
The Carbon Border Adjustment Mechanism (CBAM)
In this article, we break down what the EU CBAM is, how it works, and what businesses need to do to comply.
ESG / CSR
Industries


By Kara Anderson, UK Copywriter, on 29/09/2022
Updated by Kara Anderson, on 12/03/2026


If you can’t measure it, you can’t manage it. That’s especially true when it comes to greenhouse gas (GHG) emissions, and that’s where the Greenhouse Gas Protocol comes in.
Co-created in the late 1990s by the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD), the protocol emerged just as climate action was gaining international momentum. Today, it’s the foundation of most carbon reporting systems, underpinning CDP disclosures, ESG strategies, and national climate plans alike.
From tracking emissions from company vehicles to mapping the carbon footprint of global supply chains, the GHG Protocol gives organisations a way to turn complex climate impacts into actionable data.
Break down what the Greenhouse Gas Protocol is, why it was created, and why it matters
Explain the differences between Scope 1, Scope 2, and Scope 3 emissions
Outline the main GHG Protocol standards used by organisations
Show how businesses can apply the protocol to meet regulations and take meaningful steps to reduce their environmental impact
The Greenhouse Gas Protocol – often called the GHG Protocol – is the leading global standard for measuring and managing emissions. Used by both public and private sector organisations, it provides a comprehensive global standardised framework for tracking carbon emissions and other greenhouse gases across operations, supply chains, and climate initiatives.
But it’s more than just a reporting tool.
Why does this matter? Because reducing GHG emissions is essential to slowing global warming and avoiding the most dangerous impacts of climate change. But without a reliable way to measure emissions, any reduction target is just guesswork.
That’s where the GHG Protocol plays a vital role. It not only enables organisations to build detailed carbon inventories, it also helps them pinpoint the most impactful areas to cut GHG emissions. And because the standards are internationally recognised, they ensure that efforts are transparent, credible, and comparable across sectors and borders.
In fact, according to the GHG Protocol, 97% of disclosing S&P 500 companies reported to CDP using the Greenhouse Gas Protocol – a testament to its role as the gold standard in corporate emissions reporting.
Measuring greenhouse gas (GHG) emissions is just the starting point. The GHG Protocol provides the foundation for building effective climate strategies, driving accountability, and turning ambition into real action.
The Greenhouse Gas Protocol evolved over decades as climate awareness and reporting needs grew. Here’s how it became the global gold standard for greenhouse gas accounting:
The Greenhouse Gas Protocol is best known for its system of categorising GHG emissions into Scope 1, 2, and 3 - a framework now used around the world to help organisations structure their carbon reporting.
But this is only part of what the GHG Protocol offers. Over the years, it has developed a broader set of standards and tools designed to guide climate action across different sectors and use cases.
In 2019, the GHG Protocol partnered with the Partnership for Carbon Accounting Financials (PCAF) to develop a methodology aligned with the GHG Protocol that helps financial institutions account for the emissions linked to their investment and lending portfolios. This helps banks and investors account for the emissions linked to their portfolios – a crucial step in aligning finance with climate goals.
The GHG Protocol is also currently undergoing a major multi-year update of its corporate standards, including the Corporate Standard, Scope 2 Guidance, and the Scope 3 Standard. These revisions aim to improve alignment with emerging climate disclosure frameworks and address challenges such as electricity accounting and value-chain emissions reporting. Draft revisions began appearing in 2024–2025, with final updates expected later in the decade.
To make reporting easier and more accurate, the protocol also provides:
To build an accurate greenhouse gas inventory, companies need a clear way to categorise their emissions, and that’s where the GHG Protocol scopes come in.
Scope 1, Scope 2, and Scope 3 emissions represent different sources of GHG emissions across an organisation’s operations and value chain. This classification has become a global benchmark for carbon accounting and is now used in most emissions reporting frameworks.


Understanding these scopes is key to setting science-based targets, identifying reduction priorities, and tracking progress over time.
This scope-based system allows organisations to clearly define the boundaries of their emissions reporting. It also helps ensure greater consistency and comparability across industries, making it easier to benchmark progress and identify where reductions will have the greatest impact.
