< Previous18 SDG 13: CLIMATE ACTION SDG Targets: • 13.1 Strengthen resilience and adaptive capacity to climate-related hazards and natural disasters in all countries • 13.2 Integrate climate change measures into national policies, strategies, and planning • 13.3 Improve education, awareness-raising and human and institutional capacity on climate change mitigation, adaptation, impact reduction and early warning. Industry KPIs: • KPI 13-1: Energy Consumption • KPI 13-2: Energy Intensity • KPI 13-3: GHG Emissions • KPI 13-4: GHG Reduction Targets ENERGY CONSUMPTION (KPI 13-1) About KPI 13-1 Objective Outline the industry’s energy management. WCC KPI code KPI 13-1 (SDG 13, KPI 1) Reference Standard GRI 302-1 Definition of KPI 13-1: Essential The reporting organization should report the following information in Gigajoules (GJ) or Megawatt-Hours (MWh): • Total energy consumption within the organization • If possible, individually report the fuel consumption, electricity consumption, heating consumption, cooling consumption, and steam consumption; • Share of the total energy consumption within the organization from renewable resources • Share of the electricity consumption from renewable resources19 ENERGY INTENSITY (KPI 13-2) About KPI 13-2 Objective Show the effort to minimize energy intensity in the industry. WCC KPI code KPI 13-2 (SDG 13, KPI 2) Reference Standard GRI 302-3 Definition of KPI 13-2: Advanced The reporting organization should report the following information: Energy intensity ratio for the organization as the Kilowatt-Hours applied as the ration of the quantity of products produced in kilograms. GHG EMISSIONS (KPI 13-3) About KPI 13-3 Objective Tracking the industry’s greenhouse gas emissions. WCC KPI code KPI 13-3 (SDG 13, KPI 3) Reference Standard GRI 305-1, GRI 305-2, GRI 305-3 Definition of KPI 13-3: Advanced The reporting organization should report the following information: 1. Gross direct (Scope 1) GHG emissions in metric tons of CO2 equivalent. 2. Gases included in the calculation are CO2, CH4, N2O, HFCs, PFCs, SF6, NF3 (specify omitted gases). Direct (Scope 1) GHG emissions include, but are not limited to, the CO2 emissions from the fuel consumption as reported in Disclosure 302-1 of GRI 302: Energy. Direct (Scope 1) GHG emissions can come from the following sources owned or controlled by an organization: a. Generation of electricity, heating, cooling, and steam: these emissions result from combustion of fuels in stationary sources, such as boilers, furnaces, and turbines; and from other combustion processes such as flaring; b. Physical or chemical processing: most of these emissions result from the manufacturing or processing of chemicals and materials, such as cement, steel, aluminium, ammonia, and waste processing;20 c. Transportation of materials, products, waste, workers, and passengers: these emissions result from the combustion of fuels in mobile combustion sources owned or controlled by the organization, such as trucks, trains, ships, airplanes, buses, and cars; and d. Fugitive emissions: these are emissions that are not physically controlled but result from intentional or unintentional releases of GHGs. These can include equipment leaks from joints, seals, packing, and gaskets; methane emissions (e.g., from coal mines) and venting; HFC emissions from refrigeration and air conditioning equipment; and methane leakages (e.g., from gas transport). Full (Scope 2, Scope 3): Energy indirect (Scope 2) GHG emissions include, but are not limited to, the CO2 emissions from the generation of purchased or acquired electricity, heating, cooling, and steam consumed by an organization – disclosed as specified in Disclosure 302-1 of GRI 302: Energy. For many organizations, the energy indirect (Scope 2) GHG emissions that result from the generation of purchased electricity can be much greater than their direct (Scope 1) GHG emissions. The reporting organization should report the following information: 1. Gross location-based energy indirect (Scope 2) GHG emissions in metric tons of CO2 equivalent. 2. If applicable, gross market-based energy indirect (Scope 2) GHG emissions in metric tons of CO2 equivalent. 3. If available, the gases included in the calculation; whether CO2, CH4, N2O, HFCs, PFCs, SF6, NF3, or all. 4. Base year for the calculation, if applicable, including: a. the rationale for choosing it; b. emissions in the base year; c. the context for any significant changes in emissions that triggered recalculations of base year emissions. 5. Source of the emission factors and the global warming potential (GWP) rates used, or a reference to the GWP source. 6. Consolidation approach for emissions; whether equity share, financial control, or operational control. 7. Standards, methodologies, assumptions, and/or calculation tools used. Energy indirect (Scope 3) GHG emissions Other indirect (Scope 3) GHG emissions includes all indirect GHG emissions not included in energy indirect (Scope 2) GHG emissions that occur outside of the organization, including both upstream and downstream emissions. Other indirect (Scope 3) GHG emissions are a consequence of an organization’s activities but occur from sources not owned or controlled by the organization.21 Some examples of Scope 3 activities include extracting and producing purchased materials; transporting purchased fuels in vehicles not owned or controlled by the organization; and the end use of products and services. From the calculations should be excluded: biogenic emissions; scope 2 indirect emissions; GHG trades. When reporting, the organization should report the following information: • Gross other indirect (Scope 3) GHG emissions in