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Definition

GHG Protocol Definition

The GHG Protocol is a suite of standards for deciding which greenhouse gas emissions belong in a company inventory, classifying them as Scope 1, 2 or 3, calculating them, and reporting the methods and boundaries used.

What is the GHG Protocol?

The Greenhouse Gas Protocol, usually shortened to GHG Protocol, is a family of accounting standards rather than one certificate. The 2004 Corporate Standard sets company-level inventory rules. The 2015 Scope 2 Guidance covers purchased electricity, steam, heat and cooling. The 2011 Scope 3 Standard covers 15 upstream and downstream value-chain categories. Together they tell you which operations and emissions to count, how to classify them, and what to report.

Why does the GHG Protocol matter to you?

A customer asking for a “GHG Protocol-aligned” number may check which companies and sites you included, the reporting year, scopes, factor sources, estimates and exclusions. CDP's 2026 alignment page says its climate questions align with the Corporate Standard, Scope 2 Guidance and Scope 3 Standard. IFRS S2 paragraph 29(a)(ii) and AASB S2 paragraph 29(a)(ii) require GHG Protocol measurement unless a jurisdiction or exchange requires another method. NZ CS 1 paragraph 24 instead requires you to name the standard used, how you combined the entities, factor sources and exclusions.

How does the GHG Protocol work?

Chapter 3 gives three ways to combine a group's emissions. Equity share includes emissions in proportion to ownership. Financial control and operational control each include 100% of operations the company controls under the chosen test. Pick one approach and apply it consistently. Chapter 4 separates direct emissions as Scope 1, purchased-energy emissions as Scope 2 and other value-chain emissions as Scope 3. The Corporate Standard requires separate Scope 1 and Scope 2 totals; add the Scope 3 Standard when the request or rule covers the value chain. Chapter 5 requires a written policy for recalculating the base year after significant structural or method changes. If a calculator produces the inventory, its method note should name these choices, the factors and any exclusions. Chapters 6, 9 and 10 cover calculations, the public report and verification records.

What mistakes should you avoid?

  • Writing “GHG Protocol aligned” without naming the document, consolidation approach, reporting year and scopes covered.
  • Using a percentage cut-off to omit small sources. The Corporate Standard's completeness principle requires exclusions to be documented and justified.
  • Applying operational control to one site and equity share to another without a reporting rule that requires the difference.
  • Using a product footprint for one print job as the company's corporate inventory.

Is the GHG Protocol mandatory?

The GHG Protocol is not mandatory by itself. A law, reporting standard, exchange rule or contract can require it. AASB S2 paragraph 29(a)(ii) does this for covered Australian reporting. ESRS E1-6 AR 39(a) tells covered EU reporters to consider the Corporate Standard's principles and requirements. NZ CS 1 paragraph 24 permits another measurement standard but requires you to disclose which one you used.

Which GHG Protocol document should you use?

Use the Corporate Standard for a company-wide inventory and organizational boundary. Add the Scope 2 Guidance for purchased energy and the Scope 3 Standard for the 15 value-chain categories. Use the Product Standard when the question concerns one product, such as a defined print job, rather than the printing company's annual inventory. Check the dated document named in the request. The current standards still apply while GHG Protocol and ISO develop a consolidated corporate standard planned for 2028.

What should you send when a customer asks for GHG Protocol alignment?

Send the totals with a method note, not an unexplained spreadsheet. Name the standard and version, reporting period, consolidation approach, entities and sites, scopes and Scope 3 categories included, exclusions with reasons, activity records, factor publisher and year, assumptions, base year and recalculation policy. Keep bills, fuel records, refrigerant service reports, factor files, supplier data and calculation review together so each total can be traced.

Worked example

Suppose a commercial printing company in New Zealand operates an Auckland print plant and a leased Wellington sales office, and owns 40% of a finishing business that another partner operates. A customer asks for its 2026 corporate inventory under the GHG Protocol. The printer chooses operational control and documents why.

It includes 100% of the LPG used by its controlled press dryer and company vehicles in Scope 1, and purchased electricity for the presses and both controlled sites in Scope 2. It assesses purchased paper, ink and plates under Scope 3 Category 1, inbound freight under Category 4 and production waste under Category 5. The finishing business is outside its Scope 1 and Scope 2 boundary because the printer does not operate it. If Scope 3 is required, the printer assesses Category 15 and, if the investment is included, reports 40% of the finishing business's Scope 1 and Scope 2 emissions. No emission factor is used because this example tests boundary and classification decisions rather than an emissions calculation.

Where you'll meet it

Related terms

Sources

  • GHG Protocol

    Corporate inventory principles; organizational and operational boundaries; Scope 1 and Scope 2 minimum reporting; base-year recalculation; reporting and verification records

    2026-08-19

  • GHG Protocol

    Scope 2 treatment for purchased electricity, steam, heat and cooling; location-based and market-based reporting

    2026-08-19

  • GHG Protocol

    Scope 3 reporting across 15 categories and the distinction between corporate value-chain and product inventories

    2026-08-19

Last verified 2026-08-19

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GHG Protocol Definition | Keslio