ASTM E2725-19

Standard Guide for Basic Assessment and Management of Greenhouse Gases

SIGNIFICANCE AND USE
4.1 The use of this guide would be directed toward prudent business decision making, communications regarding GHGs emissions/control/reduction conditions, insurance, high-level analysis of potential reductions and/or remedies, budgeting, strategic planning for an entity’s management of GHGs produced in relationship to its business.  
4.2 Example Users:  
4.2.1 Small businesses or enterprises;  
4.2.2 Service industries;  
4.2.3 Federal, state or municipal facilities and regulators, including departments of health and fire departments;  
4.2.4 Financial and insurance institutions;  
4.2.5 Waste managers, including liquid and solid waste haulers, treatment, recycling, disposal and transfer;  
4.2.6 Consultants, auditors, inspectors and compliance assistance personnel;  
4.2.7 Educational facilities;  
4.2.8 Property, buildings and grounds management, including landscaping;  
4.2.9 Non-regulatory government agencies, such as the military.  
4.3 This guide is a first step in crafting simplified management goals for assessing, managing and reducing GHGs. The framework describes a process by which the user may categorize current carbon footprints and a priority approach to manage those risks. The technique classifies common responses for both mitigation and adaptation. The guide groups responses and examples into tiers based on the relative speed in responding to GHG emissions. The tier classifications found in this guide reflect the general structures of state, federal, and local response programs. These authorities generally classify groups of similar responses according to the timely availability and cost effectiveness of GHG responses.  
4.3.1 This guide presents basic principles and strategies in the U.S. for conducting baseline assessment and reasonable mitigation/adaptation strategic options on a corporate, or small business voluntary basis. The following principals apply to this priority system:  
4.3.2 Ability to set specific GHG goals for activitie...
SCOPE
1.1 Overview—This guide presents a generalized systematic approach to voluntary assessment and management of the causes and impacts of GHGs. It includes actions, both institutional (legal) and engineering (physical) controls for GHG reductions, impacts, and adaptations. Options for a tiered analysis provide a priority ranking system, to address the “worst first” challenges of a facility, addressing practicality and cost-benefit.  
1.2 Purpose—The purpose of this guide is to provide a series of options consistent with basic principles and practices for GHG-related action. This guide encourages consistent and comprehensive assessment and management of GHG outcomes from facility and business operations.  
1.2.1 The guide also provides some high-level options for the monitoring, tracking and performance to evaluate the effectiveness of the commercial entity’s strategy to ensure that a reasonable approach is taken.  
1.2.2 This standard ties into the ASTM Committee E50 standards series related to environmental risk assessment and management.  
1.3 Objectives—The objectives of this guide are to determine the conditions of the facility and or/property with regard to the status of GHGs and actions to be taken to manage and reduce or offset those emissions.  
1.3.1 The guide provides a three-tiered decision strategy that focuses on business risk, cost-effective solutions in response to greenhouse gases, and related issues such as the need for energy independence.  
1.4 Limitations of this Guide—Given the variability of the different types of facilities that may wish to use this guide, and the existence of state and local regulations, it is not possible to address all the relevant standards that might apply to a particular facility. This guide uses generalized language and examples to guide the user. If it is not clear to the user how to apply standards to their specific circumstances, it is recommended that users seek assi...

General Information

• Status: Published
• Publication Date: 31-Jan-2019
• ICS: 13.020.40 - Pollution, pollution control and conservation
• Technical Committee: E50 - Environmental Assessment, Risk Management and Corrective Action
• Drafting Committee: E50.05 - Environmental Risk Management

Relations

• Replaces: ASTM E2725-10 - Standard Guide for Basic Assessment and Management of Greenhouse Gases
• Effective Date: 01-Feb-2019
• Refers: ASTM E2432-17 - Standard Guide for General Principles of Sustainability Relative to Buildings
• Effective Date: 01-May-2017
• Refers: ASTM E2114-17 - Standard Terminology for Sustainability Relative to the Performance of Buildings
• Effective Date: 01-Feb-2017
• Refers: ASTM E2432-11 - Standard Guide for General Principles of Sustainability Relative to Buildings
• Effective Date: 01-Aug-2011
• Refers: ASTM E2114-08 - Standard Terminology for Sustainability Relative to the Performance of Buildings
• Effective Date: 01-Nov-2008
• Refers: ASTM E2114-06a - Standard Terminology for Sustainability Relative to the Performance of Buildings
• Effective Date: 01-Dec-2006
• Refers: ASTM E2114-06 - Standard Terminology for Sustainability Relative to the Performance of Buildings
• Effective Date: 15-Feb-2006
• Refers: ASTM E2432-05 - Standard Guide for General Principles of Sustainability Relative to Buildings
• Effective Date: 15-Aug-2005
• Refers: ASTM E2114-05a - Standard Terminology for Sustainability Relative to the Performance of Buildings
• Effective Date: 01-Jun-2005
• Refers: ASTM E2114-05 - Standard Terminology for Sustainability Relative to the Performance of Buildings
• Effective Date: 01-Feb-2005
• Refers: ASTM E2114-04 - Standard Terminology for Sustainability Relative to the Performance of Buildings
• Effective Date: 01-Dec-2004
• Refers: ASTM E2114-00a - Standard Terminology for Sustainability Relative to the Performance of Buildings
• Effective Date: 10-Feb-2001
• Refers: ASTM E2114-01 - Standard Terminology for Sustainability Relative to the Performance of Buildings
• Effective Date: 10-Feb-2001
• Referred By: ASTM E2718-21 - Standard Guide for Financial Disclosures Attributed to Climate Change
• Effective Date: 01-Feb-2019
• Referred By: ASTM E3032-22 - Standard Guide for Climate Resiliency Planning and Strategy
• Effective Date: 01-Feb-2019

Overview

ASTM E2725-19: Standard Guide for Basic Assessment and Management of Greenhouse Gases provides a structured framework for organizations to voluntarily assess, manage, and reduce the causes and impacts of greenhouse gases (GHGs) from their operations. Developed by ASTM International, this guide emphasizes a systematic approach to GHG management, incorporating both legal (institutional) and engineering (physical) controls. It introduces a tiered analysis for prioritizing actions, enabling businesses and facilities to make informed decisions in risk management, budgeting, strategic planning, and communication regarding GHG emissions and reduction strategies.

This guide serves as an introductory tool for organizations seeking to understand and respond to GHG challenges, promote environmental responsibility, and prepare for potential future regulations. It is suitable for a variety of users, from small businesses to municipal and governmental agencies, financial institutions, and educational facilities.

Key Topics

• Voluntary GHG Assessment: Outlines procedures for baseline assessments, identifying direct and indirect GHG sources within an organization’s “fenceline.”
• Tiered Decision Strategy: Presents a three-level (tiered) approach to mitigating GHG risks:
  • Tier 1: Conservation and energy efficiency for immediate cost-effective actions.
  • Tier 2: Adoption of alternative technologies, such as renewable energy and offsets, for mid-term objectives.
  • Tier 3: Investment in emerging technologies and long-term solutions.
• Risk Management and Planning: Encourages organizations to categorize their carbon footprints, assess risks, and use a “plan, do, check, act” cycle for continual improvement.
• Performance Monitoring: Recommends ongoing measurement, tracking, and evaluation of GHG reduction efforts to inform decision-making.
• Comprehensive Approach: Supports integration of GHG management into broader environmental risk and sustainability programs.

