GHG Protocol

GHG Protocol coordination with EU + regulatory climate frameworks. EU TAXONOMY REGULATION (Regulation (EU) 2020/852): 6 environmental objectives; Climate Change Mitigation + Climate Change Adaptation primary climate objectives; TECHNICAL SCREENING CRITERIA require GHG performance + footprint reductions per GHG Protocol methodology; financial entities + non-financial companies disclose Taxonomy-eligible + Taxonomy-aligned share. EU CSDDD (Directive (EU) 2024/1760): MANDATORY CLIMATE TRANSITION PLAN + 1.5C alignment + scope including Scope 3; GHG Protocol foundational. EU ETS (Emission Trading System) Directive 2003/87/EC: covered installations + maritime + aviation must report verified emissions to authorities + buy allowances; verified per accredited verifiers + GHG Protocol + ISO 14064-3 + AVR (Accreditation and Verification Regulation); CBAM (Carbon Border Adjustment Mechanism, EU 2023

• Multi-jurisdictional climate compliance program
• Reporting submissions
• CBAM compliance + reporting

• Multi-jurisdictional compliance gaps
• Disclosure submissions inconsistent
• CBAM not addressed

GHG Protocol coordination with adjacent climate + sustainability frameworks. SBTi (SCIENCE BASED TARGETS INITIATIVE): GHG Protocol is the foundational accounting framework for SBTi target-setting + tracking; SBTi requires Scope 1/2/3 inventories + 1.5C / well-below-2C aligned reduction targets + net-zero commitments + annual progress tracking; SBTi has 4 reduction tier methods (Sectoral Decarbonization Approach SDA + Absolute Contraction + ACA + Renewable Energy + others) + Net-Zero Standard. CDP (CARBON DISCLOSURE PROJECT): annual corporate disclosure platform; questionnaire aligned with GHG Protocol + ISSB + TCFD; rated A-F; ~25,000 companies disclose annually; cdp.net. EU CSRD + ESRS E1 (CLIMATE CHANGE): GHG Protocol Scope 1/2/3 inventories + reduction targets + transition plans + double materiality assessment mandatory under CSRD; ESRS E1 datapoints include 26 disclosure requirements

• Multi-framework alignment + crosswalks
• SBTi + CDP + CSRD + ISSB submissions
• ISO 14064 + PCAF + sector-specific
• Verification + assurance program

• Multi-framework alignment ad-hoc
• SBTi + CDP + CSRD + ISSB submissions missed
• ISO 14064 + PCAF not used
• Verification gaps

GHG Protocol crosswalk to international climate accounting + sectoral standards. ISO 14064-1:2018 (ORGANIZATION-LEVEL) - conceptually aligned with GHG Protocol Corporate Standard + Scope 2 + Scope 3; differs in: (a) ISO uses 'direct + indirect + other indirect' rather than Scope 1/2/3; (b) more prescriptive on verification (ISO 14064-3); (c) less detailed on Scope 3 categories. ISO 14064-2:2019 (PROJECT-LEVEL) - aligned with GHG Project Protocol; carbon offset + project quantification. ISO 14064-3:2019 (VERIFICATION) - third-party verification methodology; widely used for GHG inventory assurance + verification statements. ISO 14067:2018 (PRODUCT CARBON FOOTPRINT) - aligned with GHG Product Life Cycle Standard. ISO 14068-1:2023 (CARBON NEUTRALITY) - aligned with SBTi Net Zero + GHG Protocol. PCAF (PARTNERSHIP FOR CARBON ACCOUNTING FINANCIALS): financial-sector Scope 3 Category 15 financed

• ISO 14064 + 14067 cross-mapping
• PCAF compliance for financial entities
• Sectoral standards alignment
• Multi-framework disclosure adoption

• ISO alignment not maintained
• PCAF not used
• Sectoral standards ignored
• Multi-framework disclosure siloed

GHG Protocol implementation roadmap. INVENTORY PROCESS (annual cycle): (1) DEFINE GOAL + AUDIENCE - business goals + stakeholders + reporting standards; (2) SET BOUNDARIES - organisational (equity/financial/operational control) + operational (Scope 1/2/3); (3) IDENTIFY EMISSION SOURCES - all activities + sources per scope + category; (4) COLLECT ACTIVITY DATA - fuel consumption + electricity + travel + procurement + waste + commuting + investments + etc.; (5) SELECT EMISSION FACTORS - IPCC + EPA + EEA + national + supplier-specific + REC/GoO + LCA databases (ecoinvent + GaBi + Sphera); (6) CALCULATE EMISSIONS - tCO2e via activity x factor x GWP; (7) QUALITY ASSURANCE - data quality assessment + uncertainty + internal review; (8) DOCUMENT + REPORT - inventory report + emissions statement + base year + recalculation + assurance; (9) VERIFY - external limited or reasonable assurance; (10) D

