ESTIMATING THE CARBON EMISSIONS MISSING FROM GMPF's WACI FIGURE IN THEIR 2022 ANNUAL REPORT
Fossil Free Greater Manchester January 2023
METHODOLOGY
GMPF's WACI calculations do not include carbon emissions from the use of fossil fuel products sold by the companies in which they have holdings. These are known as downstream scope 3 emissions.
Our methodology focussed on GMPF's top 5 holdings in fossil fuel companies - Royal Dutch Shell, Glencore, BP, Anglo American and Total Energies.
We estimate that these 5 companies accounted for 82% of GMPF's fossil fuel holdings in 2021. See our list of GMPF's fossil fuel holdings.
Four out of five of these companies published their total scope 3 emissions for 2021. BP was the only company that didn't. BP only publishes its upstream scope 3 emissions, which will be much lower than their downstream emissions.
BP does publish figures for carbon emissions from its own emissions - known as scope 1 & 2.
We therefore assumed that the ratio of BP's emissions from its own operations (scope 1 &2) to its scope 3 emissions were the same as those for Shell.
This assumption seems reasonable as their reported carbon intensity per MJ of energy produced is virtually the same - Shell 77 and BP 79.
Once we had identified or estimated the scope 3 emissions for the top 5 fossil fuel holdings, we converted this to carbon intensity by dividing each company's scope 3 emissions by their annual revenue.
We then multiplied the scope 3 carbon intensity by the value of GMPF's holdings in the company and divided by GMPF's total holdings.
Our estimate for the missing WACI was then reached by summing the missing weight adjusted carbon intensity (WACI) for the top 5 companies.
Company Scope 1&2 emissions 2021 mn tonnes CO2e Scope 3 emissions 2021 mn tonnes CO2e Revenue $m Revenue m Carbon Intensity Scopes 1 & 2 CO2e / m Carbon Intensity Scope 3 Tonnes CO2e / m GMPF holdings March 2021 m Carbon intensity scope 3 x value of GMPF holdings % all GMPF holdings Extra WACI from Scope 3 Tonnes CO2e / m SOURCES - REVENUE
Shell 68 1299 261504 189692 358 6848 425 2910370 1.45 99.2 Shell https://reports.shell.com/annual-report/2021/consolidated-financial-statements/statement-of-income.html
Glencore 25.8 254 203751 147799 175 1719 276 474320 0.94 16.2 Glencore Page 143. https://www.glencore.com/.rest/api/v1/documents/ce4fec31fc81d6049d076b15db35d45d/GLEN-2021-annual-report-.pdf
BP 35.6 688 157739 114422 311 6013 266 1599409 0.91 54.5 BP Page 39. https://www.bp.com/content/dam/bp/business-sites/en/global/corporate/pdfs/investors/bp-annual-report-and-form-20f-2021.pdf
Anglo American 16.1 115 41547 30138 534 3816 142 541845 0.48 18.5 Anglo American Page 173. https://www.angloamerican.com/~/media/Files/A/Anglo-American-Group/PLC/investors/annual-reporting/2022/aa-annual-report-full-2021.pdf
Total Energies 37 400 205863 149331 248 2679 109 291969 0.37 10.0 Total Energies Page 400. https://totalenergies.com/system/files/documents/2022-03/DEU_21_VA.pdf
Top 5 FF holdings total value mn 1218 198.4
Top 5 FF holdings as % all holdings 4.15 $ to EXCHANGE RATE 31 Mar 2021 https://www.exchange-rates.org/Rate/usd/GBP/3-31-2021
0.72539
Sum of weighted scope 3 carbon intensity 5817912
Total GMPF holdings at 21 March 2021 mn 29324
Extra WACI attributable to Scope 3 emissions 198.4
SCOPE 1, 2 & 3 EMISSIONS OF TOP FIVE FOSSIL FUEL HOLDINGS
SOURCES - SCOPE 1, 2 & 3 EMISSIONS
mn tones CO2e
Shell 2021 Shell https://reports.shell.com/annual-report/2021/strategic-report/climate-change-and-energy-transition/climate-related-metrics-and-targets/greenhouse-gas-emissions.html
Scope 1 60
Scope 2 8
Scope 3 1299
Total 1367
BP 2021 BP Page 54. https://www.bp.com/content/dam/bp/business-sites/en/global/corporate/pdfs/investors/bp-annual-report-and-form-20f-2021.pdf
Scope 1 33.2
Scope 2 2.4
Scope 3 upstream 304
Scope 3 all estimate 693 BP reports scope 3 emissions for upstream only. See how we calculated this figure below.
Total 1033
Glencore 2021 Glencore Page 21. https://www.glencore.com/.rest/api/v1/documents/ce4fec31fc81d6049d076b15db35d45d/GLEN-2021-annual-report-.pdf
Scope 1 15
Scope 2 10.8
Scope 3 254
Total 265
Anglo American 2020 Anglo American Page 1. https://www.angloamerican.com/~/media/Files/A/Anglo-American-Group/PLC/sustainability/approach-and-policies/environment/climate-change-report-2021.pdf
Scope 1 10
Scope 2 6.1
Scope 3 114.8
Total 130.9
Total Energies 2021 Total Energies Page 300. https://totalenergies.com/system/files/documents/2022-03/DEU_21_VA.pdf
Scope 1 37 Scope 1 & 2
Scope 2
Scope 3 400
Total 437
Estimating BP's total Scope 3 emissions 2020-21
Carbon intensity per MJ Scopes 1&2 Scope 3 Scope 3 as % Scope 1&2 Scope 3 estimate BP
Units gCO2e/MJ mn tonnes CO2e %
Shell 77 68 1299 1910
BP 79 36 ? 688