The GHG Protocol plays a crucial role in the fight against climate change by creating a standardised system for measuring and managing greenhouse gas (GHG) emissions from both private and public sector corporations. Collaborating with the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD), the GHG Protocol brings together governments, industry associations, NGOs, and businesses to collectively work towards protecting our planet.
It serves as the universally recognised benchmark for carbon management frameworks worldwide. Complying with the GHG Protocol’s guidelines enables companies to align with additional ESG frameworks, including but not limited to the Science Based Targets Initiative (SBTi), the Global Reporting Initiative (GRI), ESOS, the diverse standards of the Sustainability Accounting Standards Board (SASB), and CSRD, among others.
Purpose and Benefits
One of the primary purposes of the GHG Protocol is to assist governing bodies in developing robust accounting and reporting standards for GHG emissions. The GHG Protocol ensures that the protocols align effectively with existing legislation, helping to create a cohesive approach towards measuring and managing GHG emissions, ultimately aiding in the global effort to combat climate change.
How It Works
The GHG Protocol hold standards, such as the GHG Corporate Standard and the Value Chain Standards that provide the frameworks for companies to report their GHG emissions accurately. By setting clear methodologies and standards, the protocol enables companies to track their emissions consistently, identify reduction opportunities, and set emission reduction targets. This structured approach not only helps businesses in improving their environmental performance but also enhances transparency and accountability in reporting their carbon footprint.
Principles and Boundaries
This protocol is guided by several key principles:
- Accuracy – ensures reported emissions reflect the entity’s impact, utilising top conversion factors and quality assurance.
- Relevance – tailors methodologies to business activities, using current and region-specific data for tailored reduction strategies.
- Completeness – mandates all significant emission sources be included for a comprehensive overview.
- Consistency – permits time and entity comparisons, maintaining methodology alignment with global standards.
- Transparency – fosters trust by sharing data sources, assumptions, limitations, and ongoing developments, enhancing credibility and methodological improvement.
What is the GHG Protocol Most Well Known for?
The GHG Protocol is most recognised for its comprehensive approach to measuring greenhouse gas emissions. It sets standards for emissions boundaries, scope boundaries, and calculation methodologies for both operations and the value chain.
Emissions boundaries refer to the physical or geographical limits within which emissions are measured. Scope boundaries define the different categories of emissions that organizations should account for.
The GHG Protocol’s calculation methodologies, including scope 1, 2, and 3 emissions, provide a structured framework for businesses to assess and report their greenhouse gas emissions accurately.
By incorporating these guidelines, businesses and institutions can better understand their environmental impact and take steps to reduce their carbon footprint. The GHG Protocol’s influence extends far and wide, shaping the way corporations worldwide approach sustainability and climate action.
Through collaborative efforts with various stakeholders, the GHG Protocol continues to play a significant role in advancing sustainability practices and protecting the health of our planet for future generations.