Applications

The ASTM E2725-19 standard is relevant to a wide range of sectors, providing practical guidance on GHG management and sustainability initiatives:

• Small and Medium Enterprises: Enables cost-effective strategies for emissions reduction and regulatory readiness.
• Service Industries & Facilities Management: Supports improved energy efficiency and environmental reporting for buildings, grounds, and operations.
• Public Sector Entities: Ideal for use by federal, state, and municipal facilities, including regulatory agencies and non-regulatory government organizations.
• Financial and Insurance Institutions: Assists in estimating climate-related risks and improving underwriting and investment decision-making.
• Waste Management: Helps haulers, recyclers, and disposal operations minimize GHG impacts through process efficiency.
• Consultants & Compliance Officers: Offers a reference framework for auditing, compliance support, and client advisement.
• Educational Facilities: Facilitates campus-wide sustainability planning and resource optimization.

Key benefits include:

• Streamlined GHG assessment and reduction steps suitable for organizations new to GHG management.
• Flexibility to accommodate different facility types and operational realities.
• Preparation for compliance with emerging regulations and market expectations regarding sustainability.

Related Standards

In supporting a comprehensive and harmonized approach to GHG and environmental risk management, ASTM E2725-19 references and aligns with several international and national standards, including:

• ISO 14001 - Environmental management systems
• ISO 14064-1, -2, -3 - Specification for quantification, monitoring, reporting, validation, and verification of greenhouse gas emissions and removals
• ISO 14065 - Requirements for greenhouse gas validation and verification bodies
• WRI Greenhouse Gas Protocol - Scopes 1, 2, and 3 emissions accounting
• ASTM E2114 & E2432 - Terminology and principles for sustainability of buildings
• Regional initiatives such as the Climate Registry, Regional Greenhouse Gas Initiative (RGGI), and the Western Climate Initiative

Conclusion

ASTM E2725-19 offers a robust foundation for organizations to initiate or enhance their greenhouse gas management programs. Its tiered, action-oriented framework enables flexible, practical, and proactive steps toward sustainability and risk reduction, supporting both environmental stewardship and business strategy in alignment with globally recognized best practices for GHG management.

Standards Content (Sample)

