GHG Reporting: A Comprehensive Guide

Greenhouse gas (GHG) reporting is an integral component of an effective organizational sustainability program. Whether meeting regulatory requirements in your region or providing public data to demonstrate reduction efforts, your team must ensure complete and accurate reporting. Today, there are many different regulations, standards, and certifications that make up the GHG reporting landscape. Navigating these frameworks can pose a major challenge for organizations of any size.

Here’s what you should know about this important topic, along with how the right GHG reporting software can make the entire process much easier for your team.

Table of Contents

Core GHG Reporting Principles

Key Concepts in GHG Reporting

National Greenhouse Gas Reporting Programs

GHG Reporting Standards

GHG Reporting Certifications

Software for GHG Reporting

Core GHG Reporting Principles

Effective GHG reporting must fulfill several core principles to ensure that efforts to reduce emissions and environmental impact are meaningful and successful. The GHG Protocol lays out the following principles:

• Relevance: GHG reporting must reflect an organization’s emissions in a way that is useful in both internal and external decision-making concerning emissions reduction.
• Completeness: Reporting must cover all emissions sources within an appropriate boundary, including Scope 1, 2, and 3 emissions.
• Consistency: Methodologies must remain consistent both over time and between companies to allow for meaningful comparisons between reported values.
• Transparency: All reporting activities must be carried out transparently with clear audit trails and disclosure of assumptions, methodologies, and data sources.
• Accuracy: Organizations must ensure that GHG emissions are measured, calculated, and reported accurately and reduce uncertainties as far as possible.
• Conservativeness: When there is ambiguity or uncertainty, GHG reporting must err on the side of caution and choose values that are more likely to overreport than to underreport.

Together, these principles provide general guidelines for GHG reporting as a whole. However, there are also technical considerations and a variety of different regulations, frameworks, and standards that provide more concrete guidance.

Key Concepts in GHG Reporting

Achieving accurate GHG reporting under any framework requires understanding several key concepts. While there may be some variation in the specific application of these concepts across regulations and standards, they are fairly ubiquitous throughout GHG reporting.

Carbon Equivalents and Global Warming Potentials

Carbon dioxide (CO₂) is the greenhouse gas that has captured the most public awareness. However, it is far from being the only one. In fact, pound for pound, there are many pollutants that have far more severe global warming impacts. The concept of carbon dioxide equivalents (CO₂e) provides a standardized unit to measure and compare any type of GHG emissions.

One CO₂e is equivalent to the global warming potential of one metric ton of CO2 emissions. A CO₂e value is calculated by taking the metric tons of a gas that has been emitted and multiplying it by its Global Warming Potential (GWP) value, which is a factor assigned to reflect its global warming impact over a 100-year time horizon.

These values sometimes change as scientific understanding advances. Most organizations, such as the Environmental Protection Agency (EPA), rely on values from the Intergovernmental Panel on Climate Change (IPCC). The IPCC regularly publishes updated Assessment Reports with GWP values, with AR6 being the most recent. The GHG Protocol recommends using the latest edition, but requirements under specific regulations can vary. You can see some GWP values for some common pollutants below.

Global Warming Potentials for Prominent GHGs

Source: IPCC Sixth Assessment Report (AR6)

GHG Emissionss Reporting Scopes

Establishing scope is an important part of accurate GHG reporting. Organizations must have concrete boundaries that dictate which emissions sources to include in their GHG accounting. The accepted standard is a system that establishes three different scope categories that organizations can use to guide their reporting practices.

Scope 1 Emissions

Scope 1 emissions encompass direct GHG emissions created by an organization’s activities. That includes a variety of sources owned or controlled by the company, including those from company vehicles, on-site heating and generators, and other process-related sources.

There are straightforward methods to calculate Scope 1 emissions based on usage and emissions factors. This allows a very broad range of organizations to report Scope 1 emissions working with readily available usage and consumption data. Scope 1 emissions are the most directly tied to an organization’s operations, making them a prime candidate for reduction efforts.

Scope 2 Emissions

Scope 2 emissions are indirect emissions associated with the purchase of energy, including electricity, steam, heating, and cooling. While these emissions occur off-site, they are still attributed to the organization consuming the energy.

Organizations can calculate their Scope 2 emissions using two distinct methods: location-based and market-based. Location-based reporting relies on total usage and grid-average emission factors for a given location. The market-based method takes into account specific contracts with utility providers for energy from renewable sources, along with renewable energy certificates (RECs) and other measures organizations can take to reduce their indirect emissions.

Scope 3 Emissions

Scope 3 emissions are the broadest category, including a wide range of both upstream and downstream emissions across the organization’s value stream. The GHG Protocol lists 15 distinct categories of Scope 3 emissions.Scope 3 GHG emissions reporting can be a challenging undertaking, requiring collaboration with suppliers, data collection from external sources, and complex calculations to accurately estimate values. While difficult, reporting Scope 3 emissions lets organizations establish the most accurate picture of their emissions and their ongoing efforts to mitigate them.

