Established in 1998, the Greenhouse Gas Protocol (GHG Protocol) is an organization formed through a collaboration between the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD).
The GHG Protocol is an international set of guidelines developed by the World Business Council for Sustainable Development and the World Resources Institute, also known as the greenhouse gas reporting protocol.
The GHGP helps companies reduce greenhouse gas emissions by setting standards to support them in managing their emissions. In other words, they provide standards, guidelines, tools, and training for businesses and governments to measure and manage greenhouse gas emissions, which are the primary cause of climate change.
The GHG Protocol applies to a wide range of entities, including:
Businesses
In 2016, 92% of Fortune 500 companies responding to the CDP applied the GHG Protocol directly or indirectly.
Governments
Government agencies use the GHG Protocol to support the creation of policies and strategies to reduce emissions, making it easier to achieve global climate goals.
Non-Governmental Organizations (NGOs)
Non-governmental organizations (NGOs), non-profits, and other charitable organizations can also use the GHG Protocol to assess their emissions and promote sustainable activities.
Cities and Municipalities
The GHG Protocol can be applied to urban areas to measure and manage emissions, such as in transportation and construction sectors.
Suppliers
Many large businesses and organizations now require their suppliers and partners to report emissions, extending the GHG Protocol's application across the entire supply chain.
Investors
Thanks to the GHG Protocol, investors and financial institutions can evaluate a company's performance, environmental responsibility, and risk level when lending.
Universities and Academic Research Organizations
Universities and research institutions can use the GHG Protocol to study emission trends, evaluate policy effectiveness, and enhance public understanding of climate change issues.
Consulting Firms
Environmental and sustainability consulting firms can apply the GHG Protocol to provide specialized advice on measuring and managing emissions for their clients.
The GHG Protocol categorizes greenhouse gas emissions into three different scopes:
Scope 1 Emissions: Direct emissions from the activities of an organization or facility. These emissions are under the control of the organization.
Scope 2 Emissions: Indirect emissions related to the production of electricity, heat, or steam that a company purchases and uses. These emissions are caused during the energy production process of the supplier but are purchased by the company for business operations.
Scope 3 Emissions: All indirect greenhouse gas emissions that the company does not own or control throughout the entire supply chain (both upstream and downstream).
The GHG Protocol standards provide templates for different entities, such as businesses, governments, and cities, to measure and report emissions. They include:
The Corporate Standard: Guides corporations and NGOs on preparing an inventory at the corporate level.
GHG Protocol for Cities: Designed to measure and report greenhouse gas emissions at the city level with a community-wide scope.
The Mitigation Goal Standard: Helps countries and cities develop national and local emission reduction targets and approaches to achieve those goals.
The Corporate Value Chain (Scope 3) Standard: Helps businesses assess the impact of their entire value chain and identify key areas to reduce emissions.
The Policy and Action Standard: A standardized approach to estimate the GHG impact of policies and actions.
The Product Standard: A standard for calculating emissions throughout the lifecycle of a product and finding ways to reduce greenhouse gases effectively.
Organizations, products, or services that meet GHG Protocol standards have higher value when validated and assessed by the World Resources Institute (WRI), an authority on GHG Protocol. The benefits include:
Improved Quality: WRI checks the resource/product/service to ensure they meet GHG Protocol standards. Any errors are corrected to enhance quality.
Credibility: The GHG Protocol is trusted due to contributions from experienced greenhouse gas experts. The "Built on GHG Protocol" label ensures that resources/services/products are thoroughly vetted and meet GHG Protocol standards.
Brand Promotion: Resources/services/products validated by the GHG Protocol are featured on its official website, which attracts over 18,000 views per month.
To help Vietnamese businesses embrace green transformation trends and enhance sustainable performance, FPT IS has developed the VertZéro greenhouse gas inventory solution. VertZéro is designed to address challenges and needs in greenhouse gas inventory management, with standout features including:
