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Framework for Avoided Emissions Reporting – A case study of PowerCell Group and Hydrogen Electric Fuel Cell Solutions

Karlsson, Elna Cornelia LU and Gelin, Felice LU (2024) FMIM01 20241
Environmental and Energy Systems Studies
Abstract
This thesis explores the concept of Scope 4 emissions, also known as avoided emissions, within corporate sustainability reporting. With a focus on PowerCell Group, a provider of hydrogen fuel cell solutions, this study investigates the
integration of avoided emissions reporting, assessing both the potential benefits and the challenges associated with this practice.

Avoided emissions refer to reductions in greenhouse gas (GHG) emissions indirectly caused by the adoption of products or services that replace more emission-intensive alternatives. Despite their potential to significantly impact corporate environmental strategies, Scope 4 emissions are not yet widely recognised or standardised in corporate emissions reporting. This research... (More)
This thesis explores the concept of Scope 4 emissions, also known as avoided emissions, within corporate sustainability reporting. With a focus on PowerCell Group, a provider of hydrogen fuel cell solutions, this study investigates the
integration of avoided emissions reporting, assessing both the potential benefits and the challenges associated with this practice.

Avoided emissions refer to reductions in greenhouse gas (GHG) emissions indirectly caused by the adoption of products or services that replace more emission-intensive alternatives. Despite their potential to significantly impact corporate environmental strategies, Scope 4 emissions are not yet widely recognised or standardised in corporate emissions reporting. This research aims to fill that gap by developing a robust methodology for quantifying and reporting avoided emissions, aligned with existing regulatory frameworks and standards.

Through a comprehensive literature review, development of a conceptual framework, and a detailed case study of the PowerCell Group, this thesis provides insights into the current landscape of avoided emissions reporting. It
discusses the regulatory environment, and examines various guiding frameworks and company examples to propose a standardised approach for Scope 4
reporting.

The findings suggest that while reporting avoided emissions offers significant opportunities for companies to demonstrate their environmental impact, it also
presents challenges such as potential accusations of greenwashing and the complexity of creating credible and compliant claims. The thesis concludes with
recommendations for companies on how to effectively integrate Scope 4 emissions into their sustainability reporting practices, thereby supporting the
global green transition. (Less)
Abstract (Swedish)
Denna rapport utforskar konceptet undvikna utsläpp, även kallat Scope 4-utsläpp, som en del av företags hållbarhetsrapportering- och kommunikation. Med fokus
på PowerCell Group, en leverantör av vätgasdrivna bränsleceller, undersöker studien hur Scope 4-utsläpp kan integreras i hållbarhetsrapportering och vilka
möjligheter och utmaningar detta innebär.

Undvikna utsläpp refererar till de minskningar av växthusgasutsläpp som indirekt uppnås genom användningen av produkter eller tjänster som ersätter mer utsläppsintensiva alternativ. Trots att Scope 4 har potential att spela en viktig roll för klimatlösningsföretag finns där ännu ingen standardiserad metodik för att rapportera undvikna utsläpp. Detta arbete syftar till att adressera... (More)
Denna rapport utforskar konceptet undvikna utsläpp, även kallat Scope 4-utsläpp, som en del av företags hållbarhetsrapportering- och kommunikation. Med fokus
på PowerCell Group, en leverantör av vätgasdrivna bränsleceller, undersöker studien hur Scope 4-utsläpp kan integreras i hållbarhetsrapportering och vilka
möjligheter och utmaningar detta innebär.

Undvikna utsläpp refererar till de minskningar av växthusgasutsläpp som indirekt uppnås genom användningen av produkter eller tjänster som ersätter mer utsläppsintensiva alternativ. Trots att Scope 4 har potential att spela en viktig roll för klimatlösningsföretag finns där ännu ingen standardiserad metodik för att rapportera undvikna utsläpp. Detta arbete syftar till att adressera denna brist genom att utveckla ett förslag på metodik för att kvantifiera och rapportera undvikna utsläpp, i linje med befintliga regelverk och standarder.

Genom en omfattande litteraturstudie, utveckling av ett konceptuellt ramverk och en fallstudie på PowerCell Group, ger avhandlingen insikter i det nuvarande rapporteringslandskapet för undvikna utsläpp. Den regulatoriska miljön diskuteras, och olika vägledande ramverk och företagsexempel granskas för att
sedan utmynna i ett förslag på metod för Scope 4-rapportering.

Resultaten visar att även om rapportering av undvikna utsläpp erbjuder betydande möjligheter för företag att demonstrera sitt bidrag till en grön omställning, medför det också stora utmaningar. Dessa inkluderar risken för att anklagas för greenwashing och svårigheten i att ta fram trovärdiga och lagenliga gröna utlåtanden. Rapporten avslutas med rekommendationer för hur företag effektivt kan integrera Scope 4 utsläpp i sin hållbarhetsrapportering, och
därigenom stödja den globala gröna omställningen. (Less)
Please use this url to cite or link to this publication:
author
Karlsson, Elna Cornelia LU and Gelin, Felice LU
supervisor
organization
course
FMIM01 20241
year
type
H3 - Professional qualifications (4 Years - )
subject
keywords
Scope 4, avoided emissions, sustainability reporting, fuel cells, hydrogen
report number
LUTFD2/TFEM—24/5211--SE + (1-131)
ISSN
1102-3651
language
English
id
9158859
date added to LUP
2024-06-10 13:39:01
date last changed
2024-06-10 13:39:01
@misc{9158859,
  abstract     = {{This thesis explores the concept of Scope 4 emissions, also known as avoided emissions, within corporate sustainability reporting. With a focus on PowerCell Group, a provider of hydrogen fuel cell solutions, this study investigates the
integration of avoided emissions reporting, assessing both the potential benefits and the challenges associated with this practice.

Avoided emissions refer to reductions in greenhouse gas (GHG) emissions indirectly caused by the adoption of products or services that replace more emission-intensive alternatives. Despite their potential to significantly impact corporate environmental strategies, Scope 4 emissions are not yet widely recognised or standardised in corporate emissions reporting. This research aims to fill that gap by developing a robust methodology for quantifying and reporting avoided emissions, aligned with existing regulatory frameworks and standards.

Through a comprehensive literature review, development of a conceptual framework, and a detailed case study of the PowerCell Group, this thesis provides insights into the current landscape of avoided emissions reporting. It
discusses the regulatory environment, and examines various guiding frameworks and company examples to propose a standardised approach for Scope 4
reporting.

The findings suggest that while reporting avoided emissions offers significant opportunities for companies to demonstrate their environmental impact, it also
presents challenges such as potential accusations of greenwashing and the complexity of creating credible and compliant claims. The thesis concludes with
recommendations for companies on how to effectively integrate Scope 4 emissions into their sustainability reporting practices, thereby supporting the
global green transition.}},
  author       = {{Karlsson, Elna Cornelia and Gelin, Felice}},
  issn         = {{1102-3651}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{Framework for Avoided Emissions Reporting – A case study of PowerCell Group and Hydrogen Electric Fuel Cell Solutions}},
  year         = {{2024}},
}