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Methodology6 min read

GHG Protocol: the operational guide to get started

Principles, organisational and operational boundaries, and the path to the first emissions inventory according to the standard.

The GHG Protocol is the world reference standard for measuring the greenhouse gas emissions of organisations. When a bank or a client asks for "your emissions", they almost always mean an inventory built with this methodology. The good news: the fundamental concepts are few and clear.

The five principles

The standard rests on five principles: relevance (the inventory reflects the real emissions of the company), completeness (within the declared boundary nothing is omitted), consistency (methods comparable over time), transparency (assumptions and sources declared) and accuracy (neither systematic overestimates nor underestimates). Every methodological choice is judged against these five.

Organisational and operational boundaries

Before calculating you decide what to include. The organisational boundaries establish which companies and sites enter the inventory (control or equity-share approach). The operational boundaries classify emissions into Scope 1, 2 and 3. For an SME with a single company the choice is simple, but it must still be declared: it is the first thing a verifier looks at.

From document to inventory

The operational flow: gather the documents (bills, fuel invoices, FIR, purchase invoices), extract the activity data, apply up-to-date emission factors, aggregate by Scope and by site. The result is the GHG inventory: the basis of the ESG VSME report, of the bank questionnaires and of the reduction plan.

Envify automates the entire flow: the AI reads the documents, applies the methodology and maintains the traceability of every number back to the source.

Frequently asked questions

Are GHG Protocol and ISO 14064 alternatives?
They are largely compatible: ISO 14064 is the certifiable standard, the GHG Protocol the most widespread methodology. An inventory well made according to the GHG Protocol is taken to certification without redoing the work.
Is the GHG Protocol mandatory?
No, but it is the standard the market recognises: using it makes your numbers comparable and credible.
How long does building the first inventory take?
With the documents available and an automated process, days. By hand, typically weeks.

Sources and further reading

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