This international standard was developed in accordance with internationally recognized principles on standardization established in the Decision on Principles for the
Development of International Standards, Guides and Recommendations issued by the World Trade Organization Technical Barriers to Trade (TBT) Committee.
Designation: E2725 − 19
Standard Guide for
Basic Assessment and Management of Greenhouse Gases
This standard is issued under the fixed designation E2725; the number immediately following the designation indicates the year of
original adoption or, in the case of revision, the year of last revision. A number in parentheses indicates the year of last reapproval. A
superscript epsilon (´) indicates an editorial change since the last revision or reapproval.
INTRODUCTION
This guide provides a uniform set of options for communicating and planning greenhouse gas
(GHG) management as well as strategies for addressing GHGs associated with a facility’s operations.
This guide may not apply to entities where such GHG assessment and management is already widely
availablethroughstandard,uniformsetsofguidance(forexample,theconstructionofgreenbuildings;
mandatory air quality rules), or other standards. This guide provides a uniform voluntary framework
for identifying management options and steps that may be beneficial to evaluate (GHG) solutions. It
provides basic management strategies for existing corporations, commercial businesses, and govern-
ment facilities, even those currently outside of various voluntary and regulatory schemes. The
environmental assessment and management strategies contained in this guide recognize the overall
value of existing responses. This guide references and blends similar, effective programs and extends
them to a consistent approach that will facilitate communication and be a basic tool for business and
industry.
Background—Activities that reduce GHG emissions or limit their atmospheric releases have been
initiated internationally. This guide offers a framework of initiatives for individual or local efforts in
managing GHG. To facilitate best practices, most GHG management programs establish a baseline of
current emissions, establish objectives for reducing or managing those emissions, monitor progress in
meeting these objectives, and report (either internally or externally) the results of these efforts. This
guide offers useful principles in determining options, and in the selection of prudent activities, based
onvariousscenariosandtechnologyimprovements,toenhancepreservationoflifeandenvironmental
conservation.
1. Scope 1.2.1 The guide also provides some high-level options for
the monitoring, tracking and performance to evaluate the
1.1 Overview—This guide presents a generalized systematic
effectiveness of the commercial entity’s strategy to ensure that
approach to voluntary assessment and management of the
a reasonable approach is taken.
causes and impacts of GHGs. It includes actions, both institu-
1.2.2 This standard ties into the ASTM Committee E50
tional (legal) and engineering (physical) controls for GHG
standards series related to environmental risk assessment and
reductions, impacts, and adaptations. Options for a tiered
management.
analysis provide a priority ranking system, to address the
“worstfirst”challengesofafacility,addressingpracticalityand
1.3 Objectives—The objectives of this guide are to deter-
cost-benefit.
mine the conditions of the facility and or/property with regard
1.2 Purpose—The purpose of this guide is to provide a to the status of GHGs and actions to be taken to manage and
series of options consistent with basic principles and practices reduce or offset those emissions.
for GHG-related action. This guide encourages consistent and
1.3.1 The guide provides a three-tiered decision strategy
comprehensiveassessmentandmanagementofGHGoutcomes
that focuses on business risk, cost-effective solutions in re-
from facility and business operations.
sponsetogreenhousegases,andrelatedissuessuchastheneed
for energy independence.
1.4 Limitations of this Guide—Given the variability of the
ThisguideisunderthejurisdictionofASTMCommitteeE50onEnvironmental
Assessment, Risk Management and CorrectiveAction and is the direct responsibil-
different types of facilities that may wish to use this guide, and
ity of Subcommittee E50.05 on Environmental Risk Management.
the existence of state and local regulations, it is not possible to
Current edition approved Feb. 1, 2019. Published March 2019. Originally
address all the relevant standards that might apply to a
approved in 2010. Last previous edition approved in 2010 as E2725–10. DOI:
10.1520/E2725–19. particular facility. This guide uses generalized language and
Copyright © ASTM International, 100 Barr Harbor Drive, PO Box C700, West Conshohocken, PA 19428-2959. United States
E2725 − 19
examples to guide the user. If it is not clear to the user how to 2. Referenced Documents
apply standards to their specific circumstances, it is recom- 2
2.1 ASTM Standards:
mended that users seek assistance from qualified professionals.
E2114 TerminologyforSustainabilityRelativetothePerfor-
1.4.1 Insurance Industry—The effects of GHG on insurers
mance of Buildings
are not clear. The definition of an insurable occurrence and a
E2432 Guide for General Principles of Sustainability Rela-
commencement point for when insurable claims are made,
tive to Buildings
alongwithwhenconditionswerediscoveredandtheactionable 3
2.2 International Standards:
information leading to an insurable loss is not clear. It may be
ISO 14001 :2015 Environmental Management Systems—
inappropriate to speculate on GHGs that are highly uncertain 4
Specification with Guidance for Use
for purposes of insurance related to specific events.
ISO 14064–1 :2006–03–01, Greenhouse Gases—Part 1:
1.4.2 This guide does not take a position on the science of
Specification with Guidance at the Organization Level for
climate change, its association with anthropogenic greenhouse
Quantification and Reporting of Greenhouse Gas Emis-
gases, or various mathematical models generated by interna-
sions and Removals
tional bodies.
ISO 14064–2 Part 2: Specification with Guidance at the
1.4.3 The guide does not address water vapor as a green-
Project Level for Quantification, Monitoring and Report-
house gas.
ing of Greenhouse Gas Emission Reductions or Removal
1.4.4 The guide only addresses anthropogenic greenhouse
Enhancements
gases.
ISO 14064–3 Part 3: Specification with Guidance for the
Validation and Verification of Greenhouse GasAssertions
1.5 The guide uses references and information on the
ISO 14065 Greenhouse Gases—Requirements for Green-
control, management and reduction of GHGs from many cited
house Gas Validation and Verification Bodies for Use in
sources such as the Intergovernmental Panel on Climate
Accreditation or Other Forms of Recognition (ISO
Change, ISO, the World Resources Institute, and the National
14065:2013 (E))
Academy of Sciences.
2.3 Voluntary Registries:
1.6 SeveralU.S.-basedfederalregulatoryagenciesservedas
California Air Action Registry
sources of information on existing and anticipated regulation
The Climate Registry (TCR) –Anon-profit corporation and
and management of GHGs including the Environmental Pro-
collaboration of states, provinces and tribes in North
tection Agency, the Department of Energy, and the Securities
America. The TRC established a voluntary infrastructure
and Exchange Commission.
for measuring and reporting greenhouse gas emissions. Its
NOTE 1—New Source Performance Standards regulating methane
goal is the accurate, transparent and consistent measure-
emissions from natural gas wells are codified in 40 CFR 60 Subpart
ment for GHGs.
OOOO.
2.4 Regional Initiatives:
1.7 This guide relies on current regulatory information
Midwest Greenhouse Gas Accord
about GHGs from various state agencies, including the Cali-
Regional Greenhouse Gas Initiative
fornia Air Resources Board, the Massachusetts and Connecti-
Western Climate Initiative
cut Departments of Environmental Protection, the Washington
2.5 National Initiatives:
Department of Ecology, theWestern Climate Initiative, and the
American Clean Energy and Security Act of 2009 (by
Regional Greenhouse Gas Initiative.
Congressmen Waxman and Markey)
America’s Climate Security Act of 2007 (by Senators
1.8 The values stated in SI units are to be regarded as
Lieberman and Warner)
standard. No other units of measurement are included in this
standard.
NOTE 2—These bills were not enacted.
1.9 This standard does not purport to address all of the
2.6 Government References:
safety concerns, if any, associated with its use. It is the
Congressional Budget Office, 2008, Policy Options for
responsibility of the user of this standard to establish appro-
Reducing CO emissions
priate safety, health, and environmental practices and deter-
mine the applicability of regulatory limitations prior to use.
For referenced ASTM standards, visit the ASTM website, www.astm.org, or
1.10 This international standard was developed in accor-
contact ASTM Customer Service at [e-mail]. For Annual Book of ASTM
dance with internationally recognized principles on standard-
