Meeting Sprint’s Supplier Criteria:
Materiality Assessment and
Greenhouse Gas Emissions
Version 1.0
As of Sept. 24, 2013
This document is intended to be read only as a summary of, and in the context of, Sprint’s experience with corporate responsibility goals and practices, and is
based only on information made available to Sprint as of the date written.
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compliance with laws, regulations, governmental requirements, or governmental or industry standards.
Suppliers should not rely upon or cite this document in designing and implementing their own corporate responsibility practices or otherwise. Suppliers should
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Table of Contents
Chapter 1:
Corporate Responsibility and why it matters
2
1.1: Sprint’s commitment to Corporate Responsibility (CR)
2
1.2: What Sprint expects from your company
2
1.3: What’s in it for your business?
3
Chapter 2:
Materiality assessment
4
2.1: Introduction
4
2.2: Get ready
7
2.3: Create a list of relevant topics
8
2.4: Score from both a business and stakeholder perspective
11
2.5: Review the results
17
2.6: Develop a plan and take action
18
2.7: Fulfilling Sprint’s materiality criteria
19
Chapter 3:
Measuring, reporting and reducing Greenhouse Gas (GHG) Emissions 20
3.1: Understanding the basics of climate change 21
3.2: Fundamentals of GHG measurement 24
3.3: Get ready 26
3.4: Collect the data 29
3.5: Turn your activity data into GHG emissions 32
3.6: Document and report your results 35
3.7: Develop a plan to reduce GHG emissions 37
3.8: Where to go from here 38
3.9: Fulfilling Sprint’s criteria
39
APPENDIX A – Materiality topic definitions and questions
1
APPENDIX B – Sprint Inventory Management Plan 6
APPENDIX C – Resources GHG Emissions
20
APPENDIX D – Resources for Materiality assessment
21
Chapter 1:
Corporate Responsibility and why
it matters
Contents:
1.1: Sprint’s commitment to Corporate Responsibility (CR)
1.2: What Sprint expects from your company
1.3: What’s in it for your business?
Ultimately, this booklet is about Corporate Responsibility
(CR) and some of the basic components companies can
consider as they establish a CR program. At its heart, CR
(a concept that also referred to as Corporate Social Responsibility, Sustainability, Triple Bottom Line, or Corporate
Citizenship) is a form of corporate self-regulation integrated
into the business. The goal of CR is to define responsibility
for the company’s actions, improve the company’s social,
environmental, and economic impact through its business
activities, and obtain tangible business benefits as a result.
In this chapter, we will review what Sprint is asking its suppliers to do and why, and share some of the benefits you
could realize by embracing the potential that CR offers for
you and your company.
1.1: Sprint’s commitment to Corporate Responsibility
Sprint began its CR journey in earnest in 2007. Building
on its history of community engagement, strong ethics and
governance practices, and commitment to diversity and
inclusion, Sprint hired a nonprofit sustainability consultant
(BSR) to work with its executive team on its first CR Materiality Assessment (see more on Materiality Assessments
in Chapter 2). That served as the foundation for a set of
CR Operating Priorities and the creation of ten long-term
sustainability goals. Over the past six years, Sprint has
strengthened its CR commitment to the point where it
has become fully integrated into the business model. CR
concepts are included in the strategic plan, and Sprint’s
CEO Dan Hesse has become one of the most vocal
CEOs in the U.S. regarding the elevated role CR should
play in a leading organization and its importance to his role
as Sprint’s top executive.
Sprint’s CR Program has three pillars: People, Product
and Planet. The company’s commitment to people means
fostering an innovative, rewarding, diverse, and ethical
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workplace and supplier base. The commitment to product
means we offer the highest quality products and services
we can, make them accessible to as many people as we
can, and honor ethical business practices in doing so. The
commitment to the planet means we ensure responsible
environmental stewardship in everything we do. Dan Hesse,
Sprint’s CEO, strongly believes that in order to manage
something you need to measure it, and that principle drove
the creation of Sprint’s 10-year sustainability goals. By
2017, Sprint will:
1. Reduce its greenhouse gas emissions by 20%
2. Secure 10% of its energy from renewable sources
3. Reduce its electric energy consumption 20%
4. Reduce operational waste-to-landfill by 30%
5. Reduce its use of paper by 40%
6. Reduce its use of water by 30%
7. S
end for reuse or recycle all of its Network and
IT e-waste
8. E
nsure that 90% of its suppliers, based on
sourceable spend, meet its social and
environmental criteria
9. C
ollect nine phones for reuse and recycling for every
ten Sprint sells annually – a 90% collection rate
10.Ensure 70% of wireless devices launched annually
meet Sprint environmental criteria
Sprint recognizes that it cannot achieve these goals without
strong relationships with its suppliers. That is the reason
there is a supply chain goal among these top ten. Sprint
believes that by jointly pursuing CR, Sprint and its suppliers
can improve our business performance and create value
for both society and the environment. Although our criteria
are specific to Sprint, they are based on generally accepted
practices within the CR field. We have been impressed with
the business results of several “early adopters” of these
criteria and encourage you to prioritize the pursuit of similar
benefits. We look forward to hearing about your progress.
1.2: What Sprint expects from your company
This booklet addresses the eighth goal listed above –
Sprint’s desire to have 90% of its suppliers, based on
sourceable spend, meet its social and environmental criteria
by 2017. All of our suppliers contributing to the 90% of
sourceable spend are formally measured against our criteria,
regardless of their industry. The criteria were introduced to
suppliers in 2011 through Sprint’s first CR supplier assessment process. The first set of criteria is in effect from 2011
through 2013. With this booklet, we are introducing revisions to the criteria which will be effective for 2014. Some
suppliers may receive additional Sprint criteria based on the
specific products or services Sprint purchases.
The social and environmental criteria for Sprint suppliers (the
underlined text is NEW for 2014) are:
1. Conduct and publish the results of a basic or intermediate
level CR materiality assessment by Dec. 31, 2014
2. Measure, publicly report and set a reduction target for
greenhouse gas emissions by July 31, 2015
3. Develop and publish a human rights policy or statement
4. Develop and publish a safety policy or statement
5. Develop and publish an environmental policy or statement
In discussing the initial assessment with our suppliers, Sprint
discovered that two particular criteria present the greatest
difficulty: The materiality assessment and greenhouse gas
measurement and reporting. Further, suppliers said they found
existing public sources of information on these topics confusing
and too complicated. Our goal with this booklet is to provide a
less intimidating and more streamlined supplier resource that
encourages rather than discourages you from doing work on
these two important dimensions of CR. As for the remaining
criteria, we expect to add chapters to address them over time.
We believe that corporate responsibility is a journey and not
a destination. We hope you find the journey as beneficial as
Sprint has and look forward to learning from your experiences.
1.3: What’s in it for your company?
Many people initially underestimate the impact that CR can
have on their business. Some think it’s a trend that will pass,
and some see it as a type of “window dressing” – you just
do a little bit here and there to look good and go on with
business as usual. Since we are asking you to take this seriously and publicly share your progress, we want to explain
how and why it may benefit your business.
Fortunately, there is an overwhelming amount of evidence
that companies that improve their environmental, social and
economic impact on society through CR also improve their
business performance. In general, the benefits of CR come
in several categories: reduced costs and risk; increased
revenue and investment; improved employee morale and
ability to recruit; and increased customer satisfaction. Here
are examples of how Sprint has benefited from CR efforts:
Cost reduction: A big component of sustainability is
A review by Deutsche Bank of over 150 research
papers and other studies concluded that companies with
high performance ratings for corporate responsibility have a
lower cost of capital in terms of debt and equity, because the
market recognizes that these companies have lower risk than
other companies and rewards them accordingly.
Sustainable Investing - Establishing Long-Term Value
and Performance
Every firm should look at decisions and opportunities through the lens of shared value. This will lead to new
approaches that generate greater innovation and growth for
companies – and also greater benefits for society.
“Creating Shared Value” by Michael E. Porter and Mark R. Kramer
(HBR January - February 2011)
waste reduction. For Sprint, this means using less energy,
paper and water, and fewer resources. In every case, it
means we can take cost out of the business. Sprint’s annual
electricity costs were nearly $400M in 2007. By reducing electricity usage by 20% by 2017, we will save an expected $80M
in electricity costs – and the potential for savings will increase
as energy costs rise over time. We’ve cut our paper use by
60%, water use by nearly 30%, packaging materials by nearly
30% per box, reduced our fleet of vehicles, reduced employee
business travel, etc. Using the same principles and general
techniques we’re sharing with you in this booklet, our collective
cost savings from our “green” efforts exceed $100 M.
Revenue creation: It has only been in the past couple of
years that we began to understand the opportunity to incorporate CR thinking into our strategic plans. In this materiality
assessment chapter, we provide a chart showing how you
can create value by addressing CR issues that are important
for business success and also to stakeholders. Examples for
Sprint include using mobile technology to remove barriers to
communications for people with physical or cognitive disabilities (sprint.com/accessibility), enabling remote healthcare and
education services through mobile devices, and offering solutions such as fleet management that enable our customers to
reduce their fuel consumption and greenhouse gas (GHG)
emissions. Sprint has booked several hundred million dollars
of revenue through sales of communications technology solutions that enable social or environmental value.
Additional benefits: Some other benefits Sprint has
experienced are improved corporate reputation, increased
employee pride, interest from top-level MBA talent to work
at Sprint and cross-department cooperation.
At the very least, companies that develop a CR strategy can
expect a better understanding of their business and its impacts on the environment, society, and the stakeholders who
have an interest in the business. For some, CR strategy may
lead to opportunities for innovation and/or revenue generation.
Chapter 1
3
Chapter 2:
Materiality assessment
2.1: Introduction
Contents:
Highlights:
2.1: Introduction
• Definition of a materiality
assessment
2.2:Get ready
2.3: Create a list of relevant topics
• Benefits of completing a
materialit assessment
2.4: Score from both a business and stakeholder perspective
2.5: Review the results
• Steps to completing a
materiality assessment
2.6: Develop a plan and take action
2.7: Fulfilling Sprint’s materiality criteria
Definition of a materiality assessment
In basic terms, a materiality assessment helps you identify
what issues matter the most to your business.
Material topics are those that affect – or have the potential
to affect – a company’s ability to create value over time. In
a Corporate Responsibility (CR) context, material topics
include current and potential environmental, social, and economic factors that could impact a company’s ability to create
value now or in the future.
When you have completed a materiality assessment, you will
Figure 1: Creating Value through Corporate Responsibility
have a prioritized list of CR topics that should serve as the
foundation for your CR activities. The process assesses topics based on the significance to both your business and its
stakeholders. Stakeholders may include investors, employees, customers, suppliers, governments, regulators, business partners, communities, media and non-governmental
organizations (NGOs).
The greatest business opportunities come from focusing
on topics that are most important to both the business and
stakeholders (in Figure 1, these are seen in the upper right
quadrant). Topics that are less important to both parties
CREATING VALUE
Value to external stakeholders
High
Low
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“MANAGE RISK”
“SHARED VALUE”
Low business value, but
High business and social
high social value – manage
value – greatest opportunity
for reputation
“HOLD OR DESELECT”
“INVEST FOR BUSINESS”
Low business value, AND
Business value, but low
low stakeholder value –
social value.
low opportunity
Value to the business
High
can be considered not relevant, or immaterial. Topics that
are important to one party, but not the other, should be
prioritized first based on business value, and second
based on value to your stakeholders.
Completing a materiality assessment can be a significant
undertaking, but the more time and effort you put into your
materiality assessment, the more you will get out of it. We
will discuss a basic approach to completing a materiality
assessment. We will also include additional steps for an
intermediate approach for a larger, more complex business as well as tips for an advanced approach that can be
considered a best practice.
What are the benefits of completing a materiality
assessment?
A materiality assessment is a great approach to help you
step out of the day-to-day management of business issues
and really evaluate what is important to you, which stakeholders you should care about, and what their big issues
are. It requires time and resources to step back and take a
broad view of the business, but there are significant benefits
to doing so. You will gain a better understanding of your
business and its impacts on the environment, society, and the
stakeholders who have an interest in your company. Materiality
assessments also allow companies to:
Sprint’s approach
Sprint completed its first materiality assessment in 2008
and used it to establish a set of CR Operating Priorities
and long-term sustainability goals. We started with a list of
CR topics for the global telecommunications sector. We
fine-tuned the list to align with our business operations
and stakeholder interests. Sprint executives rated the importance of the topics to the business. We had five large
NGOs and socially responsible investment firms rate the
importance of these topics from a stakeholder perspective.
We supplemented this stakeholder perspective based on
feedback we had received from other stakeholders, including regulators, supplier, customers, and employees.
Our materiality assessment formally launched our CR
efforts within Sprint. We reviewed the assessment in our
first CR Steering Committee meeting, developed CR
Operating Priorities based on the final rankings, and then
developed sustainability targets and scorecard. As a side
benefit, the materiality assessment provided an introduction to the World Wildlife Fund, World Resources Institute
and Calvert Investments – stakeholders with whom we
now have valued relationships.
We refresh our materiality assessment every two years to
ensure we include emerging issues and changing priorities,
and publish the revised version on our CR website.
• Better understand CR topics that can have a
significant impact on your company
• Identify and manage emerging risks and opportunities
• Establish internal and external credibility for your
CR strategy
• Align staff resources to topics with the greatest impact
• Increase executive and stakeholder engagement on
CR topics
• Establish a foundation for a CR strategy for your
company and a framework for a CR report
• Provide a foundation for CR reporting such as the
Global Reporting Initiative (GRI) and Dow Jones
Sustainability Index (DJSI)
What are the steps to completing a materiality
assessment?
The actual process you follow will vary based on the resources you have available, the size and complexity of your
business, the breadth and interest levels of your external
stakeholders, and the amount of time you have to give it. As
you would expect, the more time and resources you invest
in your assessment, the greater the value for your business
and your stakeholders.
TIP: There are many potential sources for proxy, or representative data, if interviews or surveys are not feasible: websites, publications, second-hand information from trusted
advisors, public surveys, print or social media, internal
resources with external contacts, conversations. Be creative
with your sources.
Sprint’s approach
Water was a topic in the upper left quadrant for Sprint. Water
is not a material issue for Sprint because our water usage is
relatively low, but is very important to our stakeholders and is
an increasingly important issue globally. Sprint developed a
water reduction goal in 2012, four years after we developed
our other 2017 sustainability goals. We also created a working committee to identify our greatest opportunities to reduce
our water use and find solutions that could potentially benefit
other companies as well. We did not immediately address
water, but after we had plans well underway in our priority
“shared” value topics, we began addressing topics that were
less material to us, but more important to our stakeholders.
If you are just getting started on your sustainability journey,
or are a small to medium-sized business with less than
Chapter 2
5
$1B in annual revenues, Sprint expects you to complete
a basic materiality assessment. If you have already completed a basic assessment, or are a larger company with
thousands of employees and more than $1B in annual
revenues, you should complete an intermediate materiality assessment. Large companies with complex issues
and diverse stakeholders will get the greatest value from
an advanced materiality assessment. We will focus on
basic and intermediate approaches in this booklet, but
will provide tips regarding advanced approaches for those
companies planning ahead.
The phases for completing a materiality assessment at the
basic, intermediate, and advanced levels are the same for
each approach:
• Get ready
• Create a list of relevant topics
• Pare down your list of topics
• Score from both a business and stakeholder perspective
• Draw conclusions and take action
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Sprint’s approach
As a multi-billion dollar company with thousands of employees,
Sprint needed to go beyond the basic approach and conduct
an intermediate materiality assessment. This allowed us to get
a good understanding of the relevant CR issues we faced and
we were able to use the materiality assessment results as the
basis for our CR framework, goals, and objectives.
Note: The materiality assessment chapter of this booklet is
designed as a stand-alone resource that allows you to meet
Sprint’s materiality criteria. However, many supplementary
publicly available resources are available to help you throughout the materiality assessment process. Key resources are
listed in Appendix B and are referenced throughout the
materiality assessment chapter.
2.2: Get ready
Highlights:
• Get executive buy-in
• Pick a project leader
• Establish your internal review committee (intermediate)
• Identify internal experts
• Determine who your stakeholders are and how to represent their interests
Get executive buy-in
Identify the right executive sponsor for the materiality assessment. This will help ensure that resources are available and
people are held accountable throughout the process. The
sponsor should endorse actions coming out of the assessment. Ideally, the sponsor should be the CEO. If this is not
possible, consider another senior executive with a broad view
of the various parts of the business, such as the COO, Chief
Audit Executive or Head of Strategy.
Pick a project leader
Assign a project leader to manage the end-to-end process. If
you have sufficient resources available, create a core team led
by the project leader. The core team could include 1-2 additional staff members who are able to help with each step of
the assessment, including data collection, interviews, and rating
topics. If you do not have resources to set up a core team, consider involving others from your organization along the way.
Establish your internal review committee (intermediate)
Establish an internal review committee with executives from
across the board who understand how environmental, social, and
economic topics affect – or potentially affect – different areas
of the business. The composition of the internal review committee will vary by company and may include representatives from
key business lines, finance, marketing, public relations, products
and solutions, human resources, legal, supply chain and operations, and any other functions, regions, or businesses important
to your enterprise. The internal review committee will oversee the
process and approve the outputs.
Sprint’s approach
Get executive buy-in: With support from the CEO, Sprint
established a CR Steering Committee that included twelve
executives from the various operational units within Sprint.
Two years later, Sprint later turned this committee into the CR
Leadership Committee, and added a higher level Steering
Committee that meets quarterly, led by the CEO, and consisting of nearly the entire C-Suite.
Pick a project manager: Sprint did not yet have a dedicated Corporate Responsibility Manager, so we selected
an individual with a passion for sustainability and strong
operational knowledge to lead the project internally. The project was expected to take 30 to 45 days for completion, and
required 25% of this person’s time during the project.
Identify internal experts: Most of the Steering Committee
members selected a person from their team to serve as their
sustainability subject matter expert.
Determine who your stakeholders are and how to
represent their interests: Sprint directly engaged some
stakeholders for feedback. Sprint also leveraged our sustainability consultant’s recently completed a materiality assessment
for the global wireless industry. So, we used a combination of
direct feedback and secondary feedback to represent stakeholder interests.