National Greenhouse Gas Reporting Programs

Many countries around the world have committed to greenhouse gas emissions reduction targets. Collecting data from industry is essential to accurately benchmark emissions and monitor progress.

The US Greenhouse Gas Reporting Program

The EPA Greenhouse Gas Reporting Program (GHGRP) is the primary GHG reporting program in the United States. It establishes requirements for large GHG emissions sources, fuel and industrial gas suppliers, and CO₂ injection sites to report emissions and other relevant data. Approximately 8,000 facilities across the country are required to report, and data is made publicly available.

The GHGRP includes 52 subparts, including Subpart A- General Provisions and a reserved Subpart B. The remaining 50 subparts provide requirements for specific industries and processes. Each of these subparts specifies the definition of the source category, GHGs to report, reporting thresholds, calculation guidance, and other details.

There are certain source categories and specific suppliers that must report regardless of their total emissions. For other source categories, facilities must report if their annual emissions are 25,000 metric tons CO₂e or greater. The EPA provides a list of GWP values for calculating CO₂e.

Annual GHGRP reports must contain data on emissions, including CO₂, CH₄, N₂O, each fluorinated GHG, and each fluorinated heat transfer fluid, along with any specific requirements from the industry subpart. Facilities must also provide their emission calculation methodologies, best available monitoring methods, and details on any parameters where a missing data procedure was used. Organizations must retain all required records for at least 3 years from the date of submission of the report.

Facilities can submit their reports using the e-GGRT tool, which is part of the EPA’s CDX system. Failing to report or reporting inaccurate data can lead to serious consequences, as the EPA does pursue enforcement actions against regulated entities under the Clean Air Act Stationary Source Civil Penalty Policy.

The Canadian Greenhouse Gas Reporting Program

Environment and Climate Change Canada’s (ECCC) Greenhouse Gas Reporting Program (GHGRP) collects annual reports from a wide range of facilities across the country. Emissions data from the program is publicly available through an online search tool.

Any facility that emits 10,000 metric tons of CO₂e or more per year must submit a report, with ECCC providing a list of GWP values for calculations. Emissions must be sorted by gas type, including CO₂, CH₄, N₂O, hydrofluorocarbons, perfluorocarbons, and sulfur hexafluoride. Facilities must also break down emissions by source, including stationary fuel combustion, industrial process, on-site transportation, waste, wastewater, venting, flaring, and leakage.

Certain facilities are subject to expanded reporting requirements, including:

• Aluminium Production
• Ammonia Production
• Base Metal Production
• Cement Production
• Electricity and Heat Generation
• Ethanol Production
• Hydrogen Production
• Iron and Steel Production
• Lime Production
• Mining
• Nitric Acid Production
• Petroleum Refining
• Pulp and Paper Production

These types of facilities must provide additional data and apply specific methods when calculating emissions. ECCC offers specific guidance for each of these industries, including detailed calculations and factors.

The GHGRP also covers CO₂ capture, transport, injection, and/or geological storage, with no minimum threshold for reporting.

Reports can be submitted using ECCC’s Single Window system. Companies that are required to report but fail to report, report late, or submit misleading information face serious penalties under the Canadian Environmental Protection Act.

GHG Reporting in the European Union

The European Union (EU) has a variety of requirements for GHG reporting. One of the most important programs is the EU Corporate Sustainability Reporting Directive (CSRD). This directive establishes a variety of reporting requirements covering environmental, social, and governance (ESG) impacts, including GHG emissions.

Under the CSRD, EU organizations must report if they meet two or more of these criteria:

• More than 250 employees
• Net turnover exceeding €50 million
• Total assets over €25 million

Non-EU companies that generate over €150 million in the EU and have at least one subsidiary in the region must also report under the CSRD.

Organizations must report information regarding both how activities that generate GHG emissions are relevant to their performance along with the impact of those emissions on society and the environment. Reporting covers Scope 1, 2, and 3 emissions. The European Sustainability Reporting Standards (ESRS), currently in the draft stage, will provide detailed guidelines on reporting methodologies.

The CSRD was adopted by the EU in 2022 and is still in a phase-in period. Companies that were already subject to the previous Non-Financial Reporting Directive (NFRD) must comply starting in 2024, with reports due in 2025. Other large organizations must comply beginning with 2025, with reports due in 2026. Small and medium-sized enterprises must report by 2027, and non-EU companies must report by 2028.

GHG Reporting Standards

Along with regulatory frameworks imposed by governments, there are also a variety of GHG reporting standards created by non-governmental organizations that provide frameworks and guidelines. Many regulations draw from these standards when establishing requirements. Even when not required by law, organizations often rely on these standards to report emissions and demonstrate their ongoing sustainability efforts to investors and the general public. Organizations that already face GHG reporting regulations can often leverage their data to create sustainability reports under these standards to improve public image, as there is a significant overlap.

The GHG Protocol

The Greenhouse Gas (GHG) Protocol is a partnership between the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD). It provides one of the most globally recognized frameworks for measuring and managing GHG emissions.

