GHG Protocol

The global accounting rulebook behind every credible carbon number — and every framework that cites Scope 1, 2, 3.

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What it is

The GHG Protocol in one paragraph

The Greenhouse Gas Protocol is the world's most widely used corporate carbon accounting standard, developed by the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD). First published in 2001, it defines the Scope 1 / 2 / 3 taxonomy, organisational and operational boundaries, and methodologies for measuring emissions across the value chain. It is not itself a disclosure regime — it is the methodological backbone that SECR, CSRD, ISSB, CDP and virtually every other framework rely on or reference.

Who's in scope

In scope, thresholds, jurisdictions

GHGP is voluntary in itself, but effectively mandatory because it underpins the frameworks that are mandatory. Any organisation reporting emissions under SECR, CSRD, IFRS S2, CDP, SBTi targets, or a customer's supplier code is — directly or indirectly — applying GHGP. There are no size thresholds: it applies equally to a 20-person consultancy measuring its footprint for a tender and a FTSE 100 group consolidating global operations.

Key requirements

Define organisational boundary using equity share, financial control, or operational control approach (apply consistently)
Report Scope 1 (direct), Scope 2 (purchased energy), and — where material — Scope 3 (value chain, 15 categories)
For Scope 2, disclose both location-based and market-based figures (dual reporting)
Assess materiality of each of the 15 Scope 3 categories and justify exclusions
Choose a base year and recalculate when significant structural changes occur
Apply approved calculation methodologies (spend-based, average-data, supplier-specific, hybrid)
Maintain a documented inventory management plan with activity data, emission factors and GWP sources
Report in CO₂e using IPCC AR5 or AR6 GWPs (check downstream framework for which vintage)

Deadlines & timing

No statutory deadlines — GHGP itself sets no filing dates
Land Sector and Removals Guidance finalised 2024; first full reporting cycles land in FY2025 and FY2026 disclosures
Scope 2 and Scope 3 standards under revision through 2025–2026; revised versions expected late 2026
Corporate Standard revision consultation ongoing; publication expected 2026–2027

Where finance teams get stuck

Setting and defending the organisational boundary for group structures with JVs, minority stakes and recent M&A

Sourcing activity data when procurement sits outside finance and invoices lack emissions-relevant detail

Choosing between spend-based and activity-based Scope 3 methods — and explaining the trade-off to auditors

Base-year recalculation triggers: divestments, acquisitions, methodology changes

Allocating shared facilities, leased assets and embedded energy in landlord-controlled buildings

How neoeco helps

Ledger-first ingestion: every tonne of CO₂e ties back to a GL transaction, vendor and cost centre
Auto-mapped emission factors (DEFRA, EPA, IEA, EXIOBASE) with full provenance on every line
Human-in-the-loop review queues for ambiguous categorisations, with audit logging
Dual Scope 2 reporting (location- and market-based) from the same underlying data
Scope 3 category materiality screen using spend patterns and NACE/SIC codes
Multi-entity consolidation with equity-share, financial-control and operational-control views
Base-year recalculation workflows with documented rationale for each adjustment

GHG Protocol ready

Generate GHG Protocol-ready disclosures from your ledger

Book a 30-minute walkthrough focused on GHG Protocol. We'll show you the data model, the export template, and what your auditor will test.

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