions like energy use, procurement, or waste
disposal.
If you lease a warehouse and manage all its operations—you account for 100% of the

16
 emissions from that facility.

b) Financial Control
• The company can direct the financial and operating policies, even if it owns less
than 50%.
• Think of a situation where a company is the main investor or controlling partner in a
joint venture.
If you control budgeting and investment decisions, you include 100% of the emissions
even if your ownership is partial.

2. Equity Share Approach

The second option is the equity share approach, where a company reports emissions in
proportion to its ownership percentage in each operation or asset.
If your company owns 40% of a joint venture, you would report 40% of the emissions
from that facility.
This method is often used in the energy, finance, and infrastructure sectors, where
companies have many joint investments or partnerships.

For example: Let’s say you’re part of a hospitality group / conglomerate:

• You own and operate a hotel in Singapore → Operational control → 100% of
emissions are included
• You invest in a resort overseas, but a local partner runs it → Use equity share →
Include only your % of emissions
• You lease office space and have full access to manage energy use → Include 100%
under operational control
This method ensures emissions are neither double-counted nor ignored, especially in
complex corporate structures.

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 Now that we’ve set our organizational boundaries—the first step in carbon accounting—
the next step is equally important and often more challenging:

Step 2: Data Collection.

This is the phase where we begin to gather activity data that will be used to calculate our
greenhouse gas (GHG) emissions. The accuracy of this data is critical because every
tonne of emissions you report starts from these figures.

What Is “Activity Data”?

Activity data refers to the quantitative input that reflects an action or operation
responsible for emissions.

Examples include:

 Electricity consumption in kilowatt-hours (kWh)

 Fuel use in litres or cubic metres

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 Travel distances in kilometres

 Waste volume in tonnes

 Goods purchased or sold by weight, quantity, or dollar value

This data is then multiplied by emission factors to calculate your carbon footprint.

How to Collect Data: Real-World Practices

Let’s walk through common emission sources and how companies collect data for each
one:

1. Electricity (Scope 2)

 Source: Monthly utility bills

 What to collect: Total kWh used per building, per facility

 Real-life practice:
o In Singapore, companies use SP Services e-bill portal to download past
electricity data.
o Some large facilities install smart meters to track energy usage in real-time.

2. Fuel Use (Scope 1)

 Source: Fuel receipts or vehicle maintenance records

 What to collect: Litres of petrol, diesel, or gas used

 Real-life practice:

o Fleet operators like ComfortDelGro track vehicle fuel consumption using GPS-
based telematics.

o Maintenance logs also reveal fuel top-ups for generators.

3. Business Travel (Scope 3)

 Source: Expense reports, booking platforms

 What to collect: Type of travel, distance, class (economy, business)

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 Real-life practice:

o Companies use travel agency systems (e.g., AMEX GBT, CWT) to export travel
logs.

o In Singapore, many public agencies and MNCs track air travel emissions using
in-house dashboards.

4. Purchased Goods and Services (Scope 3)

 Source: Procurement or accounting records

 What to collect: Amount (weight or $ value) of goods purchased

 Real-life practice:

o Manufacturing companies tag supplier items with product category codes to

estimate carbon footprint using databases like Ecoinvent or DEFRA.

5. Waste Generated (Scope 3)

• Source: Waste disposal invoices from service providers

• What to collect: Weight (in tonnes), disposal method (recycled, incinerated, landfill)

• Real-life practice:

o In Singapore, vendors like 800 Super and SembWaste provide monthly waste
reports to clients with breakdowns by waste type and treatment method.

6. Transport and Distribution

 Source: Logistics partners, GPS systems

 What to collect: Freight distance (tonne-kilometres), mode of transport

 Real-life practice:

o Retailers like FairPrice and Shopee partner with third-party logistics providers
who supply freight emissions reports.

7. Employee Commuting

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 Source: HR surveys or travel card data

 What to collect: Mode of transport, average distance, number of commuting days

 Real-life practice:

o Companies in Singapore conduct employee travel surveys annually. Some use

EZ-Link or SimplyGo data to approximate MRT/bus usage.

Best Practices in Data Collection

 Centralise data collection – assign departments (e.g., Facilities, Procurement, HR) to

gather and report

 Use verifiable sources – always back data with receipts, invoices, or official logs

 Document assumptions – if you're estimating, explain the logic

 Aim for completeness over perfection – especially for Scope 3

 Engage suppliers early – they often hold the data you need

Step 2 in calculating GHG emissions is all about collecting reliable, complete activity
data from across your operations and value chain.

