All about the GHG inventory
Reading 8 min
April 10, 2025
Summary
The GHG inventory is a tool that measures an organization’s greenhouse gas emissions. It quantifies both direct and indirect emissions related to its activities. It is essential for reducing the carbon footprint and complying with environmental regulations.
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Definition of the GHG inventory
What is the GHG inventory?
The GHG (Greenhouse Gas) inventory is an approach that measures the greenhouse gas emissions generated by an organization. It is a legal obligation for certain companies and public entities according to Law No. 2010-788 of July 12, 2010:
Private entities with more than 500 employees,
Local authorities with over 50,000 inhabitants,
Public institutions with more than 250 employees,
and State services.
The GHG inventory by Ademe is based on international standards such as the GHG Protocol and covers direct emissions (Scope 1) and indirect emissions related to energy use (Scope 2). While accounting for Scope 3 (other indirect emissions) is recommended, it is not yet mandatory.
What is a regulatory GHG assessment?
The regulatory GHG assessment is a legal requirement for certain companies and public entities in France, in accordance with Law No. 2010-788 of July 12, 2010. It requires the organizations concerned to measure and report their greenhouse gas emissions, based on Scopes 1 and 2. This assessment must be updated every four years for private companies and every three years for local authorities and government departments. Its objective is to encourage emission reductions and support the ecological transition by aligning companies with climate requirements.
What does it mean to have a positive carbon footprint?
A positive carbon footprint means that an organization emits more greenhouse gases than it offsets or absorbs. This indicates a negative environmental impact, with net emissions exceeding carbon reduction or sequestration efforts.
Conversely, a neutral or negative carbon footprint means that the organization manages to balance or exceed its emissions offsetting efforts. To improve their carbon footprint, companies can reduce their energy consumption, adopt renewable energy sources, and finance offsetting projects (reforestation, CO₂ capture). The goal is to align economic activities with climate change requirements and the ecological transition.
Differences between the GHG inventory and other emission management tools
The GHG inventory differs from other emission management tools by being mandatory for certain organizations, while other tools, such as the carbon footprint assessment, are often voluntary. The regulatory GHG inventory requires accounting for direct emissions (Scope 1) and indirect emissions related to energy use (Scope 2), whereas the carbon footprint assessment systematically includes Scope 3 emissions (supply chain, transportation, etc.), offering a more comprehensive view.
While Scope 3 is recommended for the GHG inventory, it is not mandatory, making the initial evaluation simpler. However, integrating Scope 3 into a more comprehensive assessment allows for a better understanding of the carbon footprint and identifying additional reduction opportunities. The carbon footprint assessment is often more exhaustive, but the GHG inventory ensures compliance with environmental regulations.
To further explore the difference between GHG inventory and carbon footprint assessment, read our related article.
Objectives of the GHG inventory
The GHG inventory helps companies and organizations understand and manage their environmental impact, particularly their greenhouse gas emissions. The main objectives of the GHG inventory are as follows:
Measure greenhouse gas emissions: It quantifies an organization’s direct and indirect emissions, providing a global view of the carbon footprint.
Identify emission sources: The GHG inventory precisely identifies the main sources of emissions, whether from energy, transportation, or the supply chain.
Reduce emissions: By better understanding emission sources, it is easier to implement effective strategies to reduce them and thus lower the carbon footprint.
Ensure regulatory compliance: The GHG inventory helps companies comply with emission regulations and meet legal obligations.
Improve transparency: GHG inventory results can be shared with various stakeholders to demonstrate a commitment to fighting climate change.
Anticipate risks: It helps businesses anticipate future changes in climate regulations and market expectations.
How to Conduct a GHG Inventory?
Conducting a GHG assessment follows several essential steps to ensure a reliable and comprehensive assessment of an organization’s greenhouse gas emissions.
Defining the Scope of the GHG Assessment
Before beginning the analysis, it is essential to precisely define the scope of the GHG assessment. This step involves identifying the activities concerned, such as production, services, or transportation, as well as the sites involved, whether offices, factories, or warehouses. This delineation ensures a relevant assessment tailored to the organization’s specific needs.
