Month: September 2023

A straightforward way for companies to start an emission reduction pathway is to reduce their scope 2 emissions – these are the indirect emissions from the electricity purchased and used by the organisation.

With minor exceptions, energy attribute certificates or EACs should be the go-to instrument by which businesses claim the use of renewable electricity based on clear evidence. Whether you procure your EACs through a power purchase agreement (PPA), a green tariff, or unbundled from the underlying electricity generation, your organisation will need EACs to make a credible claim.

But it’s not as simple as just buying EACs. There are international standards, usage criteria, and other nuances to take into account. This post will help you make sense of these different elements and set you up to buy EACs credibly and effectively.

EACs are the worldwide instrument for reducing electricity-related scope 2 emissions

A single EAC represents the environmental attribute of one MWh (megawatt-hour) of electricity. An EAC can be sold together with the electricity (“bundled”), or separate from the underlying electricity (“unbundled”). As a globally engaged climate solutions company, South Pole can provide you with unbundled EACs.

EACs transfer a green power claim to the owner of the EAC; upon retirement of the EAC, the owner reduces its scope 2 electricity-related emissions. Scope 2 emissions are, in a nutshell, the indirect greenhouse gas emissions associated with the purchase of electricity, steam, heat, or cooling.

There are different EAC types (eg. GOs, RECs, I-RECs, TIGRs), depending on the governing standard, but they function similarly. They all have their own tracking systems to eliminate double counting through strict vetting of the flow of electrons and the associated attributes.

EACs are not the same as carbon credits

Unlike with carbon credits, the legitimacy of EACs does not depend on their additionality. An EAC is a claim to have used renewable electricity, not to have created it. Further, while carbon credits help fund global climate action and emission reductions beyond a company’s value chain, EACs translate into a credible emission reduction within a company’s value chain – specifically when it comes to tackling an organisation’s scope 21 electricity-related greenhouse gas emissions. This is enabled by the retirement of EACs combined with the application of an appropriate grid emissions factor (expressed as ‘tonnes of CO2equivalent / MWh’).

Some approaches to buying EACs are better than others

Prospective buyers usually come to South Pole with a host of different questions: Which EACs should I buy? Do geography and period of generation need to be considered? What about technology? Are some EACs better than others? Are EACs impactful?

The answers to these questions play an important role in suggesting the procurement strategy appropriate to each organisation.

To help you navigate the EAC purchase process, we’ve listed some of our top observations on different procurement approaches.

No EACs means no reduction of scope 2 emissions

Unless you’re implementing a major energy efficiency programme (e.g. actually reducing your energy consumption), you’ll need EACs to reduce your scope 2 emissions. Some RE100 members may, however, be able to claim default renewable electricity consumption in markets with highly renewable grids where no market-based instruments exist. To date, this is only possible in Paraguay, Uruguay, and Ethiopia, as defined in RE100s’ Technical Criteria.

Buying EACs with internationally recognised compliance is strongly advised

The purpose of EACs is to enable a legitimate claim to be made about the use of renewable electricity. That legitimacy is derived from international sustainability reporting frameworks and initiatives (further referred as “standards”) such as the Greenhouse Gas Protocol, Disclosure Insight Action (CDP), and RE100. According to their respective objectives, these standards stipulate different criteria for the appropriate use of EACs.

While companies may exercise some discretion in the purchase of EACs, depending on their target ambitions and budget availability, choosing to ignore these recognised criteria may result in claims that are not viewed as fully legitimate by key stakeholders.

In cases where companies have exhaustively tried to apply relevant guidance but external factors are an impediment (e.g. the supply of EACs is limited), they are encouraged to disclose any challenges they have faced transparently and, where possible, advocate for the transition to renewable electricity.

For best practice, stick closely to the the guidance from international standards on market boundary, vintage, and technology type

International standards, like the GHG Protocol, CDP, and RE100, provide clear guidance on the appropriate use of EACs. The three key criteria to understand are (1) market boundary (relating to geography), (2) vintage (relating to time), and (3) technology (solar, wind, hydro, etc.) Depending on the international standard that organisations are following, there might be other EAC criteria that could be relevant, such as the age of the device.

