Greenhouse Gas (GHG) Accounting

Greenhouse Gas (GHG) accounting is essential for organizations seeking to measure and manage their emissions. It involves identifying, quantifying, and categorizing emissions across three distinct scopes, following globally recognized standards to ensure consistency and transparency.

Relevant Standards:

• GHG Protocol (Corporate Standard): The GHG Protocol is the global standard for GHG accounting, providing a comprehensive framework for businesses to measure and report their GHG emissions. It categorizes emissions into:
  • Scope 1: Direct emissions from owned or controlled sources.
  • Scope 2: Indirect emissions from purchased electricity, steam, heating, and cooling.
  • Scope 3: Indirect emissions from the entire value chain, such as those from business travel, waste disposal, and product use.
  The GHG Protocol is widely recognized by organizations and governments for its ability to help companies develop a credible GHG inventory.
• ISO 14064-1: This international standard specifies requirements and provides guidance for quantifying and reporting GHG emissions. It is aligned with the GHG Protocol and is used by organizations to prepare and report on their GHG emissions reliably.

Why GHG Accounting Matters:

• Provides transparency by systematically tracking emissions.
• Supports the identification of areas for emission reductions.
• Enhances compliance with regulations such as carbon pricing mechanisms and emissions trading schemes.
• Informs the organization’s sustainability strategy and stakeholder engagement.