The GHG Protocol is a global standard for measuring and managing greenhouse gas emissions. It provides widely used accounting standards for companies, governments, and other entities. The Protocol was developed through a partnership between the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD). In 2016, 92% of Fortune 500 companies responding to the CDP used GHG Protocol directly or indirectly through a program based on GHG Protocol. The GHG Protocol offers standards and tools to help countries and cities track progress toward climate goals, as well as enabling companies to develop comprehensive and reliable inventories of their GHG emissions.
The Protocol has established standards for Scope 1, 2, and 3 emissions categories. Scope 1 emissions are direct emissions from owned or controlled sources. Scope 2 emissions are indirect GHG emissions associated with the purchase of electricity, steam, heat, or cooling. Scope 3 emissions are the result of activities from assets not owned or controlled by the reporting organization. This will be discussed in further detail in later sections.
Sustainability Reporting: What are the GHG Standards?
The Greenhouse Gas (GHG) Protocol offers a comprehensive framework with various standards designed for different organizational levels, aiding in measuring and achieving sustainability goals. Among these, several key standards stand out:
These standards collectively address both direct and indirect emissions occurring within an organization's value chain, commonly categorized as Scope 1, 2, and 3 emissions. The GHG Protocol provides various tools and resources to support the implementation of these standards.
The GHG Protocol Corporate Standard
The Greenhouse Gas (GHG) Protocol offers a comprehensive framework applicable to organizations across various sectors and locations. A key component is the Corporate Standard, which guides businesses in assessing their climate impacts, risks, and opportunities. Implementing this standard typically involves several key steps:
This approach aligns with the GHG Protocol's objective of providing a standardized framework for businesses to measure and report their greenhouse gas emissions. The protocol's widespread adoption, including by 92% of Fortune 500 companies responding to the CDP, underscores its significance in corporate sustainability efforts.
How to calculate for GHG Protocol: Formula
Activity Data
Data pertaining to an activity that generates emissions.
(eg; Metrics such as electricity consumption measured in kilowatt-hours or distance traveled in kilometers etc.)
Emission Factor
Emission factors serve to transform activity data into corresponding emission values. These factors are made available by a variety of entities, including government agencies and intergovernmental organizations.
Tonnes of emissions
The output value from the emission calculation is referred to as the tonnes of greenhouse gas (GHG). This figure must subsequently be multiplied by the Global Warming Potential (GWP) to convert it into tonnes of carbon dioxide equivalent (CO2e).
GWP
The measurement of the impact of a greenhouse gas on global warming, compared to that of CO2.
Who uses the GHG Protocol and why is it important?
The GHG Protocol is widely adopted by companies and organizations as a greenhouse gas accounting standard. The GHG Protocol offers various standards and guidance documents that are relevant to different sectors and types of organizations:
For companies and organizations, the GHG Protocol provides:
The Corporate Accounting and Reporting Standard for preparing corporate-level GHG emissions inventories.
The Corporate Value Chain (Scope 3) Standard for assessing entire value chain emissions impacts.
The Product Standard for understanding full life cycle emissions of products.
Specific guidance like the Agricultural Guidance for the agriculture sector.
The Potential Emissions from Fossil Fuel Reserves guidance for fossil fuel companies.
These resources are developed through collaboration with industry professionals and organizations.
For countries and cities, the GHG Protocol offers:
The Global Protocol for Community-Scale Greenhouse Gas Emission Inventories (GPC) for city-wide emissions accounting.
The Mitigation Goal Standard for designing national and subnational mitigation goals.
The Policy and Action Standard for estimating the greenhouse gas effect of policies and actions.
The U.S. Public Sector Protocol, which provides guidance for U.S. government operations at federal, state, and local levels.
These standards and guidance documents help various entities to measure, manage, and report their greenhouse gas emissions, supporting transparency and accountability in climate actions.
