Guidelines for Assessing the Contributionof Products to Avoided Greenhouse Gas
EmissionsVer. 1, February 24, 2015

The Institute of Life Cycle Assessment, Japan(Translated by the Working Group on Assessing the Contribution to Avoided Emissions)Guidelines for Assessing the Contribution of Products to Avoided Greenhouse Gas Emissions
Ver. 1

Table of Contents

1. Introduction................................................................................................... 1
1.1. Background ................................................................................................................. 1
1.2. Goal of the Guidelines and scope of application ...................................................... 1
1.3. Relationship with existing standards and guidelines ............................................. 2
1.4. Assumed situations for applying the Guidelines ..................................................... 2

2. Definition of the “contribution to avoided emissions” ................................. 3
3. Calculating the “contribution to avoided emissions” ................................... 3
3.1. Calculation method .................................................................................................... 3
3.2. Defining the scope ...................................................................................................... 3
3.3. Defining the target product(s) ................................................................................... 4
3.4. Functional unit of final product(s) which achieve the reduction effects ................ 4
3.4.1. Identifying final product(s) which achieve the reduction effects ..................... 4
3.4.2. Functional unit .................................................................................................... 4
3.5. Defining the baseline ................................................................................................. 5
3.6. Calculation of emissions per functional unit............................................................ 5
3.6.1. Defining the boundary of the assessment.......................................................... 5
3.6.2. Data collection and data quality......................................................................... 6
3.6.3. Simplified calculation approach ......................................................................... 6
3.7. Identifying the amount of final product(s) in use (sold) .......................................... 6
3.8. Defining the contribution ratio ................................................................................. 7
3.9. Sensitivity analysis and uncertainty analysis ......................................................... 7

4 Reporting ........................................................................................................ 8
5 Critical review and verification ..................................................................... 8
6 Terminology .................................................................................................... 9
References ....................................................................................................... 11

Guidelines for Assessing the Contribution of Products to Avoided Greenhouse Gas Emissions
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1. Introduction
1.1. Background
Recently, some efforts are being made in Japan to guide the assessment of thecontributions to reduce greenhouse gas emissions, particularly in industries such as thechemical industry and the electrical/electronics industry. Local governments, such as
Kawasaki City and Shiga Prefecture in Japan, have started to guide and support
various actors in quantifying the contributions to reduce greenhouse gas emissions aspart of their environmental management policy. Throughout the world, there is a
growing interest in the calculation of avoided greenhouse gas emissions; theInternational Council of Chemical Associations (ICCA) and the World Business Council
for Sustainable Development (WBCSD) chemicals Chemical Sector project, Reaching
Full Potential, have published guidelines for calculating avoided greenhouse gas
emissions, while the Greenhouse Gas Protocol is looking to the development of suchmethods.
The scope of these guidelines released by industry associations applies to somespecific industry sectors. There is little consistent and consensual methodology for the
calculation of greenhouse gas reduction contributions, including the allocation ofcontribution to the relevant actors. In this context, the Working Group on Assessing theContribution to Avoided Emissions has been established by the Institute of Life Cycle
Assessment, Japan to identify general principles of methodologies for assessing thecontribution to reduce greenhouse gas emissions by reviewing existing guidelines ofindustries and local governments and organizing the way of thinking about calculating
and assessing such contributions.
1.2. Goal of the Guidelines and scope of application
The Guidelines are intended to guide companies and organizations in calculating andassessing the contribution of their products, materials and components (“targets”) to
avoided greenhouse gas emissions through the life cycle in comparison with a baseline,
such as product(s) manufactured by the company or organization in the past.
The target impact category in the Guidelines is set as climate change. Seven types ofgreenhouse gases are selected as relevant elementary flow to climate change, based on
the consensus of the 17th session of the UNFCCC Conference of the Parties (COP17)and the 7th Session of the Conference of the Parties serving as the Meeting of theParties (CMP7): carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O),
hydrofluorocarbons (HFCs), perfluorinated carbons (PFCs), sulfur hexafluoride (SF6),
and nitrogen trifluoride (NF3). However, if a reason is clearly stated, the assessment
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specific to one or more of these greenhouse gases may be implemented. The latest
version of impact factors given in the assessment report by the Intergovernmental
Panel on Climate Change (IPCC) should be used. In addition, if significant influences
are expected in terms of issues of impact categories other than global warming, then anote on those influences should be added in the report.
1.3. Relationship with existing standards and guidelines
The following international standards and guidelines were referred to in creating the
Guidelines.
ISO14040: Environmental management – Life Cycle Assessment – Principles and・framework (2006)
ISO14044: Environmental management – Life Cycle Assessment – Requirements

