Implementation walkthrough
How to build a GHG Protocol emissions inventory: video walkthrough
A walkthrough of building a greenhouse gas inventory to the GHG Protocol, from setting the boundary to a report an independent verifier can test.
Key takeaways
- The GHG Protocol sorts emissions into scope 1, scope 2 and scope 3.
- Set the boundary, consolidation approach and base year first.
- Record every boundary choice, estimate and exclusion with its reason.
- There is no GHG Protocol certificate; verification is by an independent body.
- The same inventory feeds questionnaires, targets and climate disclosures.
The accounting rules behind corporate emissions figures
The Greenhouse Gas Protocol is the set of accounting standards behind most corporate emissions figures. Built on a partnership between the World Resources Institute and the World Business Council for Sustainable Development, it tells a company how to draw its boundary, how to sort emissions into scope 1, sources it owns or controls, scope 2, the generation of the electricity, steam, heat and cooling it purchases, and scope 3, all other indirect emissions up and down the value chain, how to track them against a base year and what a report must disclose.
Behind every questionnaire answer, target and climate disclosure sits the same test: can an outsider follow the figures back to their sources? There is no certification. Where required, an independent verification body verifies the inventory and issues its own statement. This short film walks through how an inventory is built.
From boundary to verified report
Set the purpose, the boundary and the reporting year first: who will use the figures, the entities and sites, the consolidation approach, the reporting period and the base year. The inventory is designed around its uses, whether disclosure, targets, customer requests or reduction planning, and every boundary choice, estimate and exclusion is recorded with its reason in a methods note.
Scope 1 and scope 2 emissions are then calculated from activity data and emission factors, with scope 2 reported as the Scope 2 Guidance requires, and the relevant scope 3 categories are screened and calculated along the value chain. The accounting principles of relevance, completeness, consistency, transparency and accuracy apply to every decision. Data owners, evidence and internal review make the figures traceable, and the inventory report sets out the boundary, methods, results and changes against the base year. Where a customer, investor or rule requires it, an independent verification body tests the result, commonly working to ISO 14064-3.
Sterling's expert and experienced consultants build the boundaries, calculations, inventory report and evidence with your team under Sterling OS™, with the data held in Effivity. The GHG Protocol publishes the rules and neither certifies organisations nor verifies inventories.
GHG Protocol at a glance
- Purpose
- Accounting for and reporting an organisation's greenhouse gas emissions by scope 1, 2 and 3, on boundaries and methods an outsider can test
- Relevant to
- Organisations of any size asked for emissions figures by customers, investors, lenders, disclosure rules, target schemes or their board
- Edition
- Corporate Standard, revised edition (2004), amended by the Scope 2 Guidance (2015), with the Scope 3 Standard (2011); a joint GHG Protocol and ISO standard is planned for Q4 2028
- Verification
- No certification exists. Where required, an independent verification body, commonly working to ISO 14064-3 and accredited to ISO/IEC 17029 and ISO 14065, verifies the inventory and issues a statement
- Sterling's role
- Boundaries, calculations, the inventory report and its evidence built with your team, Effivity, training, internal review and verification readiness, then Sustain™
- Cost and timing
- Total investment for a GHG Protocol inventory depends on the current maturity of your processes, the scope, locations and number of employees. The process typically takes 3 to 6 months
GHG Protocol: questions people ask
Is there a GHG Protocol certification?
No. The GHG Protocol publishes accounting standards; it does not certify organisations or verify inventories, and the Corporate Standard states that it does not set out how verification should be conducted. What you can have is an inventory prepared in conformance with the standards and, where someone relies on it, a statement from an independent verification body at limited or reasonable assurance. A "GHG Protocol certificate" is a product of whoever sells it, not of the GHG Protocol.
Is a GHG Protocol inventory mandatory?
Not in itself: the GHG Protocol is voluntary. It becomes a requirement through the rules and programmes that adopt it: IFRS S2, the SBTi's net-zero standard, and customers and CDP asking for figures in its terms.
What are the 15 scope 3 categories?
Upstream: purchased goods and services; capital goods; fuel- and energy-related activities not included in scope 1 or scope 2; upstream transportation and distribution; waste generated in operations; business travel; employee commuting; upstream leased assets. Downstream: downstream transportation and distribution; processing of sold products; use of sold products; end-of-life treatment of sold products; downstream leased assets; franchises; investments.
Do we have to report scope 3?
Under the Corporate Standard, scopes 1 and 2 are the minimum and scope 3 is optional. If you report under the Scope 3 Standard, all scope 3 emissions must be accounted for, with any exclusion disclosed and justified. Disclosure rules and schemes add their own expectations: IFRS S2 asks for scope 3 emissions, and the SBTi sets coverage rules for targets.
What is the difference between location-based and market-based scope 2?
The location-based method applies average emission factors for the grids where you consume energy. The market-based method reflects the contractual instruments you hold, such as supplier-specific rates and certificates, provided they meet the Scope 2 Quality Criteria. Companies with operations in markets that offer such instruments report both figures, each labelled by method.
Keep exploring
Related to this video
The complete guide
Everything on GHG Protocol
Start with the GHG Protocol page, or go straight to the guide you need.
On the GHG Protocol page
- What are the main GHG Protocol requirements?
- How do you build and verify a GHG Protocol inventory?
- How much does a GHG Protocol inventory cost?
- How long does a GHG Protocol inventory take?
- Who needs a GHG Protocol inventory?
- How a GHG Protocol inventory pays its way
- Frequently asked questions about the GHG Protocol
Often combined with GHG Protocol
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- How to implement ISO 14001Implementation walkthrough · 3 min 24 s
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