The GHG Protocol Corporate Standard provides a comprehensive, global standardized framework for companies to measure and manage greenhouse gas (GHG) emissions. The key working scope under this standard includes three main categories, known as “scopes,” which help organizations in categorizing their emissions for accounting and reporting purposes. Understanding these scopes is essential for accurate GHG calculation and effective climate action strategies.

Scope

Scope 1: Direct Emissions

All direct GHG emissions from sources that are owned or controlled by the company. This includes emissions from company-owned or controlled vehicles, facilities, and equipment.

Scope 2: Indirect Emissions from Purchased Electricity

Indirect GHG emissions from the generation of purchased electricity, steam, heating, and cooling consumed by the company. These emissions occur at the facility where the energy is generated and are then attributed to the company consuming the energy.

Scope 3: Other Indirect Emissions

All other indirect emissions that occur in a company’s value chain, both upstream and downstream. Scope 3 emissions are a result of activities from assets not owned or directly controlled by the reporting company but over which it can exert influence.

Example

Combustion of fuel in company vehicles, emissions from chemical production in owned or controlled process equipment, and emissions from on-site company facilities.

Emissions associated with the production of electricity that a company purchases and uses, regardless of where the generation occurs.

Upstream activities can include the extraction and production of purchased materials and fuels, transportation of purchased fuels, and employee business travel.

Downstream activities might involve the use of sold products and services, end-of-life treatment of sold products, and investments.

What are the Key Topics to Manage in GHG Calculation?

Companies are encouraged to develop a comprehensive GHG emissions inventory that includes data from all three scopes.

Organizations must define the operational boundaries of their GHG emissions inventory, distinguishing between direct and indirect emissions and identifying relevant Scope 3 activities.

Accurate and consistent data collection is crucial for GHG calculation. Companies should strive for high-quality data and transparency in their reporting.

Setting science-based targets and implementing actions to reduce GHG emissions across all scopes is critical for contributing to global climate change mitigation efforts.

Regular reporting and, where possible, third-party verification of GHG emissions help ensure credibility and transparency of the reported information.

By adhering to the GHG Protocol Corporate Standard, companies can ensure a consistent and comparable method for measuring and managing their GHG emissions, facilitating global efforts to combat climate change.