It is also necessary to categorize emissions into several levels. Scope 1 covers direct emissions produced by the organization, particularly those related to fuel combustion or industrial processes. Scope 2 concerns indirect emissions resulting from purchased energy, such as electricity or heat. Finally, Scope 3, although optional in a regulatory assessment, encompasses other indirect emissions, both upstream and downstream in the supply chain.
A clear definition of the scope allows for reliable results and facilitates the identification of emission reduction levers.
Collect emissions data
Once the scope has been defined, data must be collected to quantify emissions. This includes, for example:
- Energy consumption: electricity and gas bills, consumption readings.
- Employee travel: use of company vehicles, business trips.
- Inputs and the supply chain: emissions related to raw materials and purchased products.
- Waste and its treatment: recycling, incineration, landfill.
Data can be collected through internal reports, activity records, or specialized tools such as D-Carbonize, which facilitate its centralization and analysis.
Calculate greenhouse gas emissions
Once the data has been collected, it must be converted into equivalent CO₂ emissions to obtain an accurate measurement of the organization’s carbon footprint. To achieve this, it is essential to use emission factors from recognized databases, such as those of Ademe or the GHG Protocol. These references allow a specific emission value to be assigned to each identified source, based on its actual impact on the environment. In addition, recognized methodologies should be used, such as ISO 14064 or the Carbon Footprint standard. These different methods ensure a rigorous and standardized approach to calculations. Thanks to these tools, the results obtained provide a detailed quantification of emissions by category, thus facilitating analysis and identification of the main emitting sources.
Analyzing the results and identifying levers for action
Interpreting the results is a key step in understanding the main sources of emissions and guiding reduction actions. Once the data has been analyzed, it is possible to prioritize measures by targeting the highest-emitting areas. This approach allows for effective action where the environmental impact is greatest.
At the same time, this analysis helps identify optimization opportunities, such as reducing energy consumption, transitioning to renewable energy sources, or improving logistics. By identifying the most relevant levers for action, companies can develop a tailored strategy to reduce their carbon footprint effectively and sustainably.
Drafting a report and defining an action plan
The GHG assessment must be summarized in a structured report that presents the results in a clear and actionable manner. This document must include a detailed analysis of emissions broken down by category, distinguishing between the different scopes. In addition, it highlights the main sources of emissions to better understand the most impactful areas.
In addition, the report must offer concrete recommendations for reducing the carbon footprint by identifying the most relevant levers for action. It provides an essential basis for developing a structured action plan, with quantified objectives and progress tracking over time. This report thus helps ensure continuous improvement of the organization’s environmental performance.
Monitoring and Updating the GHG Assessment
A GHG assessment is not a one-time process, but a continuous improvement process. Therefore, it is recommended to:
- Update data regularly to measure changes in emissions.
- Evaluate the effectiveness of implemented actions and adjust the strategy if necessary.
- Communicate the results to stakeholders to strengthen transparency and environmental commitment.
By implementing these different steps, companies can transform their GHG assessment into a real lever for environmental and economic performance and stand out from the competition.
The Benefits of a GHG Assessment for Companies
A GHG assessment offers numerous benefits for companies, allowing them to better understand and manage their environmental impact. It is an essential first step in identifying the main sources of emissions and implementing effective reduction strategies. Conducting a GHG assessment can thus lead to process optimization and reduced energy costs. By conducting a GHG assessment, companies also comply with environmental regulations while strengthening their position in a market increasingly focused on sustainability. Furthermore, it improves transparency towards stakeholders by demonstrating a concrete commitment to combating climate change and strengthening the organization’s brand image.
The Challenges and Disadvantages of GHG Assessments
While a GHG assessment is a key tool for measuring and reducing greenhouse gas emissions, its implementation can also pose several challenges for companies. Initially, data collection can be complex and time-consuming, especially when the information is dispersed across different departments or suppliers. Access to reliable and accurate data is essential to obtain a representative assessment, but it can be difficult to guarantee, particularly for Scope 3, which relies on external information.
Additionally, conducting a GHG assessment requires specific skills in carbon accounting and environmental analysis. Companies without dedicated internal resources often have to call on experts or invest in specialized management tools, which can represent a significant cost.
