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Supplier Expectations

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The sustainability of the operations of suppliers to the electric utility industry is a strategic focus of the Alliance. Based upon its second survey issued to suppliers in 2010, the Alliance has concluded that it has an opportunity to encourage suppliers to sharpen their focus on sustainability. For example, of suppliers responding to the survey:

  • Fewer than 50% are required to adhere to an established policy on environmental management;
  • Fewer than 40% have a formally established environmental management system in place; and
  • Fewer than 24% measure and trend GHG emissions.

 

The Alliance has developed the following set of expectations that it will be working with its key suppliers to achieve over the next couple years: 

1.    The supplier shall complete a base-year inventory of their organization’s Scope 1 and Scope 2 GHG emissions utilizing a generally accepted GHG protocol (e.g., World Resource Institute/World Business Council for Sustainable Development (WRI/WBCSD), A Corporate Accounting and Reporting Standard Revised Edition, 2004) by year-end 2012.

o    The selection of a generally accepted GHG accounting protocol, that addresses Scope 1 and Scope 2 emissions, is the decision of the supplier.

o    The determination of the base-year is at the discretion of the supplier.

2.    The scope of activities included in the suppliers GHG emissions inventory shall be as inclusive as practical and shall represent the majority of the suppliers Scope 1 and Scope 2 GHG emissions.  Suppliers may include Scope 3 emissions.

3.    Measurement of GHG emissions may be accomplished by direct measurement- based methodology (technology such as continuous emissions monitoring systems) and calculation-based methodology (documented emission factors, mass balance, extrapolation, interpolation or reasonable engineering judgment) consistent with the provisions of the selected GHG accounting protocol.

4.    The supplier shall establish a voluntary GHG reduction goal that results in lower GHG emissions than their organization would produce under a business as usual scenario.

5.    The goal may be based on an absolute target, a percentage change in emissions or an intensity-based target, relative to base-year emissions.

6.    The goal year shall occur before 2025.

7.    Suppliers shall complete a GHG inventory for each year between the base-year and the goal year.

8.    An officer from the Supplier’s organization shall communicate their GHG reduction goal to the EUISSCA by November 1, 2012.

9.    An officer of the Supplier’s organization shall report their annual GHG inventory to the EUISSCA no later than 2 quarters after the end of their annual GHG accounting period or 4 quarters if they have their performance verified.

10. Suppliers are not required to have their GHG inventories verified by a third-party, but are encouraged to do so.

 

11. Suppliers are encouraged to publicly communicate their GHG reduction goal and to disclose their progress towards achieving the goal.

 

Learn about our GHG Pilot Program for Suppliers