・and guidelines (2006)
L.1410: Methodology for the assessment of the environmental impact of・

information and communication technology goods, networks and services (2012)
IEC TR62726: Guidance on quantifying greenhouse gas emission reductions from・

the baseline for electrical and electronic products and systems (2014)
Those existing guidelines listed below were reviewed to organize the way of thinking
about calculating and assessing the contribution to avoided greenhouse gas emissions.
World Business Council for Sustainable Development / World Resources Institute,・

The GHG Protocol for Project Accounting (2005)
・

The City of Kawasaki, The calculation guidelines for outside contributions (2012)

・

Shiga Prefectural Government, Guideline for quantifying the contribution to
avoided emissions by products and services (2013)
International Council of Chemical Associations / World Business Council for・

Sustainable Development Chemicals, Addressing the Avoided Emissions Challenge(2013)

Green IT Promotion Council, GIPC Survey and Estimation Committee Report

・

FY2008-2012--Contribution of Green IT to Realization of a Low Carbon Society-(2013)
1.4. Assumed situations for applying the Guidelines
The Guidelines are developed based on anticipating them being applied by thosecompanies and organizations producing final products or components that are expected
to contribute to the reduction of greenhouse gas emissions. These companies or2

Guidelines for Assessing the Contribution of Products to Avoided Greenhouse Gas Emissions
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reports, etc. The Guidelines are also intended to provide guidance to national and local
governments as well as industry groups in the development of their guidelines andinstitutions regarding the contribution to avoided greenhouse gas emissions.

2. Definition of the “contribution to avoided emissions”
In the Guidelines, the “contribution to avoided emissions” is defined as the“quantified amount of contribution of the target product to reduced greenhouse gas
emissions through the whole life cycle of final product(s) which achieve the reduction
effects on environmental loads, in comparison to a baseline amount”. Please see Section
3.5 for a detailed definition of “baseline”.

3. Calculating the “contribution to avoided emissions”
3.1. Calculation method
The “contribution to avoided emissions” can be calculated by multiplying threequantities listed below. Note that the avoided greenhouse gas emissions per functional
unit (1) shall be calculated in compliance with ISO14040:2006 and ISO14044:2006.
(1) The net reduction amount of greenhouse gas emissions per functional unit of final
product(s) which achieve the reduction effects, relative to a baseline based on life
cycle assessment (see Section 3.6)
(2) The amount of final product(s) in use (sold) that is/are expected to achieve thereduction effects (see Section 3.7)
(3) The contribution ratio of the target to the reduction (see Section 3.8)
If the amount of final product(s) in use (sold) is difficult to be tracked and identified,including the case of new product(s) that has/have not yet been launched onto themarket, the contribution to avoided emissions per functional unit may be used as a
substitution without multiplying the amount of final product(s) in use (sold). However,in that case, the calculated results should be clearly noted as the contribution to avoided
emissions “per functional unit”.
3.2. Defining the scope
The scope of the assessment shall be clarified when the calculation is implemented. In
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addition, the reason for implementing the assessment as well as the recipients andways of reporting should be clarified.
3.3. Defining the target product(s)In the Guidelines, the product(s) that is/are targeted for calculating the avoided
emissions is defined as the “target product(s)”. While in some cases the target product(s)is/are the final product(s) which achieve the reduction effects, in other cases the target
product(s) may be a component(s) that provides a part of the functionality of final
product(s) which achieve the reduction effects (examples are shown below). The
Guidelines may be applicable to either of these cases.
Final product(s) which achieve the reduction effects per se, e.g. cars and・

refrigerators
Component(s) that provides a part of the functionality of final product(s) which・

