GHG Protocol Compliance: A Checklist for businesses

Need to track your company's carbon footprint? Here's what you need to know about the GHG Protocol:

• It's the global standard for measuring greenhouse gas emissions

• Breaks emissions into 3 categories: Scope 1 (direct), Scope 2 (indirect energy), and Scope 3 (value chain)

• Used by 92% of Fortune 500 companies that report emissions

• Helps businesses comply with regulations like the EU's CSRD

Key steps for compliance:

1. Set up a GHG inventory plan

2. Define company boundaries

3. Establish a base year

4. Track emissions across all scopes

5. Use carbon accounting software for data collection

6. Report annually by March 31st

7. Stay updated on protocol changes

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Required Documents

To follow the GHG Protocol, you'll need to keep a few key documents. These papers help you track your carbon footprint and show you're following rules like the CSRD. Here's what you need:

GHG Inventory Plan

This is the backbone of your emissions tracking. Your plan should spell out:

• How you'll count your emissions

• How you'll gather data

• Where your emissions come from

• How you'll crunch the numbers

Pro tip: Make a formal plan for managing your GHG inventory. It'll keep your data collection consistent and make reporting a breeze.

Company Boundaries

You need to be crystal clear about what parts of your business you're including. Your docs should say:

• Which bits of your business are in your emissions math

• How your company is set up (like if you have subsidiaries)

• If you're using operational or financial control to decide what to include

The GHG Protocol says you MUST report Scope 1 and 2 emissions. They also really want you to report Scope 3, but it's not a must-do.

Control Documentation

Keep track of who's in charge of what when it comes to emissions. Write down:

• Who's responsible for each source of emissions

• How you make decisions about emissions-related stuff

• Any outside help that adds to your carbon footprint

Starting Year Numbers

You need a solid starting point to measure your progress. Your docs should include:

• The year you're using as your starting point (pick a recent, typical year)

• A full count of your GHG for that year

• Why you picked that year

Heads up: If your business changes a lot (like if you merge with another company), you might need to redo your starting numbers. The GHG Protocol says to recalculate for the whole reporting period, even if changes happened partway through the year.

Data Quality Records

Good data is key for trustworthy reporting. Keep records of:

• Where your data comes from and how you collect it

• How you do your calculations and any guesses you had to make

• How you check your data is good

• Any problems or uncertainties with your data

Emissions Tracking List

Tracking your company's emissions is key for GHG Protocol compliance. Here's how to measure each type:

Direct Emissions (Scope 1)

Scope 1 emissions come from sources your company owns or controls. Here's the tracking process:

1. Identify emission sources

List all company-owned facilities, vehicles, and equipment that burn fuel or release greenhouse gases.

2. Collect fuel consumption data

Gather info on fuel used by each source. This could be natural gas for heating, gasoline for company cars, or diesel for generators.

3. Apply emission factors

Use standard factors to convert fuel consumption into CO2 equivalent (CO2e) emissions.

Here's a real-world example:

A medium-sized manufacturing company in Canada might find:

Factory natural gas use: 100,000 m³/year x 1.89 kg CO2e/m³ = 189 tonnes CO2e Company vehicle fleet: 50,000 L gasoline/year x 2.3 kg CO2e/L = 115 tonnes CO2e

Total Scope 1 emissions: 304 tonnes CO2e

Energy Use Emissions (Scope 2)

Scope 2 covers indirect emissions from purchased electricity, heat, or steam. Here's how to track them:

1. Gather energy bills

Collect all electricity and purchased heat bills for the reporting period.

2. Note energy consumption

Record the total kilowatt-hours (kWh) of electricity or other energy units consumed.

3. Apply regional emission factors

Use location-based factors that reflect your local energy grid's mix.

Let's look at a real example:

JT PR, a marketing company in Edinburgh, used 15,000 kWh of electricity in a year. Using the UK's emission factor:

15,000 kWh x 0.21233 kg CO2e/kWh ÷ 1,000 = 3.2 tonnes CO2e

Supply Chain Emissions (Scope 3)

Scope 3 emissions often make up the largest part of a company's carbon footprint, but they're the hardest to measure. Here's a simple approach:

1. Map your value chain

Identify key activities in your upstream and downstream operations.

2. Prioritize categories

Focus on the biggest sources of emissions, like purchased goods, transportation, or product use.

3. Collect activity data

Gather info on the volume of goods purchased, miles traveled, or products sold.

4. Use estimation tools

Use tools like Emerald Power's carbon accounting software to estimate emissions based on industry averages and economic data.

Here's a real-world example:

Microsoft found that 97% of their emissions were Scope 3. By focusing on this area, they cut their total emissions by 17% in just one year.