TIP: Try to identify potential corporate responsibility champions within your company and recruit them to help you. It
is nearly impossible to succeed in CR if you do not have
people with passion leading and participating in your efforts.
Identify internal experts
Determine who your stakeholders are and how to
represent their interests
Identify relevant internal subject matter experts to assist in the
materiality assessment. Subject matter experts should include
employees who have a deep understanding of how environmental, social, and economic topics affect – or could affect
– different areas of the business. Subject matter experts may
include individuals from product development; environment,
health, and safety (EHS); or community affairs. The subject
matter experts will be called upon during the assessment,
when needed, to provide input and feedback.
It is important to represent the viewpoints of external stakeholders in a materiality assessment. This can be achieved
either by directly involving stakeholders (e.g., through
interviews or surveys) or indirectly through proxies – information from sources that is representative of their perspective.
Table 4 in section 2.4 lists potential external stakeholders
to consider involving. Many companies use proxies in their
first materiality assessment and involve external stakeholders
directly in future iterations of the assessment.
Chapter 2
7
2.3: Create a list of relevant topics
Highlights:
• Introduction
• Prepare an initial list of environmental, social, and economic topics
• Research additional industry-specific topics for your list (intermediate)
• Group topics into categories that are meaningful to your business
• Clearly define topics to create a common understanding
• Seek internal approval of the topics list (intermediate/advanced)
Introduction
A materiality assessment is based on a list of environmental,
social and economic topics that (1) are of greatest concern
to your stakeholders and (2) could significantly affect your
business performance, now or in the near future:
Topics of concern to your stakeholders: Topics that
are important to, or have an impact on, the company’s
stakeholders (investors, employees, customers, suppliers,
governments, regulators, business partners, communities,
media and NGOs).
Topics of concern to the company: Topics that have the
most significant impact on the company’s performance in
terms of risk, cost, growth and financial performance.
The number of topics to consider can be large, but the topics should be those that are most relevant to your company.
We provide an initial list below, and a suggested process to
add additional topics and remove less relevant topics, with
an aim to create a final list of 20 to 30 topics.
The topics can be current or potential - that is, topics you
think may become relevant in the near future. For example,
water scarcity may not be on your radar if you are not a
manufacturing company. However, if you have offices in an
area that experiences droughts, water could affect employees’ cost of living, health, and safety, as well as your ability
to attract talent in the area in the long-term. It is important
to think through each topic with a long-term view of how it
could affect your company.
Prepare your initial list of environment, social and
economic topics
Start with a generic list of CR topics, such as the one in
Table 1. Appendix A has definitions of these topics, and
questions to ask to decide whether to include the topics in
your initial list.
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Table 1: Sample initial topics list
CategoryTopic
Environmental – Energy and greenhouse gas (GHG)
emissions management
– Water use and management
– Materials use
– Waste management
– Impacts on biodiversity
– Product and service impacts
Social – labor practices
– Employee engagement
– Inclusion and diversity
– Occupational health and safety
– Human resource management
– Employee rights
Social – human rights
– Respect for indigenous rights
– Nondiscrimination
– Child, forced, and compulsory labor
Social – society
– Philanthropy
– Community engagement
– Ethical business practices
– Customer satisfaction
Social – product
responsibility
– Customer health and safety
– Protection of privacy
– Marketing practices
Economic
– Corporate governance
– Stakeholder engagement
– Regulatory compliance
– Research, development and innovation
– Executive compensation
– Business continuity
– Political contributions/lobbying
– Supply chain management
(including supplier diversity)
TIP: For a basic assessment, this step may be completed quickly.
Have several people review the list and challenge your assumptions. If you plan to review the list with your executives, plan in
advance to allow plenty of time for exectutive interviews.
Research additional industry-specific topics
(intermediate)
Add other topics that are relevant to your company. The following questions may help you determine additional topics:
1. Is there a list of sector-specific topics available for
your industry? (See Table 2.) At a minimum, we
recommend evaluating GRI sector guidance applicable to your industry.
2. What social, environmental and economic topics are
your competitors reporting? Review your competitors’
web sites to see if they have completed a materiality
assessment and listed their material topics. Large
companies in your sector might be a good source for
this information
3. Are there any known social, environmental and
economic topics for your industry that have caught
the attention of regulators or NGOs? Are there any
issue-specific reports where the conclusions can be
used as representative of specific stakeholder groups?
Your Legal, Environmental, Health & Safety (EHS),
Investor Relations, or Government Affairs departments
may have this information. Or, use industry intelligence
services such as Bloomberg or Forrester to identify key
stakeholder issues.
4. Do you have business continuity or risk management
plans that identify social, environmental or economic risks?
5. Are there relevant topics the media has been covering?
Group topics into categories that are meaningful to
your business
It is helpful to group the topics into similar categories, as
done in Table 1. The categories will vary depending on your
business and industry. For example, a software company
might use the category “privacy and security,” which would
include “customer privacy,” “secure computing,” and
“employee privacy.”
• Combine similar topics and remove less relevant topics
– Combine topics that are similar for your company. For example, some companies may combine
“philanthropy” and “community service” into one topic.
– Remove irrelevant topics. For example, “impacts on biodiversity” may not be a relevant topic for
accountants, attorneys, or consultants.
• Keep the topics list to 20-30 topics
– Aim for no more than 20-30 topics, and focus on those most relevant. If you are struggling to reduce the number of topics, speak to a few important stakeholders (such as your internal subject matter experts or internal review committee) to help you arrive at the topics that are most relevant to the company and its stakeholders.
Sprint’s approach
We found that the list of topics we started with was a bit
European-centric. We identified several topics that are more
pertinent in the U.S. than in Europe, including distracted
driving and cell phone e-waste management. These issues
are also on the radar for regulatory action, and we felt it was
important for them to be included in our assessment.
Table 2: Resources: Sector-specific topics
Resources: Sector-specific topics
Global Reporting Initiative (GRI) provides guidance for reporting a company’s performance on economic, environmental,
and social topics. GRI documentation includes both generic
and industry-specific topics. Reviewing the GRI’s sector-specific guidance may provide additional relevant topics.
• Link to GRI
• Link to GRI sector guidance
Sustainability Accounting Standards Board (SASB)
is developing industry-specific sustainability accounting
standards. The SASB Environmental, Social, and Governance
(ESG) topics and SASB issue briefs may provide additional
relevant topics.
• Link to SASB
• Link to SASB’s list of issues by industry
Dow Jones Sustainability Index (DJSI). The RobecoSAM
Corporate Sustainability Assessment provides the input for
the DJSI annual questionnaire, which is sent to the largest
listed companies in the world by market capitalization (in 2013,
the questionnaire was sent to the largest 2,500 companies).
RobecoSAM’s industry-specific questionnaires are not publicly
available – check with your Investors Relations team to see if
they receive a questionnaire from RobecoSAM around March/
April of each year. If not, the list of topics per industry may still
provide additional relevant topics.
• Link to RobecoSAM
• Link to RobecoSAM topics per industry
Clearly define topics to create a common understanding
When you have your list of 20-30 topics, write a definition
of each that makes sense for your company. This will ensure
a common understanding of each topic as you conduct the
materiality assessment. This is important because people
may otherwise interpret topics differently, or not understand
how the topic relates to the company. For example, the
topic “water” might seem straightforward, but it could mean
water use, water discharge, or water quality, depending on
what is most important to a company. Writing a definition
will ensure everyone interprets the topic in the same way.
See Appendix A – Materiality topic definitions and questions, for sample definitions.
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Seek internal approval on proposed topics
(intermediate/advanced)
• Intermediate: Get approval from the internal review
committee.
• Advanced: Get input from representatives of external
stakeholders.
Table 3 is a sample output from this step.
Table 3: Example initial list of topics
10
CategoryTopic
Eonomic – Economic performance
– Innovation
– Indirect economic impacts
Environment – Renewable energy
– Energy efficiency
– Water
– Biodiversity
– GHG emissions
– Hazardous waste disposal
– Compliance (environmental)
Labor practices
– Employment
– Occupational helath and safety
– Diversity and equal opportunity
– Supplier diversity
Human rights – Indigenous rights
Society
– Community
– Public policy
Product responsibility
– Customer engagement
– Customer health and safety
– Energy delivery reliability
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Sprint’s approach
Group topics into categories that are meaningful to
your business: We grouped topics into 25 buckets, and
mapped them into 5 main categories – operations, products,
employees, customers and community. These categories
mapped to our CR operational priority statements. As our business and industry has changed, we modified the topics and
categories to better map to where we need to put our focus.
Combine similar topics and remove less relevant
topics: For Sprint, some of the topics that are less relevant
include local hiring and forced labor, which are issues more
common for companies operating in developing countries.
Since Sprint has more than 99.5 percent of its workforce in the
U.S. and must meet U.S labor laws, labor practices that are at
odds with U.S. law are not relevant – these issues are unlikely,
given our compliance with U.S. legislation in this area.
Define each topic: We completed a definition document
to accompany the draft materiality assessment as it made its
rounds at Sprint and as we secured executive engagement.
Each person had a slightly different interpretation of each
topic, so this step was essential to ensure we were working
from a common understanding of each topic.
Changing the topic list over time: For subsequent
assessments, usually completed every 2 years, we modified
the list to better map to specific topics that we heard about
directly from our stakeholders. We also modified the topic
language and categories to better match our CR priority
structure.
2.4: Score from both a business and stakeholder perspective
Highlights:
• Determine criteria and rating scales to evaluate the business perspective and then the stakeholder perspective.
What factors determine impact on business success? Stakeholder impact?
• Collect input data
• Conduct the materiality assessment
• Rate each topic for both business and stakeholder impact, and plot the results on a 2 × 2 chart
Determine criteria and rating scales
You now need to determine how to prioritize your topic list. This is
typically done by scoring each topic from two perspectives – that
of the business and that of the stakeholders. Plot each topic on a
chart based on the scores – the X-axis is the business perspective and the Y- axis is for the stakeholder perspective. The scale
for each axis depends on your scoring range. In Figure 2, the
range for each axis is 100, with a starting point of 0. The X-axis
value is the first one; the Y-axis value is second.
The score for each topic must be a composite view that
represents many perspectives. Table 4 provides sample
perspectives you may want to consider.
Figure 2: Example of a materiality chart
MATERIALITY CHART
Impact to external stakeholders
High
Topic A, 20, 60
Topic C, 70, 80
Topic D, 20, 40
Topic B, 60, 20
Low
High
Impact on the business
Table 4: Examples of business and stakeholder perspectives
Business PerspectivesStakeholder
Perspectives
Views of the core team and internal review committee on business priorities
NGO priorities
Company commitments and goals
Investor priorities
Company strategic priorities Customer priorities
Compliance requirements
Government priorities
Employee priorities
Peer priorities
Corporate responsibility priorities Corporate responsibility ratings agencies
Company risks Corporate responsibility trends
Industry trends
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11
Once you have identified the perspectives you plan to use
for business and stakeholder impact, you need to determine
what rating scale you will use. There are several different
approaches to choose from. We recommend a three point
rating scale for the basic approach, and a five point rating
scale for the intermediate approach. See Tables 5 and 6 for
sample rating scales. You will rate each topic from each of
the perspectives within impact to the business and impact to
stakeholders. So, if you have 20 topics, and 5 perspectives
to consider for business impact, you will be creating 100
scores – one for each topic, from each perspective.
time to collect the data to rate the topics against each
perspective. The data you collect will depend on what level
of materiality assessment you are doing. For the basic approach, you will want to take advantage of existing data that
you have, and figure out how it can be used to represent
each perspective. For example, you may have an employee
survey you can use to represent the views of employees. For
an intermediate approach, you may choose key stakeholders
to interview to represent their perspectives. For an advanced
approach, you may create surveys and conduct interviews of
all stakeholder groups.
Collect input data
Tables 7 and 8, represent possible data sources for a sample of
internal and external perspectives.
Once you have your topic list and rating scales, it will be
Table 5: Sample rating scale – basic approach
Table 6: Sample rating scale – intermediate approach
RatingBusiness Perspective: Company commitments and goals
RatingBusiness Perspective: Company commitments and goals
0
1
2
3
0
1
2
3
4
5
No data or insufficient data to rate
No internal or external commitments about the topic
Internal commitment and/or goal about the topic
External commitment and/or goal about the topic
No data or insufficient data to rate
No internal or external commitments about the topic
Internal commitment about the topic
Internal commitment and policy about the topic
External commitment about the topic
External commitment and goal about the topic
Table 7: Examples of data sources for specific internal perspectives
12
Business Impact
Possible data sources
Views of the core team and internal
review committee on business priorities
Surveys
Company commitments and goals
Existing commitments, policies, or goals (e.g., documents of
governance, public goals)
Company strategic priorities Standing agendas of leadership meetings
External communications (e.g. 10-K, CEO statements)
Components of executive remuneration
Compliance requirements
Applicable laws, regulations and standards
Employee priorities
Internal surveys (e.g., employee engagement); employee
complaint reports
Corporate responsibility priorities Existing corporate responsibility documentation including LCA studies, external reports, etc.
Company risks Risk registers currently compiled through other internal departments
or initiatives such as internal audit, enterprise risk management, etc.
Chapter 2
Table 8: Examples of data sources for specific external perspectives
Stakeholder Impact perspectives
Possible data sources
NGO priorities
Research on issues of importance to NGOs relevant to your sector
and to sustainability
Investor priorities
Investor feedback; shareholder resolutions; sustainability index
questionnaires (e.g., Dow Jones Sustainability Index)
Customer priorities
Analysis of RFPs and customer requirements; customer surveys;
customer insight analysis; customer complaints
Government priorities
Government policies, which should be monitored by the appropriate
executive or function within your company, depending on the topic
area (e.g., HR, EHS, or Sustainability)
Peer priorities Benchmarking material issues reported by competitors and other peers
Corporate responsibility ratings agencies
Questions asked in corporate responsibility questionnaires (e.g.,
Carbon Disclosure Project (CDP), Dow Jones Sustainability Index (DJSI), Newsweek Green Ranking)
Corporate responsibility trends
Research on corporate responsibility trends within the sector (e.g., from sources such as GreenBiz or Environmental Leader)
Industry trends
Media/Internet searches of trends and articles relevant to the
company and/or the industry
Output from this step:
Data available to represent each perspective
At the end of this section, you should have identified what
data you will use to represent each perspective. Keep in
mind that the data may not cover all the topics in the materi-
ality assessment. For example, an employee survey may only
reference a few of the topics on your list. That is still helpful,
because then you would understand which topics are currently most important to employees.
Chapter 2
13
Table 9: Sample rating for customer priorities
using a 5 point scale
Table 10: Example materiality ratings
TopicCustomer
priority rating
CategoryTopicInternal External
perspectivesperspectives
average rating average rating
Economic performance
5.0
Economic
Economic performance
3.4
Innovation5.0
Innovation
3.24.0
Indirect economic impacts
4.0
Indirect economic impacts
2.8
3.3
Renewable energy
4.0
Environment
Renewable energy
3.3
4.5
Energy efficiency
3.5
Energy efficiency
3.2
4.8
Water4.0
Water
2.94.2
Bodiversity3.0
Bodiversity
2.33.8
GHG emissions
4.0
GHG emissions
3.5
Hazardouse waste
disposal
5.0
Hazardouse waste
2.8
4.0
disposal
Compliance (Environmental)
3.5
Compliance (Environmental)
4.0
4.7
2.9
4.4
Employment4.0
Labor practicesEmployment
2.5
4.0
Occupational health/safety
4.0
Occupational health/safety
3.4
4.3
Diversity and
equal opportunity
3.0
Diversity and
equal opportunity
3.0
3.6
Supplier diversity
2.0
Supplier diversity
3.0
3.2
Indigenous rights
2.0
Human rights
Indigenous rights
2.2
3.6
Community1.0
SocietyCommunity
2.4
3.1
Public policy
3.0
2.5
4.2
Customer engagement
programs
3.0
Product
Customer engagement
responsibilityprograms
3.6
3.1
Customer health/safety
5.0
Customer health/safety
2.4
3.3
Energy delivery reliability 4.0
Energy delivery reliability 2.7
3.7
Public policy
Key for Tables 9 and 10:
Low priority
(1 - 2.5)
Relevant but may
not be material
(2.5 - 3.5
Conduct the materiality assessment
After establishing rating scales for each perspective, rate
each topic. Table 9 shows an example of Stakeholder impact
perspectives – in this case, for customer priorities– rated on
a scale of 1 – 5 for each topic.
14
Potentially material
(3.5 - 5)
programs put in place by the company as a 1, customer B
states it’s a 2, and customer C states it’s a 3, the customer
priority rating for supplier diversity will be the average, 2.0
(i.e., (1+2+3)/3).
With a basic approach, customer priority ratings can be determined by the company based on its knowledge of what’s
important to its customers.
After rating topics for both business impact and stakeholder
impact, average the business impact and stakeholder impact
ratings for each topic. Table 10 shows an example of average ratings of internal and external topics.
With an intermediate approach, the rating can be based
on average levels of importance for each topic, provided
by customers through a survey. That is to say, if customer
A states that they see the importance of supplier diversity
With an intermediate approach, you could combine the
data from both perspectives to get an aggregated or total
rating. This would allow you to stack rank the topics based
on their total, combined score.
Chapter 2
Figure 5: Sample materiality assessment 2 x 2 chart
5.0
Energy efficiency
GHG emissions
Stakeholder impact
4.5
Compliance
(Environmental)
Public policy
Energy delivery reliability
Indigenous rights
Innovation
Economic performance
Hazardouse waste disposal
Biodiversity
3.5
Occupational health/safety
Water
Employment
4.0
Renewable energy
Diversity and equal opportunity
Indirect economic impacts
Customer health/safety
Customer engagement programs
Supplier diversity
3.0
Community
2.5
2.0
2.0
2.2
2.4
2.6
2.8
3.0
3.2
3.4
3.6
3.8
Business impact
Rate each topic for both business and stakeholder impact, and plot the results on a 2×2 chart
Next, plot the results on a 2 x 2 chart, such as the one in Figure 5. This can be done with a simple Excel spread
sheet, or manually.