Standards volume information, refer to the standard’s Document Summary page on
the ASTM website.
ization established in the Decision on Principles for the
Available fromAmerican National Standards Institute (ANSI), 25 W. 43rd St.,
Development of International Standards, Guides and Recom-
4th Floor, New York, NY 10036, http://www.ansi.org.
mendations issued by the World Trade Organization Technical 4
Products of ISO/TC 207 for which ASTM E50 was a participant on behalf of
Barriers to Trade (TBT) Committee. ANSI.
E2725 − 19
National Science and Technology Council, Committee on emissionsassociatedwiththeuseofpower,transport,foodand
Environment and Natural Resources, 2008, Scientific otherconsumptionforanindividual,familyororganizationare
Assessment of the Effect of Global Change on the United added up to give one comparable measure in units of carbon
States dioxide equivalent.
United States Climate Change Science Program
3.1.7 carbon tax—One form of carbon price on greenhouse
US General Accountability Office (GAO) 2011, Climate
gas emissions. Set by governments, a price on emissions is
Change Issues; Options for Addressing Challenging Car-
fixed and emitters are allowed to emit whatever they want at
bon Offset Quality
that price.
US GeneralAccountability Office (GAO) 2010, Coal Power
3.1.8 The Climate Registry—A compact of 43 States,
Plants: Opportunities Exist for DOE to Provide Better
Provinces, and Tribes in the U. S., Canada, and Mexico that
Information on Maturity of Key Technologies to Reduce
have agreed to recognize voluntary carbon measurements and
Carbon Dioxide Emissions
improvements by facilities.
NationalAcademyofSciences,(NAS)2008,Understanding
and Responding to Climate Change
3.1.9 direct greenhouse gas emission—Air discharges from
National Academy of Sciences (NAS) 2013, Effects of US
sources owned or controlled by the individual or organization.
Tax Policy on Greenhouse Gas Emissions
3.1.10 emission or removal factor—Relating activity data to
NOTE 3—Links to some references are provided in Appendix X3.
GHG discharge reductions which could include an oxidation
component.
2.7 Federal Standard:
40 CFR 60 Subpart OOOO Standards of Performance for
3.1.11 energy conservation—Performing less work, using
Crude Oil and Natural Gas Production, Transmission and
less light, heat, and movement.
Distribution
3.1.12 energy effıciency—Performing the same amount of
2.8 WRI Document:
work, using less light, heat, and movement.
WRI Greenhouse Gas Protocol, Scope 1, 2, and 3
3.1.13 energy indirect greenhouse gas emission—
3. Terminology
Discharges to the air from the generation of imported
electricity, heat, or steam consumed by the individual or
3.1 Definitions:
organization.
3.1.1 allowance—An authorization to emit a fixed amount
of carbon dioxide. Generally one metric ton of emissions
3.1.14 Energy Star—Appliance efficiency rating program
equals one allowance.
for the U. S. Federal Government.
3.1.2 baseline/credit—A type of emissions trading scheme
3.1.15 financial statements—Include, but are not limited to,
where firms are encouraged to reduce their greenhouse gas
statements associated with shareholder reporting, periodic
emissions below a projected “business as usual” path of
reports, registration statements, loans, mergers, acquisitions, or
increasing emissions. Any reductions below that future path
divestures. Financial statements may include statements out-
earns credits for the difference which can be sold to other
side of SEC filings.
emitters struggling to contain increases to baseline levels.
3.1.16 green buildings—As defined in Terminology E2114
3.1.3 business risk—The likelihood that the operation could
and Guide E2432.
be subjected to future government regulations, industry
3.1.17 greenhouse gases (GHGs)—Vaporousconstituentsof
standards,customerdemandorshareholderdecisionsrequiring
the earth’s atmosphere, both natural and anthropogenic, that
measurement,disclosures,actionsand/orplanningtodocument
absorb and emit radiation at specific wavelengths, including
and reduce greenhouse gases.
carbon dioxide, methane, nitrous oxide, hydrofluorocarbons,
3.1.4 cap and trade—The most popular type of emissions
perfluorocarbons, and sulfur hexafluoride.
trading scheme where emissions are subject to a cap, permits
3.1.18 greenhouse gas activity data—A quantitative mea-
are issued up to that cap, and a market allows those emitting
less than their quota of the cap to sell their excess permits to sure of activity that results in an emission or removal.
emitters needing to buy extra to meet their quota. (Examples of activity data include the amount of energy, fuels
or electricity consumed, material produced, service provided,
3.1.5 carbon dioxide equivalent (CO e) —Schemes that
or area of land affected.)
measure other greenhouse gas emissions, such as methane, by
computing the amount of CO that would have the same
3.1.19 greenhouse gas assertion—A declaration or factual
effects.
and objective statement made by the “responsible party” that
may be presented at a point of time or may cover a period of
3.1.6 carbon footprint—The impact of human activities in
time. It should be clear, identifiable, and consistent.
terms of the amount of greenhouse gases they produce. The
3.1.20 greenhouse gas emission—The total mass of a GHG
5 released to the atmosphere over a specified period of time.
Available from U.S. Government Printing Office, Superintendent of
Documents, 732 N. Capitol St., NW, Washington, DC 20401-0001, http://
3.1.21 greenhouse gas information system—The policies,
www.access.gpo.gov.
processes and procedures to establish, manage, and maintain
Available from World Resources Institute (WRI), 10 G Street, NE, Suite 800,
Washington, DC 20002, http://www.wri.org. GHG information.
E2725 − 19
3.1.22 greenhouse gas inventory—An individual’s or orga- 3.1.37 USGBC-LEED—UnitedStatesGreenBuildingLead-
nization’s greenhouse gas sources, greenhouse gas sinks, GHG ership in Energy and the Environment green building-rating
emissions and removals. program.
3.1.23 greenhouse gas programs—Voluntary or mandatory
4. Significance and Use
international, national, or sub-national system or scheme that
4.1 The use of this guide would be directed toward prudent
registers, accounts, or manages GHG emissions, removals,
business decision making, communications regarding GHGs
emission reductions, or removal enhancements outside the
emissions/control/reduction conditions, insurance, high-level
organization or GHG project.
analysis of potential reductions and/or remedies, budgeting,
3.1.24 greenhouse gas project—Anactivityoractivitiesthat
strategic planning for an entity’s management of GHGs pro-
alter the conditions identified in the baseline scenario which
duced in relationship to its business.
cause GHG emission reductions or GHG removal enhance-
4.2 Example Users:
ments.
4.2.1 Small businesses or enterprises;
3.1.25 greenhouse gas removal—The total mass prevented
4.2.2 Service industries;
frombeingemittedtotheatmosphereoveraspecifiedperiodof
4.2.3 Federal, state or municipal facilities and regulators,
time.
including departments of health and fire departments;
3.1.26 greenhouse gas report—A stand-alone document in-
4.2.4 Financial and insurance institutions;
tended to communicate an organization’s or project’s GHG-
4.2.5 Waste managers, including liquid and solid waste
related information to its intended users. (A GHG report can
haulers, treatment, recycling, disposal and transfer;
include a GHG assertion.)
4.2.6 Consultants, auditors, inspectors and compliance as-
3.1.27 greennhouse gas source—A physical unit or process
sistance personnel;
that releases a GHG into the atmosphere.
4.2.7 Educational facilities;
4.2.8 Property, buildings and grounds management, includ-
3.1.28 hydrogen technologies—Generally,aTier3emerging
ing landscaping;
technology that substitutes H2 for liquid petroleum hydrocar-
4.2.9 Non-regulatory government agencies, such as the
bon fuels.
military.
3.1.29 Kyoto Protocol—An international treaty signed by
4.3 This guide is a first step in crafting simplified manage-
over 300 countries, with commitments to address, among other
issues, greenhouse gases. ment goals for assessing, managing and reducing GHGs. The
framework describes a process by which the user may catego-
3.1.29.1 Discussion—The Treaty was ratified by over 180
parties. rize current carbon footprints and a priority approach to
manage those risks. The technique classifies common re-
3.1.30 mitigation—Attempts to lower or compensate for
sponses for both mitigation and adaptation. The guide groups
greenhouse gas emissions through energy conservation, alter-
responsesandexamplesintotiersbasedontherelativespeedin
native forms of energy generation, carbon offsets, or seques-
responding to GHG emissions.The tier classifications found in
tration of carbon dioxide and other gases.
this guide reflect the general structures of state, federal, and
3.1.31 NOx—Nitrogen oxide compounds measured and
local response programs. These authorities generally classify
regulated in air emissions.
groups of similar responses according to the timely availability
3.1.32 offsets—A technique of compensating for the green-