Market Boundry. Companies should buy EACs that were produced in the country or countries where they consume electricity. For example, a company consuming electricity in Colombia should use EACs that were generated in Colombia to claim the use of renewable electricity in Colombia. EACs from a neighbouring country may be cheaper, but Peruvian or Brazilian EACs cannot generally be used to make claims in Colombia. Market boundaries typically match country borders, with a couple of important exceptions. The United States and Canada together form the North American market; most continental European countries form the European market. In other words, an EAC generated in Texas can be used to claim the use of renewable electricity in Alberta; similarly, one generated in Finland can be used in Italy.Vintage. Vintage is defined as the period of energy generation during which the EAC was produced. Organisations are encouraged to follow the vintage criteria that are specific to the EAC scheme from which they’re buying. For example, Green-e® Energy requires that sales which are made in a given calendar year must be generated within the 12 months of that calendar year, the six months before the calendar year began, or the three months after the calendar year ended. Recognising that the regulations of all markets and EAC types are different, organisations are encouraged to match their consumption period to the EAC vintage and consider Green-e guidelines as best practice. For example, a company that consumed electricity in 2023 should use EACs that were generated during 2023 (or as close as possible to that year, i.e. in the second half of 2022 or the first quarter of 2024). When requesting an EAC quote, companies should bear in mind that older vintages (e.g. from the second half of the previous year) represent a more cost-effective option which still complies with the vintage criteria.Technology selection. Common technologies include solar, wind, geothermal, hydro, and biomass. The selection of the technology has an important effect on cost: currently, solar and wind EACs tend to be the most expensive. Companies may consider this when budgeting for EAC procurement. It is also important to note that some standards only recognise certain technologies to make renewable claims or may only accept them if their sustainability is certified. For example, RE100 does not recognise nuclear energy as an energy resource that can be used to meet an RE100 target. Similarly, RE100 only recognises renewable electricity generated from biomass and hydropower that is also sustainable.

High-quality EACs can drive more impact

Some EAC consumers may prefer to distinguish themselves by going above and beyond the minimum international guidelines. Typically, this means driving substantial impact with their EAC purchases.

One way to do this is to source EACs with sustainability labels, e.g. the EKOEnergy label. This label allocates a portion of revenue to funding new renewable energy projects in developing countries. South Pole won the EKOenergy’s Oak Award in 2021 and 2022 for selling the largest volumes of EKOenergy in 2020 and 2021, respectively.

D-RECs are another high-impact EAC type that certifies the generation of small-scale distributed renewable energy in developing regions. The D-REC Initiative, which stands behind the standard, is a not-for-profit, multi-stakeholder, industry-led organisation. South Pole is part of the D-REC secretariat that developed the EAC type. Issued via the I-REC Standard, who have supported the development of the product, D-RECs help to increase the number of projects available from which to purchase EACs in developing countries and emerging markets by connecting small-scale projects to environmental markets, often for the first time.

D-REC EACs are available in markets across Africa, Asia and Latin America. Some examples of D-REC programmes to date include the certification of renewable energy generated by solar irrigation pumps on rural smallholder farms in India, replacing the use of polluting diesel-powered pumps, and a rural electrification programme powering more than 1,000 previously powerless households in Haiti via solar mesh-grid technology.

How can you go further? Matching EACs on an hourly (rather than annual) basis

The use of EACs is evolving. Increasingly, some organisations prefer to match EACs to their consumption on an hourly, rather than annual, basis. This accounts for the fact that energy generation at certain hours of the day (for example, the so-called “shoulder hours” when the sun has gone down but the wind hasn’t started blowing yet) are more valuable.

Hourly matching (sometimes also referred to as “24/7”) requires more granular tracking at the time of generation and consumption. Specifically, it requires that EACs be time-stamped specific to their hour of generation and that this is used to match the hours of consumption.

While 24/7 matching is certainly the next step for enhancing current practices in electricity procurement, it should be highlighted that it may not be a feasible option for all industries and markets.

South Pole has an impact-driven mission to make hourly matching possible and has recently invested in Renewabl, a platform specialising in the procurement of hourly-matched EACs.

Market changes

South Pole strongly recommends that corporations keep abreast of changing guidelines and regulations around the use of EACs.

Our dedicated Renewable Energy Solutions team can help you navigate EAC market complexity. We’re here to support you with your renewable electricity roadmap development and implementation.

Here are a few additional sources you may consider to keep up to date:

RE100 criteriaThe GHG Protocol is in a consultation process to assess the need for GHG Protocol Corporate Standards and Guidance Updates. This includes the scope 2 guidance. Findings from the scope 2 survey can be found here.

MEMPHIS, Tenn., September 13, 2023 /3BL/ – FedEx Corp. (NYSE: FDX), together with St. Jude Children’s Research Hospital®, celebrated the 11th anniversary of the Purple Eagle program at TPC Southwind during the FedEx St. Jude Championship. The program annually names a Cessna Caravan aircraft for a St. Jude patient who is also the child or grandchild of a FedEx team member.

