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Energy and GHG Frequently Asked Questions (FAQ)

  • Updated

Table of Contents

Reporting and Data Entry in Higg FEM

Renewable Energy and Offsets

Emissions Factors and Calculations

GHG Emissions and Scope Guidance

Metering, Verification, and Data Accuracy

Energy Source and Facility Configuration

Certifications and Audits

 

As a facility that only tracks total consumption of each of my energy and water sources, how can I report this consolidated data on the FEM when tables open for each of my multiple facility types?

FEM 4.0 introduced the expectation that facilities are equipped to be able to report on energy and water source consumption, separately by facility type, for increased precision and accuracy in tracking, reporting, and identifying opportunities for improvement.

The assessment is designed to encourage facilities to put things in place as soon as possible to split out their reporting and tracking accordingly.

Only if BOTH facility types below are selected, then the question will ask if a facility can separately report by facility type. Tables for each facility type will appear if you respond yes, otherwise, you must enter consolidated totals to the single table if you respond no.

  • Finished Product Assembler
  • Finished Product Processing (Product Printing, Product Painting, Product Dyeing, Product Laundering and Product Finishing, Embroidery & Embellishments)

In the energy section specifically, the question ("refID = energyseparate") does not appear on the assessment if any other combination of facility types is selected. In such case a table appears for each facility type. If a facility is unable to report energy/water source values across facility types, consolidated values should be entered to the first table. Facilities are also encouraged to work towards splitting out their source consumption tracking as soon as possible for more precise data entry in future years' FEMs.

 

Should we arrange for a new audit if our last one was conducted more than five years ago?

Yes, if your audit was conducted more than five years ago, you must perform a new audit for the FEM reporting year. The energy audit must meet the minimum requirements to be accepted within the FEM.

 

If a facility participates in carbon offsetting, will that improve the Higg FEM 4.0 score?

Facilities involved in carbon offsetting can report this in Higg FEM 4.0. This is an unscored question and will not impact the scoring, but will be reflected in the GHG reduction in the GHG dashboard within the Higg FEM for Scope 1 or Scope 2 reduction.

 

Does a facility need to convert its unit of measurement to kWh? For example Liters to kWh?

No, the facility does not need to do the conversion. Facilities can continue to report in their unit(s) of measurement, and the system will auto-calculate the conversion to megajoules (MJ).

 

What should we do if we receive the warning: "Your normalized energy usage appears high for this facility type. Review your reported production volume and all energy sources for errors."

Please verify that you have entered the right amount. Further guidance on outlier detection is here: https://support.worldly.io/hc/en-us/articles/19505696919451-Outlier-Detection

You can ignore this message if you’ve verified the value is correct. This warning is meant to highlight data entry errors.

 

Are wastewater treatment plants included in production energy use calculations for determining Greenhouse Gas Emissions in the Higg FEM?

Yes, industrial wastewater treatment plants are categorized within Production Energy Use, while domestic wastewater treatment plants fall under Domestic Energy Use. In instances where both are combined, they should continue to be reported under Production Energy Use.

 

Our facility uses both solar energy and purchased electricity, how should we calculate the input data?

Please submit a support ticket for assistance. In general, if a facility generates solar energy on-site and uses it without exporting to the grid, it should be reported under 'solar-onsite.'

If the facility purchases solar energy from an external provider, along with general-purpose electricity, it should be categorized as 'purchased renewables' for solar and ‘solar’ should be selected as the source

 

Facilities purchase electricity from a public utility company and have no control over their plans to phase out dependence on fossil fuels. How can this be reported in Higg FEM?

Facilities are not required to phase out fossil fuel use from purchased energy sources in the Higg FEM. Phase-out requirements are only applicable for onsite energy generation. Facilities are required to report purchased electricity.

 

If a facility has a renewable energy certificate certified by the local government, can it indicate that it uses renewable energy as an energy source on the Higg FEM 4.0?

The facility should only select the use of Purchased Renewables if the facility is directly receiving  the purchased energy/electricity from a renewable source. It is good that purchased energy/electricity also comes with an EAC, but in this case, the facility should not report any EACs.

If  renewable energy/electricity is not supplied to the facility for onsite use, the energy/electricity should not be reported as purchased renewables The facility should report it as purchased energy/electricity and then report the retired renewable energy certificates or EAC (Energy Attribute Certificates). 