and cost effectiveness of GHG responses.
house gas emissions of an organization through acquisition of
4.3.1 This guide presents basic principles and strategies in
outside resources that reduce carbon.
the U.S. for conducting baseline assessment and reasonable
mitigation/adaptation strategic options on a corporate, or
3.1.33 other indirect greenhouse gas emission—Air
small business voluntary basis. The following principals apply
discharges, other than energy indirect, which are consequences
to this priority system:
of an organization’s activities, but arise from sources that are
4.3.2 Ability to set specific GHG goals for activities. These
owned or controlled by other organizations.
goals may include maintaining existing outputs of GHG while
3.1.34 Regional Greenhouse Gas Initiative (RGGI)—A
increasing a facility’s operations, or reducing GHG through
compact among states in the northeastern United States where
engineering changes while maintaining current operations.
governmentshaveagreedtoimposemandatorycapandtrading
4.3.3 Marketing environmental awareness and sensitivity;
programs for power sources of over 25 MW. The original
4.3.4 Assessing risks from future GHG events;
Memorandum of Understanding, dated December 20, 2005,
4.3.5 Risk management, underwriting; loss control and
and the corresponding Model Rule established the regional
history; premiums and claims;
program.
4.3.6 Liability assessment and qualifications for loans;
3.1.35 reporting entity—Any business or public agency
4.3.7 Standardization,consistency,andcertificationoffacil-
preparing a financial statement.
ity specific evaluations;
3.1.36 sequestration—Attempts to trap carbon and other 4.3.8 Educating employees, clients, and customers;
greenhouse gases through techniques such as photosynthesis 4.3.9 Generating multi media and cross medium informa-
from tree planting or ocean seeding of algae or injection of tion;
gases into the deep bedrock. 4.3.10 Evaluating vendors, and
E2725 − 19
4.3.11 Reducing costs and preventing pollution. 4.6.3 The insurance industry has always played a role by
insuring against weather-related risks, promoting stronger
4.4 UsersmayconsidervariousbenefitsofGHGassessment
building codes, and better land-use decision-making.
and response.
4.4.1 This guide is a basic primer on GHG impacts and may
NOTE 5—Consequently, weather-related impacts are not addressed in
serve to introduce the subject for organizations unfamiliar with this guide.
the principles.
4.6.4 Many GHG regulatory schemes require documenta-
4.4.2 Some government enforcement agencies, fiduciaries
tion and validation of baseline greenhouse gas production.
and business organizations publish GHG strategies. Over 400
Standard techniques are contained in ISO 14064–1, ISO
municipalities in the United States, for example, have signed
14064–2, ISO 14064–3: 2006-03-01, and in ISO 14065.
the principles of international standards to address GHGs. The
public has systematic ability to access or estimate information
5. The Tiered Approach to Risk Management
on individual businesses. Therefore, businesses need guidance
5.1 This guide establishes a framework of common GHG
on how to assess the nature and potential risks of GHGs, and
risk management strategies in the United States, Canada, and
a programmatic approach for reducing or eliminating those
Mexico and will allow the user to evaluate the potential level
risks through energy conservation, pollution prevention, alter-
of risk from greenhouse gas production and other GHG issues.
native and emerging technologies and other proactive manage-
Responses would then be evaluated for timeliness and avail-
ment systems.
ability in order to continually reduce the risks from GHGs.
NOTE 4—Users may wish to consider establishing data quality
5.2 Tiered Management Categories:
objectives, data management procedures, and documentation.
5.2.1 Tier 1, conventional, GHG responses represent the
4.4.3 Reduced operation and maintenance costs may be
fastest potential risk reduction, because Tier 1 responses
realized through a tiered evaluation of GHG response oppor-
prevent generation of greenhouse gases through energy con-
tunities.
servation and process efficiency improvements. These actions
4.4.4 Responses may be streamlined and simplified so that
maypreventbusinessriskimpactsbyprovidingimmediatecost
all levels in an organization may participate.
savings and lowering a facility’s regulatory profile relative to
4.4.5 Some enterprises may be more competitive in the
the potential production of greenhouse gases. The planning
marketplace with improved GHG response programs.
horizon is current and includes actions that can be reasonably
4.4.6 Setting priorities can allow planning and evaluation of
taken within two years of the beginning of a program.
new GHG response requirements.
5.2.2 Tier 2 responses address mid-term greenhouse gas
4.5 Institutional Risks—Some of the risks posed by GHG
reduction through the development and use of alternative
include future actions taken by the Federal Government and energy such as wind, solar, and geothermal or establishment of
state government agencies. Government programs will estab-
actions to offset greenhouse gas emissions, such as carbon
lish responses to GHG that include mandatory assessment, sequestrationusingreforestationorconstructionofgreenroofs.
reporting and mitigation for various regulated entities. Early
TheTier 2 planning horizon generally includes actions that can
voluntary actions, including the use of this guide, may help be taken within two to ten years.
organizations prepare for and reduce the impacts of future
5.2.3 Tier 3 responses address long-term greenhouse gas
government regulations. Some of the possible government reduction by development of emerging technologies such as
programs that may be instituted to address GHG are described
deep rock carbon sequestration or use of hydrogen fuel in
below.
transportation. The planning horizon includes actions that may
4.5.1 The Carbon Tax.
beavailablethroughresearchanddevelopmentprogramsinten
4.5.2 Cap on greenhouse gas emissions. to thirty years.
4.5.2.1 Flexible versus rigid emission cap.
5.3 Tiered Approach to GHG Assessment and Response—
4.5.2.2 With and without ceilings and floors on GHG
The essential principles of this guide are:
allowance prices.
5.3.1 Environmental assessment by objective;
4.5.2.3 Eligibility of domestic and international offsets for
5.3.2 Mitigation of GHG through prevention and reduction
compliance.
of greenhouse gases;
4.6 Managing Risk Uncertainty:
5.3.3 First steps in GHG response;
4.6.1 There is little doubt at the international level that
5.3.4 Priority planning;
greenhousegaseswillcontinuetoberegulated.However,there
5.3.5 Measuring greenhouse gas emissions, and checking
are still important questions regarding how large and how fast
reductions of a facility;
theseregulatorychangeswillbeimplemented,andwhateffects
5.3.6 Establishing a facility fence line and base year;
they will have in different regions. The ability to predict future
NOTE 6—These are user defined.
global levels of GHGs has improved, but efforts to understand
5.3.7 Greenhouse gas emissions should be considered from
the impacts of GHGs on society and analyze mitigation and
adaptation strategies are still relatively immature. three major sources:
4.6.2 The tiered analysis in this guide will help support 5.3.7.1 Direct on-site emissions from heating, cooling,
transportation, construction and other equipment,
decision-making, studying regional impacts, and communicat-
ing with wider group of stakeholders in the face of uncertainty. 5.3.7.2 Indirect emissions from electricity use, and
E2725 − 19
5.3.7.3 Other indirect impacts from extraction of raw andexteriortemperaturesinthesummerandconservingheatin
materials, water use, product use, recycling, waste disposal, the winter. Green roofs have the added benefit of directly
and employee transportation. lowering carbon dioxide emissions, and reducing storm water
5.3.8 Implementing improvements, checking greenhouse runoff through plant transpiration and water retention.
gas reductions, and acting to correct and modify the plan
5.5.4 Use ofTier 2 technologies should be incorporated into
accordingly. the facility’s overall energy management plan, using the “plan,
5.3.9 This guide groups GHG assessment and response into
do, check, act” approach.
three general categories: efficiency and conservation; alterna-
5.5.5 Duringtheplanningstage,certainassumptionsregard-
tive energy technologies; and emerging energy technologies.
ing greenhouse gas generation might be changed in order to
estimate greenhouse gas reduction from alternative technolo-
5.4 Tier 1: Conservation and Effıciency:
gies. See Appendix X1 and Appendix X3 for more informa-
5.4.1 Once the facility has established a baseline year for
tion.
measuring and estimating greenhouse gases and a fenceline for
5.5.6 Users should consider GHG production estimates for
analysis, the facility has initiated the first step in the GHG
the manufacture of alternative energy.
reduction and elimination process. Generally, in this step, the
user will find and use energy conservation and efficiency to
5.6 Tie
...

