The Greenhouse Gas (GHG) Protocol provides the world's most widely used greenhouse gas accounting standards. This guide explains the key components of the GHG Protocol and how to apply them using Carbon GPT.
Introduction to the GHG Protocol
The GHG Protocol was established in 1998 through a partnership between the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD). It has since become the foundation for nearly every GHG reporting program in the world.
Key Objectives
- Provide a standardized approach to GHG accounting
- Enhance consistency and transparency in emissions reporting
- Support effective climate change mitigation strategies
- Enable meaningful comparisons between organizations
Evolution and Adoption
The GHG Protocol has evolved significantly since its inception:
- 2001: Release of the first Corporate Standard
- 2004: Introduction of the Project Protocol
- 2011: Publication of the Corporate Value Chain (Scope 3) Standard and Product Standard
- 2015: Release of the Scope 2 Guidance
- Ongoing: Development of sector-specific guidance and tools
Today, the GHG Protocol is used by:
- 92% of Fortune 500 companies
- Thousands of organizations worldwide
- Major sustainability reporting frameworks (CDP, TCFD, GRI)
- Regulatory compliance programs in multiple countries
GHG Protocol Corporate Standard
The Corporate Standard is the cornerstone of the GHG Protocol framework, providing comprehensive guidance for companies and organizations to measure and report their GHG emissions.
Five Key Principles
- Relevance: Ensure the GHG inventory appropriately reflects the organization's emissions
- Completeness: Account for all GHG emission sources within the chosen boundaries
- Consistency: Use consistent methodologies to allow for meaningful comparisons over time
- Transparency: Address all relevant issues in a factual and coherent manner
- Accuracy: Ensure calculations are systematically neither over nor under actual emissions
Setting Organizational Boundaries
The Corporate Standard provides two approaches for setting organizational boundaries:
Equity Share Approach
- Account for GHG emissions based on the organization's share of equity in the operation
- Emissions are linked to economic interest
- Reflects economic reality of shared ownership
Control Approach
- Financial Control: Account for 100% of emissions from operations where the organization has financial control
- Operational Control: Account for 100% of emissions from operations where the organization has operational control
- Simpler to implement than equity share approach
Setting Operational Boundaries
Operational boundaries determine which emission sources to include in your inventory:
Scope 1: Direct Emissions
Emissions from sources owned or controlled by the organization:
- Stationary combustion (boilers, furnaces)
- Mobile combustion (vehicles)
- Process emissions (chemical production)
- Fugitive emissions (leaks, refrigerants)
Scope 2: Indirect Emissions from Purchased Energy
Emissions from the generation of purchased electricity, steam, heating, and cooling:
- Purchased electricity
- Purchased steam
- Purchased heating
- Purchased cooling
Scope 3: Other Indirect Emissions
All other indirect emissions that occur in the value chain:
- Upstream activities (purchased goods, business travel)
- Downstream activities (use of sold products, end-of-life treatment)
GHG Protocol Value Chain (Scope 3) Standard
The Scope 3 Standard provides guidance for accounting and reporting value chain emissions, which often represent the largest portion of an organization's carbon footprint.
15 Scope 3 Categories
Upstream Categories
- Purchased Goods and Services: Extraction, production, and transportation of goods and services purchased
- Capital Goods: Extraction, production, and transportation of capital goods
- Fuel and Energy-Related Activities: Extraction, production, and transportation of fuels and energy not included in Scope 1 or 2
- Upstream Transportation and Distribution: Transportation and distribution of products purchased
- Waste Generated in Operations: Disposal and treatment of waste
- Business Travel: Transportation of employees for business-related activities
- Employee Commuting: Transportation of employees between their homes and work
- Upstream Leased Assets: Operation of assets leased by the organization
Downstream Categories
- Downstream Transportation and Distribution: Transportation and distribution of products sold
- Processing of Sold Products: Processing of intermediate products by third parties
- Use of Sold Products: End use of goods and services sold
- End-of-Life Treatment of Sold Products: Waste disposal and treatment of products sold
- Downstream Leased Assets: Operation of assets owned by the organization and leased to others
- Franchises: Operation of franchises
- Investments: Operation of investments
Calculation Approaches
The Scope 3 Standard provides several calculation approaches:
- Spend-Based Method: Uses financial data and emission factors per unit of economic value
- Activity-Based Method: Uses activity data and emission factors per unit of activity
- Hybrid Method: Combines spend-based and activity-based methods
- Supplier-Specific Method: Uses primary data from suppliers
- Average-Data Method: Uses average data such as industry averages
GHG Protocol Product Standard
The Product Standard provides requirements and guidance for quantifying and reporting GHG emissions and removals associated with a specific product throughout its life cycle.
Life Cycle Stages
- Raw Material Acquisition and Pre-Processing: Extraction and processing of raw materials
- Production: Manufacturing and assembly of the product
- Distribution and Storage: Transportation and storage of the product
- Use: Use of the product by the consumer
- End-of-Life: Disposal and recycling of the product
Key Requirements
- Define the product, unit of analysis, and reference flow
- Set the system boundary
- Collect data for all processes within the boundary
- Allocate emissions between co-products
- Calculate the inventory results
- Assess uncertainty
- Report the results
Implementing the GHG Protocol with Carbon GPT
Carbon GPT provides comprehensive support for implementing the GHG Protocol standards:
Organizational Boundary Setting
- Configure your organizational structure
- Select your preferred boundary approach (equity share, financial control, operational control)
- Define and manage facilities and subsidiaries
Emission Source Management
- Add and categorize emission sources by scope
- Track activity data and calculate emissions
- Apply appropriate emission factors
Scope 3 Emissions Tracking
- Comprehensive coverage of all 15 Scope 3 categories
- Multiple calculation methodologies (spend-based, activity-based)
- Supplier data collection and management
Reporting and Analysis
- GHG Protocol-compliant reports
- Emissions breakdown by scope and category
- Year-over-year comparisons
- Data quality assessment
Best Practices for GHG Protocol Implementation
Getting Started
- Understand the standards: Familiarize yourself with the relevant GHG Protocol publications
- Define clear boundaries: Carefully document your organizational and operational boundaries
- Start with material emissions: Focus initially on your largest emission sources
- Improve over time: Gradually enhance the completeness and accuracy of your inventory
Ensuring Quality
- Document your methodologies and assumptions
- Implement quality control procedures
- Verify your emissions data
- Maintain consistent approaches year-over-year
Common Challenges and Solutions
| Challenge | Solution |
|---|---|
| Data gaps | Use proxy data or extrapolation while working to improve data collection |
| Boundary complexity | Document decisions and maintain consistency |
| Scope 3 complexity | Prioritize based on relevance and size |
| Double counting | Clearly define boundaries and allocation methods |
Additional Resources
For assistance with implementing the GHG Protocol using Carbon GPT, contact our support team or use the AI Assistant for guidance on specific questions.