Review the following resources to learn more on how to report renewable energy use in the FEM for Purchased Electricity, Purchased Renewables, Onsite Renewables and EACs:

Note: If the facility does not have EAC or carbon offset, that will not stop them from advancing to level 2 and level 3.

 

Can the separation of energy between production and domestic use be estimated?

You can definitely estimate, but estimate here refers to a scientifically calculated method. It does not mean estimating a consumption value out of thin air. Ultimately we do encourage proper measurement by implementing sub-metering, this allows a more proper way to track, baseline, and identify opportunities.

 

Can Green Electricity certificates be uploaded as an offset for carbon dioxide emissions? What types of certifications does the FEM recognize?

Green Electricity Certificates fall under EAC (Energy Attribute Certificates) and should be reported under the EAC(IREC) question, NOT the GHG Offset question.

These are some of the certificates recognized by the FEM to offset carbon dioxide emissions, which is not an exhaustive list:

  • Renewable Energy Certificates (RECs) in North America 
  • Guarantees of Origin (GOs) in Europe 
  • Renewable Energy Guarantees of Origin (REGOs) in the UK 
  • International RECs (I-RECs) 
  • Tradable Instruments for Global Renewables (TIGRs) across the rest of the world 
  • Green-e Energy (EACs)
  • EKOenergy certified EACs 
  • Other 

Note that Renewable Energy usage by the facility in 2024 can only be reported in FEM 2024 and not in FEM 2023.

 

Does Worldly recognize the purchase of Carbon Credits as an offset?

Yes, Carbon credits are recognized under Q4 (RefID - enpurchco) and will reflect in Scope 1 and Scope 2 reductions for final GHG calculation on the GHG dashboard.However, they will not be a substitution for onsite renewable energy use and will be accounted separately as per the GHG Protocol on Corporate GHG Reporting.

 

Does the replacement of conventional diesel with biodiesel count as a plan to phase out fossil fuel?

Yes, the replacement of conventional diesel with biodiesel counts as a plan to phase out fossil fuel.

 

On the FEM version 4.0 does onsite renewable energy production count as applicable if a facility does not have EACs available to support?

Only onsite Renewable energy usage is represented in the FEM.

Review the following resources to learn more on how to report renewable energy use in the FEM for Purchased Electricity, Purchased Renewables, Onsite Renewables and EACs:

 

If a facility sourced nuclear energy for operation and production, can it be considered renewable energy/purchased renewable? How are emission factors entered into the platform?

Nuclear Energy is not considered a Renewable Energy Source. The facility can select Purchased Electricity and then input the GHG Emission factor and associated details.

 

Are RECs (renewable energy certificates) considered Renewable Energy in the FEM?

No, Within the Higg FEM RECs are considered as Offset Credits, and are not considered as Renewable Energy Sources.

 

How do I purchase Carbon Offsets and EACs?

This is up to the facility, with experts and trading organizations in their own countries. Cascale and Worldly do not provide advice on these trading organizations.

 

Should the I-REC purchased quantity be deducted from Electricity consumption as an offset or from the GHG calculation?

I-REC can’t be deducted from electricity consumption as an offset. Facilities that have purchased I-REC can report it in Energy Section Q3 on EACs.

 

According to SBTi guidance, offsets are different from GHG deductions as they are used to compensate for GHG emissions elsewhere. So why are offsets acceptable on the FEM 4.0?

Higg FEM 4.0 does not recognize GHG Offsets for SBTs within SBTis, but it recognizes GHG offsets for Net Zero Targets as indicated by the Science Based Target Initiative. Higg FEM 4.0 has a separate offset question, to understand and track how the facility is working on reducing GHG and by what method. Higg FEM 4.0 is aligned with GHG calculation with both SBTi and GHG Protocol.

 

How do I calculate the emission factor (kg CO2e/kWh) for purchased electricity?

Emission factors are already updated in Higg FEM. Once you have entered your factory energy use in Higg FEM, the tool will provide the calculation based on emission factors taken from the best publicly available sources.

In order to convert from kgCO2e/kWh to kgCO2e/MWh, multiply the given value by the conversion factor 1000 kWh/1MWh.

