Questions & Answers
What is the definition of ‘projects’ in ESRS E1 paragraph 56 (a)? Is this related to investments / asset-driven initiatives which establish a new facility, process, technology and the like?
- GHG removals
- project definition
Background
ESRS E1 paragraph 56 states: ‘The undertaking shall disclose:
(a) GHG removals and storage in metric tonnes of CO2eq resulting from projects it may have developed in its own operations, or contributed to in its upstream and downstream value chain …’
In accordance with the GHG Protocol for Project Accounting, a project is ‘A specific activity or set of activities intended to reduce GHG emissions, increase the storage of carbon, or enhance GHG removals from the atmosphere. A GHG project may be a stand-alone project, or a component of a larger non-GHG project.’
Answer
In the context of ESRS E1 paragraph 56 (a), projects are all activities/interventions conducted by the undertaking which may lead to GHG removals and storage. This is consistent with the project definition provided in the GHG Protocol for Project Accounting (which does not only refer to GHG removals; see ‘Background’). It is not limited to asset-driven investments although projects in own operations may imply new asset investments or new investments in existing assets. Projects also encompass, for instance, new application for products. Examples of GHG removal projects include reforestation/afforestation, soil carbon enhancement, ecological restoration, blue carbon removals, integration of bioenergy with carbon capture and storage (BECCS) technologies and Direct Air Capture of CO2 with storage (DACCS). Projects will usually test new concepts, technologies or products within the operating context of the company and have both a novelty component as well as a transitory nature – the related activity is operated as a project for a certain limited period.
Relations
Paragraph | Content |
|---|---|
The undertaking shall disclose: |