This year’s honoree is seven-year-old St. Jude patient Olivia. Soon after her birth, her parents noticed several spots of brown pigmentation on her body. At her six-month checkup, the doctor let her parents know that these spots, called café au lait spots, were signs of a genetic condition called neurofibromatosis. Genetic testing later confirmed the diagnosis. In October of 2021, not long after her family moved to Memphis for her dad’s new job at FedEx, she began having seizures. An MRI revealed a grape-sized tumor on her optic nerve, and she was referred to St. Jude Children’s Hospital for ongoing care. She continues to see a St. Jude ophthalmologist every three months, while taking medication that has allowed her to remain seizure-free.

Olivia’s father, Roman, was surprised when his boss unexpectedly called him in for an in-person meeting, Roman entered the meeting room, not knowing what to expect, and encountered a host of FedEx leadership. They were there to inform him that the 2023 Purple Eagle naming ceremony would be held in honor of Olivia. Roman had donated to St. Jude in the past, never imagining his family would one day be utilizing the hospital’s services.

The Purple Eagle program at FedEx began in 2012, when Bill West Jr., vice president of supplemental aircraft operations, wanted to find a way to recognize the work being done at Memphis-based St. Jude and the idea to name a plane in the FedEx trunk fleet for the child or grandchild of a FedEx employee who is also a St. Jude patient was born. Except for the COVID-19 restricted summer of 2020, the program has honored a pediatric cancer patient every summer since.

“The only named feeder planes in our supplemental fleet are the ones that are part of the Purple Eagle program,” said West. “These planes are special and help us spread the word about the amazing work being done by St. Jude.”

Olivia’s plane, like its ten predecessors, will sport her name under the St. Jude Children’s Research Hospital logo for the duration of the Cessna Caravan’s time in service as part of the FedEx Express supplemental aircraft fleet. There are over 280 feeder turboprop airplanes in the supplemental fleet.

“We are so grateful to FedEx and the Purple Eagle program for offering such a unique way to honor St. Jude patients – a truly memorable experience for the entire family,” said Richard C. Shadyac Jr., President and CEO of ALSAC, the fundraising and awareness organization for St. Jude Children’s Research Hospital. “The care and treatment developed at St. Jude is made possible because of generous partners like FedEx whose dedication to this mission helps make a difference for the more than 400,000 kids around the world who will get cancer each year.”

11 Years of Purple Eagle Honorees

 Honoree DiagnosisCessna Caravan Tail Number2023 OliviaNeurofibromatosisN884FE2022 RileyAcute lymphoblastic leukemiaN986FX2021KenzieAcute lymphoblastic leukemiaN753FX2020No honoree due to COVID protocols2019 ReidRhabdomyosarcoma and EctomesenchymomaCFEXN2018 MyaSickle cell diseaseN981FE2017CalvinCraniopharyngiomaN846FE2016 AlyssaMelanomaN933FE2015 TylerAcute lymphoblastic leukemiaN752FX2014 AllieAnaplastic EpendymomaN987FX2013 HayesRare kidney cancerN981FE2012 McKaylee Anaplastic AstrocytomaN773FE

About FedEx Corp.

FedEx Corp. (NYSE: FDX) provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce and business services. With annual revenue of $90 billion, the company offers integrated business solutions through operating companies competing collectively, operating collaboratively and innovating digitally as one FedEx. Consistently ranked among the world’s most admired and trusted employers, FedEx inspires its 530,000 employees to remain focused on safety, the highest ethical and professional standards and the needs of their customers and communities. FedEx is committed to connecting people and possibilities around the world responsibly and resourcefully, with a goal to achieve carbon-neutral operations by 2040. To learn more, please visit fedex.com/about.

St. Jude Children’s Research Hospital®

St. Jude Children’s Research Hospital is leading the way the world understands, treats and defeats childhood cancer and other life-threatening diseases. Its purpose is clear: Finding cures. Saving children.® It is the only National Cancer Institute-designated Comprehensive Cancer Center devoted solely to children. When St. Jude opened in 1962, childhood cancer was largely considered incurable. Since then, St. Jude has helped push the overall survival rate from 20% to more than 80%, and it won’t stop until no child dies from cancer. St. Jude shares the breakthroughs it makes to help doctors and researchers at local hospitals and cancer centers around the world improve the quality of treatment and care for even more children. Because of generous donors, families never receive a bill from St. Jude for treatment, travel, housing or food, so they can focus on helping their child live. Visit St. Jude Inspire to discover powerful St. Jude stories of hope, strength, love and kindness. Support the St. Jude mission by donating at stjude.org, liking St. Jude on Facebook, following St. Jude on Twitter, Instagram, LinkedIn and TikTok, and subscribing to its YouTube channel.

