Carbon Management 05 – GHG Protocol Key Items

Three GHG Protocol guidelines that companies are adopting :

1. Scope 1, 2, and 3 Emissions Reporting:

   – Guideline: The GHG Protocol provides a framework for categorizing and reporting greenhouse gas emissions into three scopes:

     – Scope 1: Direct emissions from sources that are owned or controlled by the company, such as emissions from combustion of fossil fuels in company-owned vehicles and facilities.

     – Scope 2: Indirect emissions associated with purchased electricity, heat, or steam consumed by the company.

     – Scope 3: Indirect emissions from sources outside the company’s operational control, such as emissions from upstream and downstream activities in the value chain, business travel, employee commuting, and product transportation.

   – Adoption: Companies adopt the GHG Protocol’s Scope 1, 2, and 3 emissions reporting guidelines to comprehensively assess their carbon footprint across the entire value chain. They collect data on emissions from various sources, analyze hotspots, and develop strategies to reduce emissions. Companies support these guidelines by investing in renewable energy, energy efficiency measures, sustainable transportation options, and supply chain optimization to reduce their overall carbon footprint.

2. Corporate Value Chain (Scope 3) Accounting and Reporting Standard:

   – Guideline: The GHG Protocol’s Corporate Value Chain (Scope 3) Standard provides a framework for companies to measure and report emissions from their value chain activities, including upstream and downstream emissions beyond their direct operations. This includes emissions associated with purchased goods and services, use of sold products, transportation and distribution, waste generation, and employee commuting.

   – Adoption: Companies adopt the Scope 3 accounting and reporting standard to understand the full extent of their carbon footprint and identify opportunities for emissions reductions throughout their value chain. They collaborate with suppliers, customers, and partners to collect data, assess emissions, and implement initiatives to reduce emissions collectively. Companies support these guidelines by engaging with stakeholders, setting supply chain sustainability goals, and integrating climate considerations into procurement decisions and supplier relationships.

3. Product Life Cycle Accounting and Reporting Standard:

   – Guideline: The GHG Protocol’s Product Life Cycle Accounting and Reporting Standard provides a methodology for quantifying and reporting greenhouse gas emissions associated with the entire life cycle of a product, from raw material extraction and manufacturing to use and disposal. This includes emissions from production processes, transportation, packaging, product use, and end-of-life disposal.

   – Adoption: Companies adopt the Product Life Cycle Accounting and Reporting Standard to assess the carbon footprint of their products and identify opportunities to reduce emissions throughout the product life cycle. They conduct life cycle assessments (LCAs) to quantify emissions, optimize product design and manufacturing processes, reduce energy consumption, and promote product reuse, recycling, and responsible disposal. Companies support these guidelines by developing sustainable product portfolios, implementing circular economy principles, and providing transparent product carbon footprint information to consumers.


Overall, companies adopt GHG Protocol guidelines to measure, manage, and reduce greenhouse gas emissions across their operations, supply chains, and product life cycles, contributing to climate change mitigation efforts and advancing sustainability goals.

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