Sample output from this step: Prioritized topics represented in a 2 x 2 matrix
Chapter 2
15
Sprint’s approach
Sprint’s materiality consultant provided a slightly different approach for rating the perspectives of business and external
stakeholders. The approach is slightly less granular and may be
an acceptable approach if you find it better suits your needs
and resources. The approach you select is not as important so
long as your methodology provides an accurate representation
of the business and stakeholder perspectives and allows you to
prioritize issues.
In our materiality assessment, we first identified a list of business success elements – product/service differentiation,
employee satisfaction, etc. Each element received a weighting
such that the total weighting for all elements totaled 100. We
then scored each topic in terms of its influence on these elements (drivers of business success). The weighting represented
how important that aspect was in driving business success for
that topic.
We then rated each aspect for each topic as either a high priority for business success or a low priority for business success.
To force a spread in the results, if an aspect was rated as high
priority, it received maximum points (weight × 100) and if it was
rated as low priority, it received no points.
The example the below (Influence on Business Success) is for
green design for a cell phone. The ratings represent our perspective on how this topic could impact business success. We
rated product/service differentiation as high since no one had
launched a “green” phone yet. We felt it would positively impact
our brand reputation. Although customer satisfaction was important, we didn’t expect that a green design would significantly
impact customer satisfaction. We did think it would impact employee satisfaction, but this had a lower weighting compared to
customer satisfaction. Although cost has a significant impact on
business success, we did not think there would be significant
incremental cost associated with our devices, so it would have
a low impact to our customers. Initial expectations for generating incremental revenue from this new product were low.
Note: Points are scored by multiplying the weight times 100
times a multiplier for priority. To force a scoring spread, if a priority
is listed as High, the value of the multiplier is 1, if it’s Low, the
multiplier is 0. For example, if a source is weighted at 20% and
listed as a high priority, the point score is .2 × 100 × 1 = 20.
To provide the stakeholder perspective, we used several sources including our sustainability consultant (from an industry-wide
assessment they completed), direct stakeholder input (from 5
non-governmental organizations and CR analyst firms), a review
of web content/social media/research on some of these issues,
and internal feedback. For example, our Investor Relations, Customer Care, Supply Chain Management, and Human Resource
teams interact with stakeholder groups. These teams provided
insight into issues stakeholders cared about. Note: The same
scoring approach was used – weight x 100 priority multiplier
of 1 or 0 = points.
IMPORTANCE TO STAKEHOLDERS:
INFLUENCE ON BUSINESS SUCCESS:
Information SourceWeight Priority Points
Information SourceWeight Priority Points
Total
Total
Environmental Impact 12%
Standards
Universal Declaration
10%
of Human Rights
GRI Guidelines
12%
Issue-specific NGOs 10%
SRI Investor Surveys
14%
Media Tracking
14%
ICT Sustainability
12%
Reports
Public Policy
12%
Product / Service
Differentiation
Brand / Reputation
Customer Satisfaction
Employee Satisfaction
Cost
Revenue
20%
High
20%
High
20%
Low
10%
High
20%Low
10%Low
20
20
0
10
0
0
TOTAL 50
High
12
Low
0
High
High
Low
High
High
12
10
0
14
12
Low
0
TOTAL 60
16
Chapter 2
2.5: Review results
Highlights:
• Review material topics with internal stakeholders to reality-check the results
• Review the results with the internal review committee (intermediate)
• Review the results with external stakeholders (advanced)
• Get leadership sign-off on materiality assessment outputs to obtain endorsement
and resources to act on results
• Keep documentation available for future reference
The materiality assessment process has some rigor, but it is not
an exact science. The data may be approximate and not exact,
or the rating scales may not capture all possibilities. Therefore,
topics may appear more or less significant than what feels right.
It is important to reality-check the outcome of the materiality
assessment with leadership and key external stakeholders, to
catch anything may have scored too high or too low.
It is ultimately up to the company – not its stakeholders – to
determine what topics are material. For example, with an intermediate approach, the internal review committee may choose to
increase the rating of a new issue that only one stakeholder has
identified as material, but that has strategic business implications.
Review material topics with internal stakeholders
Hold a meeting or a series of meetings with key internal
stakeholders to review results. This may include executives
from across the board, and any relevant internal subject matter
experts. Review the rating scale and results, and document
any changes made during the meeting(s).
Review the results with the internal review committee
(intermediate)
Hold a meeting or a series of meetings with the internal
review committee, after any other meetings with internal
stakeholders. Review the rating scale and results, and document any changes made during this(ese) meeting(s).
Review results with external stakeholders (advanced)
If you received external stakeholder input on the materiality assessment, you may want to review the materiality assessment
process and outcome with the same set of stakeholders. This
can provide valuable input into the process and help build relationships with stakeholders. It may also raise expectations that
the company will take action on some of the topics identified.
If you do seek external stakeholder validation, keep the conversations as fact-based and transparent as possible. You might
consider using existing forums to hold these conversations (e.g.,
customer or investor road shows, employee all-hands meetings
or surveys), whenever possible. This will help minimize the time
requirements for all involved. Document any changes made as a
result of these conversations.
Get leadership sign-off on the materiality
assessment results
It is critical for leadership to review, understand, and approve
the materiality assessment results. Hold a meeting or a series
of meetings with leadership to review the process and results.
If needed, consider following your company’s typical voting
system to help reach consensus. Document any changes
made as a result of these conversations.
Keep documentation available for future reference
Ensure that the methodology, tools and data used for the
materiality assessment are kept on file in accordance with your
company’s record retention policy. Sprint has a records retention policy of 10 years as part of our Sarbanes Oxley compliance program. This includes the initial topics list, the refined
topics list (and reasons for changes), prioritization methodology,
and all data sources. Keeping this information may be useful if
you need to explain to management or external stakeholders
(e.g., media, NGOs, customers, auditors) why certain topics
were kept in or left out of the materiality assessment.
Output from this step: Refined assessment
You should now have a refined materiality assessment, reviewed and agreed to by internal stakeholders and signed off
by leadership. You should also now have many documents on
the process on file!
Sprint’s approach
Sprint reviewed its initial materiality results with several important stakeholders including World Wildlife Fund, Calvert
Investments, Carbon Disclosure Project, The Conference
Board and Investor Environmental Health Network. This
was done through separate calls for each stakeholder,
facilitated by an outside party.
Sprint’s approach
Once we plotted all of the issues on a chart similar to Figure
5, we did a gut check. Did things fall where we expected? If
not, we went back and reviewed the ratings to determine if
we needed to make adjustments. We also reviewed the results with a few internal executives and our consultant to get
their take on the results. Once this was complete, we had
our final chart and it was time to decide what to do with it.
Chapter 2
17
2.6: Develop a plan and take action
Highlights:
• Develop a plan for the most material topics
• Improve the materiality assessment process over time, e.g., improve the data quality and data collection process
• Monitor market changes on materiality
Develop a plan for the most material topics
Create a plan to address the most material topics identified
through the materiality assessment process, starting with
the topics in the top right quadrant (see Figure 5). Review
and refine the plan with leadership and key internal stakeholders. Components of plans may include:
• Develop a CR strategy, or include the material topics in
the company’s overall or business unit strategies (a CR
strategy is easier to develop, but less likely to receive
the right level of attention from the business)
• Make sure key risks are managed through the company’s standard risk management process
• Include key opportunities in the agenda of future business planning sessions – it is important to emphasize
opportunities, not just the risks of CR topics, to help
you get leadership support
• Decide on how to communicate internally and externally
about the topics, e.g., dedicated CR report, inclusion
in other company disclosures
Sprint’s approach
Summarizing the results and then determining what actions
to take was the hardest step in our materiality assessment
process. Many issues were in the “shared value quadrant (top
right), and several were in the “manage for risk reduction” (top
left) quadrant. Sprint took six months to create a formal set
of CR operating priorities and long-term sustainability goals
based on this materiality assessment, which we made public
in October 2008.
The time-consuming part of the effort was taking management through the conclusions of the materiality assessment
and gaining consensus on what our resulting actions and
goals should be. We had several meetings with the executive
team, and ultimately review and approval from our CEO. The
bulk of the work was completed by the Project Manager, who
drafted priorities and goals and then reviewed them with the
functional executives that had direct responsibility in that area.
We have since fine-tuned several of these goals and updated
our materiality assessment, but the materiality assessment we
completed in early 2008 served its purpose well – laying the
foundation for our CR efforts for the next decade.
Improve the materiality assessment process over time
By improving the quality of data input into your materiality
assessment in future iterations you will improve the usefulness of your results. Improving the quality may include,
for example, conducting interviews with more internal and
external stakeholders, or using more quantitative data (e.g.,
product lifecycle analyses to identify the environmental
impacts of a product from the extraction of raw materials to
its end of life, or metrics measuring employee absenteeism
due to health issues).
One of the new trends in materiality assessment is factoring in an estimated financial impact of these issues. For
example, there are firms developing approaches to measure
the potential cost (or risk) of human rights issues, or of toxic
waste mismanagement, or poor forestry practices. The
practice has been called valuing natural capital or social
capital. This new trend may be driven by growing interest in
having companies understand and report quantitatively on
their social and environmental impacts.
Consider how to embed the data collection into day-today processes so that more data is readily available for the
next assessment. This may include, for example, embedding materiality assessment questions into employee and
customer surveys.
In addition, many governments and stock exchanges around
the world are now requiring companies to report social and
environmental performance, either in separate reports, such
as Corporate Responsibility or Sustainability reports or by
including relevant and material non-financial information
in annual reports or 10-Ks. Investors are also pressuring
companies to disclose their GHG emissions through the
annual Carbon Disclosure Project (CDP) and to have their
CR reporting externally audited. While the assessments
you complete to meet Sprint’s supplier criteria may help or
relate to some of these reporting needs, please remember
that the information provided in this booklet is designed to
meet Sprint’s supplier criteria. You will need to decide what
additional assessment and reporting may be required.
Monitor market changes on materiality
Keep up to date on new information that may affect your
materiality assessment results or how you manage a
specific topic. For example, keep an eye on SASB (see Table
2), and their sector-specific issue briefs for your industry.
These issue briefs may affect which topics you consider for
the materiality assessment and how you prioritize the topics.
18
Chapter 2
2.7 Fulfilling Sprint’s criteria
Highlight:
• Establish a timeline and action plan
• Publish your process, materiality matrix and your resulting action plan
Establish a timeline and action plan that allows you
to finish and publish your materiality assessment by
December 31, 2014
Sprint’s supplier assessment goal is to have 90% of its
suppliers, based on sourceable spend, meet its social and
environmental criteria by 2017. Completing your materiality assessment will likely take three to six months, so Sprint
encourages you to establish an action plan and timeline that
allows you to complete the assessment and make it public
by the end of the year 2014. This gives you time to identify
and assemble your project lead, the assisting subject matter experts, and appropriate stakeholders for a meaningful
materiality assessment. It may be helpful to have your results
ready in time for your next strategic planning process.
Publish your process, materiality matrix and your
resulting action plan
There are many approaches to completing a materiality
assessment, including those provided in this booklet. Your
approach to materiality may vary from those shared here,
however, in order to meet Sprint’s supplier criteria, there are
specific aspects of your materiality assessment process and
results that you need to share publicly on an open and easyto-access location, such as your website. Sprint’s materiality
disclosure criteria are:
1. Explain your materiality assessment approach and why
you took this approach.
2. Include an overview of the materiality assessment process you followed, including:
–How stakeholder and internal input was obtained
–How the topic list was compiled
3. Summary of the outcome of your materiality assessment
and what actions you are taking as a result.
– A list of topics defined as material
– Your plan for managing each material topic, which could be:
• A numeric goal such as “reduce GHG emissions
by 30% by 2017”
• An action goal such as “implement a system to capture all energy activity data by the end of the year”
• A statement that you plan to address the topics
in the future (with an estimated timeline) such as
“Company X plans to meet with external stakeholders to further understand their concerns
regarding X and work with them to develop a potential action plan. Company X will not be able to
identify and meet with these stakeholders until first
quarter of 2014 due to resource constraints.”
• A statement that you do not intend to address a
topic and why such as “Company X understands
that potential pay disparity between its CEO and
average employee could be a concern for stakeholders, however, Company X does not expect
to publish this information until the SEC provides
clear guidance under the Dodd-Frank Act.”
4. Disclose the title of the most senior person in your
company who approved the materiality assessment
process outcome.
Note: Sprint’s materiality disclosure criteria are based on
the GRI G4 requirements on materiality reporting, but are
specific to Sprint. If you choose to complete a GRI-based CR
report, you should refer to the GRI guidance document rather
than Sprint’s booklet to ensure you fully meet the GRI criteria
for materiality assessment.
Chapter 2
19
Chapter 3:
Measuring, reporting and reducing
Greenhouse Gas (GHG) Emissions
Contents:
3.5: Turn your activity data into GHG emissions
3.1: Understanding the basics of climate change
3.6: Documenting and report your results
3.2: Fundamentals of GHG measurement
3.7: Develop a plan to reduce GHG emissions
3.3: Get ready
3.8: Where to go from here
3.4: Collect the data
3.9: Fulfill Sprint’s criteria
This section of the booklet tackles another of the most challenging areas of Corporate Responsibility (CR) – greenhouse
gas emissions measurement, reporting, and reduction goal
setting. Many people refer to this responsibility as reducing
their carbon footprint. The basic idea is that companies need
to measure, report, and reduce the greenhouse gas (GHG)
emissions they are responsible for so that collectively, we can
limit the impact of GHG emissions caused by human activity. The upside to business is the cost savings that can be
realized when you work to reduce your GHG emissions. It is
Figure 6: The Greenhouse Effect
20
Chapter 3
no longer enough that companies measure and reduce their
emissions; they also need to publicly share their process and
results so that CR analysts can determine if they are following
GHG reporting standards.
Our objective in this section of the booklet is to provide the
basics of GHG measurement and reporting so you are able
to meet Sprint’s GHG criteria. Our hope is that you can use
this process to help identify and tackle your opportunities to
reduce your GHG emissions and strengthen your business
performance.
3.1 Understanding the basics of climate change
GHGs are gases in the upper atmosphere that form a heattrapping blanket that warms the Earth’s atmosphere. At the
same time, they prevent some sunlight from being reflected
back into space. This traps solar radiation and heat in the
Earth’s atmosphere.
In order for Earth to maintain a consistent average temperature, the amount of heat entering the atmosphere should be
about the same amount as the heat that leaves the atmosphere. A rise in GHG concentrations in the atmosphere traps
heat and contributes to an increase in the average temperature, or “global warming.” Global warming causes changes in
weather, sea level, and land use patterns (“climate change”).
While the majority of GHG emissions come from natural
sources, there is overwhelming scientific evidence indicating
that human activity (mainly the production and use of carbonbased energy) is causing a steep and rapid rise in concentrations of GHGs in the atmosphere.
All of us are learning to expect and adapt to increasingly
erratic weather with stronger and more frequent severe
weather events. Sprint is also working to reduce our carbon
footprints and to facilitate new solutions that might slow
down or even reverse global warming.
In 1997, organizations and governments from across the world
collaborated to develop an agreement under the Kyoto Protocol1 to curb GHG emissions. The protocol went into effect in
2005. The protocol identified six priority gases that makeup
a high contribution to global warming. Table 9 lists the six
priority greenhouse gases and the activities that typically
produce them.
Each gas has a different impact on Earth’s atmosphere. The
impact varies depending on three variables:
• The amount and concentration of the gas is in
the atmosphere
• The length of time the gas stays in the atmosphere –
this ranges from a few years to thousands of years
• The ability of the gas to retain heat in the atmosphere
and consequently affect global temperature
Based on these factors, a Global Warming Potential (GWP)
is calculated for each gas. The GWP plays an important role
in a company’s measurement of its GHG emissions because it allows all types GHG emissions to be reported on
a consistent basis – similar to converting Euros (€) to U.S.
dollars ($) for a financial report. The common currency used
in GHG measurement is MT CO2e, or metric tons of carbon
dioxide equivalents.
Think of GWP as a conversion factor that enables different
gases to be expressed in MT CO2e. Carbon dioxide itself
has an assigned GWP of 1, but other greenhouse gases
with higher warming potential have higher GWPs. The table
below provides an example.
You can see that multiplying the number of metric tons of each
gas by their respective GWP produces the equivalent in
MT CO2e. Now that the amount of both gases is expressed in
a common currency, they can be added together for a total
MT CO2e of 77.
Question: How many MT CO2e would result from
combining 2 MTs of carbon dioxide and 3 MTs of methane?
Gas
MT
GWP
MT CO2e
Carbon Dioxide
2
1
2
Methane
325
75
TOTAL
77
Sprint climate
change impacts:
At Sprint, our back-up power generators are used more frequently due to the
increase in number and severity of
hurricanes and winter snowstorms. This
increases our scope 1 emissions. We’ve
also had to draw water from municipal
sources more often at our headquarters in
Overland Park, Kansas, as droughts have
reduced the volume of water available in
our water recapture ponds, which we
typically use to irrigate our landscaping.
The Kyoto Protocol is an international treaty of the United Nations Framework Convention on Climate Change, which set internationally binding emission reduction targets.
The Kyoto Protocol was adopted in Kyoto, Japan, in 1997 and entered into force in
2005. The first commitment period ended in 2012. The protocol was amended in 2012
to extend through 2020, but not entered into force.
1
Chapter 3
21
Table 9: Greenhouse gases
Greenhouse gas (GHG)Activities that contributeLifetime in to emissions atmosphere3
Global warming potential (GWP)4
Carbon dioxide (CO2)
Electricity generation and use; 50 – 200 years
fossil fuels used in transportation; industrial processes
1
Methane (CH4)
Natural gas and petroleum; 12 years
agriculture (livestock digestion); landfill waste decomposition
21
Nitrous oxide (N2O)
Agriculture (synthetic fertilizer, 114 years
manure); fuel use in motor
vehicle transportation; chemical production of fertilizer and synthetic products
310
Hydrofluorocarbons (HFCs)
Refrigerants used in air conditioning
37 – 14,800
Perfluorocarbons (PFCs)
Industrial processes associated 740 – 50,000 years
with aluminum production and semiconductor manufacturing
6,500 – 12,300
Sulfur hexafluoride (SF6) Electrical transmission equipment 22,800
Carbon dioxide emissions are the most prevalent GHG
emission, representing an estimated 57% of global emissions and 84% of U.S. GHG emissions2. Most carbon dioxide emissions caused by human activity are from burning
fossil fuels to produce electricity and fuel used for transportation. This is why most public policy and scientific efforts to
curb emissions are focused on carbon dioxide associated
with energy consumption. While some of the other gases
are less prevalent, they are nevertheless considered priority
gases because of their high GWP and disproportionate
impact on the greenhouse effect.
