The GHG Protocol Corporate Accounting and Reporting Standard

The GHG Protocol Corporate Accounting and Reporting Standard (the GHG Protocol) is a widely recognized framework for companies to measure and manage their greenhouse gas (GHG) emissions. It was developed by the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD), and it provides a consistent and transparent method for companies to quantify and report their GHG emissions, as well as to identify opportunities to reduce those emissions.

The target audience for the standard is companies of all sizes and industries that want to measure and manage their GHG emissions. Companies around the world use the standard to report on their emissions to stakeholders, including investors, customers, and regulators, and to set targets for reducing their emissions over time. Also governments and other organizations use the GHG Protocol to develop policies and programs related to climate change mitigation.

The GHG Protocol’s Scopes of emissions

The standard is structured into three “scopes”:

• Scope 1 emissions: Direct emissions are related to sources of emissions that a reporting company owns or controls, such as emissions from burning fossil fuels in company-owned vehicles or boilers.
• Scope 2 emissions: Indirect emissions from the generation of purchased electricity, heat, or steam consumed by the reporting company.
• Scope 3 emissions: All other indirect emissions, including emissions from the production of purchased goods and services, employee commuting, and waste disposal.

 

The GHG Protocol’s outline

The standard provides guidance on how to calculate emissions in each of these scopes, and it also includes requirements for reporting on emissions reductions, emissions intensity, and other GHG-related metrics:

1. Setting the Organizational Boundary: Guidance on defining the organizational boundary for GHG accounting, including which emissions sources to include and exclude.
2. Setting the Operational Boundary: Guidance on defining the operational boundary for GHG accounting, including which types of emissions to include and exclude.
3. Accounting for GHG Emissions: Guidance on how to quantify GHG emissions in each of the three scopes (Scope 1, Scope 2, and Scope 3) using various methods.
4. Accounting for GHG Removals: Guidance on how to account for GHG removals, such as through carbon sequestration.
5. Calculating GHG Emissions: Guidance on how to calculate GHG emissions intensity and other metrics to report on GHG performance.
6. Reporting GHG Emissions: Guidance on how to report GHG emissions data to stakeholders, including what information to include in a GHG inventory report.
7. Verification: Guidance on how to verify GHG emissions data to ensure accuracy and credibility.
8. Management and Use of GHG Data: Guidance on how to use GHG emissions data to inform decision-making and to identify opportunities for emissions reductions.

The standard also includes several appendices that provide additional guidance on specific topics, such as emissions factors and reporting requirements for specific industries.