GHG Protocol: What Is It?

Importance of the GHG Protocol

The GHG Protocol plays a crucial role in managing greenhouse gas emissions. It provides a standardized and internationally recognized framework for companies and organizations to measure, manage and report their GHG emissions in a transparent and consistent manner. This protocol facilitates the comparison of environmental performance between organizations.

The GHG Protocol is essential for complying with climate regulations. It also encourages sustainable and responsible business practices, helping organizations identify energy inefficiencies and improve their environmental performance.

Finally, using the GHG Protocol strengthens the credibility of emissions reporting among stakeholders, such as investors, customers and regulators. It allows companies to demonstrate their commitment to combating climate change and improve their image.

GHG Protocol components

Scope 1: Direct emissions

Scope 1 covers all direct greenhouse gas (GHG) emissions generated by sources owned or controlled by the company. These emissions mainly come from the combustion of fossil fuels on site, used in equipment such as boilers, industrial furnaces, generators, and company vehicles running on gasoline or diesel. They also include fugitive emissions, which result from accidental gas leaks, in particular from refrigeration systems (HFC refrigerant gases) or gas distribution networks.

Accurate accounting of direct emissions is essential to identify the most emitting sources and implement targeted actions. This allows companies to deploy effective emission reduction strategies. It is thus possible to improve the energy efficiency of equipment, optimize industrial processes and modernize vehicle fleets by opting for less polluting or even electric models.

Additionally, innovative technologies, such as heat recovery systems or low-carbon processes, can be integrated to limit CO₂ emissions. Finally, preventive maintenance programs help prevent gas leaks, reducing the company’s overall environmental impact.

Scope 2: Indirect energy-related emissions

Scope 2 indirect emissions concern the consumption of electricity, heat and steam purchased and used by the company. Although these emissions occur outside the organization’s sites (at energy suppliers), they are directly linked to the company’s activities. They mainly come from the production of energy from fossil fuels, such as coal, natural gas or oil, which generate significant CO₂ emissions.

To reduce their carbon footprint in Scope 2, companies can act on different levers. They can improve their energy efficiency by optimizing the use of equipment, modernizing infrastructure or installing smart energy management systems. Purchasing electricity from renewable energy sources (solar, wind, hydro) is also an effective solution, making it possible to significantly reduce the associated emissions.

Some companies are even investing in on-site renewable energy production facilities, such as solar panels or wind turbines, to reduce their dependence on traditional energy suppliers. Finally, implementing green power purchase agreements helps ensure that the energy consumed comes from sustainable sources, thus contributing to carbon neutrality objectives.

Scope 3: Other indirect emissions

Scope 3 covers all indirect emissions related to a company’s activities, but from sources that it does not directly own or control. This scope is the largest and most complex to assess, as it covers the entire value chain, from suppliers to end consumers. It includes upstream emissions, such as the extraction of raw materials, the production of purchased goods, the transport of products and employee business travel. Downstream, it concerns the use of the products sold, their end-of-life management (recycling, landfill) and the distribution process.

Scope 3 often represents the largest share of a company’s total emissions, sometimes up to 70% or more, depending on the sector of activity. Its complexity lies in the diversity of emission sources and the difficulty of collecting accurate data from external partners.

However, this scope also offers significant opportunities for reducing emissions. By working in collaboration with suppliers, companies can influence production practices, encourage more sustainable methods and optimize logistics. On the customer side, designing products with a low environmental impact and promoting responsible consumption behaviors are effective levers.

Application of the GHG Protocol in companies

Implementation process

The application of the GHG Protocol in companies follows several steps:

Definition of the scope: Companies start by defining the organizational and operational boundaries of their emissions, covering Scopes 1, 2 and 3. This step consists of determining which entities, sites or activities will be included in the emissions inventory. The choice of scope can significantly influence the results, hence the importance of choosing consistent methods adapted to the structure of the organization.

Data collection: They collect precise data on energy consumption, materials used, business travel, and other activities generating emissions. This step requires collaboration between different departments (logistics, finance, CSR) to ensure the accuracy of the information. The use of carbon management software, such as D-Carbonize, can also facilitate data collection and analysis.

Calculating emissions: Using the methodologies and tools provided by the GHG Protocol, companies calculate their GHG emissions. This calculation is based on standard emission factors adapted to each emission source (electricity, transport, industrial processes). The objective is to obtain comparable, verifiable and representative results for the company’s activities.

Reporting and verification: The results are then reported in GHG emissions reports, which can be verified by independent third parties to ensure the accuracy and transparency of the data. This verification process improves the credibility of the reports with stakeholders, such as investors, customers and regulatory authorities.

Developing strategies: Finally, companies develop emission reduction strategies based on the data obtained. This can include energy efficiency actions, investments in low-carbon technologies, or carbon offsetting initiatives. Data analysis makes it possible to target the most emitting activities and define reduction targets aligned with international climate commitments.

This structured process helps companies improve their environmental performance, comply with climate regulations, and strengthen their resilience to the challenges of climate change.

Benefits for Businesses

The application of the GHG Protocol has many benefits for businesses.

• Regulatory Compliance : Facilitates compliance with national and international environmental regulations.
• Business Process Improvement : Identifies energy inefficiencies to improve processes.
• Reputation Building : Demonstrating a commitment to sustainability strengthens the company’s reputation.
• Energy Savings : Reducing emissions can lead to significant energy savings.
• Financial Benefits : Opens access to grants or carbon credits, providing additional financial benefits.

It facilitates compliance with national and international environmental regulations. By identifying energy inefficiencies, companies can also improve their operational processes. In addition, by demonstrating a commitment to sustainability, they strengthen their reputation. Finally, reducing emissions can lead to significant energy savings and open access to subsidies or carbon credits, thus providing additional financial benefits.

The GHG Protocol is an essential tool for companies wishing to effectively manage their greenhouse gas emissions. By offering standardized methodologies and practical tools, it allows organizations to comply with environmental regulations and improve their energy efficiency.