Measuring GHG emissions – what’s in it for
your company
Organizations are measuring and taking actions to reduce
their emissions – and in doing so, responding to a growing
consensus that this problem needs to be solved through
responsible action. In many countries there is an increasing expectation that governments will impose tax or other
regulations on GHG emissions, and companies want to be
prepared by keeping their emissions to a minimum. Some
companies also believe their long-term viability will rely on efforts to adapt to (or mitigate/abate) environmental change.
1.3 – 270 years
3,200 years
Note: The Intergovernmental Panel on Climate Change
(IPCC) provides the generally accepted values for GWP,
which changed slightly between 1996 and 2013. Under the
Kyoto Protocol, it was recommended to use IPCC SAR for
GWPs to allow comparability between emissions results.
We have chosen to follow this approach as well for our own
GHG reporting.
Note: Sprint recognizes that the GHG measurement process
provided, although simplified from many publicly available sources,
can be daunting. We expect all suppliers to complete an assessment to determine their level of emissions, but we have provided
suggestions for smaller suppliers with an office-based business,
which may have just one or two sources of GHG emissions. For
example, if a company has just a few office buildings, doesn’t
manufacture anything, and leases the office space it does use (with
utility costs included), not all steps in the booklet may apply.
http://www.epa.gov/climatechange/ghgemissions/
Intergovernmental Panel on Climate Change, “Climate Change 1995: Working Group I: The Science of Climate Change,” 1995 (link).
4
Intergovernmental Panel on Climate Change, “Climate Change 1995: Working Group I: The Science of Climate Change,” 1995 (link).
2
3
22
Chapter 2
Other benefits include:
•
Cutting costs
–Reduce energy use
–Increase productivity
–Encourage innovation to reduce energy use
• Managing risks
–Identify and understand risks associated with
GHG emissions
–Prepare and comply with existing or future regulation
• Driving revenue
–Meet customer environmental expectations
–Meet evolving Request-for-Proposal (RFP)
expectations from customers
–Develop process and product innovations
THE SCIENCE OF CLIMATE CHANGE:
REASON FOR CONCERN?
Today, there is an unprecedented concentration of GHG in
the atmosphere. The level of carbon dioxide recently reached
400 parts per million (ppm), a much higher level than the preindustrial age concentration of approximately 275 ppm. Most
scientists believe that this increased concentration will raise
global average temperature by at least 2°C (3.6°F), meaning
that Earth’s inter-related natural systems will be significantly
affected in various and inter-related ways, such as rising sea
levels, longer and more frequent heat waves and more extreme
weather events. It may be difficult for humans to adapt to
temperatures as global temperatures increase, which has led to
efforts for countries and businesses to curb GHG emissions.
• Building reputation
–Enhance stakeholder information and corporate
reputation through public reporting
–Engage and motivate employees
–Participate in relevant voluntary initiatives such as the Carbon Disclosure Project (CDP)
Chapter 2
23
3.2: Fundamentals of GHG measurement
Highlights:
• What is a GHG inventory?
• GHG protocol and carbon accounting principles
• One size does not fit all: tailoring GHG inventories
What is a GHG inventory?
Table 10: Carbon accounting principles6
A GHG inventory is a list of emissions sources and their
associated emissions (by type and amount) over a stated
period of time (usually a fiscal or calendar year). Your first
GHG inventory will serve as the base year (“baseline”),
against which to compare your GHG emissions over time.
It is not intended to be used to compare your organization’s
emissions with those of other companies.
PrincipleDescription
Relevance Completeness Account for and report on all GHG
emission sources and activities within the chosen inventory boundary.
GHG protocol and carbon accounting principles
The GHG discussion in this booklet is based on the GHG
Protocol5, the international standard for measuring GHG
emissions.The GHG Protocol provides a method for
companies across different industries and sectors (e.g.,
telecommunications, industrial products, utilities, service
organizations, chemical companies) to measure and report
or emissions from a variety of sources (e.g., transportation,
electricity use).
The process of calculating carbon emissions and equivalents is referred to as carbon accounting. While reporting
GHG emissions is generally voluntary, there are certain
standards and rules that should be followed in order to produce a good GHG inventory. Carbon accounting depends
more heavily on estimated data, assumptions, and uncertainty than one would expect to find in traditional financial
accounting. So, it is important to follow carbon accounting principles and report GHG inventories in a way that is
transparent and consistent to ensure that the inventory is
complete, accurate, and relevant. When calculating your
GHG inventory, follow the principles in Table 10.
Said more simply, include everything big, be transparent
about your process and what you are and aren’t including,
use the same methodology each year so you can compare
results over time, and make sure you do the math right.
One size does not fit all: tailoring GHG inventories
GHG inventories provide a common framework for reporting emissions for companies in diverse industries and sectors. However, just as companies use a variety of consolidation methods for financial reporting (e.g., accounting for joint
ventures), companies have the same flexibility in reporting
their GHG inventories. It is up to each company to determine what to include in their inventories.
24
Chapter 3
Ensure the GHG inventory appropriately reflects the GHG emissions of the
company and serves the decision-making needs of both internal and external users.
Consistency
Use consistent methodologies to allow for meaningful comparisons of emissions over time. Transparently document any changes to the data, inventory boundary, methods or any other relevant factors in the time series.
Transparency
Address all relevant issues in a factual and coherent manner, based on a clear audit trail. Disclose any relevant assumptions and make appropriate references to the accounting and calculation
methodologies and data sources used.
Accuracy
Ensure that the quantification of GHG emissions is systematically neither over
nor under actual emissions, as far as can be judged, and that uncertainties are reduced as far as practicable.
The emissions of a company will vary, depending on a given
company’s industry and business model. For example, a
company that manufactures and sells carpeting will have
emissions from the factories that produce carpeting, from
transporting the carpeting from the factory to the store,
and from the electricity purchased in retail stores it owns. A
company that only sells carpeting may only have emissions
from the electricity purchased in their retail stores.
For more information on the GHG Protocol, see www.ghgprotocol.org
5
Adapted from EPA Climate Leaders, “ Guide to Greenhouse Gas Management for
Small Business & Low Emitters,” August 2011 (link)
6
Sprint’s approach:
As a large Fortune 500 corporation, Sprint was asked to
disclose its GHG emissions through the Carbon Disclosure
Project (CDP), and has done so for the past five years. The
CDP process can be intense, and because Sprint is a large and
complex business, it takes Sprint between 250 and 500 hours
to complete each year.
Despite the time and resource requirements of completing our
GHG disclosure through CDP, we prioritize this project each
year because of the value it brings to our own greenhouse gas
management efforts. We have a 20% absolute GHG reduction goal to reach by 2017. By the time we achieve it we will be
purchasing nearly 6.8M fewer kilowatt hours than we purchased
in 2007, at a savings of nearly $55M a year in electricity costs.
Our direct fuel costs are significantly less than our electricity use
costs, but regardless, we will save at least $1M a year in these
costs as well.
One of the other benefits we’ve seen is an increase in innovation. Although we have an aggressive absolute GHG reduction
goal, we still need to support our network traffic growth. Slow
and steady change isn’t enough.
An example of our innovative response to GHG reduction is our
massive Network Vision project – essentially a re-engineering
of our entire network. We are changing out the technology at
switching sites so that it is more flexible, provides more efficient
coverage for our customers, and is more energy efficient.
Another example of innovation is our back-up power generation.
Historically, we relied on diesel generators to provide a last resort for power outages at critical sites. If power was lost, usually
due to a natural disaster, the sites go to battery back-up, but if
the outage is long enough, the batteries can be fully depleted
and the sites then rely on back-up generators. Sprint replaced
its diesel generators with hydrogen fuel cells at over 500 sites,
eliminating GHG emissions from diesel.
Sprint also believes its reputation has improved through its
GHG disclosure and reduction activities. It remains the only
U.S. telecom company to have an absolute GHG reduction goal
that includes both Scopes 1 and 2. We are just one of two telecom companies globally – and the only one in North America –
to have been accepted into the exclusive World Wildlife Fund’s
Climate Saver’s program. Sprint has also been recognized twice
on the CDP Disclosure Leadership Index.
And, our CEO has spoken publicly at many industry and
climate forums about our GHG reduction goals and why they
are important. Although we have not seen evidence that this
recognition matters to consumers, it does matter within the CR
community, and increasingly, with our business to business
customers who value Sprint as a responsible telecom provider.
Sprint’s approach
Sprint’s GHG inventory includes the following Scope 1 and 2 emission sources and greenhouse gases:
Scope 2
Scope 1
EmissionSource
Type
GHG
EmissionSource
Type
GHG
Direct
#2 Fuel Oil
CO2, CH4, N2O, CO2e
Electricity Use
CO2, CH4, N2O,
Natural Gas
CO2, CH4, N2O, CO2e
Indirect
CO2e
CO2e
PurchasedCO2, CH4, N2O,
PropaneCO2, CH4, N2O, CO2e
Fleet Fuel
CO2, CH4, N2O, CO2e
(Gasoline & Diesel)
Jet Fuel
CO2, CH4, N2O, CO2e
Refrigeration (HVAC) and
Fire Suppression
HFCs, CO2e
Renewable Energy
Credits (REC)
Note: Sprint has included a copy of its 2013 Master Worksheet for Calculating GHG Emissions which you can use as a
resource. This worksheet allows you to see Sprints emissions
categories, activity data, emissions factors, conversion formulas, and final calculation methods.
Chapter 3
25
3.3: Get ready
Highlights
• Assign a Project Manager, identify subject matter experts
• Establish your baseline year
• Set emissions boundaries
• Identify sources of emissions by scope
Assign a project manager, identify subject
matter experts
Assign a Project Manager to lead your GHG assessment
process. It is important for one person to “own” the process,
including documentation, to ensure accuracy and consistency. For larger non-office-based companies, we recommend
that the project manager establishes a cross-functional team
that can work collectively to ensure the GHG inventory is
comprehensive. The Project Manager will need to identify
the functional owners and experts within the company who
are in the best position to help identify emissions sources
and collect the necessary activity data. Make sure you
include anyone directly responsible for direct energy use, i.e.,
power to keep the business running, back-up power generation and fuel purchasing. The energy activities they manage
will be your primary emissions sources. These experts should
have access to the activity data and may have access to data
systems that can be used to simplify (and standardize) the data
collection process.
Establish your baseline year
Your baseline year is generally the first year you measure your
GHG emissions. Reduction targets are typically set against
your baseline year, so if you know you have already completed
a lot of reduction activities, you may want to establish your
baseline year before the current year so you can “claim” these
reduction activities. The challenge will be whether or not you
have all the data you need to set a prior year baseline.
Set emissions boundaries – where should you draw
the line on your emissions scope?
Once you have your base year, the next step is to determine
which sources of emissions should be included in your GHG
inventory. This is determined by the boundaries you set. Most
companies use what is called the control approach. This means
you measure GHG emissions from all operations over which
your company has control. You do not have to measure emissions from operations in which your company owns an interest
in but doesn’t control. You can define control as either financial
or operational. Whichever you decide, you have to stick with it
from year to year.
26
Chapter 3
• Financial control: a company has financial control if it
has the ability to direct the financial and operating policies
of the source of emissions (e.g., factory or vehicle fleet)
• Operational control: a company has operational control
if it has the full authority to introduce and implement its
operating policies at the source of emissions
If you own less than 100% of your operations (e.g., if you have
a joint venture or lease office space), you need to determine
what share of your operations you want to report by using the
financial or operational control guidance provided above.
Equity share approach
Companies with complex organizational structures may report
under the equity share approach. Under this approach, a company accounts for GHG emissions from operations according
to its share of equity in the operation. The equity share reflects
economic interest, which is the extent of rights a company has
to risks and rewards flowing from the operation.
Sprint’s approach
Sprint assigned a Project Manager to lead the baseline assessment. Vice Presidents of several key functions (Network,
IT, Environmental Health and Safety, etc.) were asked to
provide a point person from their team. This was a full-time
project for several months for the project manager, given
the size and complexity of our business. We were lucky to
have an Environmental Engineer to do this initial assessment
for – she was familiar with the concept of GHG emissions,
adept with data, and persistent (necessary to make sure you
get essential activity data). Select this person carefully. They
must be comfortable with data and calculations and possess
strong interpersonal skills to build good relationships with the
departments you need to help you. This is a terrific project for
a summer intern.
Note on leased office space: If you lease office
space, you should include the associated GHG emissions if
you have control over the utilities – that is to say, if you have
access to the data and pay utility bills. If utilities are included
in rent and you do not have control, you can either include the
data (using estimations) or choose to exclude it.
Identify sources of emissions by scope
Next, you will need to identify the sources of emissions to
include in your GHG inventory and categorize them according to one of three defined Scopes, or in other words,
by which activities produced the emissions. Scope 1 is
defined as emissions from sources owned or controlled by
you, for example emissions from fuel directly burned such as
gasoline in owned cars, diesel fuel in back-up generators, or
gas releases from fire suppression systems. These are also
called direct emissions. Scope 2 accounts for emissions
from the generation of electricity and other utilities (such
as steam or chilled water) you buy from utility companies.
Scope 2 emissions physically occur at the facility where the
electricity is generated (i.e., coal-burning plant owned by the
utility). These are also called indirect emissions.
The GHG Protocol considers scope 3 an optional reporting
category that allows you to report all other indirect emissions
associated with your business operations. These emis-
sions are a result of business activities, but directly occur
from sources or activities you do not own or control. The
illustration below provides a great overview of the scopes of
emissions and where they occur within business processes.
Companies must measure and report on both scope 1 and
2 emissions in order to meet the GHG Protocol requirements. Scope 3 is considered optional, but provides significant business value for those companies who already have
their scope 1 and 2 emissions in good shape. It is important
to note that one company’s scope 2 emissions are another
company’s scope 1 emissions. Scope 1 emissions are additive – there is no overlap between companies. Scope 2 and
3 emissions inherently occur outside of your direct operations and in someone else’s. However, if you only reported
your direct emissions, you would be understating the emissions that occur BECAUSE of your business activity. Note:
Sprint’s GHG disclosure criteria do not include scope 3
emissions measurement.
Sprint’s Approach
Sprint’s approach
Approximately 96% of Sprint’s scope 1 and 2 emissions are
from purchased electricity. If Sprint only reported and managed our scope 1 emissions, we would be reporting on a
very small portion of the energy load we manage. Companies
have direct control over how much electricity they use and in
most cases, energy efficiency measures are your best bet for
reducing your GHG emissions.
Sprint primarily uses operational control to define its scope.
We report all emissions from sources we operationally control, and some sources where we have financial and partial
operational control. Examples of the latter include outsourced
operations within our Real Estate, Fleet and Network Management operations. In those cases, we have contractors who
manage the processes, but we set out our operational expectations and meet with them frequently to discuss energy and
emissions reduction efforts. We are now building more and
more of this “control” language into our supplier and even our
leasing contracts to ensure we maximize our ability to control
and reduce emissions that result from Sprint activities.
Sprint included only scope 1 and 2 emissions in its first
GHG report. It started reporting scope 3 the following year
by adding business travel. Over the past several years, Sprint
significantly expanded the scope 3 categories it reports on,
becoming a global leader in scope 3 GHG reporting.
Note for small businesses: This section will be helpful to small businesses with only GHG emissions associated with
purchased electricity for leased space and fleet fuel. However, you will likely focus on the following:
Likely primary emissions sources may include owned/leased company vehicles and purchased electricity, if not included in your lease.
Available data will likely include:
Scope 1: Gallons of fuel purchased for owned/leased
company vehicles.
Scope 2: Total kilowatt hours (kWh) of purchased electricity (if paid by the company).
Chapter 3
27
Scope 1 (direct): Direct emissions from sources the
company owns or controls, including:
• Owned or leased transportation (e.g., fuel used in
company-owned fleet)
Scope 3 upstream categories Scope 3 downstream
(emissions occurring before your
categories (emissions occurring
direct operations)
after your direct operations end)
Purchased goods and services
Downstream transportation
and distribution
Capital goods
Processing of sold products
Fuel and energy-related activities
not included in scope 1 or 2
Use of sold products
Waste generated in operations
End-of-life treatment of sold
products
• Generation of electricity, heat, or steam (e.g., stationary
combustion that produces electricity)
• Chemical processing (e.g., the manufacturing
of ammonia)
• Fugitive emissions (e.g., leakage from refrigeration and
air conditioning equipment)
Scope 2 (indirect): Indirect GHG emissions from purchased
electricity, heat, steam, and cooling
Scope 3 (indirect; optional to report according to
GHG Protocol): Other indirect emissions from the com- pany’s value chain (upstream and downstream), including: Again, you do not need to complete scope 3 GHG mea- surements to meet Sprint’s criteria. We will only cover scope
1 and 2 emissions measurement in this booklet. You may
choose to measure and report your scope 3 emissions to
better understand your footprint and can find more information on scope 3 at www.ghgprotocol.org7.
Business travel
Downstream leased assets
Employee commuting
Franchises
Upstream leased assets
Investments
Upstream transportation
and distribution
Figure 7: Emissions by scope
Source: Greenhouse Gas Protocol, “Corporate Value Chain (Scope 3) Accounting and Reporting Standard, 2011
7
World Resources Institute (WRI) / World Business Council for Sustainable Development Corporate Value Chain (Scope 3) Accounting and Reporting Standard, Supplement to the
GHG Protocol Corporate Accounting and Reporting Standard, December 2011
28
Chapter 3
3.4: Collect data
Table 11: Common considerations for greenhouse gas emissions
Highlights
ScopeSource
Questions
Scope 1 Stationary combustion
Do you have facilities that burn
(use) fuel on-site (e.g., natural
gas, propane, coal, fuel oil for
heating, diesel fuel for backup
generators)? Who pays for this
and keeps track of the costs?