Tracking emissions is an ongoing process. As Elizabeth Sheehan, Director of Climate Smart Strategic Engagement at Radicle, puts it:

"Measuring your carbon footprint is an opportunity to take stock of how you're doing business."

Report Checking Steps

Getting your GHG reports right is a big deal. Here's how to nail it:

GHG Protocol Rules Check

First things first: make sure you're following the GHG Protocol guidelines. It's not just about ticking boxes - it's about getting your emissions data spot-on.

Here's what you need to do:

1. Go through your emission sources. Don't miss any Scope 1, 2, or 3 emissions that matter for your business.

2. Double-check your math. The GHG Protocol has specific formulas for different emissions. Stick to them.

3. Be clear about your organizational boundaries. Know exactly which parts of your business are in your report.

Rich Goode, a big name in this field, says:

"It is vitally important that companies create – and keep up-to-date – a document called an Inventory Management Plan (IMP), standard operating procedure, manual, or accounting policy."

Think of this IMP as your game plan for consistent, accurate reporting year after year.

Data Check Methods

Getting your data right is key. Here's how to make sure it's on point:

Use a pedigree matrix to check your data quality. It looks at five things: precision, completeness, time, geography, and technology.

Compare different data sources. Do your utility bills match your meter readings? Any weird spikes or dips in energy use?

Do some spot checks. Pick a few random data points and trace them back to where they came from. This can help you catch any big mistakes in how you collect data.

Use software to help out. Tools like Emerald Power's carbon accounting software can do a lot of this work for you. It cuts down on human error and saves time.

CSRD Rules Check

The Corporate Sustainability Reporting Directive (CSRD) adds another layer to your GHG reporting. Here's what to keep in mind:

1. Double materiality

The CSRD wants you to report on two things: how sustainability issues affect your business, and how your business affects sustainability. Make sure you cover both sides.

2. Scope 3 emissions

The CSRD is big on Scope 3 emissions. These often make up most of a company's carbon footprint - sometimes up to 80-95%.

3. Data points

The CSRD might ask for up to 1,200 data points. Make sure your data systems can handle this level of detail.

4. Assurance

The CSRD says an independent auditor has to check your sustainability statements. Start talking to auditors early so you know what they're looking for.

Tracking Systems Setup

Want to comply with the GHG Protocol? You need to track your greenhouse gas emissions. Here's how to set up a system that works:

Data Collection Steps

First things first: you need accurate emissions data. Here's how to get it:

1. Do a carbon audit: Find ALL your emission sources. This means direct emissions from your stuff (Scope 1), indirect emissions from electricity (Scope 2), and other indirect emissions from your supply chain (Scope 3).

2. Go automatic: Use carbon accounting software. It'll gather your emissions data for you.

3. Make it routine: Set up regular times to input data. Monthly bills, quarterly reports - whatever works. Just be consistent.

4. Train your people: Make sure everyone handling the data knows what they're doing. Regular training keeps things on track.

Reduction Progress Tracking

Got your data? Great. Now let's track how you're cutting those emissions:

1. Pick a starting point: Choose a recent, typical year for your base emissions. You'll measure your progress from there.

2. Set goals: Make short-term and long-term targets. Maybe 5% reduction in year one, 50% by 2030.

3. Make it visual: Use software that turns your data into graphs and charts. It's easier to spot trends that way.

4. Check in regularly: Look at your data monthly or quarterly. You'll catch problems early.

Success Measures

How do you know if you're winning the emissions game? Keep an eye on these:

1. Total carbon footprint: Your overall GHG emissions across all scopes, in tonnes of CO2 equivalent.

2. Emissions intensity: Your emissions per unit of output. It accounts for business changes.

3. Renewable energy use: The more renewable energy you use, the lower your Scope 2 emissions.

4. Supplier scores: If you're tracking Scope 3, rate your suppliers on sustainability. Push for improvement.

5. Employee buy-in: Measure how many people join in on sustainability efforts. You need everyone on board.

Set up these tracking systems and focus on these measures, and you'll be all set to manage your GHG emissions and stick to the GHG Protocol standards.

Tools and Help Guide

Tracking greenhouse gas emissions doesn't have to be a headache. The right tools can make it a breeze. Let's check out some software and resources to help your business stick to the GHG Protocol.

Emerald Power Tools

Emerald Power offers carbon accounting software for mid-market businesses. Their platform helps you track, monitor, and cut carbon emissions while staying on the right side of CSRD regulations.

What's in the box?

• GHG Protocol-compliant formulas

• Automated data collection

• Scope 1, 2 & 3 calculations

• Real-time emissions data

• User-friendly interface

Pricing kicks off at €249/month for the Starter plan. Need more? They've got Pro and Enterprise plans too.

