GHG Protocol: A Complete Practical Guide

Last updated: 11 / 03 / 2026

Greenhouse gases (GHG) In English, these are gases present in the atmosphere that contribute to climate change. For businesses, measuring these emissions has become a regulatory, financial and strategic issue, as it conditions compliance with reporting frameworks, access to financing and the credibility of climate commitments.

Dance what contexts, the GHG Protocol imposed itself as the international standard for accounting for and managing carbon (GHG) emissionsIt provides a common, globally recognized methodological framework that enables companies to measure and structure their GHG emissions to ensure transparency regarding the effects of their activities.

How can we reliably and practically measure and manage greenhouse gas (GHG) emissions? The GHG protocol is a key tool: definition, scope, methodology, and advantages. ETERNITY Systems explains everything you need to know to use this repository effectively.

Summary

The GHG Protocol in summary

The GHG Protocol is the internationally recognized methodological framework for measuring, accounting for and managing greenhouse gas emissions public and private organizations.
It structures emissions into three scopes, called Scopes 1, 2 and 3, in order to distinguish between direct and indirect emissions and to better understand the origin of emissions.
Measuring these emissions has become a regulatory, financial and strategic issue, and also constitutes a central pillar of CSR strategiesby providing measurable and comparable indicators to drive environmental performance.
It provides a common methodology to measure, compare and track emissions over time.

What is the GHG Protocol?

The Greenhouse Gas ProtocolThe Greenhouse Gas Protocol, also known as the GHG Protocol, enables companies to produce reliable information to build an effective strategy for managing and reducing GHG emissions. It is a set of standards, methodological guides, tools, and training developed to provide a globally standardized framework for measuring, accounting for and managing greenhouse gas emissions from public and private sector organizations.

This framework covers all of the company's activities that generate emissions, including:

Direct operationsthat is to say, all the activities, facilities and equipment over which the company exercises operational or financial control.
Energy consumption to ensure the smooth operation of the company's activities.
The value chainthat is to say, all activities, flows and actors located outside the direct control of the company but linked to its economic activities.
Emission reduction actions implemented and whose environmental impact can be monitored over time.

The GHG Protocol was developed by the World Business Council for Sustainable Development (WBCSD) and the World Resources Institute (WRI) to standardize the accounting of greenhouse gas (GHG) emissions. For businesses, the reference document and the GHG Protocol Corporate Accounting and Reporting Standardwhich defines the applicable rules.

What is the difference between the GHG Protocol and a Carbon Footprint Assessment?

The GHG Protocol (Greenhouse Gas Protocol) and the Carbon Footprint are two reference frameworks for carbon accounting, But they do not have the same purpose:

The GHG Protocol is an international standard for emissions accounting and reporting, developed in the late 1990s. It has gradually become the most widely used international standard for carbon accounting. Today, it forms the methodological basis for many international reporting frameworks, such as the CDP or the CSRD in Europe.
The Carbon Footprint is a diagnostic and action-oriented method, developed in 2004 by ADEME, historically designed to engage organizations in a trajectory of emissions reduction. It constitutes the reference method in France, particularly adapted to the national regulatory context, notably the obligations for Greenhouse Gas Emissions Assessments (BEGES) stipulated by the Environmental Code.

What are the objectives of the GHG Protocol?

The GHG protocol was designed around five fundamental objectives, whose purpose is to harmonize carbon accounting globally by:

Establishing a faithful and representative inventory of emissions The first objective of the GHG Protocol is to help companies produce a GHG inventory that accurately and faithfully reflects the reality of their emissions.
Simplifying carbon accounting by reducing costs : by harmonizing practices, it helps to reduce the costs and complexity associated with data collection, emissions calculation and results consolidation, particularly for organizations operating in multiple countries.
Providing an information base for climate strategy : the GHG inventory provides companies with actionable data that helps identify key sources of emissions and priority levers for action.
Facilitating participation in voluntary and regulatory GHG programs : by relying on an internationally recognized framework, organizations can more easily meet the requirements of reporting programs, without having to recalculate their emissions according to multiple methodologies.
Increasing the consistency and transparency of carbon reporting By imposing common rules regarding scope, classification, and documentation, it allows stakeholders, such as investors or clients, to compare climate performance on a consistent basis.

What principles underlie the Greenhouse Gas Protocol?

To guarantee the credibility and robustness of a GHG inventory, the protocol is based on five fundamental principles:

Relevance
Completeness
Coherence
Transparency
The precision

Relevance The inventory must accurately reflect the company's emissions. The goal is to focus the analysis on emission sources that have a real impact.

Completeness All emission sources included within the defined scope must be taken into account, whether direct or indirect. Omissions are only permitted if clearly justified. This principle ensures that the inventory does not present a partial or biased view of emissions.

Consistency : calculation methodologies and perimeters must be applied consistently over time to allow meaningful year-on-year comparisons and to assess progress.

Transparency The information must be presented in a factual, coherent, and understandable manner. All assumptions, exclusions, and methodologies must be documented and accessible.