This document is not an ASTM standard and is intended only to provide the user of an ASTM standard an indication of what changes have been made to the previous version. Because
it may not be technically possible to adequately depict all changes accurately, ASTM recommends that users consult prior editions as appropriate. In all cases only the current version
of the standard as published by ASTM is to be considered the official document.
Designation: E2725 − 10 E2725 − 19
Standard Guide for
Basic Assessment and Management of Greenhouse Gases
This standard is issued under the fixed designation E2725; the number immediately following the designation indicates the year of
original adoption or, in the case of revision, the year of last revision. A number in parentheses indicates the year of last reapproval. A
superscript epsilon (´) indicates an editorial change since the last revision or reapproval.
INTRODUCTION
This guide provides a uniform set of options for communicating and planning greenhouse gas
(GHG) management as well as strategies for addressing GHGs associated with a facility’s operations.
This guide may not apply to entities where such GHG assessment and management is already widely
available through standard, uniform sets of guidance (for example, the construction of green buildings;
mandatory air quality rules), or other standards. This guide provides a uniform voluntary framework
for identifying management options and steps that may be beneficial to evaluate (GHG) solutions. It
provides basic management strategies for existing corporations, commercial businesses, and govern-
ment facilities, even those currently outside of various voluntary and regulatory schemes. The
environmental assessment and management strategies contained in this guide recognize the overall
value of existing responses. This guide references and blends similar, effective programs and extends
them to a consistent approach that will facilitate communication and be a basic tool for business and
industry.
Background—Activities that reduce GHG emissions or limit their atmospheric releases have been
initiated internationally. This guide offers a framework of initiatives for individual or local efforts in
managing GHG. To facilitate best practices, most GHG management programs establish a baseline of
current emissions, establish objectives for reducing or managing those emissions, monitor progress in
meeting these objectives, and report (either internally or externally) the results of these efforts. This
guide offers useful principles in determining options, and in the selection of prudent activities, based
on various scenarios and technology improvements, to enhance preservation of life and environmental
conservation.
1. Scope
1.1 Overview—This guide presents a generalized systematic approach to voluntary assessment and management of the causes
and impacts of GHGs. It includes actions, both institutional (legal) and engineering (physical) controls for GHG reductions,
impacts, and adaptations. Options for a tiered analysis provide a priority ranking system, to address the “worst first” challenges
of a facility, addressing practicality and cost-benefit.
1.2 Purpose—The purpose of this guide is to provide a series of options consistent with basic principles and practices for
GHG-related action. This guide encourages consistent and comprehensive assessment and management of GHG outcomes from
facility and business operations.
1.2.1 The guide also provides some high-level options for the monitoring, tracking and performance to evaluate the
effectiveness of the commercial entity’s strategy to ensure that a reasonable approach is taken.
1.2.2 This standard ties into the ASTM Committee E50 standards series related to environmental risk assessment and
management.
1.3 Objectives—The objectives of this guide are to determine the conditions of the facility and or/property with regard to the
status of GHGs and actions to be taken to manage and reduce or offset those emissions.
1.3.1 The guide provides a three-tiered decision strategy that focuses on business risk, cost-effective solutions in response to
greenhouse gases, and related issues such as the need for energy independence.
This guide is under the jurisdiction of ASTM Committee E50 on Environmental Assessment, Risk Management and Corrective Action and is the direct responsibility
of Subcommittee E50.05 on Environmental Risk Management.
Current edition approved Nov. 1, 2010Feb. 1, 2019. Published December 2010March 2019. Originally approved in 2010. Last previous edition approved in 2010 as
E2725–10. DOI: 10.1520/E2725–10.10.1520/E2725–19.
Copyright © ASTM International, 100 Barr Harbor Drive, PO Box C700, West Conshohocken, PA 19428-2959. United States
E2725 − 19
1.4 Limitations of this Guide—Given the variability of the different types of facilities that may wish to use this guide, and the
existence of state and local regulations, it is not possible to address all the relevant standards that might apply to a particular facility.
This guide uses generalized language and examples to guide the user. If it is not clear to the user how to apply standards to their
specific circumstances, it is recommended that users seek assistance from qualified professionals.
1.4.1 Insurance Industry—The effects of GHG on insurers are not clear. The definition of an insurable occurrence and a
commencement point for when insurable claims are made, along with when conditions were discovered and the actionable
information leading to an insurable loss is not clear. It may be inappropriate to speculate on GHGs that are highly uncertain for
purposes of insurance related to specific events.
1.4.2 This guide does not take a position on the science of climate change, its association with anthropogenic greenhouse gases,
or various mathematical models generated by international bodies.
1.4.3 The guide does not address water vapor as a greenhouse gas.
1.4.4 The guide only addresses anthropogenic greenhouse gases.
1.5 The guide uses references and information on the control, management and reduction of GHGs from many cited sources
such as the Intergovernmental Panel on Climate Change, ISO, the World Resources Institute, and the National Academy of
Sciences.
1.6 Several U.S.-based federal regulatory agencies served as sources of information on existing and anticipated regulation and
management of GHGs including the Environmental Protection Agency, the Department of Energy, and the Securities and Exchange
Commission.
NOTE 1—New Source Performance Standards regulating methane emissions from natural gas wells are codified in 40 CFR 60 Subpart OOOO.
1.7 This guide relies on current regulatory information about GHGs from various state agencies, including the California Air
Resources Board, the Massachusetts and Connecticut Departments of Environmental Protection, the Washington Department of
Ecology, the Western Climate Initiative, and the Regional Greenhouse Gas Initiative.
1.8 The values stated in SI units are to be regarded as standard. No other units of measurement are included in this standard.
1.9 The values stated in inch-pound units are to be regarded as standard. The values given in parentheses are mathematical
conversions to SI units that are provided for information only and are not considered standard.
1.9 This standard does not purport to address all of the safety concerns, if any, associated with its use. It is the responsibility
of the user of this standard to establish appropriate safety, health, and environmental practices and determine the applicability of
regulatory limitations prior to use.
1.10 This international standard was developed in accordance with internationally recognized principles on standardization
established in the Decision on Principles for the Development of International Standards, Guides and Recommendations issued
by the World Trade Organization Technical Barriers to Trade (TBT) Committee.
2. Referenced Documents
2.1 ASTM Standards:
E2114 Terminology for Sustainability Relative to the Performance of Buildings
E2432 Guide for General Principles of Sustainability Relative to Buildings
2.2 International Standards:
ISO 14001 :1996:2015 Environmental Management Systems—Specification with Guidance for Use
ISO 14064–1 :2006–03–01, Greenhouse Gases—Part 1: Specification with Guidance at the Organization Level for Quantifi-
cation and Reporting of Greenhouse Gas Emissions and Removals
ISO 14064–2 Part 2: Specification with Guidance at the Project Level for Quantification, Monitoring and Reporting of
Greenhouse Gas Emission Reductions or Removal Enhancements
ISO 14064–3 Part 3: Specification with Guidance for the Validation and Verification of Greenhouse Gas Assertions
ISO 14065 Greenhouse Gases—Requirements for Greenhouse Gas Validation and Verification Bodies for Use in Accreditation
or Other Forms of Recognition (ISO 14065:200714065:2013 (E))
2.3 Voluntary Registries:
California Air Action Registry
The Climate Registry (TCR) – A non-profit corporation and collaboration of states, provinces and tribes in North America. The
TRC established a voluntary infrastructure for measuring and reporting greenhouse gas emissions. Its goal is the accurate,
transparent and consistent measurement for GHGs.
