What is the GHG Protocol?

The GHG Protocol methodology is a widely-used tool for businesses and organisations to measure and manage their greenhouse gas emissions. This methodology was developed by the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD) and has become a standard in the field of climate change and sustainability reporting.



There are multiple steps to using the GHG Protocol. In summary, these are:


  1. Figure out what parts of the business are causing emissions, like using electricity or driving cars.
  2. Identify and collect data from the specific activities or locations within the business that are causing emissions.
  3. Use that data to calculate how many emissions the business is producing.
  4. Make a report on the emissions and have it verified by someone outside the business to make sure it's accurate.
  5. Set targets and develop strategies
  6. Monitor and report progress


Keep reading to know more about each step:


Step 1: Define the Organisational Boundary

Determine the scope of the GHG inventory by defining the organizational boundaries. This includes identifying the operational control approach, financial control approach, and equity share approach to determine which emissions sources to include in the inventory.


Step 2: Identify and Quantify GHG Emissions Sources

Identify and collect data on the GHG emission sources within the defined organizational boundary. This includes direct emissions from owned or controlled sources (Scope 1), indirect emissions from the consumption of purchased electricity, heat, or steam (Scope 2), and other indirect emissions from activities such as business travel, employee commuting, and waste disposal (Scope 3). Quantify the emissions using appropriate emission factors or activity data.


Step 3: Calculate GHG Emissions

Calculate the total GHG emissions for each emission source category within the defined scopes using the collected data. This is done automatically by the Pilio software using the most recent emission factors.

Where necessary, apply specific calculation methodologies and guidance provided by the GHG Protocol for different emission sources. This ensures consistency and comparability in emissions calculations. The protocol provides detailed guidance for various sectors and emission sources.


Step 4: Report and Verify GHG Emissions

Prepare a comprehensive GHG inventory report that includes all relevant information about the emissions calculation methodology, data sources, and any assumptions made during the process. The report should present emissions data in a transparent and standardized format.

Also, consider engaging a third-party verifier to independently review and verify the GHG inventory report. Verification enhances the credibility and reliability of the reported emissions data.


Step 5: Set Targets and Develop Strategies

Use the GHG inventory data to establish emissions reduction targets and develop strategies for mitigating GHG emissions. This involves identifying areas of high emissions intensity and exploring opportunities for efficiency improvements and emission reduction initiatives.


Step 6: Monitor and Report Progress

Regularly monitor and report progress on GHG emissions reduction efforts. This includes tracking emissions over time, evaluating the effectiveness of implemented measures, and communicating the results internally and externally.