• By gathering this data systematically, companies can:

o Measure their emissions accurately

o Identify where to cut carbon

o And build confidence in their reporting

Let’s now move on to Step 3: Applying emission factors to calculate your carbon
footprint.

17
 Once we’ve collected our activity data in Step 2—such as how much fuel we used, how
far we travelled, or how much electricity we consumed—the next step is to convert
that data into greenhouse gas emissions.

That’s where Step 3: Multiply by Emission Factor comes in.

What Are Emission Factors?

An emission factor is a value that tells us how much CO₂ or other greenhouse gases are
emitted per unit of activity.

For example:

 Electricity: kg of CO₂ per kWh used

 Diesel: kg of CO₂ per litre burned

 Business flights: kg of CO₂ per passenger-kilometre

Emission factors are what translate actions into carbon emissions.

18
 So the basic formula is:

Emissions (kg CO₂e) = Activity Data × Emission Factor

How Do You Choose the Right Emission Factor?

To ensure accuracy, choose emission factors that match your:

1. Location – different countries and regions have different power grids, fuels, and waste
systems

2. Time Period – use emission factors from the same year as your activity data

3. Activity Type – make sure you're applying the right factor for the right action (e.g.,
don’t use aviation factors for bus rides)

Where to Get Emission Factors

Here are some reliable sources:

International EF databases:

 IPCC Guidelines – global default values

 UK DEFRA database – widely used international reference

 GHG Protocol – standard tools and default factors

Singapore-specific EF database:

 EMA (Energy Market Authority) – electricity emission factors

 NEA (National Environment Agency) – waste and water emission factors

 SEFR’s Net Zero Hub – tools with localised factors for small businesses

Software Tools:

 NetZeroHub, Sphera, Watershed, and CarbonCloud have emission factor libraries

built-in

 Excel calculators (e.g., from CDP, BSR, and GHG Protocol) allow custom factor input

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 Tips for Practice

 Always document which emission factors you used and where you got them

 Update regularly to reflect the most recent data (emission factors can change!)

 If local factors aren’t available, use regional averages or default international values

 When working with suppliers, ask if they have their own carbon footprint data or life
cycle assessments

Emission factors are the bridge between what we do and how much carbon it creates.

They let us convert raw data into measurable climate impact. Without them, our carbon
inventory would just be a list of numbers with no meaning.

18
Let’s now walk through a real-life example to show you how carbon emissions are
calculated using the GHG Protocol methodology.
We’re focusing on electricity consumption—one of the most common and important
sources of emissions for offices, retail, and factories in Singapore.

Step 1: Collect Activity Data

Activity data refers to the actual usage amount. In this case, it’s the total electricity
consumption.
Let’s say:
Your office consumed 100,000 kilowatt-hours (kWh) of electricity in the past year.
Where do you get this?
From your monthly utility bills provided by SP Services
Or your company’s energy management system if you use smart meters
It’s best to collect data per building or department to track hotspots and improvement.

Step 2: Find the Right Emission Factor

To convert electricity use into carbon emissions, we need an emission factor.
This tells us:
How much carbon dioxide equivalent (CO₂e) is released per unit of electricity used.
In Singapore, the national grid emission factor is published by the Energy Market

19
 Authority (EMA).
For 2023, the factor is:
0.412 kg CO₂e per kWh
Where to find this?
Visit the EMA website (https://www.ema.gov.sg)
Check under Energy Statistics > Carbon Emissions Factors
You may also find it cited in NEA’s sustainability reporting guides or GHG Protocol
Singapore references

Step 3: Multiply Activity Data × Emission Factor

Now we do the calculation:
100,000 kWh × 0.412 kg CO₂e/kWh = 41,200 kg CO₂e
Convert that to tonnes by dividing by 1,000:
41,200 kg = 41.2 tonnes of CO₂e
This means that your office's electricity use resulted in 41.2 tonnes of carbon emissions
for the year.

By doing this simple multiplication, we now:

Know exactly how much emissions our electricity is responsible for
Can start setting reduction targets—like using less electricity or installing solar
Can report this number in a sustainability report or GHG inventory

Final Tip
Always remember:
Use the latest available emission factor (updated yearly)
Make sure your activity data matches the same time period
Use location-specific factors for best accuracy—Singapore’s factor differs from Malaysia,
Australia, or the EU

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 Let’s now look at another practical example of how to calculate greenhouse gas
emissions, this time from the use of diesel fuel in delivery trucks.

