Greenhouse Gas (GHG) Protocol

“We are the first generation to feel the effects of climate change and the last generation who can do something about it.” Barack Obama

Introduction

Too much of anything is harmful—even what’s good in moderation can turn toxic in excess.

Take water, for example. It’s essential for hydration and overall health, but excessive intake can lead to water intoxication. Similarly, an occasional cup of tea can be refreshing and beneficial, but drinking it too often may cause acidity and other health issues.

The same principle applies to greenhouse gases: in balance, they sustain life; in excess, they threaten it.

Content: What is the GHG Protocol?

1. What is the GHG Protocol?
2. What are the different types of protocols/Standards?
3. What is the purpose and meaning of Scope 1, 2 and 3?
4. Why are they important?
5. Conclusion

Read More: https://bit.ly/C2CC2G (Cradle to Cradle and Cradle to Grave)

Read More: https://bit.ly/Scope123GHG

Objective

The GHG protocol has played a pivotal role in promoting decarbonisation across operations in the public and private sectors through providing a unified framework for emissions management.

At its core, the GHG Protocol helps organisations understand where their emissions are coming from and how to reduce them. By turning complex climate data into clear, comparable metrics, it makes it easier for businesses to take targeted, effective climate action.

Once you go through the article, you will understand the meaning of GHG Protocol, the types of Standards, the meaning of Scope 1, 2 and 3, relevant examples related to it, why it is important, and the conclusion.

Read More: https://bit.ly/LinearCircularEconomy

Definition: ISO 59004: 2024

Circular Economy (Cl 3.1.1): Economic system that uses a systematic approach to maintain a circular flow of resources by recovering, retaining or adding to their value while contributing to sustainable development. 

Sustainable Development (Cl 3.1.11): Development that meets the environmental, social economic needs of the present without compromising the ability of future generations to meet their own needs.

Life Cycle (Cl 3.2.4): Consecutive and interlinked stages in the life of a solution.

Linear Economy (Cl 3.5.10): Economic system where resources typically follow the pattern of extraction, production, use and disposal. 

End of Life (Cl 3.5.30): <Product> point in time when a product is taken out of use and its resources are either recovered for processing or disposed of. 

Life Cycle Assessment (Cl 3.6.8): Compilation and evaluation of the inputs, outputs and potential environmental impacts of a product system throughout its life cycle. 

Read More: https://bit.ly/ReduceRecyleReuse

Detailed Information

The Greenhouse Gas Protocol (GHG Protocol) is the leading global standard (established in 1990) for measuring and managing emissions. Used by both public and private sector organisations, it provides a comprehensive global standardised framework for tracking carbon emissions and other greenhouse gases across operations, supply chains, and climate initiatives.

It was created by WRI (World Resources Institute) and WBCSD (World Business Council for Sustainable Development) as an international standard for corporate accounting and reporting emissions, categorising greenhouse gases into Scope 1, 2 and 3 based on the source.

Today, the GHG Protocol collaborates with governments, industry associations, NGOs, corporations and other organisations to provide the world’s most widely used emission calculation guidelines.

Nations and enterprises that have committed to the Paris Agreement (COP 21 at Paris, 196 parties, 12 Dec 2015, global temperature rise below 1.5 degrees Celsius) are obligated to reduce their greenhouse gas emissions. To do so, they are required to track, disclose, and mitigate their emissions by adhering to established criteria like those outlined in the GHG Protocol.

The World Meteorological Organisation (WMO) has confirmed that 2024 was the hottest year on record, with a global average surface temperature of 1.55°C above pre-industrial levels. This means we’ve likely just experienced the first calendar year where the global mean temperature exceeded 1.5°C.

Read More: https://bit.ly/GreenWashiing

Greenhouse Gases:

The six major greenhouse gases covered under the Kyoto Protocol and commonly tracked under the GHG Protocol are:

1. Carbon Dioxide (CO₂): Global Warming Potential – GWP 1
   • Source: Fossil fuel combustion, deforestation, industrial processes
   • The most prevalent greenhouse gas from human activities
2. Methane (CH₄): GWP  28 – 36
   • Source: Agriculture (e.g., livestock), landfills, natural gas systems
3. Nitrous Oxide (N₂O): GWP  265 – 298
   • Source: Agricultural soil management, fossil fuel combustion, industrial processes
4. Hydrofluorocarbons (HFCs): GWP 124 – 12,500
   • Source: Refrigerants, air conditioning, aerosol propellants
   • Man-made; powerful warming potential
5. Perfluorocarbons (PFCs): GWP 6500 – 11,100
   • Source: Aluminium production, semiconductor manufacturing
   • Long atmospheric lifetimes
6. Sulfur Hexafluoride (SF₆): GWP 23,500
   • Source: Electrical insulation, circuit breakers, magnesium processing
   • Extremely potent and long-lasting in the atmosphere

These gases differ in Global Warming Potential (GWP), with some being thousands of times more potent than CO₂.

