What are the differences between the GHG inventory and the carbon footprint assessment?

What is the GHG inventory?

The GHG inventory is a tool that measures the greenhouse gas (GHG) emissions generated by the activities of an organization or company. It calculates the environmental impact of these emissions following regulations.

In France, the GHG inventory is mandatory for certain companies and local authorities under Law No. 2010-788, also known as the Grenelle 2 law. This requirement applies to:

• Private companies with more than 500 employees,
• Local authorities with more than 50,000 inhabitants,
• Public institutions with more than 250 agents.

These entities must carry out and publish their GHG inventory every 3 to 4 years according to legal provisions, contributing to the fight against climate change.

The GHG inventory is structured around several scopes:

• Scope 1: Direct emissions from activities under the organization’s control (e.g., fossil fuel combustion).
• Scope 2: Indirect emissions related to purchased energy consumption (electricity, heat).
• Scope 3 (recommended but not mandatory): Indirect emissions related to other activities, such as business travel or the supply chain.

What is the carbon footprint assessment?

The carbon footprint assessment is a voluntary initiative that measures the greenhouse gas (GHG) emissions of an organization, considering both direct and indirect emissions. It evaluates the carbon footprint of a company or product by providing a comprehensive view of all emissions.

Created by ADEME (the French Agency for Ecological Transition), the carbon footprint assessment was designed to help organizations better understand their environmental impact and identify levers for reducing their emissions. It is generally used in voluntary efforts related to corporate social responsibility (CSR) or carbon neutrality goals.

Unlike the GHG inventory, the carbon footprint assessment systematically includes Scope 3 emissions, which are the indirect emissions related to the entire value chain. This broader scope provides a more complete view of the carbon footprint, offering a better basis for long-term emission reduction strategies.

Key differences between the GHG inventory and the carbon footprint assessment

Mandatory vs. Voluntary

The GHG inventory is a legal requirement for certain companies and public entities, mandated by the Grenelle 2 law. This obligation applies to companies with more than 500 employees, local authorities with over 50,000 inhabitants, and public institutions with more than 250 agents. In contrast, the carbon footprint assessment is a voluntary initiative used by companies to go beyond regulatory requirements and take a proactive approach to managing their greenhouse gas emissions.

Scope

The GHG inventory primarily covers Scopes 1 and 2, meaning direct emissions (such as fossil fuel combustion) and indirect emissions related to purchased energy. The carbon footprint assessment, however, also includes Scope 3, which encompasses indirect emissions from the value chain, such as suppliers, transportation, and the production of goods and services.

Objective

The primary objective of the GHG inventory is to comply with regulations and ensure legal conformity. In contrast, the carbon footprint assessment aims to establish a comprehensive emission reduction strategy, taking into account all emission sources, including those not required by law.

When to use the GHG inventory or the carbon footprint assessment?

The GHG inventory is used by companies and local authorities subject to legal obligations. In France, this applies to companies with more than 500 employees, local authorities with over 50,000 inhabitants, and public institutions with more than 250 agents, under the Grenelle 2 law. These entities must complete and publish a GHG inventory every three or four years to comply with the regulations.

The carbon footprint assessment is more commonly used voluntarily by companies that wish to go beyond legal requirements. It is often adopted as part of a sustainability or corporate social responsibility (CSR) strategy, particularly for those aiming for carbon neutrality. It allows companies to include emissions from the entire value chain to better understand and reduce their overall carbon footprint.