In the broad and expanding field of environmental management, sustainability managers, green businesses, and environmental professionals continuously seek robust frameworks to reliably measure and manage greenhouse gas (GHG) emissions. In […]

In the broad and expanding field of environmental management, sustainability managers, green businesses, and environmental professionals continuously seek robust frameworks to reliably measure and manage greenhouse gas (GHG) emissions. In recent years, consumer behavior has significantly shifted towards environmental consciousness, with 73% of global consumers saying they would change their consumption habits to reduce their environmental impact, according to a Nielsen report [1]. This growing awareness has pressured businesses to focus more on Environmental, Social, and Governance (ESG) criteria. Moreover, a study by the Harvard Business Review found that products marketed as sustainable grew 5.6 times faster than those that were not [2]. Consequently, companies are increasingly recognizing the importance of ESG, not just as a moral obligation but as a financial imperative, with 85% of S&P 500 companies now publishing ESG reports, up from just 20% in 2011. 

This pursuit has led to the adaptation of comprehensive standards such as the GHG Protocol and ISO 14064. Both frameworks play critical roles in the global effort to quantify, manage, and reduce carbon footprints, aligning closely with Environmental, Social, and Governance (ESG) principles. However, differences between the two often spark debate among environmental-conscious readers regarding their application and effectiveness. 

In this blog, we aim to demystify the differences between the GHG Protocol and ISO 14064 for sustainability managers and businesses, focusing on their scope, applicability, and emission quantification methodologies to help choose the standard that best suits their sustainability goals and operational needs. 

Understand GHG Protocol 

To begin, let’s examine the Greenhouse Gas Protocol in detail. The GHG Protocol was developed in 1998 by the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD) as an international tool for managing greenhouse gas emissions. Its creation provided standards, guidance, tools, and training to help government and business leaders effectively understand, quantify, and manage GHG emissions. Over time, it has become the most widely used accounting tool for GHG emissions in both private and public sectors, influencing value chains and mitigation actions globally. 

The GHG Protocol categorizes emissions into three scopes: 

Scope 1: Direct GHG emissions occur from sources owned or controlled by the organization. 

Scope 2: Indirect GHG emissions are associated with the purchase of electricity, steam, heat, or cooling. 

Scope 3: Other indirect emissions result from the activities of the organization but occur from sources not owned or controlled by it. 

The division of the GHG Protocol into three distinct scopes was primarily driven by the need for a comprehensive and systematic approach to understanding and managing an organization’s carbon footprint. By categorizing emissions into Scope 1, Scope 2, and Scope 3, the Protocol allows for a clearer delineation of direct and indirect emission sources.  

Key Principles and Methodologies Used in GHG Protocol 

The GHG Protocol adheres to several key principles to ensure the effectiveness and integrity of GHG emission quantification and reporting. These principles include [3]: 

• Relevance: The GHG Protocol emphasizes the importance of reporting information that accurately reflects the GHG emissions of the reporting company and serves the decision-making needs of users, both internal and external to the organization. 
• Completeness: Organizations are encouraged to report all GHG emission sources and activities within the chosen boundary. Any specific exclusions are to be transparently disclosed. 
• Consistency: The GHG Protocol requires entities to consistently follow the same methodologies and data sources for GHG quantification, enabling meaningful comparisons of emissions over time. 
• Transparency: Transparency in reporting methods, assumptions, and limitations is crucial under the GHG Protocol. It mandates disclosure in a way that stakeholders can review and assess the credibility of the information provided. 
• Accuracy: Efforts should be made to ensure that GHG calculations are as accurate as possible, acknowledging any estimation uncertainties, aiming to reduce biases and not systematically over or understate actual emissions. 

In terms of methodologies, the GHG Protocol provides detailed guidance for calculating GHG emissions. This includes the use of emission factors, which are coefficients that quantify the emissions or removals of GHGs per unit of activity or process. The Protocol also promotes the use of primary data where available, and when not, the use of secondary data is encouraged with guidance on how to select the most appropriate and accurate sources. Another key aspect is the encouragement of managing data quality through the collection, calculation, and presentation of emissions data, outlining approaches for dealing with data gaps and uncertainties. 

