FEM 2024 - Energy & Ghg Level 3

Table of Contents

1. Enscope3ghg
2. Enscope3ghg Verification And Scoring
3. Enscope3sbti
4. Enscope3sbti Verification And Scoring
5. Enfossilphaseout
6. Enfossilphaseout Verification And Scoring
7. Enfossilphaseoutsucc
8. Enfossilphaseoutsucc Verification And Scoring

Enscope3ghg

18. Were your facility’s annual Scope 3 greenhouse gas (GHG) emissions calculated during this reporting year? (Ref ID - enscope3ghg)

Answer Yes if:  Your facility has calculated Scope 3 GHG emissions in the reporting year from all material upstream and downstream Scope 3 sources and there is supporting evidence to justify any exclusions based on materiality. 

Answer Partial Yes if:  Your facility has calculated Scope 3 GHG emissions in the reporting year from all material upstream Scope 3 sources and there is supporting evidence to justify any exclusions based on materiality.

Note: If your facility has not conducted an evaluation to identify all applicable upstream and/or downstream Scope 3 GHG emission sources and calculated the associated GHG emission in accordance with a recognized methodology such as the GHG Protocol Corporate Value Chain (Scope 3) Standard, you should answer No to this question. 

If you answer Yes or Partial Yes to this question, you will be asked to complete the following sub questions to provide details on your scope 3 GHG emissions:

• Report your facility’s annual Scope 3 GHG emissions in Metric Tons CO2e here:
• Please describe your Scope 3 calculation 

Suggested Uploads:

• Documentation that supports your calculation of scope 3 GHG emissions in the reporting year (e.g., Scope GHG emission totals, inventory of scope 3 sources with associated operational data and emission factors used, etc.).

What is the intent of the question?

The intent of this question is for facilities to demonstrate that they have identified and calculated scope 3 GHG emissions. 

Technical Guidance:

Calculating Scope 3 emissions associated with a facility’s operations is particularly important for the manufacturing industry because it provides insights on 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.

The GHG Protocol Corporate Value Chain (Scope 3) Standard allows companies to assess the emission impact of its entire value chain. The Scope 3 standard focuses on the following:

• Upstream emissions which are indirect GHG emissions related to purchased or acquired goods and services.
• Downstream emissions which are indirect GHG emissions related to sold goods and services.

In the Standard, upstream and downstream sources are further subdivided into 15 main categories as follows:

The GHG Protocol Scope 3 Evaluator (http://www.ghgprotocol.org/scope-3-evaluator ) is a tool that can be used to help identify and estimate GHG emissions from Scope 3 Sources.

In order to be able to answer Yes to this question, Scope 3 GHG must be calculated and reported in accordance with the Corporate Value Chain (Scope 3) Standard.  This includes:

• Calculating GHG emissions from all Scope 3 emissions sources (as defined by Chapter 5 & 6 of the Standard) 
• Scope 3 emissions are reported in accordance with the requirements defined in Chapter 11 of the Standard including a list of scope 3 activities excluded from the reporting with justification for their exclusion. 

Enscope3ghg Verification And Scoring

How This Will Be Verified:

When verifying a facility’s Scope 3 GHG emission reporting, Verifiers must review:

• The reporting methodology and scope to ensure that it aligns with the requirements outlined in the Corporate Value Chain (Scope 3) Standard. This includes:
  • The minimum reporting boundaries/requirements for scope 3 sources and categories
  •  Required documentation for any excluded scope 3 categories or activities excluded from the inventory that justifies their exclusion.

Full Points:

• Full points will be awarded if the facility has calculated Scope 3 GHG Emissions from all material upstream and downstream Scope 3 sources and there is supporting evidence to justify an exclusions based on materiality.