For example:

  1. If you want to convert 0.001 kg CO2e/kWh to MWh
  2. Multiply 0.001 kg CO2e/kWh by 1000 kWh/1MWh
  3. Using unit conversions, this equals 1 kgCO2e/MWh 

 

How can we convert from energy to GHG?

You can convert energy to greenhouse gas (GHG) emissions by following this formula:

Sum of (Energy Activity Data *GHG emission factor)

 

What are the data sources for country electricity emission factors used in Higg FEM2023?

We use country-specific emission factors for electricity but we do not publicly share the full list due to licensing agreements with the data providers. We use IEA data sets for country specific grid emission factors from FEM 2023 onwards.

 

If emissions factors are released later than the reporting year in my country, what should I do for the calculations on this year's assessment?

It's not uncommon for emissions factors to be released with a 12-24 month lag. If you don't have specific emissions factors for your electricity source, please indicate this, and the system will auto-populate the most up-to-date emissions factor for your country.

If you have specific emissions factors and reference sources for your electricity source, it's recommended to use the most recently available data. The previous year's data is also acceptable; it doesn't need to correspond with the current year. What's essential for the verification process is ensuring you include detailed source information.

 

Regarding emissions factors, is it enough to know the country average or should we also know the regional?

If you only know your electricity sources’ country average, we recommend selecting "no" in response to this question, as the FEM would then automatically allocate the standard country factor in that case. You are encouraged to enter relevant reference information only if you know it.

 

How do we reduce GHG Emissions for Scopes 1, 2, and 3 if manpower and production targets are increasing?

Higg FEM 4.0 only collects data for calculations of Scope 1 and Scope 2 emissions.  The FEM only supports calculations of GHG emissions so that it allows facilities to calculate and report their emissions.

 

Are carbon offsets deducted from total CO2 emissions in the final calculation results within the FEM Energy section?

It depends. Based on the combination of facility responses, the assessment is structured so that some calculations will deduct the offsets from the total emissions and some will not.

 

Can a facility do GHG calculations on its own, using a calculation formula from online or should it use a third party?

Facilities can do GHG calculations on their own, however, our recommendation is to follow the GHG protocol calculation guidelines.

 

Can alternatives to the GHG protocol, (such as eg: EPA, IPCC) be used to calculate GHG emissions?

Yes, both the EPA and IPCC follow the GHG Protocol for GHG Calculation Guidance and as such can be used to calculate GHG emissions.

 

Is it mandatory for a facility to report Scope 3 emissions?

FEM 4.0 does not require disclosure of scope 3 emissions. For facilities that would like to show that they are engaged in leading practice, they can calculate scope 3 emissions. Facilities will gain points in Level 3 if they report scope 3 emissions.

 

Maintaining a GHG inventory and emission in scope 3 is optional in ISO 14064-1, but the facility still calculates emissions from waste, product, and material transportation. Can the facility only calculate some items rather than all items in scope 3?

Calculating Scope 3 emissions associated with a facility’s operations is particularly important for the manufacturing industry because it provides insights into the environmental impact associated with the manufacturing and consumption of a product including upstream and downstream operations. All relevant upstream and downstream business activities (except in-house manufacturing) should be captured to calculate the Scope 3 footprint.

 

Are the SBTs of Energy and Water mandatory and scored in FEM 4.0? Do SBTi targets need to be validated?

SBTs for Energy and Water are not mandatory. On the Higg FEM 4.0, SBTs for GHG is scored while SBTs for Water is unscored. If you are reporting against SBTi, in FEM 4.0 there will be a question where the facility needs to indicate if the targets have been approved by SBTi or not.

 

Is onsite verification based on the utility bill or the actual onsite meter?

If a facility has proper metering for all the mentioned energy sources, then facilities can report actual operation times (Jan 1 to Dec 31) and provide evidence to the verifier.

If there is no onsite meter, facilities can substitute with utility bills. They must ensure not to double count utility bills.

 

In the case of a small entity where domestic energy use is very minimal, are meters required or would calculation estimates be acceptable?

Calculated or estimated data is acceptable in this case. The facility should indicate that it is entering estimated values within the platform.

 

As domestic and production energy consumption must now be tracked separately, should all submeters be calibrated, or is it sufficient to calibrate only the main meter?

