What is the GHG Protocol Corporate Standard?
The GHG Protocol Corporate Standard is the most widely used framework for measuring and reporting greenhouse gas (GHG) emissions at an organisational level. The GHG Protocol divides GHG emissions into three separate categories:
Scope 1: Direct GHG emissions from sources owned or controlled by the organisation. Examples: boilers, furnaces, company vehicles.
Scope 2: Electricity indirect GHG emissions account for the generation of purchased electricity consumed by the company.
Scope 3: Other indirect GHG emissions assess emissions resulting from company activities, that occur from sources not owned or controlled by the company. Examples: extraction and production of purchased materials, transportation of purchased fuels, and use of sold products and services.
This standard is similar to ISO 14064:2018, in that they share similar definitions and methodologies for establishing organisational boundaries and determining which emission sources should be calculated. Generally, this standard is more flexible and broader than ISO 14064:2018. Therefore, its application is most commonly used as a baseline framework for voluntary reporting and corporate sustainability strategies and initiatives. However, it does also provide foundational methodologies for developing emissions inventories, that can be used as a basis for complying with EU emissions management and reporting regulations.
How does it work?
The assessment of one’s carbon footprint using the GHG Protocol Corporate Standard involves the following steps:
- Defining the organisational and operational boundary: Organisations would first choose to account for GHG emissions by equity share or financial control. Following this, it must be decided whether to account only for Scope 1 and 2 emissions, or whether to include relevant Scope 3 categories for its operations.
- Collection of activity data: Activity data for each emission source is then collected. For Scope 1 and 2, this would consist of purchased quantities of commercial fuels and metered electricity consumption. For Scope 3, activity data would consist of, for example, transportation miles for passengers, purchased products, and postage. However, Scope 3 encompasses a broad range of emission source types, and therefore are not only limited to transportation miles.
- Quantification of emissions: Emissions are calculated using activity data per source and the relevant emission factor, published by the GHG Protocol themselves. Online calculation tools have also been made available to ensure consistency in GHG emissions calculations.
Why adopt the GHG Protocol Corporate Standard?
Most commonly, this framework is used for the creation of corporate emissions inventories, intended for publicly disclosed sustainability reports. These corporate emissions inventories are also used by office-based organisations, seeking to quantify their carbon footprint. This framework can also be used by any organisation aiming to join global climate action initiative programmes, such as the Science Based Targets Initiative (SBTi) or the Carbon Trust.
As this standard is internationally recognised, the methodologies laid out by this framework can be used to form the foundation for compliance with major EU regulations. The carbon emissions inventories developed using this standard are suitable for major EU regulations, such as the Corporate Sustainability Reporting Directive (CSRD) or the Carbon Border Adjustment Mechanism (CBAM). It also forms a useful baseline for preparing to comply with the EU’s CBAM definitive regime from 2026 onwards. The GHG Protocol Corporate Standard offers comprehensive guidance for assessing Scope 3 emissions which is increasingly required under EU regulations focusing on supply chain transparency.
The application of the GHG Protocol Corporate Standard can also be cost beneficial. It helps organisations identify key emission sources, allowing for the optimisation of energy usage during different business activities and in turn, reducing the resulting costs. Through the application of this standard, ESG strategies of organisations will also be supported by evidence-based calculation methodologies. This will allow businesses to meet the growing demand from potential investors for more sustainable business practices.