The Greenhouse Gas Protocol isn’t a single document; it’s a collection of evolving standards designed to meet the diverse needs of organisations measuring and managing their emissions.
While the Scope 1, 2, and 3 framework offers a high-level view of emissions sources, these standards provide the technical guidance needed to apply that framework in practice. They support everything from corporate carbon reporting and product-level assessments to national climate policies and city-wide decarbonisation plans.
Each standard responds to a specific challenge, whether it’s calculating the impact of a climate policy, understanding the carbon footprint of a supply chain, or designing a lower-emissions product.
Let’s explore the key standards and how they’re used:
| Standard | Purpose | Scope / Focus | Who uses it | Key features |
|---|---|---|---|---|
|
🏢 Corporate Standard
|
Develops a complete GHG inventory | Scope 1 & 2 | Companies, NGOs, and public institutions | Defines boundaries, classifies emissions, sets base year, and tracks performance |
|
🔗 Scope 3 Standard
|
Measures emissions across supply chains and product lifecycles | Scope 3 | Corporations and large organisations | Covers 15 categories; focuses on indirect emissions across value chains |
|
📦 Product Standard
|
Assesses emissions of individual products | Product lifecycle | Manufacturers, retailers, and design teams | Informs product development and emissions reduction strategies |
|
🌱 Project Protocol
|
Calculates emissions reductions from specific initiatives | Project-level | Corporations, local authorities, developers | Applies to renewable energy, reforestation, efficiency upgrades, and more |
|
🏙️ GPC for Cities
|
Tracks emissions at the city or regional scale | Community-level | Cities, states, and national governments | Supports local climate planning and benchmarking |
|
🎯 Mitigation Goal Standard
|
Evaluates progress against climate targets | National/regional goals | National and sub-national governments | Designed to align with the Paris Agreement and NDCs |
|
🏛️ Policy and Action Standard
|
Estimates the GHG impact of policy decisions | Government action | Policymakers and regulators | Helps compare options and improve accountability |
Climate targets are becoming a business necessity. Investors want transparency, customers expect climate action, and regulators are introducing tougher disclosure rules.
For companies looking to future-proof their operations and thrive in a low-carbon economy, the GHG Protocol offers a practical and credible foundation. It offers a clear, consistent framework for measuring and reporting GHG emissions, helping businesses move from ambition to action with data they can trust.
Here’s how the GHG Protocol helps businesses stay ahead:
The GHG Protocol helps organisations understand exactly where their greenhouse gas emissions originate, across Scopes 1, 2, and 3. This enables more focused reduction efforts, whether it’s improving operational efficiency, switching to renewable energy, or redesigning supply chains.
Transparent reporting backed by a globally recognised standard helps companies demonstrate accountability and credibility. In a world where 88% of institutional investors consider ESG factors in their decisions, trust matters more than ever.
The GHG Protocol is embedded in many leading sustainability initiatives and disclosure frameworks, including:
Many ESG frameworks, like CDP and the Science Based Targets initiative, are built on GHG Protocol principles, but companies can also use the GHG Protocol directly to build emissions inventories and set science-based targets.
As governments introduce stricter reporting rules, including requirements for climate-related financial disclosures, companies need a consistent, auditable method for emissions reporting. The GHG Protocol provides exactly that.
By measuring the full emissions impact of their products and services, companies can make more informed design, sourcing, and production decisions, often reducing both emissions and costs. This product-level insight also helps brands meet growing consumer demand for sustainability.
The GHG Protocol is a tool companies can use to drive real greenhouse gas emissions reductions. But knowing where to start and how to apply the standards in practice can be a challenge.
Here’s a practical roadmap to help companies embed the GHG Protocol into their climate strategy:
Start by identifying which GHG Protocol standard (or combination of standards) best fits your company’s goals, size, and emissions profile.
| If your company needs to... | Use this standard |
|---|---|
|
Build a foundational emissions inventory
|
🏢 Corporate Standard |
|
Measure and manage supply chain emissions
|
🔗 Value Chain (Scope 3) Standard |
|
Understand the full carbon footprint of a product
|
📦 Product Standard |
|
Quantify emissions reductions from a specific project
|
🌱 Project Protocol |
|
Track progress against long-term climate targets
|
🎯 Mitigation Goal Standard |
Once the right standard is selected, the next step is to create a robust GHG inventory, the foundation for any climate strategy.