Scope 1
Transportation
Does your organization own
and operate vehicles (e.g., cars,
trucks, planes, ships) used to
conduct and deliver business
activities? Who buys the fuel?
Do they have records on the
volume purchased? Is mileage
reported anywhere?
Scope 1
Refrigeration and air conditioning
Do your facilities use refrigeration
and air conditioning? Do you pay
for someone to monitor and
fill your refrigerant gases as
needed? Do you have records
of where your refrigeration units
are and what type of gas they
use? Do you know the leakage
rates by system type?
Collect available activity data
Scope 1
Purchased gas
Do you purchase gases (such
as FM200 for fire suppression
systems or propane for back-up
power) for manufacturing, testing,
or laboratories? Who is
responsible for reporting gas
purchases, use or leakage?
Once you have a list of emissions sources, you will
need to determine what activity data to collect to calculate your GHG emissions. The objective is to find out
how much energy, fuel, or other emissions source you
have actually used during the reporting period (baseline
year, or other year you are working on). As an illustrative
example, Table 12 lists common data sources for officebased businesses.
Scope 1
Waste gases
Do you flare any gases on-site?
How is this measured and
managed? Do you have an
Environmental Health and
Safety group that manages
waste emissions? Are you
already required to report any
waste information to the EPA or
other government bodies?
Do you purchase electricity?
Who receives and pays for the
bills? Do you already have a
team looking at energy
efficiency? Is there a database
where utility bill information is
stored?
Do you purchase steam for
heating or cooling? If so, who
decides where you use it, pays
for it and manages it?
• Identify activities that produce emissions
• Collect available data
• How and under what circumstances to estimate data
• Document your process
Identify activities that produce emissions
Now that you’ve established your baseline year and
emissions boundaries, you need to identify the emissions
sources that should be in your GHG assessment. Most
office-based companies will be concerned with scope
2 emissionfrom purchased electricity, heat, steam, and
cooling. However, even these companies will need to
report scope 1 emissions if they own or lease vehicles.
The questions in Table 11 may help you identify your
emission source activities and options for collecting the
associated data.
Note on refrigeration and air conditioning: Refrigeration
and air conditioning equipment causes GHG emissions
through leakage of hydro fluorocarbons (HFCs) during
use, maintenance, and/or disposal. This is usually a
small source of emissions for office-based companies.
However, as mentioned earlier, HFCs are a priority gas
because of their high Global Warming Potential (GWP).
Scope 1 Transportation
– company cars
Gallons of fuel
purchased, by fuel type,
obtained from invoices
Scope 2
Electricity
Scope 1 Natural gas use
Total kilowatt hours (kWh)
or therms, obtained from
meter or gas bills
Scope 2
Steam
Scope 2 Electricity use
Total kilowatt hours (kWh),
obtained from meter or
electricity bills
Table 12: Example of common data types for an office-based business
ScopeActivityType of data
Chapter 3
29
Table 14: Estimation methods
Estimation method
Description
Example
Extrapolation
Proxy Using data from the same or a similar activity type and customizing
it to the relevant region, technology,
process, or product.
Primary data (utility invoices) are available for 10 of 85 offices. The company reviews data from the 10 offices and extrapolates data to remaining 75 offices, making adjustments for office
size and location.
Primary or secondary data related
to a similar (but not representative)
input, process, or activity to the
one in the inventory, directly
transferred or generalized
without adaptation.
There is secondary data available for electricity for Ukraine but not for electricity in Moldova. For an office building in Moldova, the company uses electricity data from Ukraine, without
modification, as a proxy for electricity in Moldova.
You can calculate GHG emissions using primary or secondary data. Primary data is the most accurate (e.g., utility bills),
but secondary data may be necessary when primary data
isn’t available or practical to obtain (e.g., utilities costs are
included in lease). Examples of primary and secondary data
are shown in Table 15.
How and under what circumstance to estimate data
If primary or secondary data aren’t available, you will need to
estimate. Estimating allows you to provide the best possible
representation of your company’s GHG emissions in your
GHG inventory. Table 14 shows two estimation methods to
measure your GHG footprint. Remember to document all
estimations and assumptions.
activity source. For each source, document the data gathering process and any assumptions you made. Capture each
step including data source, how the data is captured (e.g.,
the raw data emailed to a data owner or entered in a company database), and how the data is measured.
For example, a document of the data gathering process for
a company with retail stores may include utility bills as the
source data, the store manager emailing the data to a central
manager, and any conversion formulas the central manager
needs to use to ensure the data is consistently reported.
Documenting the data gathering process helps ensure
calculations are done consistently year to year. Most companies complete an Inventory Management Plan (IMP) that
includes this information. Sprint has provided a copy of its
IMP for your reference.
Document your process
It is important to document your data collection and estimation processes. Usually this is organized around emissions
Sprint’s Approach
Sprint uses an estimate for our refrigerant leakage emissions. We do not have good records on air conditioners and water fountains
that were installed more than 10 years ago. We have a good idea of approximately how many systems there are, where they are
located, and what type of refrigerant they use. Based on that information, we were able to find secondary data that provided the
leakage rate by system type and refrigerant type, and then completed an estimation of associated emissions. We are still working on
a reporting process that will improve the accuracy of this data.
30
Chapter 3
Table 15: Data types
Data type
Description
Example
Primary data
Secondary data
Observed data collected from specific
Utility meters or bills
facilities owned or operated by the company
Generic or industry average data from
Data from life cycle inventory
published sources that are representative
databases or literature studies
of a company’s operations, activities,
or products
Sprint’s Approach
Sprint uses primary data for the majority of its GHG calculations. The majority (96%) of our emissions are from purchased electricity and we have a database that stores all of our usage data from utility bills. Our scope 1 emissions data is more challenging.
Natural gas use is included in our utility bill system, but data for the other scope 1 emission activities is not as readily available. We
have set-up data collection and reporting processes for back-up generator fuel consumption, fire suppression releases, and gasoline, diesel and jet fuel used by our fleet, but have had to estimate refrigerant leakage for our air conditioners and water fountains.
The majority of our scope 3 emissions are based on secondary data or estimates using strong assumptions.
Chapter 3
31
3.5: Turn your activity data into GHG emissions
Highlights
• Collect and record your baseline activity data
• Determine emissions factors
• Emissions factors for electricity
• Convert your activity data into metric tons for each of the six priority GHGs
• Convert to MT CO2e
In this section, we take you through the steps to calculate
your company’s GHG emissions. As you read through this
section, you may find it helpful to look at Sprint’s GHG inventory (separate document provided). This will allow you to
see how each step contributes to the final inventory.
Collect and record baseline activity data
(Columns A through D in Sprint’s GHG inventory)
Gather data for each activity that produces GHG emissions
and record it in a single place - most companies use an Excel
worksheet for this, but you may use whichever tool you prefer.
Try to capture your activity data using the fewest unit types (for
instance, all fuel in gallons, not in quarts, pints, barrels or other
units). This will make it easier to compile the data and also to
do your conversions later. It will also help ensure that all the
collected data is consistent and comparable.
propane) remain consistent over time and location. However,
electricity emissions factors change over time because
the composition of electricity changes over time, which we
explain below.
Sprint uses “Emission Factors for Greenhouse Gas Inventories” from the U.S. EPA’s Center for Corporate Climate
Leadership website. This file provides an updated and easyto-use set of default emission factors in various units that are
commonly used in the U.S. See PDF of emissions factors
from the U.S. EPA Center for Corporate Climate Leadership’s Emissions Factor Hub. Sprint’s GHG inventory uses
these emissions factors.
Table 16 lists emission factors for converting most types of
non-electricity fuel (displayed in kilograms carbon dioxide
equivalent per unit of measure, kg CO2e/scf, gallon, or short
ton) to GHG emissions.
If you are missing activity data, document why and what
you’ve chosen to do about it in your Inventory Management
Plan. This documentation process is important for transparency and to ensure consistency when you measure and
report GHG emissions each year.
Table 16: Direct GHG emissions factors for common fuels 9
Determine emissions factors
(Columns E through J on Sprint GHG Inventory)
Once you have your activity data recorded, you will need to
determine the level of greenhouse gas emissions associated
with each activity. You do this by applying published emissions
factors that convert your activity data into GHG emissions.
Some companies will need to use sector-specific tools that
are designed to calculate emissions in specific sectors such
as cement, pulp and paper, metals extraction, or oil and gas.
There are many calculation tools online that you can choose
from, or you can choose to use Sprint’s spread sheet and
substitute your own activity data (and any new emissions factors that might be needed). Whichever route you choose, in
this step of the process you are multiplying your activity data
by an emissions factor to determine your volume of GHG
emissions associated with each activity.
The first step is to locate emissions factors. There are many
sources that define GHG emissions factors. Emissions factors for non-electricity fuel use (e.g., natural gas, diesel, or
32
Chapter 3
Fuel type
Emission Factor
Natural Gas
.05450 kg CO2 per scf
Fuel Oil (No.2)
10.21 kg CO2 per gallon
Wood
1.433 kg CO2 per short ton
Propane
5.59 kg CO2 per gallon
Kerosene
10.15 kg CO2 per gallon
Fuel Oil (No.1)
10.18 kg CO2 per gallon
Fuel Oil (No.5)
10.21 kg CO2 per gallon
Fuel Oil (No.6)
11.27 kg CO2 per gallon
Coal (anthracite)
2.598 kg CO2 per short ton
Coal (bituminous)
2.328 kg CO2 per short ton
Coke
2.531 kg CO2 per short ton
Fuel Oil (No.4)
10.96 kg CO2 per gallon
Based on data from the EPA Emissions Hub:
http://www.epa.gov/climateleadership/guidance/ghg-emissions.html
9
Emissions factors for electricity
GHG emissions factors for electricity vary depending on
the region of the country and world and the actual electricity
generation sources used by local utilities. Utilities generating
electricity constantly change their underlying utility generation
mix and the fuels that these utilities use will differ from utility
to utility, from region to region and from country to country.
For instance, utilities in the Pacific Northwest of the United
States use a lot of hydropower (which doesn’t have GHG
emissions), while utilities in the Midwest of the United States
more often use coal (which has high GHG emissions).The
cleaner the energy mix that a utility uses, the lower the emissions factor for that region. The cleanest sources of energy
for utilities include wind, solar, hydro and other renewables,
with nuclear close behind. Among the fossil fuels, natural
gas is cleaner than coal and oil. In the United States, the
U.S. Environmental Protection Agency (EPA) publishes and
updates GHG emission factors on a regional basis (eGRID).
The International Energy Administration (IEA) publishes GHG
emissions factors for most countries across the globe.
There are several options for applying electricity emissions factors. If you have just a few large sites supplied by
specific utilities, you may be able to get specific emissions
factors based on their energy mix. If you have more sites
supplied by varying sizes and numerous utilities, you can
apply eGRID regional emissions factors to your usage data
for each region. If you have many sites of varying sizes,
you will likely want to use the eGRID zip code tool which
provides emissions factors based on the zip code for each
of your sites.
Look for the most recent emission factors when developing
your GHG Inventory and also for factors that are based in
units consistent with your activity data. By this doing this,
you avoid additional conversions to get your reporting unit
(such as gallons of fuel) to match your emission factor unit.
Several resources are available for emissions factors:
• Link: Environmental Protection Agency (EPA) Climate
Leaders program reference document of
emissions factors
• Link: Intergovernmental Panel on Climate Change
(IPCC) library of emissions factors
Sprint’s approach
There are many nuances of GHG emissions reporting that
can make the process more complicated. Some of the challenges Sprint has faced include:
• For gasoline and diesel fuel usage associated with
passenger car and truck transportation, the emissions
factors for CO2, CH4 and N2O use different unit data
– gallons of fuel for CO2 and vehicle miles for CH4 and
N2O (as outlined in the EPA guide on calculating emissions from mobile combustion sources). This means we
had to have both gallons of fuel purchased or consumed
and vehicle miles travelled. If you only have one of these
two, you can convert one to the other using a standard
assumption (such as 21 vehicle miles for passenger cars
per gallon of gasoline fuel purchased).
• Treatment of Renewable Energy Credits (RECs) – Sprint
purchases a large volume of renewable energy credits.
You can only subtract your RECs from your scope 2
emissions total if you have retired them during the year.
Sprint has several types of RECs in various states. To
determine how much we could subtract from our scope
2 emissions, we had to multiply the number of RECs
retired by the non-base load eGRID emissions factor associated with the location of the green power source.
• Treatment of various fire suppression system leakages –
Sprint uses four different types of fire suppression gases.
Each has a different GWP. We needed to multiply the
total pounds of gas released for each, by the appropriate GWP for each, and then convert to MT. To convert
pounds to metric tons, divide by 2204.6.
Sprint’s Approach
Sprint uses the EPA eGRID zip code tool to determine
emissions for all U.S.-based sites. The eGRID figures are
applied within our utility billing system since we have over
60,000 sites spread across the country. We also have some
sites in Puerto Rico, Guam and the Virgin Islands. For those,
we apply emissions factors from the International Energy
Agency (IEA) because eGRID does not provide emissions
factors for the U.S. territories (see rows 79 – 82 in Sprint’s
GHG Inventory).
• Link: EPA eGRID data, for electricity in the U.S.
• Link: The EPA greenhouse gas equivalencies calculator for small businesses and low emitters allows
companies to calculate their GHG emissions using a
simplified calculation tool
Chapter 3
33
Convert your activity data into metric tons for each of
the six priority GHGs
(Columns K, L and N on Sprint Inventory)
Once you have collected your activity data and found suitable emissions factors in convenient units, the next step is
calculating the metric tons of each of the six priority GHGs.
In the example below, with an emissions source of diesel fuel
used for back-up power generation, we have emissions factors for CO2, CH4 and N2O. Note that the CH4 and N2O unit
of measure is grams of gas per gallon of fuel. This is different
than for CO2, which uses a unit of kilograms (kg) of CO2 per
gallon of fuel. Emissions factors for CH4 and N2O are generally shown in grams since their values are so small.
Let’s start with CO2. First you multiply the gallons of diesel
fuel used by the CO2 emissions factor of diesel fuel (10.21).
Since the CO2 factor is stated in terms of kilograms per gal-
lon, the end result is the total kilograms of CO2 for the diesel
you used. You must then convert the kilograms to metric
tons by dividing by 1,000. So, our formula to get MT CO2
for diesel fuel is:
Gallons of diesel fuel × Diesel fuel emissions factor for
CO2 (in kg per gallon)/1,000 (to convert kg to MT)
or
(1,211,191 ×10.21) /1,000 = 12,366 MT CO2
As you can see in the example, you also need to calculate
MT of CH4 and N2O for diesel usage. Since the emissions
factor for both CH4 and N2O is grams per gallon instead of
kilograms per gallon, the number you divide by to calculate
MT is 1,000,000 instead of 1,000 (there are 1,000,000
grams in a metric ton).
Example: Sprint GHG calculation for diesel fuel, MT of CO2, CH4 and N2O
EmissionUnitUsage CO2Unit CH4UnitN2OUnit MT
MT MT
Source CO2CH4N2O
Diesel
Gal
1,211,191 10.21
(Fuel Oil #2)
kg C02
0.41
per Gal
g CH4
0.08
per Gal
g N20 12,3660.50 0.10
per Gal
Convert to MT CO2e
The last step is converting the metric tons (MT) of each of
the priority gases into metric tons carbon dioxide equivalents, or MT CO2e. Using the example above, you need to
convert the CH4 and N2O into MT CO2e. To convert gases
into CO2e, you have to multiply them by their Global Warming Potential (GWP), described on page 22 of this booklet.
The GWP of CH4 (methane) is 21 and the GWP for N2O
(nitrous dioxide) is 321 (based on IPCC Second Assessment
Report). To get the total CO2e, you add MT CO2e,
MT CO2e for CH4, plus the MT CO2e for N2O (plus any other
of the six priority GHGs). In the chart below, we multiply each
gas by the associated GWP to get MT CO2e for each gas,
and then add them together, for a total of 12,402.46
MT CO2e emissions from diesel fuel usage.
Example: Sprint GHG calculation of total MT of CO2e
EmissionMT MT CO2e MTC02eMT
SourceCO2CH4 (GWP)N2O(GWP) CO2e
21321
Diesel
12,366 0.50 10.43 0.1030.04 12,407
(Fuel Oil #2)
34
Chapter 3
To summarize, for each of your activity data entries, take the
following steps:
1. Record your activity data and units of measure
2. Select your emissions factors (for CO2, CH4, N2O and
any other of the priority gases that is relevant) and units
of measure
3. Multiply the activity data by each emission factor to
determine the volume of the priority gas emissions
associated with each activity
4. Convert the volume into MT for each gas
5. Convert the MT for each gas into MT CO2e
6. Add the CO2e of the various gases associated with
each activity for a total MT CO2e for each activity
Once you have calculated the MT CO2e associated with
each of your emissions sources, you can determine your
total emissions by gas type, total by activity type, and total
scope 1 and scope 2 emissions.
3.6: Document and report your results
Highlights
• Create an Inventory Management Plan
• Report GHG emissions
• Communicate results
Create an Inventory Management Plan (IMP)
An IMP describes a company’s process for completing an
accurate corporate-wide GHG inventory. A company uses
its IMP to institutionalize its process for collecting, calculating, and maintaining GHG emissions data. The EPA web
site provides a link to a Simplified Inventory Management
Plan that small businesses can use, as well as an IMP
checklist that includes the elements of a high quality IMP.
