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WORLDRESOURCESWORKING PAPERINSTITUTEESTIMATING AND REPORTING THE COMPARATIVEEMISSIONS IMPACTS OF PRODUCTSSTEPHEN RUSSELLEXECUTIVE SUMMARYThis paper introduces a neutral framework forCONTENTSestimating and disclosing the greenhouse gas(GHG)Executive Summary.emissions impact of a product (good or service),relative to the situation where that product does not1.Introduction..3exist.2.Core Terms in Estimating Comparative Impacts...103.Setting Targets for Comparative Impacts...........The differences may be either negative or positive.Positive differences are frequently called "avoided4.Accounting Issues and Recommendations ........13emissions"and have been the object of much5.Summary and Conclusions...............2interest among companies trying to develop andAppendix A:Consolidated Recommendations......21promote low-carbon products.Existing practices for estimating such productReferences…25impacts vary in terms of many key issues.TheAcknowledgments.......26intent of the framework is to identify importantchallenges,harmonize practices,and improve thecredibility of companies'claims,including throughWorking Papers contain preliminary research,analysis,the consideration of potential negative impacts.findings,and recommendations.They are circulated toWhen estimates are used to inform decision-stimulate timely discussion and critical feedback,and tomaking,they should preferably be developedinfluence ongoing debate on emerging issues.Workingusing"consequential"methods that measure total,papers may eventually be published in another form andsystem-wide changes in emissions.Because the dataavailable to support these methods are often limited,alternative ("attributional")methods may also beSuggested Citation:Russell,Stephen.2018."Estimating andconsidered as interim measures for applicationsReporting the Comparative Emissions Impacts of Products."Working Paper.Washington,DC:World Resources Institute.that can be supported with an interim attributionalAvailable onlineat http://www.wri.org/publication/comparative-approach.For all public claims on comparativeemissions.emissions impacts that may involve market effects,we recommend the use of the consequential method.WORLD RESOURCES INSTITUTEWORKING PAPER January 2019 1Companies are increasingly interested inMany methodological issues are key to theestimating and making claims about the GHGrelevance and credibility of comparative impactimpacts of their products,relative to theestimates.These issues include how to identify whichsituation where those products do not exist.Theseemissions sources should be assessed and how to identifycomparative impacts may be estimated as the sum of allcredible base cases against which a company's productssystem-wide changes in emissions or removals occurringcan be compared.Claiming positive impacts can introducebecause of the product ("consequential estimationadditional complexities,such as how to apportion totalapproach")or as the difference in total life-cycle GHGimpact to different value-chain actors based on estimatedemissions between a company's product and somecontributions to the company's product ("attribution");alternative product that provides an equivalent functioncherry-picking products or product applications;and("attributional estimation approach).The impact canaggregating results for claims at the level of productbe positive,such that the company's product reducesportfolios.impact can be negative,such that the company's productConsiderable variation in practice exists acrossincreases emissions relative to the base case.each of these issues.While most published guidancedocuments and standards for comparative impacts followCompanies have mostly focused on positivethe attributional approach and are based on establishedimpacts,despite the fact that negative impacts arelife-cycle accounting approaches,they provide quiteequally common and that consideration of bothdifferent specifications on many issues.Even greaterpositive and negative impacts is needed to guide avariation in practices exists among individual companies.company's product portfolio and climate changeLittle of this variation can clearly be ascribed to product-strategy.Potential applications of these product com-or sector-specific considerations or other identifiableparisons include enhancing product research and develop-reasons.Appendix B(available online)provides a detailedment(R&D),improving corporate brand image,enablingcomparison of published guidance documents.product differentiation for customers and informingpurchasing decisions,implementing new business models,The consequential approach-such as the methodand informing public policies related to climate change.provided in the GHG Protocol Policy and ActionStandard-directly addresses many of theThe absence of a generally accepted frameworkmethodological issues.To date,however,companiesfor estimating and publicly reporting comparativehave used only the attributional approach to estimateimpacts constrains companies'ability to pursuecomparative impacts.these applications.Without clear direction,manycompanies and industry initiatives have independentlyUsing the research findings,this paper outlines adeveloped their own methodologies or simply refrainedneutral framework for estimating and disclosingfrom estimating comparative impacts because of concernsboth positive and negative impacts.The frameworkthat claims (around positive impacts specifically)will beis not intended to be exhaustive,offer detailed guidance,perceived as greenwashing.or address issues specific to product categories;instead,it aims to address generic issues likely to be frequentlyWRI researched existing accounting and report-encountered when assessing comparative impacts.ing practices to identify the most importantmethodological issues.This comprised desk researchThe framework recommends the consequentialand interviews with over 20 experts in companies andapproach whenever comparative impact estimatesnongovernmental organizations (NGOs).It covered theare used to inform decision-making and wheneverclaims and/or targets of about 350 companies and all themarket effects mediate comparative impacts.major guidance documents and standards published toHowever,the current state of data availability and limiteddate in English.company resources may make this approach impracticalfor many businesses.Thus,while this paper stronglyencourages use of the consequential approach in decision-making contexts,the attributional approach may beconsidered as an interim measure for applications that itcan support.WORLD RESOURCES INSTITUTE