AEM today published a guidance document to foster uniformity and harmonization among heavy-duty, off-road equipment manufacturers and their supply chain networks, attempting to monitor, track, and report use phase Scope 3 Category 11 emissions.
The growth and expansion of global Environmental, Social and Governance (ESG) reporting requirements creates a complex compliance environment that equipment manufacturers will need to navigate ensure sustained success. One of the challenges of complying with many of these ESG regulations, such as the U.S. Securities and Exchange Commission’s (SEC’s) proposed Climate Disclosure Rule, or the European Union’ Carbon Border Adjustment Mechanism, is the need to collect complex product and facility related data from the supply chain. These efforts have led to an increase of different greenhouse gas (GHG), embedded carbon, and ESG reporting surveys to hundreds of thousands of supply chain companies around the world. The influx of these questionnaires and surveys creates tremendous inefficiencies, confusion, and miscommunication among suppliers looking to meet the ongoing needs of their customers.
Looking to remedy this growing issue, AEM’s Off-Road Greenhouse Gas Protocol for Scope 3 Category 11 provides a detailed common methodology for manufacturers and suppliers operating in the off-road equipment industry to calculate and verify their Scope 3 Category 11 emissions. The document also helps create harmonized product definitions, value chain GHG boundaries, emissions calculation principles, as well as the verification process of measurement and reporting.
“We are pleased to offer our Off-Road Greenhouse Gas Protocol for Scope 3 Category 11 as a guide for AEM members and fellow industry peers to monitor, track, and report phase Scope 3 Category 11 emissions,” said AEM Senior Vice President Curt Blades. “AEM and our member-led Sustainability Council are committed to aligning the industry, moving it forward as it prepares for increasing stakeholder expectations, and reducing our members’ risks related to existing and developing ESG regulations.”
The document uses the Greenhouse Gas Protocol Initiative’s standardized framework for managing and measuring GHG emissions, while also leveraging the collective expertise of AEM and its members to tailor guidance and recommendations to the heavy-duty off-road equipment industry. The Greenhouse Gas Initiative is a multistakeholder partnership that provides standards and tools to help private and public sector entities measure and manage GHG emissions, as well as track progress toward climate goals.
“We hope this guidance document will serve as a valuable resource for AEM members and their industry peers, and that it simplifies the enormously complex task of calculating, collecting, and reporting GHG emissions,” said Blades.
For more information on Off-Road Greenhouse Gas Protocol for Scope 3 Category 11 and AEM’s ongoing efforts to harness momentum to power, build, and feed a more sustainable world, visit AEM’s Sustainability Toolkit or contact Curt Blades at cblades@aem.org.
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