What is the GHG Protocol?
Understanding the Greenhouse Gas (GHG) Protocol
The Greenhouse Gas (GHG) Protocol is the world’s most widely used standard for carbon accounting, enabling companies and organizations to measure and manage their greenhouse gas emissions. Developed in 1998 by the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD), it’s the foundation for emissions reporting globally.
Why Haven’t These Standards Been Top of Mind Until Now?
Although the GHG Protocol has been around for years, you may only now be hearing about it because of the shifting business landscape. The standards provide essential methods for tracking emissions across Scope 1, 2, and 3, converting activity data into accurate emissions metrics. These standards weren’t widely adopted initially, especially when net-zero targets and climate disclosure regulations weren’t as prevalent as they are today.
Key Standards and Guidance Documents
The GHG Protocol includes a suite of standards and guidance notes:
- Corporate Accounting and Reporting Standard (2004): Lays the groundwork for calculating Scope 1 and 2 emissions.
- Corporate Value Chain (Scope 3) Standard (2011): Expands into Scope 3 emissions within a company’s value chain.
- Scope 3 Calculation Guidance (2013): Offers practical methods for Scope 3 emissions.
- Scope 2 Guidance (2015): Details calculation approaches for purchased electricity emissions.
As these standards have evolved, they’ve helped companies respond to the Science Based Targets initiative (SBTi), the trend toward net-zero targets, and new climate disclosure regulations. The Protocol has now become essential for organizations navigating today’s compliance landscape.
What’s Next for the GHG Protocol?
In response to these developments, WRI and WBCSD recently began exploring updates to the Protocol to address emerging needs, especially around Scope 3. Although Scope 3 reporting remains voluntary under the current standards, upcoming updates may bring new guidance to this crucial area.
For more details, access the full GHG Protocol here.