This is especially relevant for logistics companies, food distributors, or any business with
a transport fleet.

Step-by-Step Calculation: Diesel Use in a Company Fleet

Step 1: Collect Activity Data

First, you need to know how much diesel your vehicles consumed over a specific period.

Let’s say:

Your company fleet used 5,000 litres of diesel last year.

Where do you get this?

 From fuel receipts or invoices at petrol stations

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 Fleet management systems that track fuel use

 Monthly fuel cards or telematics reports

Most logistics companies in Singapore use fleet cards (e.g., Shell or Caltex business cards)
to monitor usage centrally.

Step 2: Find the Right Emission Factor

Next, you need an emission factor to convert that fuel use into CO₂-equivalent (CO₂e).

An emission factor tells you how much CO₂ is released per litre of fuel burned.

For diesel fuel, a commonly accepted factor is:

2.68 kg CO₂e per litre

Where can you get this?

 IPCC Guidelines (International standard)

 UK DEFRA GHG Conversion Factors

 Singapore NEA’s Corporate Carbon Footprint Guidelines

The number may vary slightly based on region or fuel quality, but 2.68 is widely used for
typical road diesel.

Step 3: Multiply Activity Data × Emission Factor

Now do the math:

5,000 litres × 2.68 kg CO₂e/litre = 13,400 kg CO₂e

Convert that to tonnes by dividing by 1,000:

13,400 kg = 13.4 tonnes of CO₂e

So, your delivery fleet’s diesel use resulted in 13.4 tonnes of carbon emissions for the
year.

Why It Matters

Calculating emissions from fuel use helps your company:

20
 Understand the carbon cost of logistics

 Identify where to switch to EVs or hybrid vehicles

 Track progress in reducing emissions year by year

 Report Scope 1 emissions accurately to meet regulatory or sustainability standards

Summary

To calculate emissions from diesel:

1. Get the amount of fuel used (in litres)

2. Multiply by the emission factor (2.68 kg CO₂e/litre)

3. Convert kg to tonnes if needed

4. Record and report under Scope 1 – Direct Emissions

Remember: every litre saved through efficient routing, eco-driving, or vehicle upgrades
means less carbon released.

20
Let’s put your understanding into practice with a short quiz.

Scenario:
Your company owns a diesel-powered van that travels 150 kilometres per day.

It is used 5 workdays a week, and we are calculating emissions for one full month.

Your task is to calculate:

What will be the emissions from using this van for one month?

Take note of the formula shown at the bottom of the slide:

Carbon Emissions = Activity Data × Emission Factor

That’s:
Emissions (in kg CO₂e) = Distance travelled (in km) × Emission factor (in kg CO₂e/km)

21
Assumption
We’re assuming there are 20 workdays in a month—that’s based on 5 working days a week
over 4 weeks.

Step 1: Calculate total distance travelled

The van travels 150 km per day, and operates 20 days a month.
150 km/day×20 days/month=3,000 km/month

Step 2: Apply the Emission Factor

From the table, we know the emission factor for a diesel van is:
0.23156 kg CO₂e per km

So now we multiply:
3,000 km×0.23156 kg CO₂e/km=694.68 kg CO₂e per month

Step 3: Convert to Tonnes

Finally, let’s convert kilograms to tonnes:
694.68 kg CO₂e÷1,000=0.69468 tonnes of CO₂e/month

The van emits approximately 0.69468 tonnes of CO₂e per month just from fuel use.

22
This is a real, measurable impact. Imagine if the company has 10 vans—the monthly
emissions would be nearly 7 tonnes!

22
Let’s now talk about decarbonisation—a critical step toward meeting climate targets and
transitioning to a low-carbon economy.

Decarbonisation means reducing and eventually eliminating greenhouse gas emissions

from your operations, supply chain, and products.

It’s about moving away from fossil fuels and harmful practices, and embracing clean
energy, circular systems, and climate compensation tools.

There are two major approaches companies use today to accelerate decarbonisation:

• Renewable Energy Certificates (RECs)

• Carbon Credits

Renewable Energy Certificates (RECs)

RECs are used to offset Scope 2 emissions—the emissions from electricity you purchase.

Think of RECs as proof that clean energy was generated on your behalf.