metric tons of CO₂-equivalent. • If available, the gas included in the calculation (whether CO₂, CH₄, N₂O, HCFs, PFCs, SF₆, NF₃, or all) GHG EMISSIONS REDUCTION TARGETS (KPI 13-4) About KPI 13-4 Objective Presence of climate strategies in the industry WCC KPI code KPI 13-4 (SDG 13, KPI 4) Reference Standard GRI 305-5 Definition of KPI 13-4: Advanced The entity should disclose whether it has a greenhouse gas emission reduction strategy in place. It shall also disclose its emission reduction targets including the following, where relevant: • The scope of the emission reduction target (e.g., the percentage of total emissions to which the target is applicable); • The percentage reduction against the base year, with the base year representing the first year against which emissions are evaluated toward the achievement of the target. • The scope of GHG emissions includes the seven GHGs covered under the Kyoto Protocol—carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), sulfur hexafluoride (SF6), and nitrogen trifluoride (NF3). 22 SDG 14: LIFE BELOW WATER SGD Targets: • 14.1 By 2025, prevent and significantly reduce marine pollution of all kinds, in particular from land- based activities, including marine debris and nutrient pollution • 14.2 Increase scientific knowledge, develop research capacity and transfer marine technology, taking into account the Intergovernmental Oceanographic Commission Criteria and Guidelines on the Transfer of Marine Technology, in order to improve ocean health and to enhance the contribution of marine biodiversity to the development of developing countries, in particular small island developing States and least developed countries Industry KPIs: • KPI 14-1: Case Studies on Contributions to SDG 14 CASE STUDIES ON CONTRIBUTION TO SDG 14 (KPI 14-1) About KPI 14-1 Objective Show the coatings industry’s contribution preservation of life below water. WCC KPI code KPI 14-1 (SDG 14, KPI 1) Reference Standard None/Industry KPI Definition of KPI 14-1: Advanced Guidance for responding to remaining KPIs: The reporting organization should report the following information: • Any information/studies/metrics on the benefits of responsible use of biocides in paints and coatings (e.g., fuel-efficient shipping, improved safety in conservation and transportation, reduced waste due to product deterioration, reduced use of detergent and water, combating invasive species, supporting waterborne paints as a feasible alternative to formulations high in VOC's and other emissions, initiatives on preservation of marine biodiversity, pollution mitigation initiatives).23 RESOURCES Global Reporting Initiative (2020), Sustainability Reporting Standards: https://www.globalreporting.org/standards/download-the-standards/ Sustainability Accounting Standards Board (2018), CHEMICALS – Sustainability Accounting Standard: https://www.sasb.org/wp-content/uploads/2018/11/Chemicals_Standard_2018.pdf UN Regulation for the Transport of Dangerous Goods: https://worldcoatingscouncil.org/advocacy-policy/#transport-of-dangerous-goods CEO Action for Diversity and Inclusion: https://www.ceoaction.com/ CEPE Paint Formula Stewardship, 2016 Report: https://www.cepe.org/wp-content/uploads//2020/05/CEPE_annual_report_2016-1.pdf British Coatings Federation (2020), Sustainable Strokes: https://www.coatings.org.uk/sustainable-strokes.aspx British Coatings Federation, Coatings Institute Program: https://www.thecoatingsinstitute.com/ FIPEC partnership with chemistry school, ESCOM Paris: https://www.escom.fr/escom-chimie/escom-chimie-grande-ecole-de-chimie/ ITEC Lyon http://www.itech.fr/ decouvrez-l-itech/qui-sommes-nous/ American Coatings Association with Young Minds Inspired: https://www.paint.org/coatingstech-magazine/articles/aca-implements-stem-outreach-program/ American Coatings Association, Safety Awards Program: https://www.paint.org/programs-publications/programs/safety-awards/ Canadian Paint and Coatings Association, Coatings Tech Program, available online: https://canpaint.com/education-training/coatingstech/ ANAFAPYT Educational Programs: https://anafapyt.com/capacitacion/24 ABRAFATI Residuos Solidos Initiative: https://abrafati.com.br/residuos-solidos/ VdL, Vision Zero Initiative: https://www.wirsindfarbe.de/themen/umwelt-und-sicherheit/vision-zero-sicher-arbeiten-in-der-lack-und- druckfarbenindustrie Paint Collection and Recycling Programs: • Australia – Paintback: http://www.apmf.asn.au/sustainability/ • Canada – PaintCare: https://canpaint.com/leaders-in-product-stewardship/post-consumer- paint-recycling/ • New Zealand: https://www.paintman.org.nz/paint-recycling • UK – PaintCare: https://www.coatings.org.uk/leftover-paint.aspx • United States – PaintCare: https://www.paintcare.org/ AkzoNobel GRI Reporting: https://www.akzonobel.com/en/about-us/sustainability-/sustainability-reporting/gri-content-index Axalta GRI and SASB Reporting: https://sustainability.axalta.com/ BASF GRI Reporting: https://report.basf.com/2020/en/overviews/gri-and-global-compact-index/topic-specific- standards.html BASF Supplier Code of Conduct: https://report.basf.com/2018/en/managements-report/responsibility-along-the-value-chain/supplier- management.html PPG 2020 Report: https://sustainability.ppg.com/ The Sherwin-Williams Company 2020 Sustainability Report: https://sustainability.sherwin-williams.com/doc/Sustainability_Report https://sustainability.sherwin-williams.com/corporatesocialresponsibility/gri-sustainability-report-index 25 DISCLAIMER This document (“Guide”) was prepared on behalf of the World Coatings Council (“WCC”) to provide general guidance relating to its subject matter. 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