GHG Protocol Corporate Standard
The world's most widely used framework for greenhouse gas accounting. Learn how to measure, report, and manage Scope 1, 2, and 3 emissions with audit-grade accuracy.
What Is the GHG Protocol?
The Greenhouse Gas Protocol (GHG Protocol) is the world's most widely used standard for greenhouse gas accounting. Developed by the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD), it provides a comprehensive, global, standardised framework for measuring and managing emissions.
First published in 2001 and revised in 2015, the Corporate Standard is the foundation for virtually all corporate carbon reporting — including CDP, the Science Based Targets initiative (SBTi), and regulatory frameworks such as the EU Corporate Sustainability Reporting Directive (CSRD).
The Protocol divides emissions into three scopes. This classification ensures organisations account for both direct emissions they control and indirect emissions across their value chain.
The Three Scopes
Scope 1 — Direct Emissions
Emissions from sources that your organisation owns or controls directly.
- •Stationary combustion (boilers, furnaces, generators)
- •Mobile combustion (company vehicles, fleet)
- •Process emissions (chemical reactions, manufacturing)
- •Fugitive emissions (refrigerant leaks, methane venting)
Scope 2 — Indirect Energy
Emissions from the generation of purchased electricity, heat, steam, or cooling consumed by your organisation.
- •Purchased electricity for operations and offices
- •Purchased heat or steam for industrial processes
- •District heating and cooling systems
- •Two reporting methods: location-based and market-based
Scope 3 — Value Chain
All other indirect emissions that occur in your value chain, both upstream and downstream.
- •Purchased goods and services (Category 1)
- •Business travel and employee commuting
- •Transportation and distribution
- •Use of sold products and end-of-life treatment
- •Investments and leased assets
Calculation Principles
The GHG Protocol establishes five core principles that ensure emissions data is reliable, consistent, and useful for decision-making.
1. Relevance
Ensure the GHG inventory appropriately reflects the emissions of the company and serves the decision-making needs of users — both internal and external.
2. Completeness
Account for and report on all GHG emission sources and activities within the chosen inventory boundary. Disclose and justify any specific exclusions.
3. Consistency
Use consistent methodologies and data to allow meaningful comparisons of emissions over time. Transparently document any changes to the data, inventory boundary, methods, or any other relevant factors.
4. Transparency
Address all relevant issues in a factual and coherent manner, based on a clear audit trail. Disclose any relevant assumptions and make appropriate references to the accounting and calculation methodologies and data sources used.
5. Accuracy
Ensure that the quantification of GHG emissions is systematically neither over nor under actual emissions, as far as can be judged, and that uncertainties are reduced as far as practicable. Achieve sufficient accuracy to enable users to make decisions with reasonable confidence as to the integrity of the reported information.
Reporting Boundaries
The GHG Protocol requires organisations to define two types of boundaries: organisational boundaries (what you own or control) and operational boundaries (which emissions you include).
Organisational Boundary
Determines which operations are included in your inventory based on your consolidation approach.
- •Equity share — account for emissions according to your ownership percentage
- •Financial control — account for emissions from operations you financially control
- •Operational control — account for emissions from operations you control (most common)
Operational Boundary
Determines which emission sources are included, categorised by Scope 1, 2, and 3.
- •Identify emission sources within the organisational boundary
- •Classify each source as Scope 1, 2, or 3
- •Decide which Scope 3 categories are relevant (minimum 15 categories)
- •Set a significance threshold for exclusions
Setting Your Base Year
A base year is the reference point against which you measure emission reductions. The GHG Protocol recommends:
- •Choose a single year with reliable data
- •Document the base year and justify the choice
- •Recalculate the base year when significant structural changes occur (mergers, acquisitions, divestitures)
- •Maintain consistency in base year recalculation methodology
Practical Examples
Example 1: Manufacturing Company
A mid-sized manufacturer with three facilities, a fleet of 20 vehicles, and global suppliers.
Scope 1
Natural gas for heating, diesel for fleet, refrigerant leaks from cooling systems
Scope 2
Purchased electricity for machinery, lighting, and IT — reported location-based and market-based
Scope 3
Purchased raw materials, employee commuting, business travel, downstream distribution
Example 2: Professional Services Firm
A 500-person consulting firm with offices in London, Paris, and Dubai. No manufacturing, heavy travel profile.
Scope 1
Minimal — emergency generator fuel, small vehicle fleet
Scope 2
Electricity for offices — typically 15-25% of total footprint
Scope 3
Business travel (often 50%+), employee commuting, purchased services, cloud computing
Example 3: Retail Chain
A national retailer with 50 stores, a distribution centre, and an e-commerce operation.
Scope 1
Refrigerants (HFCs) in store cooling, heating fuel for stores and warehouse
Scope 2
Electricity for lighting, HVAC, refrigeration, and e-commerce data centres
Scope 3
Purchased goods (largest category), upstream transportation, customer travel to stores, product end-of-life
Related Tools & Resources
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