When a renewable energy source like a solar farm or wind turbine generates 1

23
 megawatt-hour (MWh) of electricity, it creates 1 REC.

Even if your office runs on Singapore’s national grid (which still includes natural gas), you
can buy RECs from renewable sources—locally or internationally—to claim the
environmental benefits of green electricity.

Benefits of RECs:

• Help companies meet renewable energy goals

• Support the clean energy industry

• Often used by data centres, banks, and large property groups in Singapore

Note: RECs don’t directly reduce your electricity use, but they neutralise the emissions
impact by financing clean energy somewhere else.

Carbon Credits

Carbon credits are used to offset emissions you cannot reduce yet—especially Scope 1
(direct emissions like fuel burning) and Scope 3 (value chain emissions).

Each carbon credit represents 1 tonne of CO₂e removed or avoided through a verified
climate project.

These projects can include:

• Forest preservation or reforestation

• Renewable energy projects in developing countries

• Methane capture at landfills

• Efficient cookstoves for rural communities

Why companies use carbon credits:

• To achieve net-zero targets

• To offset emissions from air travel, deliveries, or industrial activities

• To support sustainable development goals (SDGs) while decarbonising

It’s important to buy high-quality credits that are:

• Verified (e.g., by Gold Standard, Verra)

• Permanent, additional, and traceable

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Combining Both Approaches

Many companies use RECs for Scope 2 and Carbon Credits for Scope 1 & 3 as part of a
comprehensive decarbonisation strategy.

But remember:

The best approach is always to reduce emissions at the source first, and use these
instruments to compensate only what you can’t yet avoid.

Decarbonisation isn’t just a technical step—it’s a leadership move.

Companies that embrace RECs and carbon credits today are not only reducing their
environmental footprint, but also gaining trust, complying with regulation, and
preparing for a low-carbon economy.

23
24
Now that we’ve covered what GHG accounting is and how it works, let’s take a step back
and ask:

“Why does this matter to businesses?”

The answer lies in the many ways GHG accounting supports strategic and sustainable
business growth.

Let’s go through the key uses one by one.

Strategic Planning and Risk Management

Greenhouse gas accounting helps companies:

• Understand their climate exposure—whether it’s rising carbon taxes, changing

regulations, or supply chain disruptions

• Identify which operations are carbon-intensive, and make plans to decarbonise

them

Example: A logistics company might realise that 70% of its emissions come from diesel

25
 fleets—prompting a shift to electric vehicles or route optimisation.

GHG data allows companies to plan ahead of regulations, manage long-term risks, and
respond to climate shocks with agility.

Improve Operational Efficiency

Measuring emissions often reveals hidden inefficiencies—like outdated machinery,

energy wastage, or underutilised assets.

A building with high electricity emissions might improve by upgrading its lighting or air-
conditioning systems.

With GHG accounting:

• You gain insights into resource usage

• You can reduce energy costs

• And often improve productivity and system performance

In other words, what’s good for the planet is often good for your bottom line too.

Attract Sustainability-Conscious Investors

Investors today aren’t just looking at profits—they’re looking at ESG performance

(Environmental, Social, and Governance).

Companies that publish their carbon footprint:

• Show transparency

• Signal commitment to long-term value creation

• Appeal to banks and investors offering green finance, ESG-linked loans, or impact
funds

For example, DBS and UOB in Singapore have dedicated sustainable finance products that
reward companies for tracking and reducing emissions.

Climate / Sustainability Reporting

GHG accounting is now a cornerstone of sustainability reporting—required or expected

by:

25
 • Global frameworks like CDP, GRI, SBTi, and the new ISSB standards

• Government agencies, especially in regulated industries

• Public and institutional stakeholders

In Singapore, listed companies on SGX are already required to disclose their climate-
related risks—and GHG emissions are a core part of that.

Accurate emissions reporting builds credibility and comparability in ESG disclosures.

Meet Regulatory Requirements

Finally, GHG accounting is increasingly becoming a compliance issue.

Governments around the world, including Singapore, are introducing:

• Carbon taxes

• Mandatory climate disclosures

• Sector-specific decarbonisation targets

Singapore’s Carbon Pricing Act currently applies to facilities emitting over 25,000 tCO₂e
annually—but smaller businesses are also being guided to start measuring.

Companies that adopt GHG accounting early are better prepared for future regulations
and can avoid last-minute scrambling or penalties.

To sum up:

GHG accounting is not just a reporting tool—it’s a strategic enabler for future-ready,
responsible, and high-performing businesses.

