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?
While the GHG Protocol has existed for decades, its widespread adoption has surged only recently due to:
- The Rise of Net-Zero Goals: Increasing commitments to net-zero targets have driven demand for standardized emissions reporting.
- Regulatory Evolution: New climate disclosure regulations and frameworks, such as the ISSB standards, require rigorous emissions tracking.
- Increased Awareness: As climate risks dominate business and societal priorities, more organizations are embracing emissions accountability.
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 organisations navigating today’s compliance landscape.
What’s Next for the GHG Protocol?
The GHG Protocol is not static; it adapts to meet emerging challenges. Current updates under consideration by the WRI and WBCSD aim to refine Scope 3 methodologies and align standards with modern climate imperatives. As Scope 3 emissions often constitute the majority of a company’s carbon footprint, these revisions are expected to improve the accuracy and reliability of value chain reporting.
For more details, access the full GHG Protocol here.