GHG Protocol's Scope 2 Overhaul: Industry Feedback and Next Steps

The Global Protocol for Community-Scale Greenhouse Gas Emission Inventories (GPC), commonly known as the GHG Protocol, recently proposed significant changes to its Scope 2 accounting standards. The proposed overhaul aims to require hourly, location-specific matching of electricity to claim emissions reductions. However, industry feedback on this proposal has been largely negative.

Industry Concerns

Data Availability: Companies, especially smaller ones, may struggle to access the required hourly, location-specific data.
Complexity and Cost: The proposed changes could significantly increase the complexity and cost of emissions reporting.
Practicality: Some industry players argue that the proposed approach may not accurately reflect real-world emissions reductions.

Potential Next Steps

In light of the industry feedback, the GHG Protocol may consider the following next steps:

Engage in further dialogue with industry stakeholders to understand their challenges and constraints.
Explore alternative approaches that balance accuracy with practicality and feasibility.
Provide clear guidance and support to help companies adapt to any final changes in the standards.

As the European Union moves towards implementing the Corporate Sustainability Reporting Directive (CSRD), accurate and practical emissions reporting standards will be crucial. The GHG Protocol's next steps will have significant implications for companies seeking to comply with these regulations.