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Frequent Questions

Climate Leaders Program Basics

  1. What is Climate Leaders?

    Climate Leaders is an EPA industry-government partnership that works with companies to develop comprehensive climate change strategies. Partner companies commit to reducing their impact on the global environment by completing a corporate-wide inventory of their greenhouse gas emissions based on a quality management system, setting aggressive reduction goals, and annually reporting their progress to EPA. Through program participation, companies create a credible record of their accomplishments and receive EPA recognition as corporate environmental leaders.

  2. Who participates in Climate Leaders?

    Climate Leaders Partners represent a variety of industries and sectors, from manufacturers and utilities to financial institutions and retailers. The Partnership includes many Fortune 500 companies as well as small businesses. For a complete list of Climate Leaders, please visit the Partners section.

  3. When was the program launched?

    EPA launched Climate Leaders as a voluntary industry-government partnership in February 2002, with 11 initial Partners. By the end of 2002, Climate Leaders had a total of 35 charter Partners.

    Climate Leaders Partners have contributed to the advancement of corporate climate change management practices through the development of rigorous accounting standards, management plan tools, and innovative reduction opportunities.

  4. How do I join Climate Leaders?

    Companies interested in becoming a Climate Leaders Partner should complete the Climate Leaders Partnership Agreement (PDF) (1 pg, 131K, About PDF).

    The Climate Leaders Team will then set up a kick-off call to welcome your organization to the program and explain the process that will lead to developing a GHG inventory, setting a long-term emissions reduction goal, and reporting progress to EPA. There is no cost to join the program. For additional information, please visit the Join Us section.

  5. What are the benefits of joining Climate Leaders?

    • Reduce impact on the global environment.
    • Develop a credible GHG inventory, and Inventory Management Plan, and set an aggressive, corporate-wide long-term GHG reduction goal.
    • Better manage GHG emissions and associated risks.
    • Realize cost savings through energy efficiency.
    • Receive expert EPA technical assistance on inventories and reporting.
    • Participate in national public recognition campaigns.
    • Engage with other partner companies demonstrating climate leadership.
    • Access the latest GHG tools, technologies, and protocols.
    • Improve understanding of critical policy discussions.
    • Integrate climate change strategies with state, regional, and international GHG accounting schemes.

  6. What is required of Climate Leaders Partners?

    Partners commit to:

    • Develop a corporate-wide GHG inventory including all emission sources of the six major GHGs (CO2, CH4, N2O, HFCs, PFCs, SF6) using the Climate Leaders GHG Inventory Protocol.
    • Develop a corporate GHG Inventory Management Plan.
    • Set an aggressive corporate-wide GHG emissions reduction goal to be achieved over the next five to 10 years.
    • Annually report inventory data and document progress towards their reduction goal.
    • Publicize their participation, reduction goal, and accomplishments achieved through the program.

  7. What services does EPA provide to Climate Leaders Partners?

    Free technical assistance:

    • Assistance in developing a GHG inventory
    • Review of Partner’s Inventory Management Plan
    • Assistance in setting a GHG reduction goal
    • Peer exchange through Climate Leaders Partners meetings

    Credibility:

    • Assurance that Partners have created a high-quality GHG management process.
    • A credible and aggressive GHG emissions reduction mechanism.

    National recognition:

    • Press events.
    • Public service announcements and advertising opportunities.
    • Speaking engagements at industry conferences.
    • Case studies highlighting Partner achievements in articles, newsletters, and online.
    • Partner profiles on Web site

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Creating an Inventory and Reporting Greenhouse Gas Emissions

  1. What is a Greenhouse Gas Inventory?

    A greenhouse gas (GHG) inventory is an accounting of the quantity of GHGs emitted to or removed from the atmosphere over a specific period of time (e.g., one year). A GHG inventory also provides information on the activities that cause emissions and removals, as well as background on the methods used to make the calculations.

    For more information on GHG emissions, see EPA’s Climate Change Web site. The Climate Leaders GHG Inventory Guidance is available on the Climate Leaders Web site.

  2. Can a company join Climate Leaders without an inventory, or with a partially completed inventory?

    Companies are welcome to join the program at any point during the development of their climate change strategy and receive free EPA technical assistance.

