Definition
A globally recognized accounting and reporting standard that helps businesses and governments measure, manage, and report greenhouse gas (GHG) emissions. The GHG Protocol categorizes emissions into Scope 1 (direct), Scope 2 (indirect energy), and Scope 3 (value chain) to ensure transparent and standardized carbon accounting across industries.
Why It Matters
- Ensures consistency in carbon reporting across companies, regulators, and investors.
- Helps businesses set credible emissions reduction targets by identifying major sources of carbon output.
- Supports compliance with climate regulations and ESG disclosures, including Carbon Disclosure Project (CDP), Task Force on Climate-Related Financial Disclosures (TCFD), and SBTi frameworks.
How Businesses Use the GHG Protocol
- Measure Emissions: Companies assess emissions across Scope 1, 2, and 3 categories to establish a baseline.
- Develop Reduction Strategies: Organizations use GHG data to improve efficiency, switch to renewables, and decarbonize supply chains.
- Align with Net Zero & ESG Goals: Businesses integrate GHG Protocol data into sustainability reporting, investor disclosures, and climate compliance efforts.
Further Reading
- See Also: Scope 1, 2, and 3 Emissions