achieve the reduction effects, e.g. tires of vehicles and refrigerant of refrigerators
3.4. Functional unit of final product(s) which achieve the reduction effects
3.4.1. Identifying final product(s) which achieve the reduction effects
It shall be clarified whether the target product achieves the reduction effects per se,or the target product is a component that provides a part of the functionality of final
product(s) which achieve the reduction effects. Final product(s) shall be identified,
especially for the case where the target product is a component of final product(s) which
achieve the reduction effects.
In the case where the target product is used as a component of multiple final products
which achieve the reduction effects, the calculations should be performed for each of the
final product(s) which achieve the reduction effects. However, if it is difficult to calculate
the avoided emissions for all of the multiple final products, representative product(s)may be chosen for the assessment. In that case, the reason for that choice shall beclearly shown.
3.4.2. Functional unit
The functional unit of final product(s) which achieve the reduction effects shall be set
for the assessment. The functional unit quantifies the performance of final product(s)based on the identified function(s) of final product(s) which achieve the reduction effects.
The durations and regions in which final product(s) is/are used shall also be specified asfunctional unit. The duration of use of final product(s) should be set with reference tothe legal durable years, the physical lifetime, and the replacement time of final
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product(s).
3.5. Defining the baseline
The contribution to avoided emissions shall be calculated by hypothesizing the casewhere the target product is absent and comparing greenhouse gas emissions in suchcase with those in the case where the target is used. The product that is assumed to be
used in the absence of the target product(s) is defined as the “product for comparison” in
the Guidelines. If the product for comparison is a final product which achieve thereduction effects, the product for comparison per se can be determined as the “baseline”.
If the product for comparison is a component that provides a part of the functionality of
the final product(s) which achieve the reduction effects, the final product(s) thatincorporates the product for comparison is determined as the “baseline”. Functional
unit for both systems of final product(s) which achieve the reduction effects and thebaseline shall be absolutely identical. Note that the disclosure of the results to the
public could be comparative assertion in some cases depending on the definition of thebaseline. Comparative assertion to the public shall comply with ISO14044:2006.
The following is a list of possible choices for the product for comparison.
・ Product(s) with the highest market share
・ Product(s) that is/are publicly acknowledged as the average of the product category
・ Previous version of the product(s) of the same company
・ Product(s) that can be fitted for standard values that are determined based on
legislations or regulations
・ Product(s) before new technologies are developed
When defining the baseline, the grounds for the definition of the baseline shall beclearly shown.
3.6. Calculation of emissions per functional unit
3.6.1. Defining the boundary of the assessment
To assess the contribution of avoided greenhouse gas emissions, the calculated results
through the entire life cycle should be compared between the cases of final product(s)which achieve the reduction effects and the baseline. The names and number of life
cycle stages may be defined corresponding to the characteristics of final product(s)which achieve the reduction effects.
A life cycle flow diagram indicating the main processes in the product system should
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be created in order to understand differences of the life cycles between final product(s)which achieve the reduction effects and the baseline.
3.6.2. Data collection and data quality
Datacollection

and

data

quality

shallcomplywith

ISO14040:2006

and

ISO14044:2006. Different secondary data shall not be used for those processes that arecommon to final product(s) which achieve the reduction effects and the baseline.
3.6.3. Simplified calculation approach
If there are any absolutely identical processes between final product(s) which achieve
the reduction effects and the baseline, calculation for such identical processes may beomitted. Calculation of greenhouse gas emissions for processes that are not identicalbut very similar between final product(s) which achieve the reduction effects and thebaseline may also be omitted on the condition that only a minor or negligible difference
for the entire life cycle between those similar processes can be found. Such a
specially-designed approach for the calculation of greenhouse gas emissions is defined
as a “simplified calculation approach” in the Guidelines.
When applying a simplified calculation approach, the ratio of avoided emissions
relative to the baseline shall not be disclosed to the public for the purpose of declaration.
This is because the assessment based on a simplified calculation approach represents
only a comparison along a limited part, not the whole of the life cycle. This can result ina higher ratio of avoided emissions compared to the full assessment through the entire
life cycle.
3.7. Identifying the amount of final product(s) in use (sold)
The reduction of greenhouse gas emissions can be achieved only after final product(s)is/are actually in use. Therefore, the amount of final product(s) in use (sold) during a
specified time period intended for the assessment needs to be identified.
If it is difficult to acquire data on the sales volume, the production volume or the
shipping volume may be substituted. The countries or regions in which the final
product(s) which achieve the reduction effects is used should be identified to clearly
define the calculation method.
When calculating the expected avoided emissions in future by newly developed
products, an anticipated volume of sales in future scenarios may be substituted. In thatcase, the details of such defined scenarios for future sales shall be explained. Note,however, that actual sales records shall be used for the calculation of avoided emissionsof final product(s) sold in the past.
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3.8. Defining the contribution ratio
Avoided emissions throughout the life cycle of final product(s) are the results of efforts
by various stakeholders related to the value chain. Avoided emissions of a final productthat achieves the reduction effects need to be attributed to individual target product(s),based on their contribution ratio determined. In that sense, those stakeholders deserved
to share avoided emissions should be identified depending on their contribution to
avoided emissions. While in some cases all stakeholders through the life cycle (e.g.
including retailers, sales and advertising agents) can be selected if the avoided
emissions are accomplished by all of them, in other cases only some of them that are
relevant to the manufacturing stage of final product(s) which achieve the reduction
effects may be determined as contributors if such reduction of emissions is attributable
to the manufacturing processes. As a basis for allocation of avoided emissions tostakeholders, the extent of technological contribution to such reduction or the value
added from components and services in the production of final product(s) which achieve
the reduction effects may be used.
In existing guidelines for the calculation of avoided emissions, a determination of thecontribution ratio based on the consensus among stakeholders or independent original
criteria determined by the evaluators themselves are also accepted. Reference
information of these existing guidelines is available in the section “References” of the
Guidelines.
A method used for determining the contribution ratio and the basis shall be clarified
when the calculated results of avoided emissions are used for communication.
In the case where the contribution ratio cannot be quantitatively determined,
qualitative explanations about how the target product(s) contributes to the avoided
emissions through the life cycle of final product(s) which achieve the reduction effects
shall be provided in communication as additional information, along with the calculated
results of avoided emissions.

