GHG Emission Recalculation Methodology
Installed Building Products (IBP) has elected to use 2020 as the baseline year for our greenhouse gas (GHG) emission calculation. In order to accurately track progress towards our GHG environmental targets, we will adjust our baseline year emissions inventory to account for significant changes, described below, if the changes drive an increase/decrease in emissions of greater than 5%. IBP may also choose at our discretion to recalculate our baseline year for changes less than 5%, especially when structural changes occur.
A structural change occurs where there is a transfer in control of emission-generating activities included within the boundary. Structural changes include branch acquisitions and divestments, and would not include any start up branches as this is considered to be organic growth. Emissions must have occurred during the baseline year either inside our organization or at the acquisition company in order to trigger a baseline year inventory adjustment. The baseline year and other historical years will not be adjusted for branch closures. Adjustments for acquisitions or divestments are treated using the ‘same-year, pro-rata’ approach, meaning that branches only owned for a portion of the reporting year are included in all historical years for the same period. The full year recalculation will be carried out in the succeeding year after the structural change has occurred using this method. This is required to retain comparability between the baseline year’s GHG emissions and future years’ GHG emissions.
Calculation Methodology Changes
Methodology changes that could impact our base year GHG emissions include updated emission factors, improved data access or updated calculation methods or protocols.
Data Errors or Other Changes
IBP will recalculate our emissions in the event of discovery of a significant error, or a number of cumulative errors that collectively are significant. Significant change in our organizational or operations boundaries may likewise result in the adjustment of the baseline year.
Baseline adjustments will occur at the end of each fiscal year if we identify any changes described above that have occurred in the reporting period which may require us to recalculate our baseline year. We publicly restate our baseline year when we report the latest GHG emissions for the previous financial year.