GHG Protocol

GHG Protocol

The GHG Protocol contains a universally recognized accounting method for international reporting of carbon and greenhouse gas emissions for different levels, sizes and types of organizations. This includes multinational organizations, energy intensive primary industries, as well as small to medium enterprises (SME). It was developed by the World Business Council for Sustainable Development (WBCSD) and the World Resources Institute (WRI) and it is the standard suggested by CDP.

At the GHG Protocol’s core is a series of sector-specific worksheets to help companies calculate their emissions. In general this requires defining emissions produced organizationally and operationally in three categories.

Scope 1
Direct GHG emissions: Carbon emissions occurring from sources that are owned or controlled by the company (e.g. emissions from combustion in owned or controlled boilers, furnaces and vehicles).

Scope 2
Electricity indirect GHG emissions: Carbon emissions from the generation of purchased electricity consumed by the company.

Scope 3
Other indirect GHG emissions: Carbon emissions which are a consequence of a company's activities, but occur from sources not owned or controlled by the company (e.g. emissions from waste, the extraction and production of purchased materials; and employee travel to and from work).

However, the process required to utilize these worksheets demands a larger organizational effort at establishing the context for data calculation.

Reporting Fundamentals
As set up in their step-by-step Corporate Accounting and Reporting Standard, corporations should submit reports that:

Are complete, consistent, accurate and transparent;
Are based on the best data available at the time of publication while being transparent about their limitations;
Communicate any material discrepancies identified in previous years; and
Include gross emissions for their chosen inventory boundaries separate from and independent of any GHG trades in which they might engage.

Required Information
The document should include the following information:

Description of the company and inventory boundary

An outline of the organizational boundaries chosen, including the chosen consolidation approach
An outline of the operational boundaries chosen, and if Scope 3 is included, a list specifying which types of activities are covered
The reporting period covered

Information on emissions

Total Scope 1 and 2 emissions independent of any GHG trades such as sales, purchases, transfers, or banking of allowances
Emission data separately for each scope
Emission data for all six GHGs separately (CO2, CH4, N2O, HFCs, PFCs, SF6) in metric tonnes and in metric tonnes of CO2- equivalent
Year chosen as base year, and an emission profile over time that is consistent with and clarifies the chosen policy for making base year emission recalculations
Appropriate context for any significant emission changes that trigger base year emission recalculation (acquisitions/ divestitures, outsourcing/insourcing, changes in reporting boundaries or calculation methodologies, etc.)
Emission data for direct CO2 emissions from biologically sequestered carbon (e.g., CO2 from burning biomass/biofuels), reported separately from the scopes
Methodologies used to calculate or measure emissions, providing a reference or link to any calculation tools used
Any specific exclusions of sources, facilities, and/or operations

Optional information
A public GHG emission report should include, when applicable, the following additional information:

Information on emissions and performance:

Emission data from relevant Scope 3 emission activities for which reliable data can be obtained
Emission data further subdivided, where this aids transparency, by business units/facilities, country, source types (stationary combustion, process, fugitive, etc.), and activity types (production of electricity, transportation, generation of purchased electricity that is sold to end users, etc.)
Emissions attributable to own generation of electricity, heat, or steam that is sold or transferred to another organization
Emissions attributable to the generation of electricity, heat or steam that is purchased for re-sale to non-end users
A description of performance measured against internal and external benchmarks
Emissions from GHGs not covered by the Kyoto Protocol (e.g., CFCs, NOx), reported separately from scopes
Relevant ratio performance indicators (e.g. emissions per kilowatt-hour generated, tonne of material production, or sales)
An outline of any GHG management/reduction programs or strategies
Information on any contractual provisions addressing GHG-related risks and obligations
An outline of any external assurance provided and a copy of any verification statement, if applicable, of the reported emission data
Information on the causes of emission changes that did not trigger a base year emission recalculation (e.g., process changes, efficiency improvements, plant closures)
GHG emission data for all years between the base year and the reporting year (including details of and reasons for recalculations, if appropriate)
Information on the quality of the inventory (e.g., information on the causes and magnitude of uncertainties in emission estimates) and an outline of policies in place to improve inventory quality
Information on any GHG sequestration
A list of facilities included in the inventory
A contact person

Information on offsets

Information on offsets that have been purchased or developed outside the inventory boundary, subdivided by GHG storage/ removals and emission reduction projects. Specify if the offsets are verified/certified and/or approved by an external GHG program (e.g., the Clean Development Mechanism, Joint Implementation).
Information on reductions at sources inside the inventory boundary that have been sold/transferred as offsets to a third party. Specify if the reduction has been verified/certified and/or approved by an external GHG program.

Greenhouse Gas (GHG) Protocol
http://www.ghgprotocol.org