It is not mandatory. However, as part of general maintenance, meters should be calibrated in order to maintain the accuracy of your readings. Your total meter reading should equal the sum of all readings on your sub-meters.

 

Are internal steam flow meter readings provided by a third party sufficient records for steam?

Steam flow meter reading details are sufficient, but an agreement/ confirmation letter by the steam generating facility on the steam generation is recommended, at least annually, to confirm the values being used by any other facilities as well. (steam volume/quantity, fuel ratio, fuel types, etc) All facilities need to keep records/copies of records of the steam usage breakdown across all facilities and fuel use details of the steam generating facility for future verification purposes.

 

A facility with a heat boiler and steam boiler operated by an outsourcing company uses Biomass and Coal. In such scenarios, does the factory need to list all energy sources or only list steam and heat?

If both or either of the boilers are owned by the facility and are situated within the facility, the facility should report the Energy sources such as biomass and coal as part of the onsite energy consumption within Q1 and Q7 of the Energy section, regardless of who operates and how the payments are made to the organization that is operating it.

 

Our facility uses diesel gas located in another factory. In this case, should I report the diesel gas as part of our facility's emissions?

If the other facility is subject to a different FEM assessment, you can note in your assessment that you're purchasing electricity from a third party. If you have a specific agreement in place for the purchase of electricity generated from diesel with that external facility, you can include this information in the 'kWh of purchased electricity' field.

Essentially, if your facility uses a diesel generator for standby electricity, and it is located in a different area not covered within your FEM's scope, you can add this as 'purchased electricity' and specify the emissions factor for it.

 

How can a facility distinguish the amounts of green electricity and photovoltaic energy used between domestic and production areas?

The facility can proportionally allocate energy usage across domestic and production areas. 

For example:

  • The facility generates and uses 10 MWh of Solar per year
  • The facility purchases 20MWh of Green Electricity per year
  • The facility also purchases 70MWh of normal grid electricity per year

According to their Domestic and Production consumption recordings in internal sub-meters, they use 40MWh for Domestic and 60MWh for production, (40% vs 60%)

They should report 40% of each electricity source for Domestic energy sources as below:

  • 4 MWh of Solar per year
  • 8MWh of Green Electricity per year
  • 28MWh of normal grid electricity per year

They should report 60% of each electricity source  for Production energy sources as below:

  • 6 MWh of Solar per year
  • 12MWh of Green Electricity per year
  • 42MWh of normal grid electricity per year

 

Is electricity for dormitories considered as domestic energy?

Yes, dormitory electricity is categorized as "domestic" use.

 

What is included under domestic or production energy/fuel use for operational cars/vehicles?

It is not necessary to differentiate between domestic and production usage for cars/vehicles.

 

Is third party verification required?

3rd party verification of GHG calculation is not required for the Higg FEM.

The Higg FEM verifier will not verify the GHG calculations done by the facility and only verify the activity data reported within the Energy section.

The Higg FEM 4.0 assists in data collection and calculation for facility Scope 1 and Scope 2 emissions only, and is aligned with the GHG Protocol Corporate reporting standard.

 

Is the ISO 50000 series considered valid as an energy audit?

In the Higg FEM, an Energy Audit must meet at a minimum the requirements of ASHRAE Level 2. ISO 50001:2018 energy management system certification or implementation is not considered an energy audit.

Facilities can follow ISO 50002:2014 Energy audits - Requirements with guidance for use: https://www.iso.org/standard/60088.html, which provides documentation for selecting the best method for energy audits and the requirements that need to be met.

 

Is the "ASHRAE Level 2" the same as PCBEA in the energy section?

No, it is not solely PCBEA and you can refer to more details in their FAQ below: https://www.ashrae.org/File%20Library/Technical%20Resources/Technical%20FAQs/TC-07.06-FAQ-95.pdf/

(PCBEA - procedures-for-commercial-building-energy-audits)

 

What certification is available for biomass sources?

The following certificates are available:

  • Forest Stewardship Council (FSC)
  • Programme for the Endorsement of Forest Certification (PEFC)
  • ISCC Biomass Certification; Sustainable Biomass Program (SBP) Certification
  • Better Biomass Certification; Roundtable on Sustainable Biomaterials Association Certification (RSB)
  • Country Specific Certification

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