It helps organisations:

• Plan better

• Operate smarter

• Attract capital

• Build trust

• And stay compliant in a rapidly evolving climate landscape

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Now that we’ve talked about how companies measure greenhouse gas emissions, let’s
take it one step further and look at how these emissions—and other climate risks—
are reported publicly.

This is where Corporate Climate Reporting Standards come into play.

These frameworks are used by companies around the world to:

• Report their carbon footprint

• Set and track emissions reduction targets

• Communicate climate-related risks to investors and stakeholders

Let’s go through the major standards you see on this slide.

1. CDP

Formerly known as the Carbon Disclosure Project, CDP is a global platform where
companies voluntarily report their:

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 • GHG emissions

• Climate-related risks and opportunities

• Water and forest-related impacts

Over 18,000 companies disclosed to CDP in 2023, including many from Singapore.

CDP scores are often used by investors to assess how climate-conscious a company is.

2. TCFD – Task Force on Climate-related Financial Disclosures

TCFD provides a framework to disclose climate risks and opportunities in financial

terms.

It’s based on four pillars:

• Governance

• Strategy

• Risk Management

• Metrics and Targets

Singapore Exchange (SGX) requires all listed companies to align with TCFD
recommendations by 2025.

TCFD is now being consolidated into newer global frameworks like ISSB.

3. ISSB (IFRS S2)

This is the International Sustainability Standards Board’s global framework under the
IFRS Foundation.

• IFRS S2 focuses on climate disclosures

• It integrates elements from TCFD and GHG Protocol

• It aims to create a global baseline for corporate climate reporting

Starting 2024, many countries—including Singapore—are aligning their reporting rules

with ISSB standards.

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4. ISO 14064

This is a technical standard that guides how organisations:

• Quantify

• Report

• Verify their greenhouse gas emissions

It’s especially useful for companies undergoing third-party carbon audits or preparing for
carbon tax compliance.

ISO 14064 is globally recognised and often used alongside GHG Protocol for verification.

5. SBTi – Science Based Targets initiative

SBTi helps companies set climate targets aligned with climate science.

• It ensures companies are aiming to limit global warming to 1.5°C

• SBTi validates whether targets are credible and ambitious

• It requires companies to measure and reduce emissions across Scope 1, 2, and 3

Companies like DBS, CapitaLand, and Wilmar have all set SBTi-approved targets.

In Summary

Each of these standards plays a unique role:

• CDP is for disclosure and scoring

• TCFD/ISSB are for climate risk reporting

• ISO 14064 is for technical quantification and assurance

• SBTi is for setting future-focused, science-aligned targets

Together, they help businesses move from measurement, to reporting, to action—and

stay accountable in the global shift toward sustainability.

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What are some of the challenges and gaps in GHG Accounting

As more businesses begin tracking and reporting their greenhouse gas (GHG) emissions,
it's important to acknowledge that the process is not always straightforward.

Let’s go through some of the most common challenges and gaps that companies face
when implementing carbon accounting, particularly under the GHG Protocol.

1. Data Collection (Especially Scope 3)

The biggest challenge for most companies is simply getting the right data.

• Scope 1 and 2 data (like fuel use and electricity bills) are often available internally.

• But Scope 3 emissions—which come from the supply chain, product use, and
end-of-life treatment—are much harder to measure.

Why?

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 • Data often sits with suppliers, vendors, or even customers

• It may be incomplete, estimated, or unavailable

• Suppliers may be unwilling or unable to share data due to lack of systems or

knowledge

For example, trying to calculate emissions from the full life cycle of a product—when
suppliers are in different countries with no reporting systems—can be a major
hurdle.

2. Standardisation Issues

Even when data is available, inconsistent methods can make reporting unreliable.

• Different suppliers may report using different units or boundaries

• Emission factors may vary across regions or databases

• Companies may define terms or categories differently (e.g., “capital goods” or

“leased assets”)

Without clear standards, it becomes difficult to:

• Benchmark across companies or industries

• Aggregate data in a meaningful way

• Ensure comparability for investors or regulators

This is why there’s a push toward global alignment through frameworks like ISSB, ISO
14064, and the GHG Protocol Scope 3 Standard.

3. Limited Supplier Engagement

Scope 3 emissions often depend on supplier actions, but many companies still lack
formal processes to engage suppliers on carbon data.