3.9. Sensitivity analysis and uncertainty analysis
Sensitivity analyses and uncertainty analyses should be implemented to confirm how
much the results of calculated avoided emissions could change.

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4 Reporting
The ways for communicating the calculation results of avoided emissions tostakeholders will depend on the scope of the assessment. The following items should becommonly included in reports for third parties.
- Scope of the assessment- Definition of the target product- Identification of final product(s) which achieve the reduction effects- Functional unit, including product lifetime and the temporal and spatial scope of theassessment- Definition of the baseline, including the reason for the definition- Boundary of the assessment- Details of the simplified calculation approach (if adopted)- Methods for data collection- Data quality- Amount of final product(s) in use (sold), including a specified time period while thetarget product(s) is/are in use- Contribution ratio and the way of the determination- Calculated results of the contribution to avoided emissions- Interpretation- Critical review

5 Critical review and verification
Generally, a critical review or verification of the reports should be performed. The
verification process is not necessarily limited to that by a third party.

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6 Terminology
Value chain:
A chain consisting of a sequence of values related to products and organizations fromthe stage of raw material procurement through the use of the product(s) to the disposal.
Consumers using the product(s) are included in the value chain.

Target product(s):The product(s) that is/are targeted for calculating the avoided emissions.

Product(s) for comparison:
The product(s) that would be used if the target product were not developed or in use.

Final product(s) which achieve the reduction effects:
Final product(s) that is/are expected to achieve the reduction in greenhouse gas
emissions. If the target product is a final product per se, it represents the final productwhich achieves the reduction effects.

Baseline:
In the case that the target product is a final product which achieve the reduction effects,
the baseline is the “product for comparison”. In the case that the target product is acomponent providing a part of the functionality of final product(s) which achieve thereduction effects, the baseline is final product(s) that incorporates the product forcomparison. The functional unit of the baseline shall be identical to that of final
product(s) which achieve the reduction effects.

Amount of final product(s) in use (sold):
The amount of final product(s) that has been sold and used within a specified time
period.

Specified time period while the target is in use:
The duration of time period intended for the assessment of avoided emissions of thetarget product after the final product(s) has/have started to be sold.

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Contribution ratio:
The allocation ratio for calculating the amount of avoided emissions attributable to thetarget product(s) depending on its contribution.
Simplified calculation approach:
The calculation methodology that allows omission of identical processes from thecalculation of greenhouse gas emissions on the condition that only a minor or negligible
difference in greenhouse gas emissions between processes of final product(s) which
achieve the reduction effects and the baseline can be seen.

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References[1] Green IT Promotion Council, GIPC Survey and Estimation Committee Report
FY2008-2012 -Contribution of Green IT to Realization of a Low Carbon Society- (2013),
pp.265-317 (in Japanese)
URL: http://home.jeita.or.jp/greenit-pc/activity/reporting/110628/pdf/survey01.pdf[2] Japan Electronics and Information Technology Industries Association (JEITA),Electronic Components Board, Subcommittee on Electronic Components Technology
Environment, and Semi-Conductor Board (JSIA), Semiconductor Environment
Committee, “A calculating method to estimate semiconductors and electronic
components contribution to other industries’ CO2 reduction”, 54p (in Japanese)
URL:
http://www.denki-denshi.jp/dl2011jan/pdf2014/Guidelines_for_device_contribution.pdf[3] The City of Kawasaki, The calculation guidelines for outside contributions, pp.18-21(in Japanese)
URL: http://www.city.kawasaki.jp/300/cmsfiles/contents/0000044/44994/guidline.pdf[4] The International Council of Chemical Associations (ICCA) and the World BusinessCouncil of Sustainable Development (WBCSD), Addressing the Avoided Emissions
Challenge, pp.26-33
URL:
http://www.wbcsd.org/Pages/EDocument/EDocumentDetails.aspx?ID=15912&NoSearchContextKey=true

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Corresponding editors:
Kogakuin University, Japan

Atsushi Inaba
E-mail: a-inaba@cc.kogakuin.ac.jp
National Institute of Advanced Industrial Science and Technology, Japan

Masaharu Motoshita
E-mail: m-motoshita@aist.go.jp

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