Accuracy Emissions must be quantified with the highest level of accuracy reasonably achievable. The goal is to avoid overestimations or underestimations and to reduce uncertainties. Accuracy determines the credibility of the inventory and the quality of the resulting decisions.

What are the 3 scopes defined by the GHG?

The GHG Protocol structures emissions into three areas, called scopes, to distinguish between direct and indirect emissions and avoid double counting. Scopes do not rank emissions by importance, but rather organize their origin :

What the company emits directly (Scope 1)
What the company generates through its energy consumption (Scope 2)
What the company indirectly induces through its value chain (Scope 3)

Scope 1: Direct emissions

Scope 1 encompasses all direct emissions generated by the organization's activities, meaning those originating from sources owned or controlled by the company. These are emissions physically emitted on sites or by equipment operated by the organization, over which it has direct control.

These direct broadcasts include, in particular:

Steady-state combustion : these are emissions from the combustion of fuels in stationary equipment such as boilers, furnaces or turbines.
Mobile combustion : these are the emissions from vehicles in the fleet owned or controlled by the company (cars, trucks, etc.).
Process emissions: These are direct discharges from industrial processes or specific chemical reactions (for example, cement manufacturing or aluminum production).
Fugitive emissions: This refers to unintentional leaks of greenhouse gases (for example, leaks from seals on equipment, recharging of air conditioning systems).

Scope 2: Indirect emissions related to energy consumption

Scope 2 refers to indirect emissions from the production of electricity, heat, or steam purchased by the company. Although these emissions are not physically generated on the organization's premises, they result directly from its energy needs.

This mainly concerns:

Electricity purchased
Heat or steam provided by networks
The cold bought with third parties.

The GHG Protocol imposes a dual reporting approach For Scope 2, in order to reflect both the reality of the energy system and the company's supply choices:

The location-based approach It measures the impact of electricity consumption on the electricity grid to which the company is connected. It uses the average carbon intensity of this grid for this purpose, independently of specific supply choices.
The market-based approach : It measures the impact of energy purchasing choices. In other words, it reflects the emissions of the electricity that the company chooses to purchase through contractual instruments, such as energy attribute certificates (Guarantees of Origin), direct purchase agreements (PPAs), or "green" tariffs. This method makes it possible to value efforts to procure renewable energy.

Scope 3: Other indirect emissions from the value chain

Scope 3 encompasses all other indirect emissions that occur in the company's value chain, both upstream (suppliers) and downstream (customers), and that are not included in Scope 1 and 2. Scope 3 often represents between 70% and 80% of a company's emissions.

Accounting for Scope 3 emissions is strongly encouraged but not mandatory under the Corporate Standard, but it is increasingly required by regulations (such as the CSRD in Europe) and stakeholders. The main categories of Scope 3 emissions include:

Purchases of goods and services.
Transport and distribution are carried out by external service providers.
Business trips
L'use of products sold by customers,
End-of-life of products and waste treatment.

This area often represents the largest share of a company's carbon footprint, but it is also the most complex to measure. It is where the main climate risks in the value chain lie, such as dependence on energy-intensive suppliers or regulatory risks related to product use, but also where the greatest levers for innovation and competitive differentiation, such as eco-design, reside.

This area is increasingly scrutinized within the framework of environmental regulations, particularly in France with the AGEC Law which strengthens the requirements for transparency on the environmental impact of products, their end of life and consumption patterns.

What are the advantages of the Greenhouse Gas protocol for businesses?

For businesses, adopting the GHG protocol offers several strategic advantages.

Strengthening trust and credibility with stakeholders Using a globally recognized standard strengthens stakeholder confidence (investors, customers, regulators) in the company's reporting process. This allows companies to improve their brand image and employer brand.
Identify opportunities to reduce emissions Adopting the greenhouse gas protocol helps to identify risks, stimulate innovation to develop low-carbon products and services, and detect potential energy savings.
Have a competitive advantage A company that manages its carbon footprint positions itself as a leader in sustainable development, which can make a difference in markets that are increasingly demanding in terms of environmental criteria. In other words, it allows companies to better understand their position with regard to regulatory programs concerning greenhouse gas emissions.
Align with other extra-financial reporting standards Implementing reporting compliant with the GHG Protocol prepares the company for future regulations on climate and non-financial reporting, such as the European Corporate Sustainability Reporting Directive (CSRD). In an evolving European regulatory context, particularly with the PPWR (Packaging and Packaging Waste Regulation), Having a structured GHG inventory is becoming a prerequisite for anticipating requirements related to the carbon footprint of packaging and waste reduction.

What does the GHG Protocol methodology consist of?

The GHG Protocol methodology is based on three structuring steps:

Define the reporting scope
Calculate greenhouse gas emissions
To monitor them over time.

Step 1: Define the reporting scope

The first step is to determine what should be included in the GHG inventory according to two levels of scope:

The organizational scope This involves defining which entities (subsidiaries, joint ventures, etc.) are included in the inventory. This is done through two approaches: one by equity participation, which consists of recording emissions in proportion to the share held in each entity; the other by control, which consists of recording 100% of the emissions of entities over which the company exercises financial or operational control.
The operational scope : once the organizational scope is defined, the company must identify all of its emissions and categorize them into Scope 1, 2 and 3.