This involves:
With baseline data in place, companies can use their emissions inventory to set short and long-term reduction targets. These targets should align with recognised frameworks like the Science Based Targets initiative (SBTi), which encourages credible and ambitious climate goals.
The GHG Protocol’s structure ensures that targets are based on consistent, transparent emissions data, building internal confidence and external trust.
Once greenhouse gas emissions hotspots are clear, companies can move from measurement to mitigation. Strategies might include:
Tracking progress and reporting results is essential to staying accountable, both internally and externally.
Companies should:
Regular, transparent updates show stakeholders that climate commitments are more than words; they’re backed by action.
Implementing GHG Protocol standards can be complex – from data collection across multiple sites to managing Scope 3 emissions. That’s why many companies rely on carbon management software to simplify reporting and ensure compliance with leading frameworks.
Below are ten popular platforms that help organisations measure, track, and report greenhouse gas emissions.
| Software | Details |
|---|---|
|
1️⃣ Greenly
|
Full carbon management suite, GHG Protocol-aligned reporting, Scope 1–3 tracking, supplier engagement, and lifecycle analysis. Best for: SMEs to large enterprises. |
|
2️⃣ Persefoni
|
Climate management & accounting platform, audit-ready reporting, and ESG data tools. Best for: Large corporations. |
|
3️⃣ Watershed
|
Real-time carbon tracking, science-based targets support, and supply chain decarbonisation tools. Best for: Enterprises and financial institutions. |
|
4️⃣ Emitwise
|
Automated emissions calculations with a focus on Scope 3 and supply chain data integration. Best for: Manufacturers and logistics. |
|
5️⃣ Plan A
|
ESG and carbon management platform with automated data collection and sustainability KPIs. Best for: SMEs and corporates. |
|
6️⃣ Normative
|
GHG accounting with spend-based analysis, compliance dashboards, and ESG reporting support. Best for: Mid to large companies. |
|
7️⃣ Carbon Analytics
|
Simplified carbon footprinting with SME-friendly, sector-based reporting templates. Best for: Small businesses. |
|
8️⃣ Enablon (Wolters Kluwer)
|
Enterprise-scale EHS and sustainability reporting, GHG Protocol-aligned. Best for: Large, multinational firms. |
|
9️⃣ FigBytes
|
ESG and sustainability data management platform with GHG reporting and net-zero roadmap tools. Best for: Medium to large companies. |
|
🔟 Sustain.Life
|
Easy-to-use emissions tracking, climate disclosures, and employee engagement features. Best for: SMEs and start-ups. |
The Greenhouse Gas Protocol is widely recognised as a leading framework used by UK companies to measure and report greenhouse gas emissions in line with national climate regulations and net-zero commitments.
The Greenhouse Gas Protocol (GHG Protocol) is the world’s most widely used standard for greenhouse gas reporting. It provides a framework for companies, governments, and organisations to measure and manage emissions consistently across operations and supply chains.
While both are used for carbon accounting, the GHG Protocol is more widely adopted globally and underpins many ESG frameworks (CDP, SBTi, CSRD). ISO 14064 is a technical standard often used for verification and auditing purposes.
Carbon management platforms, like Greenly, automate Scope 1–3 calculations, streamline data collection, and provide audit-ready, GHG Protocol-aligned reports.
Start by selecting the right standard, building a Scope 1–3 emissions inventory, setting science-based targets, and implementing reduction initiatives. Many businesses use software to simplify data tracking and reporting.
No. The GHG Protocol is not legally mandated in the UK, but it is widely used by companies to calculate emissions reported under frameworks such as Streamlined Energy and Carbon Reporting (SECR) and climate-related disclosures aligned with TCFD and emerging UK sustainability reporting standards.