Documentation Required: 

• Documentation that shows GHG emissions from all relevant Scope 3 emissions sources have been identified and calculated (as defined by Chapter 5 of the GHG Protocol Corporate Value Chain (Scope 3) Standard). This may include:
  • An inventory/list of all Scope 3 sources associated with facility operations that shows GHG emission totals in the reporting year.
  • Documentation that supports the GHG emission calculations or assumptions used (e.g., emission factors or operational data for Scope 3 sources)
  • Documentation for any excluded scope 3 sources or activities excluded from the inventory that justifies the exclusion.

Note: Basic reporting of only a select number of scope 3 sources without following the reporting requirements outlined in Chapter 11 of the Standard does not meet the expectations for a Yes Answer (e.g., informal tracking/reporting of emissions from 1 or 2 sources of Scope 3 emissions)

Interview Questions to Ask: 

• Staff responsible for energy and GHG management are able to explain the facility’s methodology for identifying Scope 3 sources and boundaries and calculating Scope 3 GHG emissions.

Inspection – Things to Physically Look For: 

• Onsite observations are consistent with reported Scope 3 sources, where applicable (e.g., third party transportation or other services observed on site). 

Partial Points:  

• Partial points will be awarded if the facility has calculated Scope 3 GHG Emissions from all material upstream Scope 3 sources and there is supporting evidence to justify an exclusions based on materiality. 

Enscope3sbti

18. Has your facility set a Science-Based Target? (Ref ID - enscope3sbti)

Answer Yes if:  Your Facility has set a Science-Based Target to reduce GHG emissions or if your facility is part of a manufacturing group/organization that has set a Science-Based Target that includes your facility’s operations.

Notes: 

• Targets are considered ‘science-based’ if they are in line with what the latest climate science deems necessary to meet the goals of the Paris Agreement.
• If your facility has set GHG reduction targets, but these have not been formally evaluated to determine if they align with specific climate action goals (e.g., the Science Based Targets Initiative (SBTi), you should answer No to this question. 

If you answer Yes to this question, you will be asked to complete the following sub questions to provide details on your Science-Based Target:

• Please indicate which methodology you use to set the Science-Based Target:
  • SBTi
  • Other
• If Other, please specify.
• Has this Science-Based Target been approved?
• What is your Science-Based Target?
• Please provide the name under which the approved target is reported.

If you answer No to this question, you will be asked to complete the following sub question:

• Is your facility preparing to set a Science-Based Target?

Note: If your company has committed to the SBTi but has not yet established or submitted a target for approval, or if your target is under review (i.e., the company’s status on the SBTi website is listed as “Committed”), you should answer Yes to the sub question “Is your facility preparing to set a Science-Based Target?” 

Suggested Uploads:

• Documentation that supports your facilities Science-Based Target (e.g., target commitment letter, target evaluation/verification or approval documentation, etc.).

What is the intent of the question?

The intent of this question is for facilities to demonstrate that they have established science-based GHG emission targets. 

Technical Guidance:

Targets are considered “science-based” if they align with the latest climate science and are designed to meet the goals of the Paris Agreement which seeks to limit GHG emissions and climate change. Targets must be validated and approved by a recognized governing body (e.g., The SBTi) to ensure that the target is valid and aligns with current climate science.

The Science Based Targets Initiative (SBTi). https://sciencebasedtargets.org/ has established procedures for the commitment, submission, validation, and approval of targets, which generally includes:

• Company commitment to setting Science-Based Targets in line with the SBTi. Formal commitment to the SBTi is required (i.e., submitting the commitment letter and paying the applicable fees)
• Setting your company’s GHG target and having it validated and approved by the SBTi.

Additional details on the requirements for setting a Science-Based Target with the SBTi can be found here: https://sciencebasedtargets.org/step-by-step-guide/ 

Information on companies who have committed and set targets that are validated and approved by the SBTi can be found here:  https://sciencebasedtargets.org/companies-taking-action/  

Enscope3sbti Verification And Scoring

How This Will Be Verified:

Full Points:

Full points will be awarded if the facility has set a Science-Based Target or if your facility is part of a manufacturing group/organization that set a Science-Based Target that includes your facility’s operations. 

