A Corporate Accounting and Reporting Standard

Training Curriculum

A Corporate Accounting and Reporting Standard

What is the Greenhouse Gas Protocol?

A Corporate Accounting and Reporting Standard

 Introduction
The Greenhouse Gas Protocol

Principles
• The Greenhouse Gas Protocol was launched in 1998 by

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• Multi-stakeholder partnership of businesses, NGOs,
governments and others

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A Corporate Accounting and Reporting Standard
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Introduction Principles Over time Reporting Review
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A Corporate Accounting and Reporting Standard
Our mission
 Introduction
Our goals

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• Simplify and reduce the
burden of measurement and

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reporting
• Illuminate reduction

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opportunities and enable
market based options
• Support management action

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and stakeholder reporting
• Enable credible, transparent

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and consistent information
flow across multiple
borders/jurisdictions

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A Corporate Accounting and Reporting Standard
 Introduction
GHG Protocol

Principles
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• Standards: 6 Major Standards + 7 Sector Standards

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• Tools: 25 +

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• Tool downloads: 1000 + per month

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• Newsletter subscribers: 9,500 +

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• Registered website users: 55,000 +

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• Programs based on GHGP: 50 + worldwide

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A Corporate Accounting and Reporting Standard
 Introduction
GHG Protocol flagship publications

Principles
Entity Product Project

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Value Chain
Corporate Project
(scope 3) Product

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Standard Protocol
Standard

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A Corporate Accounting and Reporting Standard
 Introduction
Three types of GHG accounting

Principles
1. Entity accounting 2. Project accounting

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• Combines emissions data from across an • Quantifies emissions that will be avoided
entity’s operations (emissions have mostly by a given project in the future
already occurred) • Impact estimated through a comparison

Reporting
• Emissions data compared with those of a with a baseline, “what if?” scenario
prior base year

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A Corporate Accounting and Reporting Standard
 Introduction
Three types of GHG accounting

Principles
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3. Product accounting

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• Combines emissions data (past
and future) from all phases of an
individual product or service
• Emissions data compared with

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those of a prior base year

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A Corporate Accounting and Reporting Standard
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Introduction Principles Over time Reporting Review
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Project
Product
GHG Protocol flagship publications

A Corporate Accounting and Reporting Standard

Entity

Corporate
Standard
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Introduction Principles Over time Reporting Review
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Scopes in corporate reporting

A Corporate Accounting and Reporting Standard

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Introduction Principles Over time Reporting Review
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The standards are complimentary

A Corporate Accounting and Reporting Standard

Introduction
Lesson 1

A Corporate Accounting and Reporting Standard

 Introduction
Corporate Standard: Lesson Modules

Principles
2. GHG Accounting and Reporting Principles

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3. Setting Organizational Boundaries

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4. Setting Operational Boundaries

5. Tracking Emissions Over Time

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6. Identifying and Calculating Emissions

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7. Reporting GHG Emissions

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8. Review

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A Corporate Accounting and Reporting Standard
 Introduction
Learning Objectives

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In this lesson, you will learn:

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• How and why the GHG Protocol Corporate Standard was developed

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• What the Standard should (and should not) be used for

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• How a GHG inventory can bring value to a business

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• How the Standard interacts with GHG programs

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A Corporate Accounting and Reporting Standard
 Introduction
GHGP Corporate Standard

Principles
• Provides standards and guidance for companies and other

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organizations to prepare GHG emissions inventories

• Widespread adoption of standard:

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– Several year, multi-stakeholder development process
– Robust, practical and built on practitioner expertise

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• Covers accounting and reporting of 7 GHGs:

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Carbon dioxide (CO2) Hydrofluorocarbons (HFCs)
Methane (CH4) Perfluorocarbons (PFCs)

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Nitrous oxide (N2O) Sulphur hexafluoride (SF6)
Nitrogen triflouride (NF3)

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A Corporate Accounting and Reporting Standard
 Introduction
Objectives of the Standard

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• To help companies prepare a true, fair account of emissions

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• To simplify and reduce the costs of compiling an inventory

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• To assist businesses in managing and reducing emissions

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• To facilitate participation in GHG programs

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• To increase consistency and transparency in GHG accounting and
reporting

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A Corporate Accounting and Reporting Standard
 Introduction
Who should use this standard?