The seven major sections of an IMP are:
–Methodologies used to calculate emissions (the guidance in this booklet is in conformance with the GHG Protocol methodology) or a reference to calculation tools you used
• Company Information: Company name, address and
inventory contact information
• Boundary Conditions: Organizational and operational
boundary descriptions
• Emissions Quantification: Quantification methodologies
and emission factors
–Base year and emissions over time
–Details of any sources, facilities, and/or operations that you excluded from your emissions calculation and why it was excluded
If you want to go further and adopt some of the best practices of GHG reporting, you should consider including, if
applicable, some of the following additional information on
emissions and performance:
• An outline of any GHG management/reduction programs or strategies
• Data Management: Data sources, collection process
and quality assurance
• Emissions data broken down by business units/facilities, country, source type, and activity type (e.g.,
production of electricity, transportation)
• Base Year: Base year adjustments for structural and
methodology changes
• A description of performance measured against internal
and external benchmarks
• Management Tools: Roles and responsibilities, training
and file maintenance
• Relevant ratio performance indicators (e.g., emissions
per kilowatt-hour generated, ton of material production,
or sales)
• Auditing & Verification: Auditing, management review
and corrective action
Report GHG emissions
Once you have completed your emissions calculations, you
need to determine how you will report them externally. The
Greenhouse Gas Protocol provides guidance on what you
should include at a minimum:
• Description of your GHG reporting boundaries (as
identified in section 4 of this chapter): baseline year and
boundaries
• Information on emissions
10
–Total scope 1 emissions
–Total scope 2 emissions
–Total scope 1 and scope 2 emissions combined
–Emissions data for each of the six GHGs you are reporting on: CO2, CH4, N2O, HFCs,
PFCs, SF6, in metric tons and in metric tons of CO2 equivalent (MT CO2e)
• Emissions data from scope 3 emissions activities
• An outline of any external assurance provided and a
copy of a verification statement of the reported
emissions data
• Information on any contractual provisions addressing
GHG-related risks and obligations
• Emissions attributed to generation of electricity, heat, or
steam that is sold or transferred to another organization
The Greenhouse Gas Protocol website has a reporting
template which may be helpful for first time reporters. The
template is called “Sample Corporate Standard Reporting
Template” and can be found under “guidance documents”
on the Greenhouse Gas Protocol Corporate Standard website. To meet Sprint’s criteria, you should publish
Tip: Sprint included its Inventory Management Plan (IMP) in
Appendix B. You can see what a typical IMP looks like, and
the detailed process we used to calculate our emissions.
10
If applicable, the GHG inventory should also include emissions data for direct CO2
emissions from biologically sequestered carbon (e.g., CO2 from burning biomass/
biofuels), reported separately from the scopes
Chapter 3
35
these items on your website or disclose through the Carbon Disclosure Project and indicate in the report that your
results should be publicly available.
Communicate results
The greatest value of going through the process to measure your emissions is that it helps you identify and prioritize
opportunities for improvement. The most obvious opportunity should be cost reduction through energy efficiency in
targeted areas, but it may also be process improvements.
As an example, at Sprint, field technicians were purchasing diesel fuel for back-up power generators with various
purchasing methods – company credit card, personal card,
cash, etc. As a result, we did not have good fuel purchase
records. We had no idea what our total fuel spend was
because employees used inconsistent purchasing and expense methods. As a result of our GHG measurement and
management process, we established specific procedures
for purchasing and expensing fuel and now can measure
and better manage this expense over time.
36
Chapter 3
We also found value in communicating our results internally to management and identifying and prioritizing GHG
reduction opportunities. In our first report, we provided
information on the top electricity consuming sites, electricity use by business unit and building type, electricity cost
averages by state, and other interesting and useful energy
facts that no one had ever collectively presented before.
Ideally, you would set up a GHG taskforce with representatives from key energy consuming or managing business
functions such as environmental affairs, facilities, and fleet,
to review the results and create a list of prioritized actions
the company can take to reduce its energy costs and GHG
emissions. Most companies share the results broadly with
employees as well so they can personally get engaged in
the effort. Many employees find being engaged on GHG
reduction and other environmental initiatives to be personally rewarding, so involving employees can be a powerful
motivator. Employees are also often able to spot reduction
opportunities that management might miss. The public
and the media also appreciate this information as a way to
understand corporate values, priorities and successes.
3.7: Develop a plan to reduce GHG emissions
Highlights
• Identify GHG reduction opportunities
• Set, report, and monitor progress against goals
Identify GHG reduction opportunities
Identify possible GHG emission reduction opportunities
by considering the key activities that contribute to your
GHG emissions. Reduction opportunities will range from
simple, no cost solutions (e.g., turning off unneeded lights)
to capital-intensive projects (e.g., installing energy efficient
heating and cooling systems).
Prioritize opportunities and develop a reduction road map by
considering:
• Impact of opportunity
• Ease of implementation
• Cost of implementation, including an analysis of return
on investment
One suggestion is to start with a 2 – 3 year time line for the
road map. Many companies focus reduction efforts in the first
year with “quick wins” and no cost (or low cost) opportunities.
These quick wins educate and motivate employees by demonstrating the company’s commitment and showing results.
The following sources offer guidance on specific programs
to help you reduce emissions:
• Link: EPA resources to help companies reduce
GHG emissions
• Link: Energy Star Booklet for Small Business
• Link: U.S. Small Business Administration energy
efficiency site
• Link: WWF The 3% Solution report and calculator
Set, report, and monitor progress against GHG
reduction goals
Goals are an effective means to create momentum for positive change in a company. An impactful goal creates transparent expectations that motivate and unite a team around a
common purpose.
3. Select whether to have an absolute (total reduction)
GHG emissions reduction goal, or an intensity goal
(e.g., emissions per employee, square foot of real
estate, or unit produced)
4. Set a goal that reflects your desired level of ambition;
one you think you can meet based on reduction opportunities, or a “stretch” goal to challenge and motivate
employees
5. Consult key internal stakeholders to get feedback and
buy-in. Review the goal with appropriate leadership
to gain buy-in and approval and to ensure necessary
resources are available
6. Communicate the goal and monitor progress
Note: If your materiality assessment demonstrates that
GHG reduction is not a material topic, Sprint still expects you
to measure and publicly report your GHG emissions. However, rather than creating a reduction target, you could modify
your environmental policy explicitly including energy efficiency
as a business value. Your policy should encourage energy
efficient business choices. This could include the use of
SmartWay certified vehicles, a preference in leases for buildings with an Energy Star rating or LEED certification, or using
signage in conference rooms or other key locations reminding
employees to turn off lights and PCs at the end of the day.
Tip: Companies in a period of high growth may need to
consider an intensity-based reduction goal rather than an
absolute reduction goal. For example, if Company Y is growing at 25% year-over-year, it may not be realistic to have an
absolute reduction goal from its baseline that was set when
it was a start-up. An intensity-based goal such as “reduce
our GHG emissions per employee by 20% by 2020” may be
more meaningful.
To set a goal:
1. Identify GHG emission reduction initiatives to understand potential impact
2. Review goals of peers, customers and admired
companies to understand landscape
Chapter 3
37
3.8: Where to go from here
Highlights
• Consider scope 3 inventory
• Assess when the baseline should be reset
• Consider 3rd party assurance of your data
Consider scope 3 inventory
Consider 3rd party assurance
After developing your baseline GHG inventory for scopes 1
and 2, consider reporting on scope 3, your indirect emissions along your value chain. Though this is not required
to meet Sprint’s criteria, it is worth considering now or in
the future because the most significant source of company
emissions is often along the value chain. Measuring scope 3
may help you to identify the largest total impact your business can have on GHG emission reduction.
There is an increasing expectation that companies get 3rd
party assurance for their GHG results. The idea is similar to
financial auditing. You provide your process and data to a
3rd party expert and they review it for accuracy. They provide
recommendations for improvement and if you’ve met the
criteria they have in place, they will provide you with an Assurance Statement. The CDP Investor Guidance Document
provides a list of assurance standards that are relevant and
accepted. Sprint uses the AA1000 standard for assurance.
There are many choices for getting your data assured with
a significant variation in pricing. For Sprint’s initial assurance project we received a range of bids from $25,000 to
$400,000. We now assure our GHG emissions and our
water usage data on an annual basis.
More information on scope 3 can be found at
www.ghgprotocol.org.11
The EPA “Small Business and Low Emitter Booklet to
Greenhouse Gas Management” (see link) also includes
guidance for reporting scope 3 emissions.
Assess when the baseline should be reset
According to the GHG Protocol, there are times you can
reset your baseline. Examples include adjusting for a significant change at your company that would affect year-overyear comparison of GHG emissions or progress towards
your goal. Baseline resets can be related to structural
changes (transfer of ownership or control of emissions-generating activities to another company), mergers, acquisitions
and divestments, changes in calculation methodology, outsourcing or insourcing of emission activities, or a discovery of
significant errors. In summary, baseline emissions changes
should be retroactively calculated to reflect changes that
would otherwise compromise the consistency and relevance
of your GHG reporting.
Sprint’s approach
Sprint has adjusted our baseline a couple of times. All of
these adjustments have been for one of two reasons: 1) more
complete data obtained, so new data displaced estimated
data, and 2) new categories of data were added, and if we
did not have the data going back to 2007, we carried the
information backwards. For example, we added propane gas
to our reporting in 2012. We have the activity data for 2011,
but not for prior years. We used the first year’s data (2011) for
2007 through 2011 since we didn’t have historical data. This
produced a minor change in our baseline. A more significant
adjustment resulted from adding new scope 3 categories to
our report. We do not have historical data, so we took the first
year’s data as the results for prior years as well.
11
World Resources Institute (WRI) / World Business Council for Sustainable Development Corporate Value Chain (Scope 3) Accounting and
Reporting Standard, Supplement to the GHG Protocol Corporate Accounting and Reporting Standard, December 2011
38
Chapter 3
3.9: Fulfilling Sprint’s criteria
Highlights
• Establish an action plan and timeline that allows you to complete and publish your 2014 GHG
emissions by July 31, 2015
• Publish your GHG measurement process, results and reduction target
Establish an action plan and timeline that allows
you to complete and publish your 2014 GHG emissions by July 2015
Sprint has established what it believes is an appropriate timeline for suppliers to complete and publish their
GHG assessment. If a supplier does not yet have a GHG
baseline established, the supplier should use 2014 as the
baseline year. In order to meet this timeline, you should
determine what data you need, how you will collect it, and
who is responsible for collecting it. You will need to collect all relevant 2014 activity data, perhaps on a monthly or
quarterly basis. Once your 2014 data set is complete, you
can begin your emissions calculations. Note: Most companies align their GHG reporting period with their fiscal year. If
your reporting year is not the calendar year, you may adjust
the timeline accordingly so that you complete and publish
your first full year of GHG reporting six months after your
2014 fiscal year ends.
Publish your GHG measurement process, results
and reduction target
Sprint has identified a specific set of criteria to determine if
a supplier has met our GHG criteria. Our criteria are based
on the GHG Protocol guidelines and were stated earlier in
this booklet:
– Details of any sources, facilities and/or operations that you excluded from your emissions calculation and why it was excluded
3.Publish your reduction target along with an explanation
of how and why you chose that target
Thank you for taking the time to read through this booklet
and to consider the information we have provided. We
hope this is helpful and look forward to hearing about your
progress. We are interested in your feedback, so if you have
suggestions as to how this tool could be improved, please
send us a note at [email protected].
Thank you for being a valued supplier to Sprint. We appreciate doing business with you and hope you find CR as
rewarding as we have.
Note: If your materiality assessment demonstrates that
GHG reduction is not a material topic, you must still measure
and publicly report your GHG emissions, AND you must
modify your environmental policy to explicitly include energy
efficiency as one of your business values. Please publish your
revised Environmental Policy or Statement that demonstrates
where you have included this concept. This is a Sprint-specific criterion, not based on the GHG Protocol.
1.Publish a description of your GHG reporting boundaries and baseline yearr
2.Publish information on emissions1
– Total scope 1 emissions
– Total scope 2 emissions
– Total scope 1 and scope 2 emissions combined
– Emissions data for each of the six GHGs you are
reporting on: CO2, CH4, N2O, HFCs, PFCs, SF6, in metric tons and in metric tons of CO2 equivalent (MTCO2e)
– Methodologies used to calculate emissions (the guidance in this booklet is in conformance with the GHG Protocol methodology) or a reference to calculation tools you used
If If applicable, the GHG inventory should also include emissions data for direct CO2 emissions from biologically sequestered carbon (e.g., CO2 from burning
biomass/biofuels), reported separately from the scopes
1
Chapter 3
39
Appendix B:
Sprint Inventory Management Plan
Sprint 2012
Greenhouse Gas
Inventory Management Plan (IMP)
(Modified for use in: Meeting Sprint’s Supplier Criteria: Greehouse Gas Emissions)
Table of Contents
1.0 Greenhouse gas inventory
7
5.0 Data elements
15
1.1 Introduction and background
7
5.1 Scope 1
15
1.2 Goal
7
5.2 Scope 2
16
5.3 Scope 3
17
2.0 Methodology
7
2.1 Guidance
7
6.0 Inventory management
18
2.2 Reporting period
7
6.1 Training
18
2.3 Organizational boundaries
8
6.2 Control of records
18
2.4 Greenhouse gas list
8
6.3 Adjustment – base year emissions
18
2.5 Emissions quantification
8
2.6 Facilities summary
9
7.0 Auditing and verification
19
7.1 Internal auditing
19
7.2 External auditing
19
7.3 Management review
19
7.4 Corrective action
19
7.5 IMP update procedure
19
3.0 Roles and responsibilities
11
4.0 Data management
11
4.1 Data collection and emissions
calculation process
11
4.2 Data collection process – quality assurance
14
4.3 Data collection system security
15
4.4 Schedule
15
APPENDIX B
Page 6
1.0 Greenhouse gas inventory
1.1 Introduction and background
This document is Sprint’s Inventory Management Plan (IMP) which details our methodology for the management of greenhouse
gas (GHG) emissions.
Sprint offers a comprehensive range of wireless and wireline communications services bringing the freedom of mobility to consumers, businesses and government users. Sprint served more than 55 million customers by year-end 2012 and is widely recognized for developing, engineering and deploying innovative technologies, including the first wireless 4G service from a national
carrier in the United States; offering industry-leading mobile data services, leading prepaid brands including Virgin Mobile USA,
Boost Mobile, and Assurance Wireless; instant national and international push-to-talk capabilities; and a global Tier 1 Internet
backbone. In addition, Newsweek ranked Sprint No. 3 in both its 2011 and 2012 Green Rankings, listing it as one of the nation’s
greenest companies, the highest of any telecommunications company.
Sprint believes that we all share in the responsibility to conduct our businesses in an environmentally friendly manner. This is
based on the premise that a company is much more than the products and services it sells. It is also important to consider the
effects a company has on the environment. Sprint takes its environmental responsibilities seriously, starting with compliance and
extending to all of its environmental impacts as identified through our Environmental Management System.
1.2 Goal
Sprint’s greenhouse gas management efforts started in 2007 when we joined the Environmental Protection Agency’s (EPA’s)
Climate Leaders program, an industry-government partnership aimed at developing long-term comprehensive corporate climatechange strategies. As a partner in this program, we agreed to conduct a greenhouse gas (GHG) baseline study utilizing EPA’s
methodology. After completing the baseline, we worked with the EPA to set a 10-year absolute goal for GHG reduction of 15%
(scope 1 and scope 2). We then increased the goal to 20% in 2011 as part of our commitment in joining World Wildlife Fund’s
Climate Savers Program.
2.0 Methodology
2.1 Guidance
One of benefits of participating in the Climate Leaders program was technical guidance and oversight. We were able to get input
on emissions factors, inventory management, and conversion requirements. When the EPA discontinued the Climate Leaders
Program in late 2010, Sprint decided to continue using the EPA Climate Leaders GHG methodology and emissions factors.
As part of our GHG process maturity, we sought and obtained external assurance of our GHG measurement and management
starting with 2010 data. The assurance was provided by CH2MHill for 2010 data and by Trucost for 2011 and 2012 data. Both
CH2MHill and Trucost have provided guidance and recommended minor process adjustments to ensure our GHG management
process was continually improving.
In October 2011, Sprint joined the World Wildlife Fund’s (WWF) Climate Savers program, and we were the first Climate Savers
partner in the United States to include all three scopes of greenhouse gas (GHG) emissions in their WWF agreement. WWF is
the world’s largest conservation organization and has effectively mobilized more than thirty companies to take aggressive measures to scale up climate protection efforts as part of its Climate Savers program. Details on Sprint’s WWF GHG commitment
can be found here.
GHG emissions are divided into three types:
• Scope 1: Direct GHG emissions from sources that are owned or controlled by Sprint
• Scope 2: Indirect GHG emissions from the generation of purchased energy consumed by Sprint
• Scope 3: All other indirect emissions that occur in a company’s value chain
Emission factors and methodologies are identified throughout the IMP.
2.2 Reporting period
Sprint uses the calendar year as our reporting basis. Facility and business unit data is compiled on a quarterly basis in an Excel
spread sheet and shared with the inventory manager. A small subset of the data is provided annually. The majority of GHG emissions are quantified and reported by our Corporate Responsibility (CR) team quarterly, with a total report completed on an annual basis. Audited electricity data for the prior year is not available until April 25th each year, resulting is a rather narrow window
Page 7
APPENDIX B
for completing the annual Carbon Disclosure Project (CDP) report. Sprint’s utility data resides in a database. We run a custom
calendared report on April 25th to secure our final data for the prior year.
2.3 Organizational boundaries
For the purpose of this study, it is necessary to set organizational boundaries. Sprint uses the Operational Control Approach as
referenced in both the EPA Climate Leadership and GHG Protocol. We calculate our GHG emissions for all of the operations
over which we exercise control over that are located in the United States, including the U.S. territories of Puerto Rico, Guam
and U.S. Virgin Islands. In 2006 and 2007, Sprint acquired most of the former Nextel affiliates and began including these in our
GHG reporting process. Operational control indicates that we have the authority to make policy and implement changes at a facility. For those facilities that are leased, operational control is determined by our ability to track our energy use for those facilities
(i.e., separately metered facilities where Sprint is responsible for paying the electric bill). Sprint has no jointly owned or operated
facilities. Sprint does not manufacture its handsets or accessories.
In 2008, Sprint participated in the creation of a new company named Clearwire. Sprint has a 54% financial ownership of Clearwire (as of the end of 2012), but does not have operational control over Clearwire assets. Sprint did not adjust downward its
GHG emissions in 2008 to account for Clearwire - operation of those assets was minimal and would not likely have contributed
in any significant way to 2008 emissions. As use of the assets became greater starting in 2009, Sprint billed Clearwire for energy
used by those assets co-located in Sprint facilities. Clearwire energy use is minimal for co-located facilities, and is not metered
separately, nor segregated. (Note: Sprint purchased Clearwire in mid-2013.)
