Processor Handbook - Innovation Center for US Dairy

Indirect energy: This is energy produced outside the
company’s boundary that is consumed to supply energy
for the organization’s intermediate energy needs (e.g.,
electricity or heating and cooling). The most common
example is fuel consumed outside the company’s boundary
in order to generate electricity to be used inside the
company’s boundary. (Definition from GRI G3.1 and updated
to make relevant for processors and manufacturers)
Intermediate energy: This includes forms of energy that
are produced by converting primary energy into other
forms. For most companies, electricity will be the only
significant form of intermediate energy. (Definition from
GRI G3.1 and updated to make relevant for processors and
manufacturers)
Renewable energy sources: Energy sources capable of
being replenished within a short time through ecological
cycles (as opposed to resources such as minerals, metals,
oil, gas, and coal that do not renew in short time periods).
Such energy sources include the sun, wind, moving water,
organic plant and waste material (biomass), and the earth’s
heat (geothermal). (Definition from US EPA 2011)
Energy intensity: Energy consumption per unit of product
6. Documentation
Energy use information can be obtained by reviewing
invoices, measured or calculated heat/fuel accounting,
estimations, etc.
Amounts of MMBTUs can be taken directly from invoices
and delivery notes, or can be converted using energy units
multiplied by conversion factors in the Calculation and
Reporting section. (Definition from GRI G3.1 Guidelines
and updated to make relevant for processors and
manufacturers)
For a dairy processing or manufacturing plant, annual dairy
product production can be calculated from annual sales.
7. Resources
• DairyPlant Smart TM . Available at
www.USDairy.com/PlantSmart.
• T. Vellinga, C. Opio, B. Henderson and S. Henning,
with P. Gerber. 2010. Greenhouse Gas Emissions from
the Dairy Sector A Life Cycle Assessment Food and
Agriculture Organization of the United Nations, Rome.
• U.S. Environmental Protection Agency (U.S. EPA).
2011. ENERGY STAR Focus on Energy Efficiency
in Dairy Processing, www.energystar.gov/index.
cfmc=in_focus.bus_dairy_processing.
• Dairy fluid milk processors and ice-cream
manufacturers can use the U.S EPA ENERGY STAR ®
Processing Plant Energy Performance Indicator Tool
for fluid milk and ice create to calculate
energy intensity.
Why measure GHG emissions
The dairy industry has committed to reducing its GHG
emissions by 25 percent by 2020. In order to understand
the industry’s progress toward its goal, emissions from
dairy plants should be estimated and reported.
Processing accounts for 2.50 lbs. CO 2 e of the 17.6 lbs. CO 2 e,
per gallon of milk consumed in the U.S., which represents
approximately 14 percent of the total. 17
Measuring carbon footprints can support dairy companies
in identifying ways to reduce their GHG emissions and other
environmental sustainability goals, but in many cases will also
strengthen the economic sustainability of processing facilities.
Several practices that reduce GHG emissions, such as
increasing energy efficiency, also provide cost savings
to the processor. An evaluation of emissions can be used
to assess the reputational risks of dairy companies’
association with GHG emissions.
As indicated in Figure 1 - Primary Sources for Greenhouse
Gas Emissions in U.S. Fluid Milk (page 11), GHGs are emitted
across all stages of the dairy supply chain. The indicators
in this section focus on GHGs at the processor and
manufacturer level.
Scope of the indicators
The GHG intensity indicator measures direct and indirect
GHG emissions in line with Scope 1 and Scope 2 of the WRI/
WBCSD GHG protocol. 18
Scope 3 indirect GHG emissions are currently not covered
by the indicator for fluid milk processors and dairy product
manufacturers. The reporting of GHG intensity is the total
(Scope 1 + Scope 2) GHG emissions per unit of output.
The indicators should be used to measure and report at the
company level, aggregating the totals from facilitates.
Companies should explain if all facilities are included in
the indicators. They can use Plant Smart to calculate the
greenhouse gas intensity indicator.
GHG Intensity —
Primary PM GHG
Relevant Plant Smart Tabs
Transport
Energy
Refrigerant
Packaging
Greenhouse Gas
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