Third Edition Corporate Standard
The Greenhouse Gas Protocol (GHG Protocol) plans to release third edition corporate standard, aiming to consolidate existing disclosure guidelines and establish a consistent global standard for greenhouse gas accounting.
Since the release of the first edition of the corporate standard in 2001, the GHG Protocol has become the most widely used framework globally. However, cross-references, terminology definitions, and duplicative content among different standards have imposed additional burdens on enterprises. To address this issue, the GHG Protocol, in collaboration with the International Organization for Standardization (IOSCO), plans to jointly release the third edition of the corporate standard.
Related Post: GHG Protocol Releases Scope 3 Carbon Emission Standard Revision Framework
Introduction to Third Edition Corporate Standard
The third edition corporate standard is divided into the following working groups:
Corporate Standard Technical Working Group
The issues of the Corporate Standard Technical Working Group include:
- Objectives and Principles: Focus on corporate objectives, consider the application of material terminology, and reference financial accounting principles.
- Organizational boundaries: Update the definition of organizational boundaries, and review the definitions of operational control, financial control, and equity ratio.
- Operational boundaries: Consider whether to require Scope 3 disclosures and whether to introduce phased disclosure requirements.
- Changes in carbon emissions over time: Update the requirements for the base year, calculation policies, and definition of materiality thresholds.
- Guarantee: Introduce guarantee requirements and provide relevant information.
- Calculation method: Update the calculation method for carbon emissions, as well as information on Global Warming Potential (GWP).
Scope 2 Technical Working Group
The Scope 2 Technical Working Group focuses on the following matters:
- Update on Objectives and Methods: Determine carbon accounting standards based on location-based methods and market-based methods.
- Technical improvements based on location-based methods and market methods: Utilize more precise data to revise market boundary requirements.
- Regional differences in energy markets: Consider developing calculation guidelines and examples for the global energy market.
- Policy interaction: Determine the meaning of Scope 2 accounting methods and provide guidance.
Scope 3 Technical Working Group
The Scope 3 Technical Working Group categorizes the 15 Scope 3 categories into two parts:
- Cross-domain contents: Including boundary setting, data quality, calculation methods, etc. For boundary setting, consider formulating more specific requirements and establishing thresholds for excluding activities. For data quality, consider developing a data quality hierarchy and scoring matrix. For calculation methods, consider optimizing carbon accounting methods.
- Industry-specific categories: Purchased Goods and Services, Capital Goods, Transportation and Distribution, Waste Treat and Treatment of Products, Business Travel, Employee Commuting, Leased Assets, Processing and Use of Sold Products, Franchises, and Investments.
Action and Market Tool Technology Working Group
The scope of the Actions and Market Instruments Technical Working Group includes:
- Standardization of terms, concepts, and definitions: Ensure comparability of different reporting elements.
- Accounting and reporting objectives and principles: Clarify the positioning and principles of actions and market instruments in corporate greenhouse gas reporting.
- The structure of corporate greenhouse gas reports: Introduce various new reporting factors, including market benchmark inventories, greenhouse gas impact statements, non-greenhouse gas indicators, etc.
- Accounting requirements: Including boundary, standard, safeguard measures, and traceability requirements.
- Reporting requirements: Including the relationship and interpretation of report elements, as well as the use of statements related to actions and market tools.
- Guarantee of carbon emission report: Ensure the credibility and verifiability of the elements.
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