  3. What is an Inventory Management Plan?

    An Inventory Management Plan (IMP) describes the process for completing a high-quality, corporate entity-wide inventory. Companies use an IMP to institutionalize a process for collecting, calculating, and maintaining GHG data. EPA provides an IMP checklist that includes the elements of a high-quality IMP. Climate Leaders provides resources including an IMP checklist and sample IMPs to assist in the development of a proper IMP.

  4. How long should I take to develop an Inventory Management Plan?

    EPA expects the base year reporting requirements (which include the base year inventory, the IMP, and the IMP on-site review) to be conducted approximately within one year of a Partner joining the program. Climate Leaders provides a sample timeline (PDF) (1 pg, 56K, About PDF) for Partners to meet their base year reporting requirements.

  5. Are we required to include international facilities in our inventory?

    Partners may include international facilities as optional sources. The emissions from these facilities may also be included in a corporate-wide global GHG goal; however, a significant portion of the partner's GHG reductions should be achieved in the United States.

  6. What is the difference between the equity and control approach for identifying organizational boundaries?

    This discussion is applicable to apportioning emissions from partially owned or leased facilities.

    • The equity share approach requires that a corporation consider emissions sources according to its ownership in the operation to which those sources belong. In the case of a GHG inventory, economic ownership takes precedence over legal ownership.
    • The control approach requires all emission sources to be included that fall within the control of the corporation. This does not include operations for which the corporation may own an interest but has no control. Control is defined as either financial or operational control. Financial control reflects the ability to direct the financial policies of an operation or facility with the goal of achieving an economic benefit from these operations. Operational control reflects the ability to fully introduce and implement operating policies at the operation.

  7. We have several facilities or emissions sources that are very small. Do they need to be included? Is there a de minimis threshold?

    All sources should be included in the inventory under the Climate Leaders program. EPA technical assistance is available to help companies with simplified methodologies for small sources.

  8. How do we handle leased facilities or vehicles?

    Using an equity approach or financial control approach, a Partner need only account for emissions from leased assets that are treated as wholly owned assets in financial accounting (finance or capital leases), and all other leased assets are considered operating leases and therefore not required to be reported.

    Using an operational control approach, a Partner will report emissions from both finance/capital leases and operating leases if the Partner has the ability to track energy and/or emissions from the lease (i.e., the Partner pays the utility bills or has accurate measurement data of fuel and electricity usage).

  9. Are we required to report on a calendar year basis or can fiscal year reporting be used?

    Partners should report all annual emissions on a calendar year basis. Annual reporting should be completed by June 30 of the following year.

  10. Which year should be used as the base year?

    A Partner should choose a base year for their emissions inventory which reflects the most recent year for which data are available when they join the program.

  11. How do we report emissions to EPA?

    The Climate Leaders program has specific GHG inventory forms (MS Excel) (1 p, 352K) that Partners may use to report their annual corporate-wide emissions. (Download an Excel viewer. exit EPA )

  12. We are planning to make an acquisition. How is this handled under the program?

    In the event of an acquisition, divestiture, or other change that will significantly alter the company’s emissions profile (the company’s IMP should detail the significance threshold), emissions from the base year and all years during which the facility existed shall be retroactively recalculated to reflect these changes (base year changes would be made only if the facility existed in the base year). The company’s IMP and emission inventory forms should be updated and resubmitted to EPA. No changes will be made to emissions for organic growth or decline (e.g., construction of a new facility, increase or decrease in production, etc.).

  13. What technical assistance is provided under the Climate Leaders program?

    EPA provides up to 60 hours of free technical assistance to each Partner as they develop and document their IMP and complete their base year inventory. Technical assistance encompasses all aspects of creating a credible GHG inventory, including implementing GHG accounting methods, and measuring, tracking, and reporting GHG emissions. EPA also provides an inventory review process to offer feedback on improving the accuracy, efficiency, and relevance of Partners’ GHG inventory data and management systems. The level of assistance involved will vary with the needs of the Partner and Agency resources. After the completion of a Partner’s base year inventory, EPA experts may continue to provide up to 10 hours of free technical assistance annually to help Partners update their IMP, adjust their base year inventory, and calculate new emission sources. Details of the types of technical assistance provided under the Climate Leaders program are available on the program Web site.