For referenced ASTM standards, visit the ASTM website, www.astm.org, or contact ASTM Customer Service at [e-mail]. For Annual Book of ASTM Standards
volume information, refer to the standard’s Document Summary page on the ASTM website.
Available from American National Standards Institute (ANSI), 25 W. 43rd St., 4th Floor, New York, NY 10036, http://www.ansi.org.
Products of ISO/TC 207 for which ASTM E50 was a participant on behalf of ANSI.
E2725 − 19
2.4 Regional Initiatives:
Midwest Greenhouse Gas Accord
Regional Greenhouse Gas Initiative
Western Climate Initiative
2.5 National Initiatives:
American Clean Energy and Security Act of 2009 (by Congressmen Waxman and Markey)
America’s Climate Security Act of 2007 (by Senators Lieberman and Warner)
NOTE 2—These bills were not enacted.
2.6 Government References:
Congressional Budget Office, 2008, Policy Options for Reducing CO emissions
National Science and Technology Council, Committee on Environment and Natural Resources, 2008, Scientific Assessment of
the Effect of Global Change on the United States
United States Climate Change Science Program
US General Accountability Office (GAO) 2011, Climate Change Issues; Options for Addressing Challenging Carbon Offset
Quality
US General Accountability Office (GAO) 2010, Coal Power Plants: Opportunities Exist for DOE to Provide Better Information
on Maturity of Key Technologies to Reduce Carbon Dioxide Emissions
National Academy of Sciences, (NAS) 2008, Understanding and Responding to Climate Change
National Academy of Sciences (NAS) 2013, Effects of US Tax Policy on Greenhouse Gas Emissions
NOTE 3—Links to some references are provided in Appendix X3.
2.7 Federal Standard:
40 CFR 60 Subpart OOOO Standards of Performance for Crude Oil and Natural Gas Production, Transmission and Distribution
2.8 WRI Document:
WRI Greenhouse Gas Protocol, Scope 1, 2, and 3
3. Terminology
3.1 Definitions:
3.1.1 allowance—An authorization to emit a fixed amount of carbon dioxide. Generally one metric ton of emissions equals one
allowance.
3.1.2 baseline/credit—A type of emissions trading scheme where firms are encouraged to reduce their greenhouse gas emissions
below a projected “business as usual” path of increasing emissions. Any reductions below that future path earns credits for the
difference which can be sold to other emitters struggling to contain increases to baseline levels.
3.1.3 business risk—The likelihood that the operation could be subjected to future government regulations, industry standards,
customer demand or shareholder decisions requiring measurement, disclosures, actions and/or planning to document and reduce
greenhouse gases.
3.1.4 cap and trade—The most popular type of emissions trading scheme where emissions are subject to a cap, permits are
issued up to that cap, and a market allows those emitting less than their quota of the cap to sell their excess permits to emitters
needing to buy extra to meet their quota.
3.1.5 carbon dioxide equivalent (CO e) —Schemes that measure other greenhouse gas emissions, such as methane, by
computing the amount of CO that would have the same effects.
3.1.6 carbon footprint—The impact of human activities in terms of the amount of greenhouse gases they produce. The emissions
associated with the use of power, transport, food and other consumption for an individual, family or organization are added up to
give one comparable measure in units of carbon dioxide equivalent.
3.1.7 carbon tax—One form of carbon price on greenhouse gas emissions. Set by governments, a price on emissions is fixed
and emitters are allowed to emit whatever they want at that price.
3.1.8 The Climate Registry—A compact of 43 States, Provinces, and Tribes in the U. S., Canada, and Mexico that have agreed
to recognize voluntary carbon measurements and improvements by facilities.
3.1.9 direct greenhouse gas emission—Air discharges from sources owned or controlled by the individual or organization.
3.1.10 emission or removal factor—Relating activity data to GHG discharge reductions which could include an oxidation
component.
3.1.11 energy conservation—Performing less work, using less light, heat, and movement.
Available from U.S. Government Printing Office, Superintendent of Documents, 732 N. Capitol St., NW, Washington, DC 20401-0001, http://www.access.gpo.gov.
Available from World Resources Institute (WRI), 10 G Street, NE, Suite 800, Washington, DC 20002, http://www.wri.org.
E2725 − 19
3.1.12 energy effıciency—Performing the same amount of work, using less light, heat, and movement.
3.1.13 energy indirect greenhouse gas emission—Discharges to the air from the generation of imported electricity, heat, or steam
consumed by the individual or organization.
3.1.14 Energy Star—Appliance efficiency rating program for the U. S. Federal Government.
3.1.15 financial statements—Include, but are not limited to, statements associated with shareholder reporting, periodic reports,
registration statements, loans, mergers, acquisitions, or divestures. Financial statements may include statements outside of SEC
filings.
3.1.16 green buildings—As defined in Terminology E2114 and Guide E2432.
3.1.17 greenhouse gases (GHGs)—Vaporous constituents of the earth’s atmosphere, both natural and anthropogenic, that absorb
and emit radiation at specific wavelengths, including carbon dioxide, methane, nitrous oxide, hydrofluorocarbons,
perfluorocarbons, and sulfur hexafluoride.
3.1.18 greenhouse gas activity data—A quantitative measure of activity that results in an emission or removal. (Examples of
activity data include the amount of energy, fuels or electricity consumed, material produced, service provided, or area of land
affected.)
3.1.19 greenhouse gas assertion—A declaration or factual and objective statement made by the “responsible party” that may be
presented at a point of time or may cover a period of time. It should be clear, identifiable, and consistent.
3.1.20 greenhouse gas emission—The total mass of a GHG released to the atmosphere over a specified period of time.
3.1.21 greenhouse gas information system—The policies, processes and procedures to establish, manage, and maintain GHG
information.
3.1.22 greenhouse gas inventory—An individual’s or organization’s greenhouse gas sources, greenhouse gas sinks, GHG
emissions and removals.
3.1.23 greenhouse gas programs—Voluntary or mandatory international, national, or sub-national system or scheme that
registers, accounts, or manages GHG emissions, removals, emission reductions, or removal enhancements outside the organization
or GHG project.
3.1.24 greenhouse gas project—An activity or activities that alter the conditions identified in the baseline scenario which cause
GHG emission reductions or GHG removal enhancements.
3.1.25 greenhouse gas removal—The total mass prevented from being emitted to the atmosphere over a specified period of time.
3.1.26 greenhouse gas report—A stand-alone document intended to communicate an organization’s or project’s GHG-related
information to its intended users. (A GHG report can include a GHG assertion.)
3.1.27 greennhouse gas source—A physical unit or process that releases a GHG into the atmosphere.
3.1.28 hydrogen technologies—Generally, a Tier 3 emerging technology that substitutes H2 for liquid petroleum hydrocarbon
fuels.
3.1.29 Kyoto Protocol—An international treaty signed by over 300 countries, with commitments to address, among other issues,
greenhouse gases.
3.1.29.1 Discussion—
The Treaty was ratified by over 180 parties.
3.1.30 mitigation—Attempts to lower or compensate for greenhouse gas emissions through energy conservation, alternative
forms of energy generation, carbon offsets, or sequestration of carbon dioxide and other gases.
3.1.31 NOx—Nitrogen oxide compounds measured and regulated in air emissions.
3.1.32 offsets—A technique of compensating for the greenhouse gas emissions of an organization through acquisition of outside
resources that reduce carbon.
3.1.33 other indirect greenhouse gas emission—Air discharges, other than energy indirect, which are consequences of an
organization’s activities, but arise from sources that are owned or controlled by other organizations.
3.1.34 Regional Greenhouse Gas Initiative (RGGI)—A compact among states in the northeastern United States where
governments have agreed to impose mandatory cap and trading programs for power sources of over 25 MW. The original
Memorandum of Understanding, dated December 20, 2005, and the corresponding Model Rule established the regional program.
3.1.35 reporting entity—Any business or public agency preparing a financial statement.
3.1.36 sequestration—Attempts to trap carbon and other greenhouse gases through techniques such as photosynthesis from tree
planting or ocean seeding of algae or injection of gases into the deep bedrock.
E2725 − 19
3.1.37 USGBC-LEED—United States Green Building Leadership in Energy and the Environment green building-rating
program.
4. Significance and Use
4.1 The use of this guide would be directed toward prudent business decision making, communications regarding GHGs
emissions/control/reduction conditions, insurance, high-level analysis of potential reductions and/or remedies, budgeting, strategic
planning for an entity’s management of GHGs produced in relationship to its business.
4.2 Example Users:
4.2.1 Small businesses or enterprises;
4.2.2 Service industries;