Documentation Required: 

• Documentation that shows the facility has set a Science-Based Target. This may include:
  • Target commitment letter, target evaluation/verification or approval documentation.
  • Listing of facility’s Science-Based Target on online registry that indicates the company’s target is set (e.g.,  Target status is “set “on the SBTi database https://sciencebasedtargets.org/companies-taking-action/)
  •  Documentation to support the facility’s actions to meet the target.
• If the facility’s operations are included in a Science-Based Target of a larger manufacturing group or organization, supporting documentation that shows the target includes the facility’s operations.  
• If the facility is preparing to set a target, supporting documentation that shows target for approval, or if your target is under review (e.g., target commitment letter, the target’s status on the SBTi website is listed as “Committed”).

Interview Questions to Ask: 

• Staff responsible for energy and GHG management are able to explain the facility’s methodology for setting the Science-Based Target.

Inspection – Things to Physically Look For: 

• Onsite observations are consistent with reported business activities or other supporting documentation associated with the target. 

Partial Points: N/A 

Enfossilphaseout

22. Does your facility have a plan to phase-out any fossil fuel, other than Coal? (Ref ID - enfossilphaseout)

Answer Yes if:  Your facility has a current documented plan with defined actions that your facility is planning to implement to phase-out the use of all fossil fuels used onsite other than coal.

Answer Partial Yes if:  Your facility has a current documented plan with defined actions that your facility is planning to implement to phase-out the use of one (1) or more, but not all fossil fuels used onsite other than coal.

Note: For this question phase-out means discontinuing the use of fossil fuel. Replacing a fossil fuel with another fossil fuel (e.g., phasing out furnace oil and using diesel for the boiler) is not considered a phase-out.

If you answer Yes to this question, you will be asked the following questions to provide details on your phase-out plan:

• Have you done any financial analysis/cost impact to replace any fossil fuel, other than Coal as an energy source?
• Which fossil fuel does your facility have a plan to phase-out? (Select from the list of applicable fossil fuel sources used at the facility)
• What is your plan and what are your steps to phase-out?
• Please upload your plan and financial analysis
• What is your final date to complete your fossil fuel phase-out?

Suggested Uploads:

• A copy of the phase-out plan that includes details of the specific actions the facility plans to take to phase-out fossil fuel use.
• Other documentation supporting the plan (e.g., financial analysis of replacing the fossil fuel, new/proposed equipment specifications, renewable energy solutions, etc)

What is the intent of the question?

The intent of this question is for facilities to demonstrate that they have evaluated options to phase out fossil fuels, other than or in addition to coal, and have established formal plans with defined actions to phase-out fossil fuel use at the facility.

Technical Guidance:

Eliminating the use of fossil fuels and transitioning to cleaner energy sources is a key goal of many international initiatives to reduce GHG emissions and combat climate change. Facilities that currently use fossil fuels as an energy source are encouraged to proactively seek cleaner energy alternatives such as renewable energy solutions to support this goal. 

Creating an implementation plan includes the process of reviewing and evaluating available options to improve energy use and/or GHG emissions. The key steps of creating an implementation plan should include the following:

• Identify available options to phase-out fossil fuel use through internal assessment by qualified personnel or third-party experts.
• Evaluate phase-out options to determine the most suitable options (e.g., feasibility studies, cost benefit analyses) 
• Approve funds/budget for chosen options.
• Create a timeline and define the actions needed to phase out fossil fuel use.
• Conduct regular reviews of the implementation plan check on progress. 

Enfossilphaseout Verification And Scoring

How This Will Be Verified:

Full Points:

Full points will be awarded if the facility has a documented fossil fuel phase-out plan that covers all fossil fuel sources and includes the following:

• A list of defined steps or actions that the facility plans to take to phase-out fossil fuel use.
• A financial analysis of the options/action needed to phase-out fossil fuel use.
• A targeted date to complete the phase-out.