• Inventory process documentation
• Role inventory + RACI
• Tooling adoption + data integration
• Metrics + management review

• Inventory cycle ad-hoc
• Roles undefined
• Tooling fragmented
• Metrics not tracked

GHG Protocol status + 2024-2025 update pipeline. STATUS: GHG Protocol Suite established 1998 + active maintenance by WRI + WBCSD + Independent Standards Board + Technical Working Groups; freely available + downloadable from ghgprotocol.org. CURRENT EDITIONS: Corporate Standard (2004 revised); Scope 2 Guidance (2015); Corporate Value Chain Standard (2011); Product Life Cycle Standard (2011); Project Protocol (2005); Mitigation Goal Standard (2014); Policy and Action Standard (2014); Land Sector + Removals Guidance (2025). 2024-2025 UPDATE PIPELINE: comprehensive consultation underway (2022-2025) for major Corporate Standard + Scope 2 Guidance + Scope 3 Standard updates; new editions anticipated 2026-2027; KEY UPDATE AREAS: (a) AI + machine learning emissions - data centre + training + inference + cooling + embodied emissions of hardware; (b) CLOUD COMPUTING - shared infrastructure + virtu

• Consultation participation + readiness
• Update-pipeline tracking + impact assessment
• Transition plan for new editions

• Consultation not engaged
• Update pipeline not tracked
• Transition plan absent

GHG Protocol adoption + sectoral application. ADOPTION: GHG Protocol is the GLOBAL DEFAULT for corporate GHG accounting; estimated >9 in 10 of Fortune 500 companies + most Global 2000 use GHG Protocol; underpins CDP (~25,000 corporate disclosures annually); SBTi (1,500+ companies with science-based targets); CSRD ESRS E1 (~50,000 EU + non-EU companies under CSRD scope from 2024-2028); ISSB IFRS S2 (emerging global baseline). SECTORAL APPLICATION: (a) OIL + GAS - IPIECA + API Compendium + IOGP sector guidance; (b) MANUFACTURING - WBCSD Cement Sustainability Initiative + ISO 14064 + sector-specific (steel + chemicals + paper); (c) FINANCIAL SERVICES - PCAF financed emissions methodology; (d) TECH + DATA CENTRES - Climate Neutral Data Centre Pact + Open Compute Project Sustainability + iMasons Climate Accord; (e) AGRICULTURE + FOOD - FLAG (Forest + Land + Agriculture) standard + SBTi FLAG;

• Sectoral framework alignment
• Industry-specific guidance adoption
• Emerging sector readiness

• Sectoral framework alignment ad-hoc
• Industry-specific guidance ignored
• Emerging sector readiness gap

GHG Protocol data quality + verification + disclosure. DATA QUALITY: 5 dimensions per GHG Protocol Scope 3 Standard - (1) TECHNOLOGY representativeness; (2) TEMPORAL representativeness; (3) GEOGRAPHICAL representativeness; (4) COMPLETENESS; (5) RELIABILITY (accuracy + precision). UNCERTAINTY ASSESSMENT: quantitative uncertainty analysis for activity data + emission factors + GWP + model uncertainty; typically Monte Carlo or pedigree approaches; uncertainty disclosure required for Scope 1/2/3. EXTERNAL VERIFICATION: limited or reasonable assurance by independent third-party verifier per ISO 14064-3 + ISAE 3000/3410 + similar; SCOPE of verification: organisational boundary + operational boundary + Scope 1 + Scope 2 + Scope 3 + reporting principles + data integrity + calculation methods + emission factor application; INCREASINGLY MANDATORY: EU CSRD + ESRS E1 require limited assurance + reas

• Data quality assessment per source
• Uncertainty quantification + disclosure
• External verification + assurance reports
• CDP + CSRD submissions

• Data quality not assessed
• Uncertainty not disclosed
• External verification absent
• CDP + CSRD submissions skipped

GHG Protocol boundaries + base year + recalculation. ORGANISATIONAL BOUNDARIES (3 approaches): (a) EQUITY SHARE - account for GHG emissions according to share of equity in operation; (b) FINANCIAL CONTROL - account for emissions from operations where financial control is exercised + ability to direct financial + operating policies; (c) OPERATIONAL CONTROL - account for emissions from operations where operational control is exercised + authority to introduce + implement operating policies; (d) HYBRID approaches permitted with disclosure; (e) JOINT VENTURES + PARTNERSHIPS + SUBSIDIARIES + FRANCHISES + LEASED ASSETS + INTERCOMPANY TRANSACTIONS handled per chosen approach. OPERATIONAL BOUNDARIES (Scope 1/2/3 classification): see separate Scope controls. BASE YEAR: a specified year or average of years against which an emissions are tracked over time; selection criteria - representative + reli