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• Businesses developing GHG inventories (primary users)

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• Other organizations developing inventories

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– Non-governmental organizations (NGOs)
– Government agencies (consult Public Sector Protocol)
– Universities

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• Organizations designing voluntary GHG accounting and

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reporting programs

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• Policymakers or regulators designing GHG reporting rules

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A Corporate Accounting and Reporting Standard
 Introduction
Sector Guidelines

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Focus on sectors that

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• Present unique GHG accounting issues that are not
adequately addressed in the parent Standard
• Contribute significantly to global emissions

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• Offer significant potential for emissions reductions
• Demonstrate strong demand for new guidance

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A Corporate Accounting and Reporting Standard
Corporate Standard
Sector Guidelines
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A Corporate Accounting and Reporting Standard
Focus of this training
 Introduction
The Corporate Standard: Adoption

Principles
Organizational
The Canadian GHG

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Challenge Registry
European Union GHG
Emission Trading
System (EU ETS)

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US EO 13515 China iCET Climate and
Energy Registry
US EPA Climate
Leaders Japan’s Voluntary

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Emissions Trading
Scheme (JVETS)
The Climate Registry
South Korea’s GHG
Israel GHG Emission Information

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Program System (GEIS)

GHG Brazil Program Australia GHG

Challenge Plus
Program

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New Zealand CarboN
Zero Programme

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A Corporate Accounting and Reporting Standard
 Introduction
The de facto standard amongst businesses

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• GHG Protocol - Most important climate program after Kyoto Protocol (2010 GHG
Workforce Survey)
• Fast Company called WRI “the de facto authority on corporate sustainability

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reporting standards”.

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A Corporate Accounting and Reporting Standard
 Introduction
Reporting - Common practice in Leading Companies

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GHGP adopted by 60%+ of Fortune 500 companies

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A Corporate Accounting and Reporting Standard
 Introduction
Business goals for developing inventories

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Business goal Description

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Understand Exposure to GHG regulations
operational risks Enhanced market opportunities (e.g., access niche markets)
and opportunities

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Guide investment and procurement decisions

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Track and reduce Identify emissions hot spots and reduction opportunities
emissions Set GHG reduction targets

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Measure and report GHG performance over time
Develop performance benchmarks and assess performance

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peers

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GHG AProtocol
Corporate
Agriculture
Accounting
Workshop
and Reporting
– Standard www.ghgprotocol.org
04/05/2012
 Introduction
Business goals for developing inventories

Principles
Business goal Description

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Report to Meet information needs of stakeholders
stakeholders Participate in voluntary reporting programs
Report to government reporting programs

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Improve corporate reputation and accountability

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GHG AProtocol
Corporate
Agriculture
Accounting
Workshop
and Reporting
– Standard www.ghgprotocol.org
04/05/2012
 Introduction
Principles
Standard NOT for

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• Quantifying reductions from GHG mitigation projects
(offsets)

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– Consult the GHG Protocol guidance for Project Accounting

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• Accounting for life-cycle emissions from products

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– Consult GHG Protocol Product Life Cycle Standard

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A Corporate Accounting and Reporting Standard
 Introduction
GHG Protocol’s Relationship to other GHG Programs

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• Not a reporting program (does not collect inventories)

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• Does not require verification

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• Not designed for a particular program or policy

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• Foundation for, and compatible with, most programs

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• If participating in a GHG program, check its requirements

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A Corporate Accounting and Reporting Standard
 Introduction
Summary

Principles
• The Corporate Standard provides standards and guidance for

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preparing GHG emissions inventories

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• The Standard is primarily used by businesses; also used by other
organizations and policymakers

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• Emissions inventories bring value to business

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• The Standard is compatible with many GHG programs and policies

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A Corporate Accounting and Reporting Standard
 Introduction
Further Reading

Principles
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The Greenhouse Gas Protocol: A Corporate Accounting
& Reporting Standard

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Introduction

Calculating
Emissions
Reporting
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A Corporate Accounting and Reporting Standard