Originally published in International Paper’s 2022 Sustainability Report

Apply innovation, redesign and material replacement to reduction, recycling and recovery strategies in five ways:

1. Eliminate all non-recyclable materials in finished products and innovate for circularity through material efficiency

Focus areas:

Eliminate all sales of non-recyclable productsReduce basis weights at box plants by 5% vs. 2020

Progress:

Projects ongoing in all box plants to reduce average basis weights; 0.37% reduction in basis weight at box plants vs. 2020, 7.24% reduction vs. 2018

2. Further develop product range and capabilities to substitute fiber products for plastics

Focus areas:

Substitute 6,000 tons of plastics with fiber- based alternatives by 2030

Progress:

765 tons of plastics replaced in 20221,410 tons of plastic replaced from 2021-2022

Highlight:

Consistent with our commitment to build a better future, and in response to increasing consumer demand for responsible packaging, we’ve created a new range of sustainable paper-based punnets called Respir®. Combining outstanding resistance with great visibility, these package designs ensure protection and promotion of products from field to shelf to consumer’s home. The perfect packaging solution to reduce single-use plastics’ negative impact on the environment and human health, Respir® is made of renewable resources, is 100% recyclable and extends shelf life by three days.

3. Reduce waste to landfill by targeting key areas for improvement across our operations

Focus areas:

Reduce waste to landfill by 50% over 2020 baseline by 2030

Progress:

Waste reduction cost analysis conducted across box plant system, identifying cost per plant/year for 2030 reductions21% of plastics rejects sent to energetic valorization in 2022

4. Expand partnerships to improve circularity and recycling

Focus areas:

Evaluate opportunities for circularity/ recycling collaborations and partnerships throughout IP’s value chain

Progress:

Participated in Confederation of European Paper Industries (CEPI) 4evergreen alliance to increase fiber-based packaging in a circular economy and minimize climate and environmental impact

Highlight:

Our Secure E-Box is an innovative corrugated box featuring a tamper- evident closure that breaks the first time it’s opened. It also comes with additional tabs at the top and inside that allow it to be reused for returns. Not only is this box made from 100% recycled corrugated material, but it also requires no adhesive tape or other material, thus promoting the circular economy and sustainability. The Secure E-Box was named Best Logistics and Distribution Packaging in 2022 by Liderpack and was recognized with a 2023 WorldStar of Packaging Award.

5. Contribute to improving industry recycling rate and quality of recovered fiber

Focus areas:

Increase education of the circularity and sustainability benefits of fiber packagingUse partnerships to expand amount and quality of recovered fiber

Progress:

Continued to grow circular economy agreements with customers, providing closed-loop packaging solutions that optimize the logistics of the packaging supply chain from International Paper corrugate sales through to recollection and recycling.

Highlight:

Designed by International Paper in Italy for customer Colgate-Palmolive, the Circular Box for transporting personal care products was chosen as finalist in the Best Packaging 2022 contest, organized by the Italian Packaging Institute (Istituto Italiano Imballagio) in collaboration with Conai (National Packaging Consortium). This packaging is a circular solution designed to reduce waste and increase recycling and material recovery. A local transport company collects paper and corrugated packaging scraps from the Colgate-Palmolive plant and delivers them to a local paper mill, which makes recycled paper. Our Pomezia plant then transforms it into its Circular Box range. The result is a completely closed and sustainable circular supply chain.

In addition to implementing recycled- paper broccoli cases at our Madrid mill, we sponsored a meeting with the +Broccoli association of broccoli growers to tackle water scarcity, an important subject in the Murcia region. We discussed targeting 100% recycled water use and have since reduced water consumption at our Madrid mill.

About International Paper

International Paper (NYSE: IP) is a global producer of planet-friendly packaging, pulp and other fiber-based products, and one of North America’s largest recyclers. Headquartered in Memphis, Tenn., we employ approximately 39,000 colleagues globally who are committed to creating what’s next. We serve customers worldwide, with manufacturing operations in North America, Latin America, North Africa and Europe. Net sales for 2022 were $21.2 billion. Additional information can be found by visiting InternationalPaper.com.

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