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Setting A Greenhouse Gas Reduction Goal

  1. What is the goal setting process?

    EPA offers flexibility in goal setting because every company has a unique set of GHG emissions sources and reduction opportunities. Once Partners have completed an initial base year GHG inventory, usually within one year of joining, EPA works closely with Partners to set an individualized GHG reduction goal. This goal must be:

    • Corporate-wide (including at least all U.S. operations).
    • Based on the most recent base year for which data are available.
    • Achieved over five to 10 years.
    • Expressed as an absolute GHG reduction or as a decrease in GHG intensity.
    • Aggressive compared to the projected GHG performance for the Partner’s sector.

    The Climate Leaders Web site provides more details of the specific goal setting process.

  2. Which Partners have already achieved their GHG reduction goal?

    Partner Achievements include a number of companies who have completed their initial GHG reduction goal. Completed goals and subsequent follow on goals are listed in the Partners section.

  3. Our business is growing. How is this factored into the goal?

    EPA allows goals to be expressed as an absolute GHG emissions reduction or as a decrease in GHG intensity. Absolute GHG reduction goals compare total GHG emissions in the goal year to those in the base year. GHG intensity goals allow a company to account for changes in production over time where the ratio of GHG emissions to an appropriate normalizing factor becomes the Partner’s key performance indicator.

  4. What normalizing factor should I use?

    Normalizing factors are typically measured in physical units (e.g., tons of steel) or economic units (e.g., value of shipments). Due to the large variability in economic metrics, Climate Leaders generally prefers metrics based on physical values, which track year-to-year changes in emissions intensity more accurately. However, for companies that produce a wide diversity of products, using an economic metric, adjusted for inflation, might be appropriate. EPA offers technical assistance to help Partners choose a suitable key performance indicator.

  5. We made many improvements prior to our base year. How can we get credit for those?

    Climate Leaders will work with Partners who have undertaken GHG reduction activities prior to joining Climate Leaders when evaluating a proposed goal. Partners may also detail any projects or reductions in GHG emissions prior to joining the Climate Leaders program on the EPA Web site under their “Partner Profile.”

  6. Why do Climate Leaders Partners’ goals have different numeric values? Can’t all companies commit to the same goal?

    Every company has a unique set of GHG emissions sources and reduction opportunities. EPA individually evaluates each goal using a performance benchmark methodology to determine that it is significantly better than the projected GHG performance for the Partner’s sector. The benchmark is a combination of projected average energy intensity improvement and any projected process-related emissions intensity changes. Each goal that is approved in the pro-gram has been evaluated and approved as an aggressive, leadership goal.

    Additional information on EPA's goal approval process is available on the Climate Leaders Web site. A peer-reviewed paper on the performance benchmark methodology was published in the Proceedings of the 2007 American Council for an Energy Efficient Economy Summer Study on Energy Efficiency in Industry. A link is available in the Technical Papers section.

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Communications and Recognition Opportunities

  1. What promotional opportunities does the program offer?

    EPA recognizes Climate Leaders Partners through media releases, case studies, articles in newsletters and trade journals, public service announcements, and advertising opportunities.

    In addition, Climate Leaders Partners are encouraged to publicize their participation, reduction pledge, and accomplishments achieved in press releases or inclusion of the program logo in company materials.

  2. Can I use the Climate Leaders logo in my company marketing?

    Once a company joins the Climate Leaders program they may use the Climate Leaders program mark on their Web site, in their marketing documents, and in other promotional materials. EPA approval prior to use is required.

  3. Will the EPA get involved in partner companies’ events and activities?

    Climate Leaders may consider co-marketing with a partner if the event, activity, or promotion fits the objectives of the program and EPA. Climate Leaders does not endorse private-sector businesses.

  4. Can I get EPA information and quotes to include in news materials?

    Climate Leaders can usually provide information and quotes to partners within several days.

  5. Are there opportunities for technical peer exchange?

    Yes, the Climate Leaders program holds periodic conferences where Partners present technical papers and take part in panel discussions. Also, Climate Leaders encourages open discussions among Partners during these conferences.

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