4.2.3 Federal, state or municipal facilities and regulators, including departments of health and fire departments;
4.2.4 Financial and insurance institutions;
4.2.5 Waste managers, including liquid and solid waste haulers, treatment, recycling, disposal and transfer;
4.2.6 Consultants, auditors, inspectors and compliance assistance personnel;
4.2.7 Educational facilities;
4.2.8 Property, buildings and grounds management, including landscaping;
4.2.9 Non-regulatory government agencies, such as the military.
4.3 This guide is a first step in crafting simplified management goals for assessing, managing and reducing GHGs. The
framework describes a process by which the user may categorize current carbon footprints and a priority approach to manage those
risks. The technique classifies common responses for both mitigation and adaptation. The guide groups responses and examples
into tiers based on the relative speed in responding to GHG emissions. The tier classifications found in this guide reflect the general
structures of state, federal, and local response programs. These authorities generally classify groups of similar responses according
to the timely availability and cost effectiveness of GHG responses.
4.3.1 This guide presents basic principles and strategies in the U.S. for conducting baseline assessment and reasonable
mitigation/adaptation strategic options on a corporate, or small business voluntary basis. The following principals apply to this
priority system:
4.3.2 Ability to set specific GHG goals for activities. These goals may include maintaining existing outputs of GHG while
increasing a facility’s operations, or reducing GHG through engineering changes while maintaining current operations.
4.3.3 Marketing environmental awareness and sensitivity;
4.3.4 Assessing risks from future GHG events;
4.3.5 Risk management, underwriting; loss control and history; premiums and claims;
4.3.6 Liability assessment and qualifications for loans;
4.3.7 Standardization, consistency, and certification of facility specific evaluations;
4.3.8 Educating employees, clients, and customers;
4.3.9 Generating multi media and cross medium information;
4.3.10 Evaluating vendors, and
4.3.11 Reducing costs and preventing pollution.
4.4 Users may consider various benefits of GHG assessment and response.
4.4.1 This guide is a basic primer on GHG impacts and may serve to introduce the subject for organizations unfamiliar with
the principles.
4.4.2 Some government enforcement agencies, fiduciaries and business organizations publish GHG strategies. Over 400
municipalities in the United States, for example, have signed the principles of international standards to address GHGs. The public
has systematic ability to access or estimate information on individual businesses. Therefore, businesses need guidance on how to
assess the nature and potential risks of GHGs, and a programmatic approach for reducing or eliminating those risks through energy
conservation, pollution prevention, alternative and emerging technologies and other proactive management systems.
NOTE 4—Users may wish to consider establishing data quality objectives, data management procedures, and documentation.
4.4.3 Reduced operation and maintenance costs may be realized through a tiered evaluation of GHG response opportunities.
4.4.4 Responses may be streamlined and simplified so that all levels in an organization may participate.
4.4.5 Some enterprises may be more competitive in the marketplace with improved GHG response programs.
4.4.6 Setting priorities can allow planning and evaluation of new GHG response requirements.
4.5 Institutional Risks—Some of the risks posed by GHG include future actions taken by the Federal Government and state
government agencies. Government programs will establish responses to GHG that include mandatory assessment, reporting and
mitigation for various regulated entities. Early voluntary actions, including the use of this guide, may help organizations prepare
for and reduce the impacts of future government regulations. Some of the possible government programs that may be instituted
to address GHG are described below.
4.5.1 The Carbon Tax.
E2725 − 19
4.5.2 Cap on greenhouse gas emissions.
4.5.2.1 Flexible versus rigid emission cap.
4.5.2.2 With and without ceilings and floors on GHG allowance prices.
4.5.2.3 Eligibility of domestic and international offsets for compliance.
4.6 Managing Risk Uncertainty:
4.6.1 There is little doubt at the international level that greenhouse gases will continue to be regulated. However, there are still
important questions regarding how large and how fast these regulatory changes will be implemented, and what effects they will
have in different regions. The ability to predict future global levels of GHGs has improved, but efforts to understand the impacts
of GHGs on society and analyze mitigation and adaptation strategies are still relatively immature.
4.6.2 The tiered analysis in this guide will help support decision-making, studying regional impacts, and communicating with
wider group of stakeholders in the face of uncertainty.
4.6.3 The insurance industry has always played a role by insuring against weather-related risks, promoting stronger building
codes, and better land-use decision-making.
NOTE 5—Consequently, weather-related impacts are not addressed in this guide.
4.6.4 Many GHG regulatory schemes require documentation and validation of baseline greenhouse gas production. Standard
techniques are contained in ISO 14064–1, ISO 14064–2, ISO 14064–3: 2006-03-01, and in ISO 14065.
5. The Tiered Approach to Risk Management
5.1 This guide establishes a framework of common GHG risk management strategies in the United States, Canada, and Mexico
and will allow the user to evaluate the potential level of risk from greenhouse gas production and other GHG issues. Responses
would then be evaluated for timeliness and availability in order to continually reduce the risks from GHGs.
5.2 Tiered Management Categories:
5.2.1 Tier 1, conventional, GHG responses represent the fastest potential risk reduction, because Tier 1 responses prevent
generation of greenhouse gases through energy conservation and process efficiency improvements. These actions may prevent
business risk impacts by providing immediate cost savings and lowering a facility’s regulatory profile relative to the potential
production of greenhouse gases. The planning horizon is current and includes actions that can be reasonably taken within two years
of the beginning of a program.
5.2.2 Tier 2 responses address mid-term greenhouse gas reduction through the development and use of alternative energy such
as wind, solar, and geothermal or establishment of actions to offset greenhouse gas emissions, such as carbon sequestration using
reforestation or construction of green roofs. The Tier 2 planning horizon generally includes actions that can be taken within two
to ten years.
5.2.3 Tier 3 responses address long-term greenhouse gas reduction by development of emerging technologies such as deep rock
carbon sequestration or use of hydrogen fuel in transportation. The planning horizon includes actions that may be available through
research and development programs in ten to thirty years.
5.3 Tiered Approach to GHG Assessment and Response—The essential principles of this guide are:
5.3.1 Environmental assessment by objective;
5.3.2 Mitigation of GHG through prevention and reduction of greenhouse gases;
5.3.3 First steps in GHG response;
5.3.4 Priority planning;
5.3.5 Measuring greenhouse gas emissions, and checking reductions of a facility;
5.3.6 Establishing a facility fence line and base year;
NOTE 6—These are user defined.
5.3.7 Greenhouse gas emissions should be considered from three major sources:
5.3.7.1 Direct on-site emissions from heating, cooling, transportation, construction and other equipment,
5.3.7.2 Indirect emissions from electricity use, and
5.3.7.3 Other indirect impacts from extraction of raw materials, water use, product use, recycling, waste disposal, and employee
transportation.
5.3.8 Implementing improvements, checking greenhouse gas reductions, and acting to correct and modify the plan accordingly.
5.3.9 This guide groups GHG assessment and response into three general categories: efficiency and conservation; alternative
energy technologies; and emerging energy technologies.
5.4 Tier 1: Conservation and Effıciency:
5.4.1 Once the facility has established a baseline year for measuring and estimating greenhouse gases and a fenceline for
analysis, the facility has initiated the first step in the GHG reduction and elimination process. Generally, in this step, the user will
find and use energy conservation and efficiency to reduce greenhouse gases. These are also the most cost effective first actions for
the facility.
E2725 − 19
5.4.2 Tier 1 Rresponses generally govern the prevention of and response to greenhouse gas emissions through immediate,
conventional technologies such as energy conservation or more efficient equipment. In addition, implementation of strategies that
increase recycling of solid waste and the composting of organic waste may translate into significant indirect reductions in fuel use
associated with the transportation of these materials to off-site disposal facilities.
5.4.3 For example
...