The GHG Protocol is one of the leading international standards in GHG quantification, reporting and accounting. The protocol provides standards and guidance on a range of issues relevant for both large corporate based analysis and more specific project based analysis.
The two primary documents of the GHG protocol which provide the foundation for the GHG Protocol Initiative method for GHG reporting and accounting are:
A Corporate Accounting and Reporting Standard
The Greenhouse Gas Protocol for Project Accounting
A Corporate Accounting and Reporting Standard
The document A Corporate Accounting and Reporting Standard addresses corporate GHG management, allowing companies or organisations to define how they will approach the process.
The document covers topics such as
The principles of GHG reporting and accounting - relevance, completeness, consistency, transparency, accuracy.
Organisational boundaries - Defining what emissions to take responsibility for using the financial, equity or control approach. Large organisations will need to decide if they are e.g. responsible for all the emissions from a facility if they own only a share of the site.
Operational Boundaries - Categorising the emissions to be reported.
Tracking Emissions Over Time - recording emissions and comparing with company changes.
Reporting Emissions - Creating a credible report in line with the five principles.
The document is an ideal starting point for any business or organisation interesting in progressing GHG management and understanding the concepts necessary to bring GHG management into operation within their company or organisation.
The objectives of the standard and guidance are:
To help companies prepare a GHG inventory that represents a true and fair account of their emissions, through the use of standardised approaches and principles
To simplify and reduce the costs of compiling a GHG inventory
To provide business with information that can be used to build an effective strategy to manage and reduce GHG emissions
To provide information that facilitates participation in voluntary and mandatory GHG programmes
To increase consistency and transparency in GHG accounting and reporting among various companies and GHG programs.
The Greenhouse Gas Protocol for Project Accounting
The document The Greenhouse Gas Protocol for Project Accounting addresses the quantification and reporting of GHG emissions from a more technical perspective than in ‘A corporate Accounting and Reporting standard’, providing guidance on
The GHG Assessment Boundary
Selecting a Baseline Procedure
Identifying the Baseline Candidates
Estimating Baseline Emissions
Monitoring and Quantifying Reductions
Reporting Reductions
This document is useful for companies or organisations that intend to implement and report on a comprehensive GHG management plan.
The objectives of the GHG Protocol for Project Accounting are to:
Provide a credible and transparent approach for quantifying and reporting GHG reductions from projects aimed at reducing GHG emissions;
Enhance the credibility of GHG project accounting through the application of common accounting concepts, procedures, and principles; and
Provide a platform for harmonisation among different project-based GHG initiatives and programmes.
GHG Protocol Accounting Principles
It is important that organisations adopt the GHG Protocol accounting principles from the outset. The principles of the GHG Protocol listed below are derived in part from generally accepted financial accounting and reporting principles. They also reflect the outcome of a collaborative process, run by the GHG Protocol, involving stakeholders from a wide range of technical, environmental, and accounting disciplines.
RELEVANCE - Define the GHG inventory of the company or organisation and ensure this serves the decision making needs of the company.
COMPLETENESS - Ensure that a complete and comprehensive inventory is developed within the inventory boundary, and also explain any exclusions.
CONSISTENCY - Use consistent methodologies to allow for meaningful comparisons of emissions over time. Transparently document any changes to the data, inventory boundary, methods, or any other relevant factors in the time series.
TRANSPARENCY - Address all relevant issues in a factual and coherent manner, based on a clear audit trail. Disclose any relevant assumptions and make appropriate references to the accounting and calculation methodologies and data sources used.
ACCURACY - Ensure that the quantification of GHG emissions is systematically neither over nor under actual emissions, as far as can be judged, and that uncertainties are reduced as far as practicable. Achieve sufficient accuracy to enable users to make decisions with reasonable assurance as to the integrity of the reported information.
Defining Emissions in Accordance with the GHG Protocol
The GHG protocol defines emissions in terms of three scopes, as described below. These scopes facilitate standardised accounting of greenhouse gas emission. The CHANGE CMT will use these scopes to define how calculation of greenhouse gas emissions is approached. The three scopes are described below.
Scope 1 emissions are direct GHG emissions and occur from sources that are owned or controlled by the company for example, emissions from combustion in owned or controlled boilers, furnaces, vehicles etc.
Scope 1 emissions are generally as a result of the activities below;
Generation of electricity, heat or stream. These emissions result from combustion of fuels in stationary sources e.g. boilers, furnaces and turbines.
Physical or chemical processing. Most of these emissions result from manufacture or processing of chemicals and materials e.g. cement, aluminium and waste processing.
Transportation of materials, products, waste and employees. These emissions result from the combustion of fuels in company owned or controlled mobile combustion sources (cars, trucks, trains, ships, planes and buses).
Fugitive Emissions. These emission result form intentional or unintentional releases e.g. equipment leaks from joints seals, packing and gaskets, methane from coal mines and venting, hydro fluorocarbon (HFC) emissions during the use of refrigeration and air conditioning equipment and methane leaks from gas transport.
Scope 2 emissions are indirect GHG emissions and are from the generation of purchased electricity heat and steam. Purchased electricity is defined as electricity that is purchased or otherwise brought into the organisational boundary of the company. Scope 2 emissions are a special category of indirect emissions for electricity heat or steam since this area is likely to be a large source of GHG emissions and therefore represent a significant opportunity for reduction of emissions.
Scope 3 emissions are Indirect GHG emissions and are from sources not owned or controlled by the company. Scope 3 is an optional reporting category that allows for the reporting of all other emissions. Examples of Scope 3 emissions include the production of purchased material, transportation of purchased fuels, use of sold products and services, transport of raw materials, transport of goods, employee business travel, waste, and fuel use in contractor owned vehicles.
For further information on the GHG Protocol
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