Free Tools

Don't want to splash the cash? No problem. Some organizations offer free tools to help you crunch those carbon numbers:

EPA Simplified GHG Emissions Calculator

This Excel tool is great for small businesses and low emitters. It helps you estimate annual GHG emissions across all scopes. It's designed for US operations and uses the latest Excel functions. Just remember to enable those macros!

UNFCCC GHG Emissions Calculator

The United Nations' tool works for organizations of all sizes. It covers Scope 1, 2, and 3 emissions, has a user-friendly interface, and spits out a summary report of your emissions.

These free tools are handy, but they might not have all the bells and whistles of paid software. If you're serious about long-term carbon management, investing in a platform like Emerald Power could save you time and boost accuracy.

Key Dates and Updates

To stay on top of GHG Protocol compliance, you need to know these important dates and changes:

Yearly Report Schedule

Mark March 31st on your calendar. That's when your annual GHG emissions report for the previous year is due. Here's how the reporting cycle typically looks:

1. Data Collection (January - February)

Kick off the new year by gathering your emissions data. This gives you time to spot and fix any problems.

2. Report Preparation (February - March)

Crunch those numbers and get your report ready. If you use software like Emerald Power, a lot of this work can be done automatically.

3. Submission (March 31st)

Deadline day. Double-check everything before you hit 'submit'.

Pro tip: Don't leave it to the last minute. Try to finish your report a week early to avoid stress.

Other Important Dates

The annual report isn't the only thing you need to worry about:

• June 30th: Supplemental data reports due for electric service providers and utilities.

• August 12th: Final verification statements due for all reports.

• Quarterly Reviews: Not required, but smart. Regular check-ups help you stay on track.

Real-world example: Microsoft started doing quarterly emissions reviews in 2023. This helped them catch and fix a 5% error in their Scope 2 emissions calculations early in Q3, well before the annual report was due.

Keeping Up with Rule Changes

GHG reporting rules change often. Here's how to stay informed:

1. Check official sources: Bookmark the GHG Protocol website and your local environmental agency's site.

2. Set up alerts: Use Google Alerts to get notified about GHG Protocol updates.

3. Attend webinars and workshops: Many organizations offer free sessions on GHG reporting updates.

Heads up: The Corporate Sustainability Reporting Directive (CSRD) kicked in January 2023. It affects about 50,000 EU companies. If you're a large company (500+ employees), you'll need to start CSRD reporting for the 2024 fiscal year, with reports due in 2025.

Summary

The GHG Protocol has become the go-to standard for businesses tracking their greenhouse gas emissions. Here's why it's a big deal:

Everyone's Using It: 92% of Fortune 500 companies that report to the CDP use the GHG Protocol. It's like the universal language for talking about emissions.

Covers Everything: The protocol splits emissions into three buckets:

1. Scope 1: Stuff you directly own

2. Scope 2: Energy you buy

3. Scope 3: Everything else in your value chain

Real Results: Take Microsoft. They used the GHG Protocol and found out 97% of their emissions were Scope 3. This led them to cut their total emissions by 17% in just one year.

Keeps You Legal: The GHG Protocol helps businesses stay on the right side of new laws. For example, the EU's Corporate Sustainability Reporting Directive (CSRD) kicked in January 2023. It wants detailed ESG reports from a lot of companies.

Investors Love It: Companies that report their GHG emissions are more likely to attract investors who care about sustainability. This can make your business stronger and more profitable in the long run.

Easy-to-Use Tools: Software like Emerald Power's carbon accounting platform makes it easier for mid-sized businesses to use the GHG Protocol. These tools automatically collect data and show you your emissions in real-time.

Ready for the Future: By 2030, businesses need to cut their carbon emissions by 30% to meet Paris Agreement goals. The GHG Protocol gives you the tools to track and hit these targets.

"The GHG Protocol has been key in getting both public and private sectors to cut down on carbon emissions."

FAQs

What are the GHG Protocol emissions list?

The GHG Protocol zeroes in on seven key greenhouse gases:

1. Carbon dioxide (CO2)

2. Methane (CH4)

3. Nitrous oxide (N2O)

4. Hydrofluorocarbons (HFCs)

5. Perfluorocarbons (PFCs)

6. Sulphur hexafluoride (SF6)

7. Nitrogen trifluoride (NF3)

These gases are the big players in global warming, and they're the ones the Kyoto Protocol has its eye on. By tracking these gases, businesses can get a clear picture of how they're impacting the climate.

"The standard covers the accounting and reporting of seven greenhouse gases covered by the Kyoto Protocol – carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), sulphur hexafluoride (SF6) and nitrogen trifluoride (NF3)." - US EPA

Here's the thing: not all gases are created equal when it comes to your business. A tech company might be all about that CO2 from electricity use, while a farm might be more concerned with methane from their cows. It's all about knowing which gases matter most for your specific situation.