Why Do We Track GHG Emissions

With comprehensive GHG data tracking, it’s apparent that most corporate activities
lead to GHG emissions:

Sourcing raw Manufacturing Transportation End of life Employee travel Business

materials activities of goods products to/from work travel
Human Activities
Economic Activities
Electricity Production Mining Transportation

contribute the most to GHG emissions regardless of the industry.

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Why Do We Track GHG Emissions

Companies in certain industries have higher emissions than others, given the nature of
their products & services:

Oil & Gas GHG Contribution

Human Activities
Economic Activities IT & Software GHG Contribution

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Why Do We Track GHG Emissions

Emissions for some activities are under the company's direct control, while others are
mostly in the company’s supply chain:

Human Activities
Economic Activities
Carbon emissions in
Direct Indirect
battery production

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Accounting Frameworks & Guidance
To generate consistent, comparable, and accurate information related to climate change impacts, standards have been
developed for companies to measure & manage their emissions.

Stakeholder/Project-specific
Frameworks

1997 GHG Accounting

Kyoto Protocol Guidelines &
Widely Adopted Frameworks for
Frameworks
Corporate Use

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Frameworks for Corporate Use

Greenhouse Gas GHG Inventory ISO General Reporting

(GHG) Protocol Guidance Standard 14064 Protocol (GRP)

Corporate Finance Institute®

Frameworks for Corporate Use

Greenhouse Gas GHG Inventory ISO General Reporting

(GHG) Protocol Guidance Standard 14064 Protocol (GRP)

Corporate Finance Institute®

Frameworks for Corporate Use

Greenhouse Gas GHG Inventory ISO General Reporting

(GHG) Protocol Guidance Standard 14064 Protocol (GRP)

Developed by the World Resources Institute and the World Business Council for
Most widely used GHG
Sustainable Development, this protocol has become the global standard for calculating
corporate GHG emissions.
accounting standard
for corporations

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Frameworks for Corporate Use

Greenhouse Gas GHG Inventory ISO General Reporting

(GHG) Protocol Guidance Standard 14064 Protocol (GRP)

The United States Environmental Protection Agency’s EPA Center for Corporate Climate Leadership provides
comprehensive inventory guidance for corporates including for low emitters.

The EPA’s GHG inventory guidance is aligned with The Greenhouse Gas Protocol.

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Frameworks for Corporate Use

Greenhouse Gas GHG Inventory ISO General Reporting

(GHG) Protocol Guidance Standard 14064 Protocol (GRP)

The International Organization for Standardization (ISO) Standard 14064 provides an international standard for
quantifying and reporting GHG emissions.
Governments

Businesses
“Wide Stakeholder Complementary set of tools
to quantify, monitor, report
Standard”
and verify GHG emissions.
Regions

Other Organizations
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Frameworks for Corporate Use

Greenhouse Gas GHG Inventory ISO General Reporting

(GHG) Protocol Guidance Standard 14064 Protocol (GRP)

The Climate Registry’s General Reporting Protocol outlines GHG accounting policies and calculation methods for
reporting an organizational carbon footprint, or GHG inventory.

GRP embodies GHG accounting best practices from the Greenhouse Gas Protocol, the EPA Guidance, and
ISO 14064.

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Frameworks for Corporate Use

Greenhouse Gas GHG Inventory ISO General Reporting

(GHG) Protocol Guidance Standard 14064 Protocol (GRP)

With the increase in the use of data technology platforms, there are many calculators that are available for GHG
accounting.
Technology Providers

Custom GHG Tools

Consultants
Based on the standards listed above

Think Tanks

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Project-specific Frameworks
Partnership for
Carbon Accounting
Financials
Global partnership of
financial institutions that
work to develop &
implement a harmonized
approach to assessing and
disclosing the GHG
emissions of corporate
client portfolios.
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Intergovernmental
Panel on Climate
Change Guidelines
Designed by the United
Nations IPCC committee,
this methodology is used by
governments to estimate
their GHG emissions.
ICLEI Greenhouse
Gas Protocols
Provides local governments,
communities, and state
agencies with a
methodology to account for
carbon pollution accurately.
GHG Accounting
Framework for
Carbon Capture and
Storage (CCS)
Provides emission reduction
projects with an accounting
methodology to document
the emissions reduction
from CCS projects based on
international best practices.
Value of GHG Accounting to Investors
Company performance on material ESG subjects is increasingly becoming important for capital providers to
evaluate and track.

Investors Financing Energy

Structure

Financial services professionals are increasingly playing a more nuanced role in addressing climate
change through ESG integration in their selection strategies.

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Value of GHG Accounting to Investors
Company performance on material ESG subjects is increasingly becoming important for capital providers to
evaluate and track.

Help better understand and manage the risks and opportunities

for prospective portfolio companies

Analyzing carbon
disclosures of a Encourage companies to provide accurate, comparable and
company consistent information – creating an effective feedback loop.

Corporate Finance Institute®

Value of GHG Accounting to Investors
Some of the climate-related risks capital providers watch out for:

Regulatory risk around
increasing climate disclosure
regulations, climate taxes
and carbon pricing, and the
potential impact on
company’s operating results.
Reputational risk related to
the increasing demand for
action from the investment
community.
Creditor risk: how creditors
must seek to integrate material
ESG factors into their credit
models to better evaluate a
borrower’s capacity to repay
future obligations.
Legal risk associated with
the growing scrutiny on the
investment community to
prevent greenwashing.

Corporate Finance Institute®

Value of GHG Accounting to Investors
Some of the climate-related risks capital providers watch out for:

Strategies to measure, Asset Net-zero Emission

disclose, and reduce GHG Managers Portfolios by 2050
emissions

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GHG inventory Preparation & Emissions Calculation
Process of Preparing for an Inventory

Team

Leadership Company Resources Improving GHG

Emissions

Budget

Key
Stakeholders

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Process of Preparing for an Inventory
Once the resources are in place, the process of preparing for & calculating an inventory for a company includes
several steps:

01

This process includes the determination of two sets of boundaries:

Organizational
Understand the scope &
boundaries for
calculating GHG Operational
emissions.

Corporate Finance Institute®

Process of Preparing for an Inventory
Once the resources are in place, the process of preparing for & calculating an inventory for a company includes
several steps:

01 02

Not all companies may be be able to source all the necessary

information.

Understand the scope & Data Collection Making appropriate estimates for missing data is an
boundaries for important & potentially time-consuming step that must be
calculating GHG planned for effectively.
emissions.

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