GHG Protocol: The world-renowned standard explained simply

Anyone who speaks seriously about sustainability today cannot avoid the Greenhouse Gas Protocol (GHG Protocol). It is the world's most widely used standard for systematically quantifying, calculating, and reporting greenhouse gas emissions. This contribution briefly and understandably explains the GHG Protocol – and places the key innovations in context for practice.

In a nutshell

• Global standard for climate accounting (Scopes 1–3).

• Basis for sustainability reporting & climate goals (CSRD, SBTi, CDP)

• Announced harmonization with ISO standards

The GHG Protocol – the Globally Recognized Standard for Climate Accounting

Companies and organizations worldwide face the challenge of systematically capturing and reducing their climate impacts. The Greenhouse Gas (GHG) Protocol is established as a leading framework for the accurate measurement and reporting of greenhouse gas emissions. This internationally recognized methodology enables companies, organizations, and other entities to transparently represent their total emissions across all business activities.

The significance of the GHG Protocol lies in its comprehensive consideration of all relevant emissions sources. It provides structured standards for different sectors and applications, allowing organizations to create consistent and comparable climate accounts. By this systematic approach, both direct and indirect emissions are captured, enabling a complete assessment of environmental impacts.

Why Was the GHG Protocol Developed?

The GHG Protocol was developed in the late 1990s by the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD). At that time, there were no clear guidelines on how to calculate and present emissions. Different approaches led to a lack of transparency and made comparisons impossible.

The goal was therefore from the beginning:

• Create transparency through clear definitions

• Ensure comparability and consistency across countries and industries

• Ensure practicality so that companies can apply the protocol, regardless of their size or complexity

Today, the GHG Protocol is recognized worldwide as the basis for modern climate reporting and forms the framework for many other initiatives, such as the Science Based Targets initiative (SBTi) or the Carbon Disclosure Project (CDP) Reports.

The Three Scopes in Detail

The core of the GHG Protocol is the division of emissions into three categories – the so-called scopes. This system helps clearly attribute the origin of emissions.

Scope 1: Direct Emissions

This includes all emissions that arise directly from the company's operations. Typical examples are:

• Exhaust gases from the fleet

• Combustion of gas or oil in boilers

• Emissions from own industrial facilities

Example: A logistics company counts the exhaust gases from its truck fleet as Scope 1.

Scope 2: Indirect Emissions from Energy Use

Scope 2 includes purchased energy, such as electricity, district heating, or steam, that a company obtains from external suppliers.

• Even though the emissions do not arise directly within the company, they can be clearly attributed to the company's energy consumption.

Example: The electricity for lighting and air conditioning in an office building falls under Scope 2.

Scope 3: Indirect Emissions Along the Value Chain

This is the most extensive and complex category. It encompasses all other indirect emissions not included in Scope 2. These include:

• Emissions from the production of purchased raw materials

• Transport and storage

• Business travel and commuting of employees

• Use and disposal of sold products

Scope 3 is often the largest item in practice – it can account for up to 80–90% of total emissions – and simultaneously the most difficult to capture, as data serving as the basis for calculations are often not optimally collected in many companies or must be requested from partners.

The Different Standards of the GHG Protocol

To cover different application areas, the protocol has been expanded over the years with specialized standards:

Corporate Standard
Foundation for companies to systematically account for all their emissions.

Corporate Value Chain (Scope 3) Standard
Focus on indirect emissions along the value chain – particularly relevant for manufacturing companies.

Product Standard
Analyzes the entire life cycle of a product, from raw material extraction to disposal.

Project Protocol
Evaluates emissions reductions from climate protection projects, e.g., investments in renewable energy.

Standards for Cities and Municipalities
Developed for public institutions that wish to create climate accounts at the city or regional level.

This makes the GHG Protocol flexible – usable for multinational corporations as well as local authorities or individual products.

Benefits for Companies

Implementing the GHG Protocol brings many practical advantages:

Transparency and Credibility
An internationally recognized standard fosters trust among investors, customers, and business partners.

Strategic Management
With clear accounting, companies can better plan their climate strategy and measure progress.

Comparability
As accounting is done worldwide according to the same rules, benchmarks are possible.

Preparation for Regulation
Many legal reporting obligations, such as the CSRD (Corporate Sustainability Reporting Directive) ESRS E1, are based on the GHG Protocol.

Foundation for Climate Goals
Companies can formulate science-based targets (Science Based Targets) and verify their achievement.

Challenges in Implementation

Even though the GHG Protocol provides clear guidelines, there are some hurdles in practice:

Data Availability: Particularly Scope 3 requires information from suppliers and partners.

Complexity: The calculation is not trivial and requires methodological expertise.

Resources: Small companies often have fewer capacities for detailed accounting.

Many firms therefore rely on specialized software or external consulting to reliably create their climate accounts.

Current News from the GHG Protocol

In recent years, the GHG Protocol has initiated a series of developments to meet the growing demands for transparency and accuracy. Particularly important is the announced harmonization with the ISO standards from the ISO-1406x series in September 2025. The goal is to create a globally uniform basis for terminology, measurement methods, and reporting so that companies will no longer have to juggle different standards but can rely on an integrated set of rules. In parallel, several Technical Working Groups (TWGs) are working on reforms in the areas of Corporate Standard, Scope 2, Scope 3, and market-related mechanisms. Several new publications are also planned for the coming years: The Land Sector & Removals Standard is expected to be released by the end of 2025, while revised drafts of the Corporate, Scope-2, and Scope-3 standards are anticipated for 2026. The final versions could be available in 2027, followed by a separate standard for impacts and market instruments in 2028. These innovations mark an important step towards even more precise, regulation-compliant, and future-proof emissions reporting.

Frequently Asked Questions about the GHG Protocol

What is the GHG Protocol?
The world's leading standard for capturing and reporting greenhouse gas emissions.

Why was it developed?
To create transparency, comparability, and practical methods for climate accounting.

What scopes are there?
Scope 1: Direct emissions (e.g., fleet, heating).
Scope 2: Purchased energy (e.g., electricity, district heating).
Scope 3: Indirect emissions (supply chain & product use – usually the largest share)

What standards exist?
Corporate, Scope 3, Product, Project as well as specific standards for cities/municipalities.

What advantages do companies have?
Credibility, better management, comparability, preparation for regulation, and a basis for climate goals.

What innovations are coming?
Harmonization with ISO standards announced and new/revised standards by 2028.