Documentation Required:

• A copy of the phase-out plan that includes details of the specific actions the facility plans to take to phase-out fossil fuel use.
• Other documentation supporting the plan (e.g., financial analysis of replacing fossil fuel, new/proposed equipment specifications, renewable energy solutions, etc) 

Interview Questions to Ask:

• Staff responsible for the phase-out plan can explain the facility’s process for evaluating phase out options and the facility’s planned actions to phase-out fossil fuel use.

Inspection - Things to Physically Look For: 

• The actions listed in the plans are consistent with the observed fossil fuel use onsite.

Partial Points: 

• Partial points will be awarded if the facility has a documented fossil fuel phase-out plan that covers one (1) or more, but not all fossil fuel sources and includes the following:
  • A list of defined steps or actions that the facility plans to take to phase-out fossil fuel use.
  • A financial analysis of the options/action needed to phase-out fossil fuel use.
  • A targeted date to complete the phase-out.

Enfossilphaseoutsucc

22. Has your facility successfully replaced any fossil fuel(s) with renewable energy? (Ref ID - enfossilphaseoutsucc)

Answer Yes if: Your facility has replaced all fossil fuels used onsite with renewable energy solutions or your facility has never used fossil fuels onsite (i.e., only renewable energy was used when facility operations began).

Answer Partial Yes if:  Your facility has replaced one (1) or more, but not all fossil fuels used onsite with renewable energy solutions within the last 5 years.

Note: The 5 year timeline should be counted based on the Higg FEM reporting year. For example, for FEM 2024 (which reports environmental data from 2024), the replacement must have been made in or after 2020. This is based on the year, not the date of replacement or Higg FEM Verification.

If you answer Yes or Partial Yes to this question, you will be asked the following questions to provide details on your fossil fuel replacement:

• Which fossil fuel did your facility successfully replace?

Note: If your facility has never used fossil fuels onsite (i.e., only renewable energy was used when facility operations began), you should select Not Applicable for the above question.

Suggested Uploads:

• Documentation that supports actions taken by the facility replace fossil fuel with renewable energy solutions (e.g., new equipment or renewable energy solutions specifications, equipment replacement logs or photos of previous fossil fuel burning equipment, etc)

What is the intent of the question?

The intent of this question is for facilities to demonstrate that they have replaced fossil fuel use onsite with renewable energy solutions.

Technical Guidance:

Eliminating the use of fossil fuels and transitioning to cleaner energy sources is a key goal of many international initiatives to reduce GHG emissions and combat climate change. Facilities that have proactively transitioned to renewable energy solutions demonstrate a commitment to sustainable manufacturing and reduce future risks of reliance on fossil fuels. 

Renewable energy solutions may include:

• Use of biodiesel or electric vehicles (EVs) for onsite or company vehicle use.
• Use of sustainably sourced biomass (with certification) or geothermal or solar for heat/steam generation.
• Use of hydro, solar photovoltaic, or wind energy to generate electricity.

Enfossilphaseoutsucc Verification And Scoring

How This Will Be Verified:

Full Points:

Full points will be awarded if the facility has replaced all fossil fuels used onsite with renewable energy solutions or the facility has never used fossil fuels onsite (i.e., only renewable energy was used when facility operations began).

Documentation Required:

• Documentation that supports actions taken by the facility replace fossil fuel with renewable energy solutions. This may include.
  • Specification of new equipment or renewable energy solutions 
  • Equipment replacement logs or photos of previous fossil fuel burning equipment.

Interview Questions to Ask:

• Staff responsible for the implementing/managing the renewable energy solutions can explain how fossil fuel use was phased out at the facility.

Inspection - Things to Physically Look For: 

• Onsite observations indicate that no fossil fuels are used at the facility.

Partial Points: 

• Partial points will be awarded if the facility has replaced one (1) or more, but not all fossil fuels used onsite with renewable energy solutions within the last 5 years.

Note: The 5 year timeline should be counted based on the Higg FEM reporting year. For example, for FEM 2024 (which reports environmental data from 2024), the replacement must have been made in or after 2020. This is based on the year, not the date of replacement or Higg FEM Verification.