Greenhouse Gas Protocol (GHG Protocol)
The Greenhouse Gas Protocol (GHG Protocol) is an internationally recognized framework for measuring and managing greenhouse gas emissions. It was developed at the end of the 1990s by the World Resource Institute (WRI) and the World Business Council for Sustainable Development (BWCSD) out of the need for an international standard for accounting and reporting greenhouse gas emissions in companies. The following two standards are relevant for corporate carbon accounting:
The Corporate Accounting and Reporting Standard contains requirements and guidelines for preparing a greenhouse gas inventory for companies and other organizations.
The Corporate value chain standard concentrated Focus on Scope 3 emissions and helps companies record emissions from their entire value chain. It is the most commonly used global standard for corporate greenhouse gas accounting.
The Greenhouse Gas Protocol (GHG Protocol) represents the world's most widely used framework for measuring, managing, and reporting greenhouse gas emissions. It was established through a partnership between the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD) to address the growing need for standardized methods for accounting for emissions. Development began in 1998 and aims to promote global acceptance and use of GHG accounting systems.
The GHG Protocol encompasses several central standards that cater to different user groups and application areas. These include the Corporate Accounting and Reporting Standard, which defines the quantitative requirements for direct (Scope 1) and indirect (Scope 2) emissions, as well as the Corporate Value Chain Standard, which focuses on Scope 3 emissions and helps companies capture emissions across the entire value chain.
A key feature of the GHG Protocol is the categorization of emissions into three scopes: Scope 1 for direct emissions from owned sources, Scope 2 for indirect emissions from purchased electricity, and Scope 3 for all other indirect emissions along the value chain. This differentiation enables organizations to comprehensively analyze their carbon footprint and work towards internationally recognized frameworks, such as the Paris Agreement.In practice, in 2023, for example, 97% of S&P 500 companies participating in CDP reporting used the GHG Protocol as their accounting basis. In this way, the GHG Protocol makes a significant contribution to achieving global climate goals and promoting sustainable practices in businesses and communities worldwide.
