In an increasingly globalized era where environmental awareness continues to rise, businesses and organizations around the world are striving to reduce carbon emissions. GHG accounting plays a crucial role in systematically measuring, tracking, and managing emissions. By implementing effective GHG accounting, companies can not only comply with regulations but also enhance their sustainability strategies and build trust with stakeholders. 

What is GHG accounting? 

Greenhouse Gas (GHG) accounting, also known as carbon accounting, involves quantifying and tracking GHG emissions using standardized methodologies and reporting them according to established protocols. These methods allow businesses, governments, and individuals to assess the amount of emissions generated from their activities, both directly from their operations and indirectly through supply chains and customer interactions. 

Why is GHG accounting important? 

Greenhouse gas (GHG) accounting plays a vital role in helping companies enhance various aspects of their business, from lowering overall emissions to complying with environmental regulations and GHG accounting standards. These efforts not only support sustainability but also increase a company’s appeal to investors and customers. adopting GHG accounting is a key step toward corporate sustainability. Consumers and investors are increasingly drawn to businesses that demonstrate environmental responsibility, such as by utilizing renewable energy or implementing energy efficiency measures to combat climate change. 

What kinds of emissions should companies measure and disclose? 

For companies to comprehensively assess their climate impact, they need to measure not only the emissions caused by their own operations, but also from the raw materials they source and use of the goods they sell. Calculating the totality of a company’s impact on emissions requires evaluating three scopes: 

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GHG accounting focuses on the assessment of emission data, based on the ISO 14064-1 standard to provide credibility for compliance, participation in emission trading systems, or sustainability reporting. This process includes reviewing operational boundaries, emission sources, and calculation methodologies to ensure that the reported data aligns with regulatory and market requirements. Emission sources are classified into 6 criteria: 

• Category 1 Direct GHG emissions and removal

  • Direct GHG emissions and removals occur from GHG sources or sinks inside organizational boundaries and that are owned or controlled by the organization. Those sources can be stationery (heaters, electricity generators, industrial process) or mobile

• Category 2 Indirect GHG emissions from imported energy

  • This category includes only GHG emissions due to the fuel combustion associated with the production of final energy and utilities, such as electricity, heat, steam, cooling and compressed air. It excludes all upstream emissions (from cradle to power plant gate) associated with fuel, emissions due to the construction of the power plant, and emissions allocated to transport and distribution losses. 

• Category 3 Indirect GHG emissions from transportation  

  • GHG emissions occur from sources located outside the organizational boundaries. Those sources are mobile and are mostly due to fuel burnt in transport equipment. If relevant, the category also includes emissions associated with: 
    • Refrigeration gas leaks (chilled transport, air conditioner);  
    • Upstream emissions arising from fuel generation and fuel transportation/distribution. 
    • Construction of the transport equipment (vehicle and infrastructure).  

This category includes transport for persons and goods, and for all modes (rail, maritime, air and road). 

• Category 4 Indirect GHG emissions from product used by an organization

  • GHG emissions occur from sources located outside the organizational boundaries associated with goods used by the organization. Those sources might be stationery or mobile and are associated with all types of goods purchased by the reporting organization. Emissions are mostly due to the following phase in a “cradle to supplier output gate” approach:  
    • Extraction of raw materials, agricultural activities.  
    • Transportation of raw materials/products between suppliers. 
    • Manufacturing and processing of raw materials.

Attention should be paid to not double counting with other categories/subcategories, such as indirect GHG emissions from transportation and services purchased by the organization. 

• Category 5 Indirect GHG emissions associated with the use of product from the organization 

  • GHG emissions or removals associated with the use of products from the organization result from products sold by the organization during life stages occurring after the organization’s production process.  
  • Those emissions or removals might cover a very wide range of services and associated processes. In most cases, the organization does not know the product’s exact destiny through its life stages and, should define plausible scenarios for each life stage 

• Category 6 Indirect GHG emissions from other source  

  • The purpose of this category is to capture any organization specific emission (or removal) that cannot be reported in any other category. 

What is the main goal of GHG accounting? 

The main purpose of carbon accounting is to measure the amount of greenhouse gases, like carbon dioxide, that are released by a company. This helps to assign a specific value to those emissions so they can be traded in carbon markets. As global temperatures rise and greenhouse gas levels increase, more companies are realizing the harmful effects of using fossil fuels and how having a large carbon footprint could harm their future business prospects. 

How CBQA Global Can Help 

As an accredited Validation and Verification Body (VVB) by KAN, CBQA Global is ready to assist your organization in verifying your emission calculations.  GHG calculations that have been verified by a third party can increase trust from stakeholders and other external parties. 

CBQA Global is committed to supporting a greener world. We contribute to world emission reduction targets in line with the Paris Agreement, as well as drive industrial transformation towards greener and more sustainable business practices. 

CBQA Global expertise in verification is based on these standards in our team of specialists with extensive experience in GHG accounting (Greenhouse Gas) management and ISO standards. Additionally, we offer a verification process tailored to the specific needs of each organization. 

We invite organizations to partner with CBQA Global on your sustainability journey. Implementing ISO 14064-1 is an important step toward creating a greener and more sustainable future. 

CBQA Global is ready to help your company achieve the best standards and become your partner in the ISO 14064-1 verification process. Register now or contact us here: WA 628118468777.