This framework focuses on emissions across the entire value chain. The GHG Protocol is responsible for developing the Scope 1, 2, and 3 standards that are widely applied across other GHG standards and regulations.

The Global Reporting Initiative

The Global Reporting Initiative (GRI) provides a comprehensive sustainability reporting framework that covers all types of ESG impacts. Alongside the overall framework, GRI also publishes material topic standards focused on specific topics, with GRI 305: Emissions being the relevant standard for GHG reporting.

Under GRI 305, organizations must disclose data related to their Scope 1, 2, and 3 emissions. They must also detail the methodologies they used to arrive at those values. When possible, reporting should include data for specific greenhouse gases, not just total CO₂e.

The Sustainability Accounting Standards Board

The Sustainability Accounting Standards Board (SASB) provides industry-specific standards for organizations to disclose sustainability information to investors. Specific standards are available for 77 distinct industries, each covering a full range of relevant ESG disclosures.

GHG reporting requirements under SASB vary across different industries. An organization may or may not have to report Scope 1, 2, or 3 emissions based on their significance within a specific industry. Standards can also address aspects of Scope 1, 2, or 3 emissions without requiring full accounting, such as only covering certain energy sources or upstream or downstream emissions.

GHG Reporting Certifications

Maintaining regulatory compliance is far from the only reason that organizations undertake GHG reporting. It can also serve to improve their image among investors and the general public. Many organizations pursue 3^rd party certifications to demonstrate their efforts and success in reducing GHG emissions.

The Carbon Disclosure Project

The Carbon Disclosure Project (CDP) is an international non-profit that operates an independent environmental disclosure system that helps companies manage and report their climate change, water, and deforestation impacts. CDP gives scores to organizations based on many factors, ranging from D- to A.

Organizations must fill out an annual questionnaire regarding governance, emissions data, risk management, and environmental strategy to establish and maintain their CDP score. The questionnaire covers comprehensive data on Scope 1, 2, and 3 emissions, along with energy consumption and emissions reduction targets.

EcoVadis

EcoVadis is a globally recognized sustainability platform that evaluates companies across a variety of ESG topics. Companies receive scores on a scale of 0 to 100 across four categories: Environment, Labor & Human Rights, Ethics, and Sustainable Procurement, along with medals based on their percentile rank.

GHG management practices fall under the Environment category. EcoVadis evaluates organizations based on their ability to measure, report, and reduce emissions, including Scope 1, 2, and 3 emissions. Organizations must fill out customized questionnaires based on their industry, size, and location. They must also provide documentation supporting their environmental policies, metrics, emissions reduction targets, and GHG accounting methods.

ISO 14064

ISO 14064 is a standard developed by the International Organization for Standardization (ISO) to provide guidelines for organizations to measure, manage, and report GHG emissions. It is a part of the larger ISO 14000 family, which covers a variety of environmental management topics. The standard is divided into three parts:

• ISO 14064-1:2018: General principles and requirements at the organizational level for quantifying and reporting GHG emissions, including guidelines for designing, developing, managing, and reporting a company’s GHG inventory.
• ISO 14064-2:2019: Guidance for quantifying, monitoring, and reporting activities undertaken for GHG emission reduction projects.
• ISO 14064-3:2019: Principles for validating and verifying assumptions and assertions in GHG emissions calculations and estimates to ensure accurate and reliable reporting.

While ISO publishes standards, they do not provide certification. Instead, companies must work with a third-party certification body to carry out the necessary audits to establish that they have successfully implemented the ISO 14064 standard. Companies can also benefit from implementing the standard as a practical tool to reduce GHG emissions, even if they don’t plan on pursuing certification.

How the Right Software Supports GHG Reporting

Complete and accurate GHG reporting requires the collection and management of a wide range of data, which can be a challenging task, especially for organizations with multiple facilities or even global operations. Companies must also ensure that their reporting aligns with the appropriate regulations and frameworks, further complicating this undertaking.

However, there’s no need to rely on manual data management and reporting. Instead, you can use ERA’s Corporate Sustainability Software to manage your GHG reporting and other sustainability needs. You can manage all of your GHG emissions data in one place, with both built-in and custom metrics to fully capture your Scope 1, 2, and 3 emissions. ERA's software covers all the steps required for accurate GHG reporting.

Report generation is greatly streamlined with ERA’s software, letting you meet regulatory requirements, apply relevant standards, and prepare custom reports for internal use, investor relations, and public release. With ERA, you can manage all of your GHG reporting needs, along with tracking and managing emissions data to support your continuous improvement efforts.

Meeting Your GHG Reporting Requirements

Depending on your facility locations, industry, and the goals of your organization, your team could face a wide range of different GHG reporting requirements. Whether meeting national or regional regulatory requirements or demonstrating your commitment to GHG emissions reduction, the key to effective GHG reporting is to understand the specific standards and frameworks that apply to your company and your activities.

If you’re looking to put your best foot forward with accurate GHG reporting, schedule a call with one of our project analysts today to find out how ERA’s software can meet your unique needs.

Contributing Scientist of This Article: