Should companies be responsible for the greenhouse gas emissions that arise from assets they own but do not operate?
Integrated global energy companies like Total, Shell, Repsol, Chevron, and Exxon Mobil receive ~50 per cent or more of their production from so-called “non-operated assets.”
With the recent uptick in net-zero emissions targets, emissions from non-operated assets need to be considered.
Scope 1 emissions, commonly known as fence line emissions (or direct emissions), are often quantified and reported only for operated assets or for select jurisdictions. To truly achieve net-zero, companies must account for non-operated assets using recognized emissions measurements and quantification standards.
Fortunately, standardized approaches exist for developing inventories, quantifying emissions, and reporting that can be applied anywhere in the world.
Simple questions can help companies to get the ball rolling:
- What is the basis (i.e., measurement or calculation) for your emissions quantification?
- Has a third party verified/audited these emissions quantifications?
- Do you have a robust list of your equipment at each site?
Best practices for improving Scope 1 emissions estimates can be developed, include:
- Employ a robust review process for evaluating emissions at contract negotiation,
- Develop data sharing agreements, and
- Engage directly with asset operators to implement an emissions management plan.
To learn more about Scope 1 emissions, sign up for JWN Energy’s new e-learning course Scope 1 emissions: How to inventory, quantify and report on April 27.
Jessica Shumlich, chief executive officer of Highwood Emissions Management, will instruct the four-hour course.