2.4 Greenhouse gas list
Each year, Sprint reviews all of our potential GHG emissions sources. Network Engineering coordinates this effort, and works
with other business units to determine any new sources. Additionally, our Corporate Responsibility leadership team also
provides overall assistance and identifies any significant changes to our operations that would affect GHG emissions. Sprint’s
baseline included four of the primary GHGs, which includes CO2, CH4, N2O, and HFCs. Emissions of the four GHGs are classified as either direct emissions or indirect emissions. In accordance with the Global Reporting Initiative (GRI) and EPA Guidance, direct emissions are those emissions produced onsite from fuel-burning equipment and fugitive emissions from process
equipment. Indirect emissions occur offsite or are controlled by another organization but result from company activities, the most
common being electricity use. The GRI and EPA allow for the inclusion of optional emissions as well as direct and indirect.
Sprint provides wireless and long distance voice and data telecommunications services in all 50 states, Guam, Puerto Rico and
the U.S. Virgin Islands. Sprint’s direct emissions come from vehicle fleet (both automobile and jet), backup power generation
equipment, refrigerant leakage and releases of fire suppression gases. Sprint’s indirect emissions are from electricity use at our
facilities. Activity data are collected through the (utility bill partner) database, Network records, Enterprise Real Estate records, jet
pilot records and the (fleet partner) fleet database.
Sprint started reporting on scope 3 emissions in 2008 initially including only emissions from employee business travel. When the
scope 3 Protocol was officially released in late 2011, Sprint expanded its scope 3 emissions reporting by including Purchased
Good and Services, Capital Good, Operational Waste and Upstream Product Transportation. In 2013, Sprint added emissions
from Product Use and Employee Commuting for 2012 data.
Business travel emissions source data includes miles driven in rental vehicles, employee reimbursed mileage, commuter rail
travel and commercial airline travel. These records are maintained by Human Resources and Sprint’s travel agency. Sprint’s
data for Purchased Goods, Capital Goods, Operational Waste and Upstream Product Transportation are sourced from Supply Chain spend records. All sourceable spend data is provided to our Corporate Responsibility team, who maps the spend
detail to scope 3 categories. For the past three years, Sprint has worked with Trucost to get the emissions data associated with
our sourceable supply chain spend by scope 3 category. Sprint publishes a summary report of this study online each year. The
Operational Waste data is supplemented by waste and recycling records from (utility billing system). Employee Commute data
is sourced through (HR accounting system company) and records from our Smart Commute database, as well as employee
engagement. Product use emissions are based on annual sales results by device category, by state and average electricity consumption. We get this data from our finance team.
2.5 Emissions quantification
2.5.1 Emission sources
The table below summarizes Sprint’s reported gases and emission sources.
APPENDIX B
Page 8
Scope 1
Emission type
Source
GHG
Direct
#2 Fuel Oil
CO2, CH4, N2O, CO2e
Natural Gas
CO2, CH4, N2O, CO2e
Propane
CO2, CH4, N2O, CO2e
Fleet Fuel (Gasoline & Diesel)
CO2, CH4, N2O, CO2e
Jet Fuel
CO2, CH4, N2O, CO2e
Refrigeration (HVAC) and Fire Suppression
HFCs, CO2e
Emission type
Source
GHG
Indirect
Electricity Use
CO2, CH4, N2O, CO2e
Purchased Renewable Energy Credits (REC)
CO2, CH4, N2O, CO2e
Emission type
Source
GHG
Optional
Employee business air travel
CO2, CH4, N2O, CO2e
Employee business ground travel
CO2, CH4, N2O, CO2e
Employee rail commuting
CO2, CH4, N2O, CO2e
Employee reimbursable mileage
CO2, CH4, N2O, CO2e
Scope 2
Scope 3
2.5.2 Methodologies & emission factors
Sprint utilizes the Climate Leaders and Greenhouse Gas Protocol (a partnership between the World Resources Institute and the
World Business Council for Sustainable Development -WRI/WBCSD) core and cross-sector guidance documents and calculation tools (Excel spread sheets) with associated emission and conversion factors to quantify GHG emissions.
Direct emissions from some minor sources were estimated for the baseline year, but in most cases have been improved in subsequent years (detailed below). Efforts are continually made to improve our data as we strive for accuracy.
Emission factors
Sprint used emission factors from the Center for Corporate Climate Leadership, Emissions Factor Hub, to quantify direct GHG
emissions produced from stationary and mobile combustion of fossil fuels (e.g., diesel, natural gas, propane, gasoline, and jet
fuel) http://www.epa.gov/climateleadership/guidance/ghg-emissions.html. The associated emission factors and reference documents are detailed in Section 5 of the IMP. As stated above, emissions were calculated using the EPA Climate Leaders and
WRI/WBCSD guidance on GHG calculation.
Indirect emission factors vary by region, based on the fuel mix of the electricity being provided to the site. Sprint uses the EPA
eGRID tool to determine the appropriate emissions factors. In 2010, after conversations with the EPA, we changed from using
sub-region totals to a more accurate zip code profiler and ensured we were using the most current version of eGRID. The zip
code tool ties a site to the appropriate sub-region to determine the correct eGRID factor. Our 2012 emissions use the eGRID
2012 Version 1.0. The eGRID tools are available for download at:
http://www.epa.gov/cleanenergy/energy-resources/egrid/
http://www.eia.gov/oiaf/1605/pdf/Form%20EIA-1605%20Instructions.pdf
2.6 Facilities summary
Sprint has facilities throughout the United States including U.S. Territories, with a much smaller number of facilities in other countries. Sprint does not have operational control at any of these non-U.S. sites, so they are not included in our emissions assessment. Headquarter facilities are located in Overland Park, Kansas. Due to the large number of facilities operated by Sprint, a list
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APPENDIX B
of facilities by type has been compiled instead of a list by address. A list of baseline reporting year 2007 (and subsequent years)
for sprint controlled facilities and transportation included under the operational control approach are presented in the tables
below.
Sprint controlled assets
This data is maintained as part of the (utility bill partner) billing database and is updated as sites are brought online or
decommissioned by Site Development.
Sprint Controlled Facilities:
Facility Type
2007 Sprint 2009 Sprint 2011 Sprint
2012 Sprint # Facilities Added
ControlledControlledControlled Controlled
FacilitiesFacilitiesFacilities Facilities
Analog
Broadband
Wireless Group
(BWG)
Cablehead
Cell Site Facilities
COHAB
Commercial
Switching Facilities
Lab
Earth Station
Mobile Internet Service (MIS)
One Sprint Sales Center (OSSC)
Regenerator (REGEN)
Retail Facilities
Point of Presence (POP)
Sprint Customer Office (SCO)
Warehouse
Ultra High Frequency (UHF)
Customer Premise Equipment (CPE)
Data Center
Other
This data is maintained by Fleet Operations.
Sprint Controlled Transportation
Description
2011 Sprint
Controlled Transportation
2012 Sprint
Controlled Transportation
Fleet Vehicles
Corporate Aircraft
APPENDIX B
Page 10
# Vehicles Added/ Removed
3.0 Roles and responsibilities
The GHG Inventory was compiled from several information sources. The team members consulted in preparing the emissions
inventory are identified in the table below. The list is reviewed and updated annually by the Inventory Manager as part of the
inventory management process.
Greenhouse Gas Inventory Team
Name
Title
Telephone Number
Data Provided
(actual names and
information removed)
The Inventory Manager is responsible for collecting and reviewing the data needed for the GHG inventory. This role is currently
held by the Network Engineer II – Network Development & Engineering Standards (identified in the above chart). The Inventory Manager collects data from the specified business unit data owner, inputs the data into the emissions quantification spread
sheets, oversees inventory QA/QC, and reports final inventory data for corporate reporting.
Additional GHG inventory team members are added as needed. It is the team’s responsibility to collect all necessary data for
emissions estimates. The Inventory Manager will ensure consistent application of emission factors and quantification methods as
well as complete updates to the GHG IMP. Additional roles and responsibilities will be developed over time.
4.0 Data management
4.1 Data collection and emissions calculation process
4.1.1 Direct emissions - stationary combustion
Fixed Generators
Sprint’s Network Operations partner’s Building Management & Engineering (BME) department provides an inventory of fixed
generators for large Network sites. This data is obtained from the Building Automation System (BAS) system in addition to a
manual inventory collected for those sites not monitored by the BAS. By utilizing “facility run logs”, diesel fuel use is quantified
by the amount of fuel the generator burns per hour based on the load capacity (fuel burned multiplied by hours run per month).
Documentation is maintained for both power outages and scheduled generator runs per quarter.
In addition to Network facilities, many administrative and commercial facilities have back-up power generated by diesel fuel.
These generators are managed by Sprint Real Estate (SRE). SRE provided their fuel consumption of diesel generators based
on the size of the generator and the load that the generator operates, similar to the BME.
Sprint’s data centers also operate and maintain several back-up power generators. They maintain records of their fuel purchases
for each year and provided the gallons of diesel fuel purchased for 2012.
Portable generators (cell sites)
Starting with 2011 data, Sprint modified the process to obtain fuel usage. Instead of scrutinizing data points from a system that
was partially incomplete and being phased out, emissions were based on known fuel records. More specifically, Sprint’s Network
Operations partner developed a report using their Supplier Management Request Tool (SMRT) to document the gallons of fuel
dispensed to a portable unit anytime a fuel ticket was closed.
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APPENDIX B
Emissions of CO2e are calculated at the business unit level using the following process:
Activity data x Emissions factors x Conversion factors
1. Determine Metric Tons (MT) of CO2 for fuel dispensed: Gallons of fuel x CO2 emission factor (kg CO2 per Gallon), divided by 1,000 to get metric tons of CO2
2. Determine MT of CH4 for fuel dispensed: Gallons of fuel x CH4 emission factor (g CH4 per gallon) divided by 1,000,000
to get metric tons of CH4
3. Determine MT of N20 for fuel dispensed: Gallons of fuel x N20 emissions factor (g N20 per gallon) divided by 1,000,000
4. Get CO2e for CH4 and N20: MT CH4 x GWP of 21, MT N20 x GWP of 310
5. Determine total CO2e: add MT CO2, MT CO2e of CH4, MT CO2e of N20
Natural gas usage
Sprint has a contract with (utility bill partner) to manage and pay all direct-billed utility bills. There are over 900 natural gas sites
managed by (utility bill partner) for Sprint. (Utility bill partner) maintains the natural gas usage data for all of our direct-bill facilities.
A calendar normalized query is run on the database maintained by (utility bill partner), pulling all natural gas usage data for the
year. (Utility bill partner) audits expense and usage data to ensure accuracy.
Natural gas usage is reported in therms, then converted to kilograms (kg) of CO2 per standard cubic foot (scf) (or grams (g) of
CH4 per scf and grams of N20 per scf and then multiplied by the appropriate GWP), aggregated for total kg of CO2e, and then
converted to Metric Tons (MT) of CO2e.
Propane usage
Propane use is quantified by the amount of propane purchased on an annual basis. The Residential/Commercial End-Use Sector
was applied to propane powered generators as these are typically smaller units in contrast to the larger #2 fuel oil power units
that are more representative of Industrial End-Use Sector.
The same emissions measurement process as stated above was used with the GWP applied to CH4 and N20:
Gallons of propane x Emissions factor x Conversion factor
4.1.2 Direct emissions - mobile combustion
Vehicle fleet
Sprint leases its vehicle fleet (fleet company). (Fleet company) maintains information on usage of these vehicles and provides us
with information about the vehicles’ mileage and the amount of gasoline and diesel fuel used each quarter for our vehicle fleet.
Drivers use purchase cards to buy the fuel so quantity purchased is very accurate. Vehicle miles are self-reported, so are less
accurate. Vehicle category is based on the typical vehicles that Sprint uses, and guidance from the EPA and their consultants.
Ninety percent of our fleet vehicles are 2009 model year or older, so they have fewer emissions per gallon than older cars. The
majority of our vehicles use gasoline, but we also have some light trucks that use diesel fuel.
Sprint uses the following approach to calculate emissions from our vehicle fleet:
1. Determine MT of CO2 of Gasoline: Gallons purchased x emissions factor (kg CO2 per gallon)/1,000
2. Determine MT of CH4 and convert to CO2e: Miles driven x emissions factor (g CO2 per mile)/1,000,000 x GWP of 21
3. Determine MT of N20 and convert to CO2e: Miles driven x emissions factor (g CO2 per mile)/1,000,000) x GWP of 310
4. Total the 3 numbers for an aggregated CO2e emissions number for gasoline for fleet.
5. Determine MT of CO2 of Diesel: Gallons purchased x emissions factor (kg CO2 per gallon)/1,000
6. Determine MT of CH4 and convert to CO2e: Miles driven x emissions factor (g CO2 per mile)/1,000,000 x GWP of 21
7. Determine MT of N20 and convert to CO2e: Miles driven x emissions factor (g CO2 per mile)/1,000,000) x GWP of 310
Total the 3 numbers for an aggregated CO2e emissions number for diesel for fleet.
Aviation fleet
For Sprint’s aviation fleet, we own two jets and lease another. Emissions from jet fuel usage for corporate jets are obtained from
Corporate Flight Operations. The pilots determine the amount of jet fuel used in pounds, and that quantity is multiplied by a factor
(6.84 pounds per gallon) that converts to gallons used. Sprint uses Jet Fuel A.
APPENDIX B
Page 12
1. Sprint uses the following approach to calculate CO2e emissions from our aviation fleet:
2. Determine MT of CO2 of Gasoline: Gallons used x emissions factor (kg CO2 per gallon)/1,000
3. Determine MT of CH4 and convert to CO2e: Gallons used x emissions factor (g CH4 per gallon)/1,000,000 x GWP of
21
4. Determine MT of N20 and convert to CO2e: Gallons used x emissions factor (g N20 per gallon)/1,000,000) x GWP of
310
Total the 3 numbers for an aggregated CO2e emissions number for jet fuel for fleet.
4.1.3 Direct emissions – HVAC and fire-suppression equipment
Refrigerant leakage
Sprint has over 50,000 HVAC units in operation at our facilities. The units are at cell sites, larger network facilities, our data centers and our office buildings.
After receiving an initial inventory list from Sprint’s network regions, research was conducted to determine the charge capacity and leakage rate for each type of equipment based on size, output capacity, manufacturer, and refrigerant type. For those
pieces of equipment for which charge rates were not readily available, estimates were made based on similarly sized units. In
2008, based on the results of Sprint’s baseline, it was determined that HFCs released from refrigerant sources (HVAC systems)
were “insignificant” (0.6%). This was based on estimations of potential leakage rates for the various types of equipment used.
Our baseline estimate of CO2 emissions was 14,928 MT. We have used this figure in each of our subsequent annual inventories, including 2012. The refrigerants used in our HVAC systems include R-22, R-134a and R-404a. Emissions factors were
taken from “Direct HFC and PFC Emissions from Use of Refrigeration and Air Conditioning Equipment”, May 2008, EPA430K-03-004 documents.
Fire Suppression
Fire suppression releases are tracked on a quarterly basis by the BME and also by Sprint’s Real Estate partner. In 2008, data
was included to incorporate HFCs released from fire suppression chemicals. We use four different types of fire suppressants –
Halon 1301 (only for older systems that have been “grandfathered” as acceptable by the EPA), FM200, Ecaro 25 and Inergen.
If a new fire suppression system is needed, it will use FM 200, Ecaro 25 or Inergen. Data on any fire suppression releases is
provided from our Network and Real Estate teams on a quarterly basis. Sprint uses refrigerant Global Warming Potential (GWP)
factors from IPCC Second Assessment report, in accordance with the Kyoto Protocol.
Once the data was obtained, the following calculation was used to determine the metric tons of CO2e for each type of fire suppressant release:
MT CO2e = Amount released in pounds x GWP/2204.6
4.1.4 Indirect emissions
Electricity use
Indirect emissions were quantified utilizing electricity bills. The (utility bill partner) database maintains records of electrical bills for
all Sprint facilities where we are responsible for the electricity bill. There are over 53,000 electrical accounts managed by (utility
bill partner) for Sprint. A calendar normalized query is run on the database maintained by (utility bill partner) pulling all electrical
usage data for the year. (Utility bill partner) audits expense and usage data to ensure accuracy.
GHG emissions from electricity generation are controlled by the fuel-mix available to utilities on a regional basis. The fuel-mix
by sub-region is reflected in the Emissions & Generation Resource Integrated Database (eGRID) from the U.S. Environmental
Protection Agency (EPA). Sprint uses the latest available version of eGRID to determine GHG associated with its electricity use
each year. For 2012 electricity usage, we used eGRID 2012 Version 1.0. To arrive at combined CO2e values, (utility bill partner)
system defaults to the Intergovernmental Panel on Climate Change (IPCC) Second Assessment Report (SAR) 100-year Global
Warming Potential (GWP) per industry guidance and best practices for CO2, CH4, and N20. For the U.S. Territories (Sprint has
facilities in Guam, Puerto Rico, and the Virgin Islands), (utility bill partner) uses U.S. Energy Information Administration Form E1A1065 (2010) emission factors, Table F.1 Page 129.
Sprint has a Renewable Energy Working Committee that makes recommendations regarding renewable energy power and
Renewable Energy Credit (REC) purchases. Sprint’s 5-year wind contract with Kansas City Power and Light ended in December
2011. Until Sprint finds a cost-effective green power purchase agreement, it has purchased green-e certified RECs to continue
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APPENDIX B
its commitment to green energy sources. The eGRID 2012 Version 1.0 sub-region non-base load emission factors (as documented in the draft Climate Leaders guidance for Purchase of Green Power and RECs are used to quantify the amount of CO2,
N20, and CH4 emissions offset by the purchase. For each REC, Sprint uses the REC attestation provided by the REC seller to
identify the eGRID sub-region in which the renewable energy was generated. If a REC cannot be explicitly mapped to a specific
sub-region, the U.S. national average emissions factor is used. As allowed in the 2012 Carbon Disclosure Project Guidance,
Sprint subtracts the calculated emission value from the total amount of CO2 associated with its electricity purchases to reach its
final scope 2 emissions number.
