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Question 1 of 30
GreenTech Innovations is implementing a GHG reduction project at their manufacturing facility by installing energy-efficient equipment. As a result of this project, their component supplier, located 500 miles away, has increased their electricity consumption to meet GreenTech\'s increased demand for components. The electricity generation at the supplier\'s location relies heavily on coal-fired power plants. According to ISO 14064-2:2019, which guides the quantification and reporting of GHG emission reductions at the project level, how should GreenTech Innovations treat the increase in GHG emissions at their component supplier\'s facility when defining their project boundaries for GHG accounting purposes, considering the principles of completeness and relevance? The project aims to achieve certification under a recognized GHG program that requires strict adherence to ISO 14064-2:2019. GreenTech’s internal audit team is unsure whether to include these emissions.
GreenTech Innovations should include the indirect emissions from the component supplier's increased electricity consumption within their project boundary or quantify and report them as leakage, ensuring a complete and accurate assessment of the project's net GHG impact, subject to a materiality assessment.
GreenTech Innovations should exclude the emissions from the component supplier as they are outside GreenTech's direct operational control and occur at a geographically separate location, thus not falling within the project boundary as defined by ISO 14064-2:2019.
GreenTech Innovations should only consider the direct emissions reductions achieved at their own facility and disregard the emissions at the component supplier's facility, as ISO 14064-2:2019 primarily focuses on direct emissions within the project proponent's operational control.
GreenTech Innovations should conduct a separate GHG inventory for the component supplier's facility and report it independently, without integrating it into their own project's GHG accounting, as the supplier is a distinct entity with its own reporting obligations.

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