• Boundary approach documentation
• Base year + recalculation policy
• Recalculation execution records

• Boundary approach inconsistent
• Base year not justified
• Recalculation policy missing or weak

GHG Protocol Scope 1 - direct emissions from sources owned or controlled by the company. 4 SUB-CATEGORIES: (1) STATIONARY COMBUSTION - emissions from combustion of fuels in stationary equipment including boilers + furnaces + burners + turbines + heaters + incinerators + engines + flares + ovens + dryers + and other stationary processes; FUELS include natural gas + coal + oil + biomass + biofuels + waste-derived fuels + hydrogen; CALCULATION via fuel consumption x emission factor (IPCC + national + manufacturer + EPA Mandatory Reporting Rule + EEA + others); (2) MOBILE COMBUSTION - emissions from transportation in mobile sources including company-owned/controlled vehicles + trucks + ships + planes + trains + machinery; FUELS include gasoline + diesel + jet kerosene + biofuels + LPG + CNG + LNG + hydrogen; CALCULATION via fuel-based or distance-based methods; (3) PROCESS EMISSIONS - emissi

• Scope 1 inventory + activity data
• Emission factor sources documented
• GWP version + recalculation policy

• Scope 1 sources missed
• Emission factor sources unclear
• GWP outdated

GHG Protocol Scope 2 - indirect emissions from purchased electricity + steam + heating + cooling. Per the 2015 SCOPE 2 GUIDANCE, organizations must report Scope 2 using BOTH LOCATION-BASED + MARKET-BASED methods (DUAL REPORTING). PURCHASED ENERGY TYPES: (1) ELECTRICITY from utility grid; (2) STEAM from district energy or third-party generators; (3) HEATING from district heating networks; (4) COOLING from district cooling networks. LOCATION-BASED METHOD: emissions based on average emission factor of the local grid where energy is consumed; uses regional/national/sub-national grid average emission factors (e.g. EPA eGRID for US + UK BEIS + EU AIB + International Energy Agency for non-OECD); reflects physical electricity grid mix. MARKET-BASED METHOD: emissions based on contractual instruments + market choices including REC (Renewable Energy Certificates) + Guarantees of Origin (GoOs) + Pow

• Location-based + market-based calculations
• REC/GoO/PPA procurement records
• Quality criteria adherence
• Dual-reporting evidence

• Single-method reporting (PROHIBITED)
• Market-based instruments low quality
• Dual reporting missing
• Quality criteria gaps

GHG Protocol Scope 3 - indirect value-chain emissions across 15 CATEGORIES per the Corporate Value Chain (Scope 3) Standard 2011. 8 UPSTREAM CATEGORIES: (1) PURCHASED GOODS AND SERVICES - cradle-to-gate emissions of products and services purchased; typically largest Scope 3 source; (2) CAPITAL GOODS - cradle-to-gate emissions of capital goods purchased + amortized over useful life or expense year; (3) FUEL- AND ENERGY-RELATED ACTIVITIES NOT IN SCOPE 1 OR 2 - upstream emissions of purchased fuels + electricity + transmission and distribution losses + WTT (well-to-tank); (4) UPSTREAM TRANSPORTATION AND DISTRIBUTION - emissions from transportation + distribution of purchased products + outbound logistics paid by reporting company; (5) WASTE GENERATED IN OPERATIONS - disposal + treatment of waste; (6) BUSINESS TRAVEL - employee business travel by air + rail + road + sea; (7) EMPLOYEE COMMUTI

• Scope 3 inventory + 15 categories
• Materiality assessment + screening
• Per-category methodology documentation

• Scope 3 categories missed
• Materiality assessment skipped
• Methodology inconsistent
• Financial-sector PCAF not used

GHG Protocol Suite + Corporate Standard + 5 Reporting Principles. SUITE: (a) Corporate Standard (2004) - foundational entity-level; (b) Scope 2 Guidance (2015); (c) Corporate Value Chain (Scope 3) Standard (2011); (d) Product Life Cycle Standard (2011); (e) Project Protocol (2005); (f) Mitigation Goal Standard (2014); (g) Policy and Action Standard (2014); (h) Land Sector + Removals Guidance (2025). 5 REPORTING PRINCIPLES (foundational to all GHG Protocol standards): (1) RELEVANCE - inventory reflects GHG emissions of company + serves user decision needs; (2) COMPLETENESS - account for + report all GHG emission sources + activities within chosen inventory boundary + disclose + justify exclusions; (3) CONSISTENCY - use consistent methodologies + boundaries + base year + data quality + transparently document any changes; (4) TRANSPARENCY - report in factual + neutral manner sufficient for

• GHG suite implementation plan
• Reporting principles documentation
• Multi-standard cross-reference

• Suite components misunderstood
• Principles applied superficially
• Multi-standard alignment gaps