Understand ISO 14064 

ISO 14064, on the other hand, is an international standard published by the International Organization for Standardization (ISO), providing governments, businesses, regions, and other organizations with a set of tools to quantify, monitor, report, and verify GHG emissions. The ISO 14064 standard, which is dedicated to greenhouse gas accounting and verification, is a crucial element of the ISO 14000 family. This family of standards, developed to assist organizations in managing their environmental impact, was first published by the International Organization for Standardization (ISO) in 2006. The development of ISO 14064 was driven by the growing global concern over climate change and the need for standardized methods to measure, report, and reduce greenhouse gas emissions. Over the years, ISO 14064 has undergone revisions to keep pace with evolving scientific knowledge and regulatory requirements, reflecting the international community’s commitment to environmental sustainability and climate change mitigation. 

The ISO 14064 standard is divided into three parts: 

ISO 14064-1: Specifies requirements for designing and developing organization-level GHG inventories. 

ISO 14064-2: Details requirements for quantifying, monitoring, and reporting emission reductions and removal enhancements at project levels. 

ISO 14064-3: Focuses on principles and requirements for verifying and validating GHG statements. 

Key Principles and Methodologies Used in ISO 14064 

ISO 14064 employs a structured approach for GHG inventory accounting and reporting, emphasizing principles that ensure the integrity, accuracy, and comparability of GHG data. These principles are fundamental to ISO 14064 and include: 

• Relevance: Ensures that the GHG inventory accurately reflects the emissions of the organization and that it meets the needs of the intended users. The standard insists on the alignment of the reporting with the organization’s GHG goals and objectives. 
• Completeness: Requires that all GHG emissions and removals that are significant to the scope of the inventory are accounted for and reported. This principle encourages organizations to cover all relevant GHG sources, activities, and operations within the defined inventory boundary. 
• Consistency: Aids in the comparison of GHG data over time by requiring consistent application of methodologies, including the use of the same data types, emission factors, and boundaries. 
• Accuracy: Strives for the reduction of uncertainties in GHG quantification and reporting. It demands that reported GHG data is systematically neither over nor underestimates true emissions levels and that uncertainties are reduced as far as practicable. 
• Transparency: Calls for clear documentation and presentation of the GHG inventory to enable stakeholders to evaluate its credibility. This includes disclosing methods used for the calculation of GHG emissions, any assumptions made, and the sources of data. 
• Verification: While not a principle per se in ISO 14064-1 and ISO 14064-2, ISO 14064-3 emphasizes the importance of third-party verification to ensure the reliability of GHG assertions. This process involves an independent assessment of the GHG inventory or project against the requirements of ISO 14064-1 or ISO 14064-2, respectively. 

Comparison between GHG Protocol and ISO 14064 

Feature	GHG Protocol	ISO 14064
Adaptability	Offers a wide array of tools and sectorial guidelines, highly adaptable to various industries.	Provides a generalized framework, flexible but requires more effort to tailor to specific sector needs.
Scope Coverage	Explicitly defines and distinguishes between three scopes of emissions.	Sets detailed principles and requirements for GHG statement verification and validation, ensuring data credibility.
Verification and Validation	Recommends third-party verification for credibility but lacks a rigorous standard.	Sets detailed principles and requirements for GHG statement verification and validation, ensuring data credibility.
Geographical Ubiquity	Universally recognized and adopted across many countries and industries.	Internationally recognized, applied where ISO certification is prioritized or required.

Recommendations and Conclusions 

Choosing between the GHG Protocol and ISO 14064 mainly depends on an organization’s needs, complexity, and location. The GHG Protocol suits those needing sector-specific tools and guidelines, while ISO 14064 appeals to those prioritizing GHG verification and validation. 

The key goal is to reduce carbon footprints and boost sustainability. Adopting either standard helps organizations manage and report GHG emissions, contributing significantly to global sustainability. 

Sustainability managers, eco-friendly businesses, and environmental experts should keep up with these standards and apply them to meet ESG goals. Choosing the right framework can minimize environmental impact and improve market position by showing a commitment to sustainability. 

The focus isn’t on which framework is better, but on how each can effectively combat climate change. Using the GHG Protocol, ISO 14064, or both allows businesses to make a real difference, leading to a sustainable future. 

Sources: 

[1] https://www.nielsen.com/insights/2018/what-sustainability-means-today/ 

[2] https://hbr.org/2019/06/research-actually-consumers-do-buy-sustainable-products 

[3] https://ghgprotocol.org/sites/default/files/standards/ghg-protocol-revised.pdf