Greenhouse Gas Protocol (GHG Protocol): The Foundation for Reporting

Calculation of organisational carbon footprint (Scope 1, 2, 3) for first-time or mandatory reporting.

Service: Carbon Footprint Accounting

Context

The GHG Protocol is the world’s most widely adopted framework for measuring, managing, and reporting GHG emissions. While not a regulation itself, it serves as the de facto methodological foundation for EU climate and sustainable finance legislation, making it essential for regulatory compliance.

 

Legislation and recommendations on the GHG Protocol

 

Target Audience

  • ESG Reporting Entities: Companies seeking to comply with CSRD, SFDR, GRI, or TCFD requirements.
  • Value Chain Participants: Manufacturers and contractors receiving Scope 1–3 data requests from global partners.
  • Sustainability Finance Candidates: Entities applying for grants, preferential climate loans, or bonds.
  • Decarbonisation Leaders: Organisations setting targets through the Science Based Targets initiative (SBTi) or pursuing Net Zero.

Strategic Importance

  • Standardisation: Establishes a uniform methodology for Scope 1, 2, and 3 emissions, ensuring data comparability across subsidiaries and sectors.
  • Operational Visibility: Identifies "bottlenecks" within the Value Chain to inform energy efficiency and modernisation decisions.
  • Institutional Transparency: Demonstrates climate responsibility to investors, stock exchanges, and regulators.
  • Regulatory Readiness: Proactively aligns organisations with evolving norms such as CSRD and SFDR to mitigate future market risk.
  • Access to Capital: Fulfills the transparency requirements of banks and institutional investors for green finance eligibility.

Methodological Challenges

Organisations frequently face challenges in initiating GHG accounting, including:

  • Methodological complexity in calculating Scope 1, 2, and 3 emissions.
  • Identifying and collecting high-quality activity data.
  • Developing internal processes to meet the expectations of global partners and investors.
  • Establishing a systematic Emissions Inventory required for effective Decarbonisation Strategy development.

Our Advisory Methodology

We provide structured support across the full GHG accounting lifecycle:

  1. Audit and Activity Analysis: Identification of Scope 1, 2, and 3 sources and data quality assessment.
  2. Methodology Development: Selection of relevant GHG Protocol approaches and design of the Emissions Inventory structure.
  3. Data Processing: Coordination of data collection across the Value Chain and normalization according to technical specifications.
  4. Emissions Calculation: Application of certified databases and the correct Emission Factor with consideration for local context.
  5. Reporting: Preparation of GHG reports aligned with GHG Protocol, GRI, CDP, CSRD, or SBTi requirements.
  6. Strategic Integration: Capacity building and integration of carbon accounting into broader ESG management and decarbonisation planning.