4.1.5 Optional Emissions
Employee Business Travel (air, ground, rail commuting)
Sprint has a contract with (travel company) to manage employee travel. (Travel company) provided Sprint with detailed spread
sheets that break out the total mileage of each trip travelled by Sprint employees on commercial aircrafts. The mileage is then
sorted to separate it between short, medium, and long haul flights, per U.S. EPA Climate Leaders Guidance. Our travel agency
also provides mileage data for rail (train) travel.
Sprint utilizes three rental car agencies. Each of the rental car agencies provided Sprint with detailed spread sheets with the
number of miles Sprint employees drove in their rental vehicles for the year as well as gasoline usage.
Employee business travel (reimbursable mileage)
Sprint Human Resources uses (an HR accounting system) database to track the amount of miles employees are
reimbursed each year for business travel. Human Resources completes a query on the database to provide a spread
sheet that identifies the actual quantity of miles reported by employees each calendar year.
Sprint followed the calculation process and emissions factors from the U.S. EPA - Optional Emissions from Commuting, Business Travel, and Product Transport.
Sprint uses the following approach to calculate CO2e emissions from employee business travel:
1. Collect activity data from our rental car agencies and (HR accounting system). We collect all of the data in passenger or
vehicle miles, whichever is most appropriate
2. Multiply the activity data by the emissions factors for CO2, CH4 and N20 (kg CO2 per mile or g CH4 or N20
per mile)
3. Convert the results, which are either in kg or g of CO2, CH4 and N20 to Metric Tons
4. Multiply the MT of CH4 and N20 by the appropriate GWPs (21 for CH4 and 310 for N2)
5. Add up the total for combined CO2e for business travel
4.2 Data collection process – quality assurance
The process for collecting data is reviewed by Sprint personnel and their contractors each year during the GHG reporting process. The ability to verify the consistency and accuracy of the activity data collected for the GHG inventory depends largely on
the GHG data-management system. Since spread sheets do not inherently provide data accuracy and consistency for verification, external data quality assurance processes have been implemented.
Quality control measures taken are as follows:
• The CR team works with (utility bill partner) and Sprint Real Estate to ensure all new facilities are included in the study
• Reviews of business units’ databases are conducted to ensure capture of new equipment
• Reviews of the (partner) fleet database are conducted by Fleet Management to ensure capture of new or
removed vehicles
The major source of uncertainty and error associated with the data compilation process is related to the hand-entry of data, typically into spread sheets, and unit conversion calculations. To help minimize these types of errors, our business unit data owners
and the Inventory Manager carefully reviews the data and includes a comparison of the data reported the previous year. Any
significant variations from the established benchmark are identified and investigated for consistency. Sprint has purchased a
new web-based reporting system for its CR data that is in the process of being implemented. This will eliminate the excel-based
reporting processes, accept data files from (utility bill partner) and other Sprint systems, allow distributed data entry and support
audits. We are looking forward to improving the accuracy and confidence of our CR data going forward.
APPENDIX B
Page 14
4.3 Data collection system security
Most of the existing systems within Sprint that maintain activity data for GHG inventory purposes already provide some data
security features (i.e., user ID and password; departmental accessibility via the intranet, etc.). These systems are located on a
central server within the Sprint network and therefore are under the control of current IT security and back-up standards.
Spread sheet tools that are used for the collection of data and calculation of GHG emissions are located on the Inventory
Manager’s computer and an intranet drive with access or password protection to ensure data cannot be accidentally modified
by other staff members that do not own the data. The only person with permission to alter the data is the Inventory Manager that
tracks and maintains the data. In the new web-based reporting system, permissions are assigned by user and the administrator is
the only person who can make certain types of modifications. The new system will provide excellent data security.
4.4 Schedule
Facility and business unit data are provided to the inventory manager on a quarterly basis. Estimated GHG emissions are reported quarterly with the understanding that not all sources of emissions can be included quarterly. Since some of Sprint’s sites
only receive invoices quarterly, we do not have final billing for the prior year until March 31st each year. (Utility bill partner) audits
the data a month in arrears, so we cannot close out prior year results until the end of April each year. We have chosen a lockdown date of April 25th. We complete our GHG inventory and reporting as part of our Carbon Disclosure Project submission
each year (due May 31st).
5.0 Data elements
Excel-based workbooks were used to collect, store, transfer, and process the GHG emissions data. A quantification spread
sheet was used to calculate GHG emissions from Sprint facilities. For each source of emissions, the spread sheet used emissions factors taken from the U.S. EPA web site, Climate Portal, Emissions Factors for Greenhouse Gas Inventories, last modified, November 7, 2011. The inventory tools and emission factors are identified below. Each business unit data source “owners”
provided activity data for their respective facilities in a master spread sheet, and then the Inventory Manager copied the appropriate figures into the quantification spread sheet to calculate emissions. The spread sheet automatically quantifies emissions for a
given year based on the activity data entered. In future years, the calculations will be done by the new CR reporting system.
5.1 Scope 1
5.1.1 Stationary combustion
Data Source
GHG
Emissions Factor - gram (g) or kilogram (kg)/gallon and gram (g) or kilogram (kg)/ standard cubic foot (scf)
Fixed Generators – #2 Fuel Oil
CO2
10.20648 kg CO2/gallon
Fixed Generators – #2 Fuel Oil
CH4
.41 g/gallon
Fixed Generators – #2 Fuel Oil
N20
0.08 g/gallon
Fixed Generators – Propane
CO2
5.59286 kg CO2/gallon
Fixed Generators – Propane
CH4
.27 g/gallon
Fixed Generators – Propane
N20
0.05 g/gallon
Natural Gas - All
CO2
.0545 kg CO2/scf
Natural Gas - All
CH4
0.001028 g/scf
Natural Gas - All
N20
0.00103 g/scf
EPA Center for Corporate Climate Leadership, Emission Factor Hub: http://www.epa.gov/climateleadership/documents/emission-factors.pdf , Table 1. A GWP of 21 was used for CH4 and 310 was used for N20.
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APPENDIX B
5.1.2 Mobile combustion: fleet vehicles
Data Source
GHG
Emissions Factor kilogram (kg)/gallon & gram (g)/mile
Diesel Fuel - Light Duty Trucks
CO2
10.21 kg /gal
Diesel Fuel - Light Duty Trucks
CH4
0.0010 g /mile
Diesel Fuel - Light Duty Trucks
N2O
0.0015 g /mile
Motor Gasoline - Light Duty Trucks
CO2
8.78 kg /gal
Motor Gasoline - Light Duty Trucks
CH4
0.0163 g/mile
Motor Gasoline - Light Duty Trucks
N2O
0.0066 g/mile
Jet Fuel (Kerosene Type)
CO2
9.57 kg/gal
Jet Fuel (Kerosene Type)
CH4
0.2700 g/gal
Jet Fuel (Kerosene Type)
N2O
0.3100 g /gal
EPA Center for Corporate Climate Leadership, Emission Factor Hub: http://www.epa.gov/climateleadership/documents/
emission-factors.pdf, Tables 2, 3 and 4. A GWP of 21 was used for CH4 and 310 was used for N2O
5.1.3 Fugitive emissions: refrigerants & global warming potentials (GWPs)
Gas/Refrigerant
GWPSource
HFC-134a
(1.1.1.2-Tetrafluoroethane)
1300 IPCC Second Assessment Report (1995)
R-404A
3260 ASHRAE Standard 34
HCFC-22 or R-22
1500
IPCC Second Assessment Report (1995)
HFC-125 (Ecaro 25)
2800
IPCC Second Assessment Report (1995)
HFC-227 (FM200)
2900
IPCC Second Assessment Report (1995)
CF3Br (Halon 1301) Report (1995)
5400
Ozone Depleting Substance (ODS). IPCC Second Assessment
Inergen 0
New fire suppression type for Sprint Zero emissions.
5.2 Scope 2
5.2.1 Purchased electricity
eGRID 2012 Version 1.0
5.2.2 Renewable energy purchases and RECs purchases
EPA Center for Corporate Climate Leadership, Emission Factor Hub: http://www.epa.gov/climateleadership/documents/emission-factors.pdf, Table 7b.
APPENDIX B
Page 16
5.3 Scope 3
5.3.1 Employee business travel - air
Flight Description
CO2 Emissions Factor
kilogram (kg)/passenger mile
CH4 Emissions Factor
gram (g)/passenger mile
N2O Emissions Factor
gram (g)/passenger mile
Long Haul (>=700 miles)
0.1850 kg/passenger mi
0.0104 g/passenger mi
0.0085 g/passenger mi
Medium Haul
(>=300 and <700 miles)
0.229 kg/passenger mi
0.0104 g/passenger mi
0.0085 g/passenger mi
Short Haul (<300 miles)
0.277 kg/passenger mi
0.0104 g/passenger mi
0.0085 g/passenger mi
U.S. EPA Climate Leaders Guidance - Optional Emissions from Commuting, Business Travel, and Product Transport
http://www.epa.gov/climateleadership/documents/resources/commute_travel_product.pdf
5.3.2 Employee business travel - ground
Vehicle
Category Used
Fuel Type
Factor
CO2 Emissions Factor
kilogram (kg)/mile
CH4 Emissions Factor
gram (g)/ mile
N2O Emissions gram (g)/ mile
Passenger Car
Motor Gasoline
.364 kg/mile
0.0131 g/mile
0.032 g/mile
http://www.epa.gov/climateleadership/documents/emission-factors.pdf
5.3.3 Employee business travel - rail
Flight Description
CO2 Emissions Factor
kilogram (kg)/passenger mile
CH4 Emissions Factor
gram (g)/passenger mile
N2O Emissions Factor
gram (g)/passenger mile
Intercity Rail
(e.g. Amtrak
0.185 kg/passenger mi
0.002 g/passenger mi
0.001 g/passenger mi
Commuter Rail
0.172 kg/passenger mi
0.002 g/passenger mi
0.001 g/passenger mi
Transit Rail
(e.g. Subways
0.163 kg/passenger mi
0.004 g/passenger mi
0.002 g/passenger mi
http://www.epa.gov/climateleadership/documents/emission-factors.pdf
5.3.4 Employee business travel – reimbursable mileage
Vehicle
Category Used
Passenger Cars
Fuel Type
CO2 Emissions Factor
Motor Gasoline
CH4 Emissions Factor
.364 kg/mile
N2O Emissions Factor
0.0131 g/mile
0.032 g/mile
U.S .EPA Climate Leaders Guidance - Optional Emissions from Commuting, Business Travel, and Product Transport
http://www.epa.gov/climateleadership/documents/resources/commute_travel_product.pdf
http://www.epa.gov/climateleadership/documents/emission-factors.pdf
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APPENDIX B
6.0 Inventory management
6.1 Training
Corporate Responsibility and EHS have reviewed the WRI/WBCSD and Climate Leaders Protocols, guidance documents, and
quantification tools. Workshops are attended as deemed available and financially feasible. Inventory team members understand
that the data they gather is used to estimate GHG emissions that will be reported on a corporate level annually.
6.2 Control of records
Records developed during the GHG baseline study are controlled and retained in accordance with Sprint’s Document Retention
and Control Policy or through the GHG emissions reduction goal year, whichever is longer. The current retention policy allows for
the maintenance of environmental records for a minimum of ten years. Records developed for subsequent emissions assessments are maintained on Docshare, our online document repository. Data also now resides in our new online CR Data Management system.
6.3 Adjustment – base year emissions
The base year for Sprint’s Climate Leaders reporting was 2007.
Adjustments to the inventory are warranted when there are mergers, acquisitions, or divestitures (e.g., additions or deletions to
the emissions inventory facility list), additional emission sources brought online, and/or a change in the quantification methodologies or emission factors. It is anticipated that on-going refinement of the inventory process will result in some modification to the
base year inventory. The IMP will be updated to reflect any inventory process and management changes.
The inventory will be revised for the following reasons: (1) additional or more complete activity data becomes available, (2)
improved emission factors or estimation methodologies, and (3) operational or structural changes. Operational or structural
changes include acquisitions and divestures.
Through 2012, Sprint has not adjusted its 2007 baseline. Although we acquired the Nextel Affiliates, which included network
sites and data centers, we did not add these to our baseline. We believe the impact of these acquisitions was less than 5% for
our total emissions and believed we could manage that volume and still meet our emissions target. The same is true for our acquisition of Virgin Mobile, although the acquired sites were commercial and data center, and not network. The only modifications
to our baseline data have been when we have improved our data collection process in some of the elements of scope 1. For
example, if in 2011 we were able to better measure our emissions associated with diesel generators, we used the 2011 figure
for both 2011 and the prior years. Each of these changes is documented annually in our CDP submissions.
6.3.1 Structural changes
Structural changes at Sprint are identified during the annual inventory reporting process via consultation with the Sprint Real
Estate and Network Operations Group. Sprint applies the EPA Climate Leaders Design Principles criteria and procedures to determine whether a structural change requires a change in Base Year emissions, and to determine how the Base Year emissions
should be adjusted.
Per the Climate Leaders Design Principles guidance, Base Year emissions are not recalculated for the following structural
changes:
• Acquisition of new facilities that did not exist in the Base Year
• Outsourcing/Insourcing reported under Core Indirect Emissions
• Organic Growth or Decline
As stated above, we have chosen not to adjust our Base Year to date for facility acquisition and we have not had any facility
divestiture.
In the event of a merger, the emissions from facilities included in the structural change will be treated as an acquisition if ownership increased or as a divestiture if co-ownership decreased.
In the event of organic growth (e.g., increase in operations, new facility brought online, etc.) or organic decrease (e.g., decrease
in operations, closing of facility, etc.), we have not made any adjustments to the Base Year.
6.3.2 Methodology changes
In the event of a change in methodology or emission factor that result in a 5% or greater change in the overall emissions total, the
Base Year will be adjusted. If improved data becomes available for the Base Year compared to subsequent years, adjustments
will be made to the Base Year to ensure consistency of historical reporting.
APPENDIX B
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7.0 Auditing and verification
7.1 Internal auditing
The EHS team reviews the IMP each year in the second quarter, and makes any necessary revisions or updates that are needed.
7.2 External auditing
For the 2011 and 2012 reporting years, Sprint utilized Trucost to externally review and assure that our GHG quantification efforts
are in accordance with the AA1000 standard.
7.3 Management review
Sprint’s GHG quantification process is reviewed each year by both the EHS & Corporate Responsibility groups.
7.4 Corrective action
When any deficiencies are discovered, the necessary corrections are made as soon as feasible, and efforts are made to prevent
these deficiencies in the future.
7.5 IMP update procedure
The IMP is a living document that will drive continuous improvement in the accuracy and efficiency of Sprint’s GHG emissions
inventory. EHS is responsible for working with Corporate Responsibility and the business units to update the IMP by second
quarter annually. Potential updates to the IMP include:
• Updated data management procedures
• Updated data requirements and collection tools
• Updated auditing and verification procedures
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APPENDIX B
Appendix C:
Resources GHG emissions
Greenhouse gas protocol – the internationally recognized GHG standard for reporting
• Link to Greenhouse Gas Protocol
• Link to Greenhouse Gas Protocol “Sample Corporate Standard Reporting Template” (found under “guidance
documents”)
U.S. Environmental Protection Agency (EPA)
• Link to the EPA’s Climate Change website
• Link to the Guide to Greenhouse Gas Management for Small Business & Low Emitters
Emissions factors
• Link: Environmental Protection Agency (EPA) Climate Leaders program reference document of emissions factors
• Link: Intergovernmental Panel on Climate Change (IPCC) library of emissions factors
• Link: EPA eGRID data, for electricity in the United States
• Link: The EPA greenhouse gas equivalencies calculator for small businesses and low emitters allows companies to calculate their GHG emissions using a simplified calculation tool
Guidance on scope 3
• Link to Greenhouse Gas Protocol
• Link: The EPA “Small Business and Low Emitter Guide to Greenhouse Gas Management, which includes
guidance for reporting scope 3 emissions
APPENDIX C
Page 20
Appendix D:
Resources for materiality assessments
Resources for sector-specific topics
1. Global Reporting Initiative (GRI)
The GRI provides guidance for reporting a company’s performance on economic, environmental, and social topics. GRI documentation includes both generic and industry-specific topics. Reviewing the GRI’s sector-
specific guidance may provide additional relevant topics.
–
Link to GRI
–
Link to GRI sector guidance
2. Sustainability Accounting Standards Board (SASB)
SASB is developing industry-specific sustainability accounting standards. The SASB Environmental, Social, and Governance (ESG) topics and SASB issue briefs may provide additional relevant topics.
–Link to SASB
–
Link to SASB’s list of issues by industry
3. Dow Jones Sustainability Index (DJSI)
The RobecoSAM Corporate Sustainability Assessment provides the input for the DJSI annual questionnaire, which is sent to the largest listed companies in the world by market capitalization (in 2013, the questionnaire was sent to the largest 2500 companies). RobecoSAM’s industry-specific questionnaires are not publicly available – check with your Investors Relations team to see if they receive a questionnaire from RobecoSAM around March/April of each year. If not, the list of topics per industry may still provide additional relevant topics.
–
Link to RobecoSAM
–
Link to RobecoSAM list of topics per industry
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APPENDIX D
This document is intended to be read only as a summary of, and in the context of, Sprint’s experience with corporate responsibility goals and practices, and is based only on information made available to Sprint as of the date written.
Sprint does not intend this document to be a tutorial, handbook, or recommendation regarding corporate responsibility practices, designation or certification; compliance with laws, regulations, governmental requirements, or governmental
or industry standards.
Suppliers should not rely upon or cite this document in designing and implementing their own corporate responsibility practices or otherwise. Suppliers should engage their own experts, advisors, and counsel regarding all corporate responsibility matters. The text of this document may not be complete or comprehensive and may omit information regarding its subject matter.
Sprint makes no representation or warranty regarding the accuracy or content of this document, provides this document “AS IS”, and expressly disclaims all warranties regarding this document, whether express or implied, including any
warranty of merchantability or fitness for a particular purpose.
This document is subject to change at any time, without notice, in Sprint’s sole discretion.
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