Step 2: Calculate greenhouse gas emissions

This involves quantifying the emissions associated with the activities included within the scope in a logical manner:

Identify the sources of emissions within the defined areas (e.g., gas boiler, electricity consumption, air travel).
Collect activity data for each source (e.g. m³ of natural gas, kWh of electricity, km travelled).
Choose the relevant emission factorsAn emission factor converts an activity data into GHG emissions (e.g., kg CO2e / kWh).
Apply the calculation formula : Activity data × Emission factor = GHG emissions.

Step 3: Track emissions over time

The third step aims to transform the GHG inventory into a long-term management tool. To do this, a baseline year must first be defined, which serves as a point of comparison to measure changes in emissions and assess progress made.

It is also mandatory to implement a policy for recalculating this reference year in the event of significant structural changes (mergers, acquisitions, major disposals) in order to ensure that time comparisons remain consistent and relevant.

Which carbon accounting method should be chosen to measure greenhouse gas emissions?

There are several carbon accounting methods depending on the objectives, geographical scope and regulatory requirements to which the company is subject:

The GHG protocol It constitutes the international benchmark. It is particularly suited to companies operating in multiple countries, with foreign subsidiaries, or those required to meet global reporting requirements, especially for investors. Its scope-based structure allows for consistent interpretation of issuances and international comparability.
The Carbon Footprint It is more geared towards in-depth operational diagnosis, particularly in the French context. It allows for a detailed analysis of fossil fuel dependencies and the structuring of an emissions reduction strategy, systematically integrating all significant indirect emissions. It is often used as an internal tool for management and implementation.
The ISO 14064-1 standard: It addresses the need for formalization and third-party verification. It is preferred when the company needs to demonstrate the conformity of its carbon inventory within a contractual, regulatory or audit framework, for example in the context of calls for tenders or specific customer requirements.
The Greenhouse Gas Emissions Assessment (GHG Emissions Assessment) This is the mandatory regulatory framework in France for certain companies and public entities. It primarily aims at legal compliance and has historically focused on Scopes 1 and 2, with a gradual integration of Scope 3.
For SMEs and mid-sized companies, the GHG Protocol can be combined with simplified reporting frameworks, such as the VSME standardin order to structure climate indicators in a proportionate manner, while maintaining a recognized methodology.

Many organizations combine an operational diagnostic tool, such as a Carbon Footprint assessment, with a recognized reporting framework, such as the GHG Protocol, in order to reconcile:

Internal management

Regulatory conformity

International comparability of data.

Controlling greenhouse gas emissions is leading companies to fundamentally rethink their production methods, supply chains, and operational models. The GHG Protocol provides the methodological framework for reliably measuring these emissions, structuring climate reporting, and guiding a reduction trajectory consistent with regulatory requirements and CSR commitments.

ETERNITY Systems supports companies in this process by providing operational expertise on environmental, regulatory and industrial issues.

F.A.Q

When was the GHG protocol created?

The GHG Protocol was founded in 1998, at the initiative of the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD). It was designed to address the growing need for a common and standardized framework for accounting for greenhouse gas emissions on a global scale.

Is the GHG Protocol mandatory for businesses?

The GHG Protocol is not mandatoryHowever, it serves as the methodological reference used by numerous regulations and reporting frameworks, such as the CSRD, the CDP, and international sustainability standards. In practice, it has become essential for companies subject to climate reporting obligations..

What are the 7 gases included in the GHG protocol?

The GHG Protocol covers seven greenhouse gases recognized by international agreements:

Carbon dioxide (CO₂),
Methane (CH₄),
Nitrous oxide (N₂O),
Hydrofluorocarbons (HFCs),
Perfluorocarbons (PFCs),
Sulfur hexafluoride (SF₆),
Nitrogen trifluoride (NF₃).

Their emissions are expressed in CO₂ equivalent (CO₂e)

What are the 3 types of greenhouse gas emissions?

The GHG Protocol distinguishes three types of emissions according to their origin:

Direct broadcasts (Scope 1)generated by activities controlled by the company,
Indirect energy-related emissions (Scope 2)associated with the production of purchased electricity, heat or cold,
Other indirect emissions (Scope 3), stemming from the upstream and downstream value chain.

How to conduct a greenhouse gas inventory?

Conducting a GHG inventory is based on a structured, multi-step approach:

Define the organizational and operational boundaries,

Identify and collect activity data,

Apply emission factors to calculate CO₂e emissions,

Ensure monitoring and transparency of results over time.

The GHG Protocol provides the methodological framework of reference for structuring this approach in a reliable and comparable manner.

About the Author

Anthony ADAM

Communications and Marketing Manager at ETERNITY Systems, Anthony designs strategies and content to promote more sustainable consumption. He is a committed agent of change who combines creativity, rigor, and action to strengthen the visibility and impact of projects related to reuse and the circular economy.