Managing Business Greenhouse Gas Emissions: The Greenhouse Gas Protocol – A Strategic and Operational Tool

Abstract

At the World Economic Forum in February 2000, leading government officials, CEO's and representatives from civil society voted the climate issue the most important challenge confronting mankind. This concern has spawned a range of responses from voluntary action by companies, to the introduction of binding regulations at the national level. Business is a key focus of most national climate policy and voluntary efforts, both as the main source of greenhouse gas emissions as well as a major provider of solutions.

Conducting an inventory of greenhouse gas emissions is an important first step a company can take towards developing an effective response to climate change. A greenhouse gas inventory provides valuable information on the risks and opportunities of operating in a carbon constrained economy. At a strategic level, greenhouse gas emissions may be relevant to a company's “license to operate”, competitive environment, “carbon risk”, and issues of corporate social responsibility. At an operational level, greenhouse gas emissions information may be relevant to decisions on what products to make, what materials and technologies to use, and from where to source energy.

The Greenhouse Gas Protocol, a broad collaboration of businesses, NGO's, governments and others, was convened by the World Business Council for Sustainable Development (WBCSD) and World Resources Institute (WRI). It represents a voluntary international standard for accounting and reporting greenhouse gas emissions that will enable businesses to report information from global operations in a way that presents a clear picture of GHG risks and reduction opportunities, while facilitating understanding and comparison with similar reports.