GHG Protocol: The world-renowned standard explained simply
Corporate Sustainability
Anyone who seriously talks about sustainability today cannot ignore the Greenhouse Gas Protocol (GHG Protocol). It is the world's most widely used standard for systematically capturing, calculating, and reporting greenhouse gas emissions. This contribution briefly explains the GHG Protocol in an understandable way – and presents the most important innovations 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 establishing itself as a leading framework for the precise measurement and reporting of greenhouse gas emissions. This internationally recognized methodology enables companies, organizations, and other entities to transparently present their total emissions across all business activities.
The significance of the GHG Protocol lies in its comprehensive consideration of all relevant emission sources. It provides structured standards for various sectors and applications, allowing organizations to create consistent and comparable climate accounts. Through 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 very 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 foundation of modern climate reporting and serves as the framework for many further 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 categorization of emissions into three categories – the so-called Scopes. This system helps to clearly assign the origin of emissions.
Scope 1: Direct Emissions
This includes all emissions that are directly generated by an organization's activities. Typical examples are:
Exhaust from the fleet
Combustion of gas or oil in boilers
Emissions from own industrial facilities
Example: A logistics company counts the exhaust from its truck fleet as Scope 1.
Scope 2: Indirect Emissions from Energy Consumption
Scope 2 includes purchased energy, that is, electricity, district heat, or steam that a company obtains from external suppliers.
Even if the emissions do not occur directly within the company, they can clearly be 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 includes all other indirect emissions that are 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 80–90% of total emissions – and is simultaneously the most challenging to capture, as data that serve as a basis for calculation are often not optimally recorded within many companies or must be inquired 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 their total 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 lifecycle of a product, from raw material extraction to disposal.
Project Protocol
Assesses emission reductions from climate protection projects, e.g., investments in renewable energy.
Standards for Cities and Municipalities
Developed for public institutions that want to create climate accounts at the city or regional level.
Thus, the GHG Protocol is flexibly applicable – both for multinational corporations and for municipalities or individual products.
Benefits for Companies
The application of the GHG Protocol brings many practical advantages:
Transparency and Credibility
An internationally recognized standard builds trust among investors, customers, and business partners.
Strategic Management
Through clear documentation, 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 if the GHG Protocol provides clear guidelines, there are practical hurdles:
Data Availability: Especially 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 companies 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 increasing demands for transparency and accuracy. Particularly important is the announced harmonization with 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 no longer have to juggle between different standards but can rely on an integrated framework. In parallel, several Technical Working Groups (TWGs) are working on reforms in the areas of Corporate Standard, Scope 2, Scope 3, and market-based mechanisms. Additionally, several new publications are planned for the coming years: The Land Sector & Removals Standard is expected to be published 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 dedicated standard for impacts and market instruments in 2028. These innovations mark an important step towards even more precise, regulatory-compatible, and future-proof emission reporting.
Frequently Asked Questions about the GHG Protocol
What is the GHG Protocol?
The globally 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 exist?
Scope 1: Direct emissions (e.g., fleet, heating).
Scope 2: Purchased energy (e.g., electricity, district heating).
Scope 3: Indirect emissions (supply chain & use of products – usually the largest share)
What standards exist?
Corporate, Scope 3, Product, Project, and special 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.
Anyone who seriously talks about sustainability today cannot ignore the Greenhouse Gas Protocol (GHG Protocol). It is the world's most widely used standard for systematically capturing, calculating, and reporting greenhouse gas emissions. This contribution briefly explains the GHG Protocol in an understandable way – and presents the most important innovations 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 establishing itself as a leading framework for the precise measurement and reporting of greenhouse gas emissions. This internationally recognized methodology enables companies, organizations, and other entities to transparently present their total emissions across all business activities.
The significance of the GHG Protocol lies in its comprehensive consideration of all relevant emission sources. It provides structured standards for various sectors and applications, allowing organizations to create consistent and comparable climate accounts. Through 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 very 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 foundation of modern climate reporting and serves as the framework for many further 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 categorization of emissions into three categories – the so-called Scopes. This system helps to clearly assign the origin of emissions.
Scope 1: Direct Emissions
This includes all emissions that are directly generated by an organization's activities. Typical examples are:
Exhaust from the fleet
Combustion of gas or oil in boilers
Emissions from own industrial facilities
Example: A logistics company counts the exhaust from its truck fleet as Scope 1.
Scope 2: Indirect Emissions from Energy Consumption
Scope 2 includes purchased energy, that is, electricity, district heat, or steam that a company obtains from external suppliers.
Even if the emissions do not occur directly within the company, they can clearly be 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 includes all other indirect emissions that are 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 80–90% of total emissions – and is simultaneously the most challenging to capture, as data that serve as a basis for calculation are often not optimally recorded within many companies or must be inquired 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 their total 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 lifecycle of a product, from raw material extraction to disposal.
Project Protocol
Assesses emission reductions from climate protection projects, e.g., investments in renewable energy.
Standards for Cities and Municipalities
Developed for public institutions that want to create climate accounts at the city or regional level.
Thus, the GHG Protocol is flexibly applicable – both for multinational corporations and for municipalities or individual products.
Benefits for Companies
The application of the GHG Protocol brings many practical advantages:
Transparency and Credibility
An internationally recognized standard builds trust among investors, customers, and business partners.
Strategic Management
Through clear documentation, 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 if the GHG Protocol provides clear guidelines, there are practical hurdles:
Data Availability: Especially 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 companies 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 increasing demands for transparency and accuracy. Particularly important is the announced harmonization with 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 no longer have to juggle between different standards but can rely on an integrated framework. In parallel, several Technical Working Groups (TWGs) are working on reforms in the areas of Corporate Standard, Scope 2, Scope 3, and market-based mechanisms. Additionally, several new publications are planned for the coming years: The Land Sector & Removals Standard is expected to be published 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 dedicated standard for impacts and market instruments in 2028. These innovations mark an important step towards even more precise, regulatory-compatible, and future-proof emission reporting.
Frequently Asked Questions about the GHG Protocol
What is the GHG Protocol?
The globally 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 exist?
Scope 1: Direct emissions (e.g., fleet, heating).
Scope 2: Purchased energy (e.g., electricity, district heating).
Scope 3: Indirect emissions (supply chain & use of products – usually the largest share)
What standards exist?
Corporate, Scope 3, Product, Project, and special 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.
