A good understanding of the GHG Protocol can be an invaluable tool for your business in assessing its climate impact and navigating regulatory requirements. This guide outlines the key standards of the protocol, how and where they apply, and why the GHG Protocol matters for your business.
The Greenhouse Gas (GHG) Protocol is a globally recognised framework for greenhouse gas accounting – measuring, managing, and reporting greenhouse gas emissions. Developed by the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD), it helps organisations understand their carbon footprint, with the aim of reducing their climate impact.
The protocol comprises three scopes, helping businesses to understand the sources of emissions they are responsible for, and seven standards, providing guiding frameworks for effective measurement and reporting for different entities.
There are three different scopes, each referring to the different categories of greenhouse gases covered by the GHG Protocol. They help businesses to understand how they’re contributing to their carbon footprint based on direct and indirect sources. For effective reporting and measurement, organisations should consider their impact across all three scopes.
These are emissions from sources that are owned or directly controlled by the reporting organisation. These are typically the most straightforward to identify and measure, as they result from activities within the business’s immediate control.
Example: fuel combustion from owned vehicles, on-site equipment, and manufacturing processes
Scope 2 refers to emissions generated by energy that an organisation purchases: they’re consumed by the reporting entity, but owned by a separate entity.
Example: electricity, steam or heating/cooling systems
GHG Protocol scope 3 refers to all other indirect emissions that happen outside where the reporting organisation operates, but within the businesses “value chain”. These are associated with the activities carried out by consumers (downstream emissions) or suppliers (upstream emissions), and other stakeholders (e.g., employees).
Example: product use, supply chain operations, waste disposal, employee travel
Because these emissions are not directly controlled by the business, they can be more challenging to track and manage. However, Scope 3 often accounts for the largest portion of a company’s total emissions, so it’s vital to approach with a recognised framework for reporting.
There are seven different standards under the GHG Protocol, each of which is designed to provide a framework for different entities to measure and report their greenhouse gas emissions in a way that supports their goals.
Corporate accounting and reporting standard |
The first standard developed by the GHG protocol, otherwise known as the GHG Protocol Corporate Standard, is designed to help companies compile an accurate and fair inventory of their emissions over a given period of time. Who’s it for? Companies, businesses, organisations (governments, universities, NGOs) |
Corporate value chain (Scope 3) standard |
This standard enables companies and organisations to assess their direct and indirect emissions generated throughout their value chain. It helps to provide a full lifecycle view of emissions, including supply chains and customer use as part of a sustainability strategy, Scope-3 target setting, or investor reporting. Who’s it for? Companies, businesses, organisations (governments, universities, NGOs) |
Product standard |
The product standard is used by companies and organisations to get a picture of emissions throughout a product’s lifecycle – from its raw materials in production, to use and disposal. It’s useful for businesses looking to transition to more sustainable products and pinpointing the greatest opportunity for GHG reduction. Who’s it for? Companies, businesses – particularly manufacturers, and retailers-, organisations (governments, universities, NGOs) |
Project Protocol |
Otherwise known as the project accounting protocol, the GHG refers to this standard as “the most comprehensive, policy-neutral accounting tool”. It helps quantify the GHG benefits of individual climate projects or mitigation initiatives, such as installing renewable energy, energy efficiency upgrades, and reforestation. Who’s it for? Companies, businesses, organisations (governments, universities, NGOs), countries and cities implementing carbon reduction projects. |
GHG Protocol for Cities |
The GHG Protocol for Cities, or the Global Protocol for Community-Scale Greenhouse Gas Emission Inventories (GPC), provides a framework to account and report on community-wide emissions. It is particularly useful for urban planning. Who’s it for? Cities, communities, governments, municipalities, urban planners |
Policy and action standard |
This standard provides an approach to estimating the GHG impacts of policies and actions, such as carbon pricing, subsidies or efficiency regulation. Who’s it for? Countries and cities |
Mitigation goal standard |
The mitigation goal standard provides guidance for countries and cities when designing, tracking and reporting progress to GHG mitigation targets at a national, regional or local level. Who’s it for? Countries and cities |
As a globally recognised, trusted framework for accounting, understanding and application of the GHG Protocol provides businesses with opportunity for efficiency, and ultimately improving their bottom line:
While not legally mandated in the UK, the GHG Protocol is widely used to support compliance and mandatory reporting requirements. In the UK, listed companies must report Scope 1 and 2 emissions under the Companies Act 2006, and large unlisted companies are required to disclose under Streamlined Energy and Carbon Reporting (SECR). The Protocol offers a recognised, practical framework for meeting these obligations with consistency and credibility, even though it isn’t explicitly required.
The GHG Protocol enables businesses to accurately measure emissions across their operations, supply chains, and products, providing essential data for effective climate action. By applying its frameworks, companies can identify where emissions are concentrated, prioritise impactful reductions, and track progress over time. It transforms ESG goals into clear, actionable metrics that yield real results.
Consumers and employees are increasingly drawn to companies that take climate action seriously. Using the GHG Protocol to transparently measure and report emissions signals a genuine commitment to sustainability, building trust, strengthening your brand, and setting you apart in the eyes of both talent and customers.
As climate regulations tighten and carbon-related costs rise, companies that understand, report and manage their emissions are better positioned to adapt. Using the Protocol helps to future-proof operations, mitigate climate risks, and stay competitive in an economy increasingly shaped by sustainability.
Using the GHG Protocol can uncover opportunities for cost savings and efficiency gains across your business. Emissions data often highlights areas of energy waste, resource inefficiency, or process bottlenecks. By addressing these, companies can reduce operational costs, streamline performance, and even spark innovation, turning climate action into a real driver of business value.
Both the GHG Protocol and the ISO 14064 provide frameworks for greenhouse gas accounting, but differ in their purpose, structure and use. Namely, the GHG Protocol is used to help a business develop an inventory of their emissions, while the ISO 14064 is used by businesses to certify that inventory with a third party for compliance purposes.
The GHG Protocol is not mandatory in the UK, but it is a very commonly used and trusted method for meeting legal climate reporting requirements – such as the Companies Act 2006, and SECR. It helps businesses stay compliant while ensuring transparency and consistency.
Skip to content
