Greenhouse Gas Protocol
24 December 2015 by Chris McDonald
What is The Greenhouse Gas Protocol?
The Greenhouse Gas (GHG) Protocol was developed by the World Resources Institute (WRI) and World Business Council on Sustainable Development (WBCSD) and sets a global standard for how to measure, manage, and report on greenhouse gas emissions. The first edition of the GHG Protocol: A Corporate Accounting and Reporting Standard (Corporate Standard) was published in 2001. Since then the GHG Protocol has evolved through developing a suite of calculation tools to assist companies in calculating their greenhouse gas emissions and the creation of additional guidance documents such as the GHG Protocol for Project Accounting.
The GHG Protocol is the most commonly used international accounting tool used to understand, quantify, and manage greenhouse gas emissions. The GHG Protocol is working with numerous organisations and groups around the world to build a new generation of credible and effective programs for tackling climate change. The GHG Protocol also offers developing countries an internationally accepted management tool to assist businesses to compete in the global marketplace and their governments to make informed decisions about climate change.
In 2006, the International Organization for Standardization (ISO) adopted the GHG Protocol as the basis for its ISO 14064-I: Specification with Guidance at the Organization Level for Quantification and Reporting of Greenhouse Gas Emissions and Removals.
The drivers for corporate GHG accounting include mandatory reporting in director reports, investment due diligence, shareholder and stakeholder communication, staff engagement, and tender requirements for business and government contracts. To date more than 1,000 businesses and organizations around the world have developed their GHG inventories using the GHG Protocol, including some of the world’s largest organisations. The 2007 Corporate Climate Communications Report of the Fortune 500 companies by CorporateRegister.com reported that 63 percent of companies use the GHG Protocol. The Carbon Disclosure Project - a non-profit organization regularly surveys the world’s largest companies to assess investment-related risks and opportunities related to climate change using the GHG Protocol as the framework. In 2008, 72 percent of Fortune 500 companies responded to the survey.
The 2010 GHG Workforce Survey from GHG Management Institute and Sequence Staffing discovered that the majority of respondents said GHG Protocol is the second most important climate program after Kyoto Protocol in the successful measurement and management of climate change.