Insight
Within scope: navigating the Greenhouse Gas Protocol - part II
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Report summary
The Greenhouse Gas (GHG) Protocol stands as the preeminent standard for carbon accounting, offering comprehensive coverage and standardisation for emissions reporting frameworks worldwide. This insight, the second of a three-part series, examines scope 2 emissions: indirect emissions from purchased energy. The GHG Protocol offers two calculation methods: location-based (using average grid emission factors) and market-based (reflecting contractual arrangements for renewable energy). Both face challenges, including lack of granularity and concerns about additionality and greenwashing. As scope 2 reporting becomes mandatory worldwide, companies must adapt their strategies for compliance and meaningful emissions reductions. Mastering the GHG Protocol is essential for companies aiming to effectively decarbonise their operations and mitigate compliance risks in an increasingly regulated environment.
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