Read More: https://bit.ly/BRSRblog

GHG Protocol Applies to

• Businesses
• Governments
• NGO’s
• Cities and Municipalities
• Suppliers
• Investors
• Consulting firms
• Industry associations

Different GHG Protocol Standards

• Corporate Standard
• GHG protocol for Cities
• Mitigation Goal Standard
• Corporate Value Chain (Scope 3) Standard
• Policy and Action Standard
• Product Standard
• Project Protocol

How Does the GHG Protocol Work

The Greenhouse Gas Protocol is best known for its system of categorising GHG emissions into Scope 1, 2 and 3, a framework now used around the world to help organisations structure their carbon reporting. It standardises emissions reporting so that it is easier to compare emissions data across different organisations and industries.

Why are these 3 Scopes of Emissions?

Classifying a company’s emissions into three scopes allows companies to better measure, manage, and reduce emissions in a meaningful way. This framework provides a fully comprehensive overview across a company’s entire value chain, meaning that targeted actions can be taken to reduce and eliminate emissions. This is a more holistic approach to emissions management.

Read more: https://bit.ly/WhatESG

Scope 1 Emissions (Direct):

Scope 1 emissions are the greenhouse gases that a company or organisation emits directly. This can be through company vehicles, fugitive emissions (leaks from equipment or infrastructure), or any emissions from owned or controlled sources. 

These emissions are often the first area of focus in a company’s efforts to reduce greenhouse gas emissions, as they have direct control over them.

Example:

• Fuel combustion from mobile sources like company-owned vehicles, like delivery trucks, service vans, or company cars.
• Fuel combustion from stationary sources like burning natural gas in company boilers or diesel fuel backup generators.
• Process emissions like cement production, metal smelting, refining operations, iron and steel production, lime production, ethanol production, and hydrogen production (seam methane reforming).

Read More: https://bit.ly/ClimateChnages

Scope 2 Emissions (Indirect):

Scope 2 emissions are what a company purchases from a utility or other supplier. While the emissions from these sources occur at the facility where this energy is generated, they are attributed to the company that consumes the energy.

Examples:

• Purchased electricity like electricity used to power computers, air conditioning, lighting, refrigeration, electronic systems, and cooling systems.
• Purchased steam for manufacturing processes like chemical production and food processing plants, or for heating large buildings.
• Purchased Heating or Cooling which heat buildings from a central source, or boiler systems sourced externally or air conditioning or refrigeration systems.

Read More: https://bit.ly/LifeCycleAssesment

Scope 3 Emissions (Other Indirect):

Scope 3 emissions are a little more complicated. These are the emissions a company or organisation is responsible for across its entire value chain (Upstream: emissions from mining metal, making parts, and delivering them to your factory and Downstream: emissions from customers driving the car, and how it’s disposed of at end-of-life). This can be from buying products or services from a supplier, all the way through to when customers use their product or service. Scope 3 emissions are typically the biggest of the three scopes (More than 70% contribution).

Upstream Emissions:

1. Purchased Goods and Services
2. Capital Goods
3. Fuel- and Energy-Related Activities (not included in Scope 1 or 2)
4. Upstream Transportation and Distribution
5. Waste Generated in Operations
6. Business Travel
7. Employee Commuting
8. Upstream Leased Assets

Downstream Emissions:

1. Downstream Transportation and Distribution
2. Processing of Sold Products
3. Use of Sold Products
4. End-of-Life Treatment of Sold Products
5. Downstream Leased Assets
6. Franchises
7. Investments

Read More: https://bit.ly/CircularEconomyPrinciples

Examples:

• Purchased goods and services, like the production of raw materials like metals, plastics, and textiles.
• Capital Goods like the production of durable goods like machinery, equipment, and buildings.
• Fuel and energy-related activities like fuels and energy bought by a company that are not accounted for in Scope 1 or Scope 2.
• Transportation and distribution of raw materials and goods to a company.
• Business Travel
• End-of-life treatment

Read More: https://bit.ly/SDGCircularity

Read More: https://bit.ly/17SDGGoals

Importance of the GHG Protocol to Companies

• Clarity on where emissions come from and how to reduce them
• Builds trust with investors, customers, and stakeholders
• Aligning with ESG frameworks and global standards
• Prepares companies for compliance and climate risk disclosure
• Drives product innovation and market opportunities

Conclusion:

The Greenhouse Gas (GHG) Protocol is the global standard for measuring and managing emissions, developed by WRI and WBCSD. It categorises emissions into Scope 1 (direct), Scope 2 (indirect from energy use), and Scope 3 (value chain). Widely used by businesses and governments, it supports emissions tracking for compliance with climate goals like the Paris Agreement. The protocol helps identify reduction opportunities, enhance transparency, and align with global ESG standards.

Read More: https://bit.ly/3PillersSustainability

Read More: https://bit.ly/ISO59000Series

References:

ISO 14064

GHG Protocol

Industry Experts

This is the 233^rd article of this Quality Management series. Every weekend, you will find useful information that will make your Management System journey Productive. Please share it with your colleagues too.

In the words of Albert Einstein, “The important thing is never to stop questioning.” I invite you to ask anything about the above subject. Questions and answers are the lifeblood of learning, and we are all learning. I will answer all questions to the best of my ability and promise to keep personal information confidential.

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