Benefits of GHG Protocol
Understanding of company's carbon footprint and associated risks/opportunities is a key benefit of using GHG Protocol standards. This allows companies to identify areas where they can reduce their carbon footprint and contribute to global emissions-reduction efforts.
Transparency through public reporting is supported by GHG Protocol. The standards enable companies to measure, manage, and report greenhouse gas emissions from their operations and value chains, which can increase stakeholder and investor confidence in a company's sustainable practices.
Regarding regulatory compliance, the GHG Protocol standards are being integrated into law in many areas of the world. For example, the European Sustainability Reporting Standards (ESRS), which directly reference GHG Protocol's standards, are expected to impact 50,000 companies across the European Union.
The GHG Protocol supports adherence to ESG frameworks and initiatives like the Science Based Targets initiative (SBTi). In fact, a growing number of companies are participating in initiatives such as CDP and SBTi, all of which use GHG Protocol accounting standards to track and report progress.
The GHG Protocol's role in supporting GHG trading programs and voluntary reduction programs is also through providing standardized methods for GHG accounting that can be used in various contexts.
It's worth noting that the GHG Protocol is undergoing a multi-stakeholder revisions process to ensure its standards provide a rigorous and credible accounting foundation for businesses to measure, plan, and track progress toward science-based and net-zero targets.
What Are Scopes 1, 2 and 3 Under the GHG Protocol?
The Greenhouse Gas (GHG) Protocol established standards for categorizing emissions into three scopes:
Measuring scope 1 and 2 emissions is generally more straightforward, as organizations have direct control or clear data on these sources. Scope 3 emissions can be more challenging to measure due to the broad range of activities involved and the need to gather data from suppliers and other external sources.
The GHG Protocol provides guidance, tools, and standards to help organizations develop comprehensive and reliable inventories of their GHG emissions across all scopes. This enables companies to manage their emissions, identify reduction opportunities, and track progress toward climate goals.
Which are the 6 greenhouse gasses?
Greenhouse gases are atmospheric compounds capable of absorbing infrared radiation, trapping heat in the atmosphere through the greenhouse effect. This natural process is crucial for maintaining Earth's habitable temperature. The primary greenhouse gases include:
Human activities, particularly fossil fuel combustion and land-use changes like deforestation, have significantly increased the atmospheric concentrations of these gases, contributing to global warming and climate change. To compare and manage different greenhouse gases, they are often expressed in terms of carbon dioxide equivalents (CO2e), which accounts for each gas's global warming potential (GWP) relative to CO2.
The GWP is a measure of a greenhouse gas's ability to trap heat in the atmosphere over a specific time period, typically 100 years, compared to CO2. This metric allows for standardized comparisons of various greenhouse gases' climate impacts. For instance, methane has a GWP of 27-29 over a 100-year timescale, meaning it's about 28 times more potent at trapping heat than CO2.
While CO2 is the most prevalent greenhouse gas, accounting for about 80% of U.S. greenhouse gas emissions in 2022, other gases like methane and nitrous oxide also play significant roles. Fluorinated gases, though emitted in smaller quantities, can have extremely high GWPs and long atmospheric lifetimes, making them potent contributors to climate change.
Is GHG Reporting Mandatory?
Mandatory greenhouse gas (GHG) reporting programs have been implemented in at least 40 countries and several sub-national regions. These programs require facilities and companies that emit over a certain threshold of GHG emissions to measure and report their emissions regularly.
While some jurisdictions have already implemented mandatory reporting, others are considering or developing such programs. For example, countries like China are testing mandatory emissions reporting at local scales and considering national implementation.
Organizations can benefit from proactively developing their GHG inventories before reporting becomes mandatory in their jurisdiction. Early adoption allows companies to familiarize themselves with reporting frameworks, methodologies, and data collection processes. This preparation can help organizations better understand their emissions profile, identify reduction opportunities, and potentially gain recognition for voluntary climate action.
The proliferation of mandatory GHG reporting programs represents an important step towards coordinated global action on climate change, as these programs provide valuable data to inform policy decisions and emissions reduction strategies.
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