Challenges include:

• Suppliers not being trained or equipped to track emissions

• Fear of revealing sensitive business data

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 • Lack of incentives or contractual requirements to report carbon data

For instance, an F&B company trying to trace emissions from 300 food vendors may
receive information from only a handful.

To address this, leading firms are starting to:

• Include climate clauses in procurement contracts

• Provide carbon literacy training to suppliers

• Set supplier-specific reduction targets

4. Cost and Complexity

Finally, many companies—especially SMEs—face real financial and technical barriers to

GHG accounting.

• Hiring consultants, subscribing to carbon software, or conducting third-party

audits can be expensive

• The process requires internal capacity, time, and knowledge that not every
business has

A small logistics firm may want to measure and reduce its emissions—but lacks the
manpower or systems to do so effectively.

This is why many governments, including Enterprise Singapore and NEA, are now
offering funding, tools, and templates to support carbon reporting, especially for
small businesses.

GHG accounting is powerful—but it's not perfect.

Challenges in data availability, consistency, collaboration, and cost can slow down
progress—but they also highlight where support, innovation, and policy can help.

The good news is: with every barrier comes an opportunity—for digital tools, supplier
partnerships, and shared standards to make carbon accounting easier, faster, and
more impactful.

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 Let’s take a moment to reflect on the key takeaways from this lecture on Greenhouse
Gas (GHG) Accounting—and how it ties into real-world opportunities.

Some Key Takeaways

1. GHG Accounting is essential for measuring an organisation’s climate impact.

Using the GHG Protocol framework, we can calculate emissions across Scope 1 (direct),
Scope 2 (energy-related), and Scope 3 (value chain).

2. Emissions are calculated by combining:

o Activity data (e.g. electricity use, fuel consumption, distances travelled)

o With the right emission factors to convert them into CO₂e

3. Scope 3 is the most challenging, especially due to data collection from suppliers and
customers—but it's also where the biggest opportunities for impact lie.

4. Tools like RECs and carbon credits help companies decarbonise, but real change starts
with measuring and reducing emissions at the source.

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5. GHG accounting supports:

o Strategic planning

o Sustainability reporting

o Risk management

o And meeting regulatory requirements such as Singapore’s Carbon Pricing Act

and SGX climate disclosure rules

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Some other exciting career opportunities in Singapore's Green Economy, as identified in
the Shortage Occupation List (SOL) by the Ministry of Manpower (MOM). These
roles are crucial for our nation's sustainable development and offer promising
prospects for those passionate about environmental stewardship.

What is the Shortage Occupation List (SOL)?

The SOL highlights occupations that are:
• Strategically important to Singapore's economic priorities.
• Experiencing a shortage of local talent.
• Supported by sector agencies committed to developing the local workforce.
Individuals filling these roles may qualify for additional points under the
Complementarity Assessment Framework (COMPASS), facilitating their Employment
Pass (EP) applications .

Key Green Economy Occupations in the SOL

Carbon Project/Program Manager
Role: Oversee carbon reduction initiatives, ensuring they meet environmental
standards and contribute to sustainability goals.
Skills Needed: Project management, knowledge of carbon markets, and
sustainability strategies.

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Carbon Standards and Methodology Analyst
Role: Develop and analyze methodologies for carbon accounting and ensure
compliance with international standards.
Skills Needed: Analytical skills, familiarity with carbon protocols, and attention to
detail.
Carbon Trader
Role: Engage in buying and selling carbon credits, facilitating market-based
approaches to emission reductions.
Skills Needed: Understanding of carbon markets, financial acumen, and
negotiation skills.
Carbon Verification and Audit Specialist
Role: Conduct audits to verify carbon emissions data and ensure the integrity of
carbon offset projects.
Skills Needed: Auditing expertise, knowledge of verification standards, and
critical thinking.

Why These Roles Matter

• Global Relevance: As climate change becomes a pressing global issue, expertise in
carbon management is increasingly valuable.
• Economic Impact: These roles support Singapore's transition to a low-carbon
economy, aligning with national sustainability targets.
• Career Growth: Professionals in these areas are at the forefront of environmental
innovation, offering dynamic and impactful career paths.

How to Prepare for a Career in the Green Economy

• Education: Pursue studies in environmental science, sustainability, or related fields.
• Certifications: Obtain certifications in carbon accounting, sustainability reporting, or
environmental management.
• Experience: Engage in internships or projects focused on sustainability to gain
practical experience.

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