What’s Happening With the GHG Protocol?

By

David Jaber

Over the past year, the GHG Protocol—today’s most widely used GHG accounting standard— has been undergoing an overhaul. This is timely, given the core protocol was developed in 2004 and key product and value chain protocols were last updated in 2013.

The latest refinements to the system are underway with a 2025 anticipated publication date. At present, Scope 2 (GHG from purchased gas and electricity) and Scope 3 (supply chain) methods are being refined with input from 1,400+ stakeholder interviews and surveys. The most significant feedback trends: 

  • Dual Reporting: Presently, companies report their footprint factoring in their local grid’s “cleanliness” (ie, mix of coal, solar, etc.) but can also report reduced emissions based on clean energy purchases. There is controversy over keeping both.
  • Harmonization:  Companies would like to see the GHG Protocol’s reporting requirements better matched to popular GHG goal-setting programs (e.g. Science-Based Targets (SBTi), global corporate renewable energy initiative (RE100)), European regulatory GHG reporting programs and financial accounting standards. 
  • RECs: Companies are presently allowed to report reductions from renewable energy certificates (RECs) purchased from the local grid from which they receive energy, but it’s more controversial to purchase RECs from entities beyond the physical delivery area. 
  • Spend-based Accounting: Companies may begin to limit spend-based accounting methods to only identify “hotspots” or as a proxy over time to estimate changes in proportions.  
  • Shared Assets: Companies desire more guidance and prescriptive approaches to GHG accounting for leased assets, franchises, and co-manufacturing or co-packaging.

In addition to Scope 2 and Scope 3 revision, development of a new guidance for Land Sector emissions and Removals has been underway for two years. Final Land Sector guidance will now not be issued until mid-2024; earlier forecasts had guidance being released this fall.

Keep an eye out for updates next year!

In addition to Scope 2 and Scope 3 revision, development of a new guidance for Land Sector emissions and Removals has been underway for two years. Final Land Sector guidance will now not be issued until mid-2024; earlier forecasts had guidance being released this fall.