ISO Show

#188 GHG Protocol VS ISO 14064-1

     

Greenhouse Gas (GHG) accounting has become increasingly important in recent years due to the demand for more environmental accountability.

Whether by choice or due to legislation or mandatory Government led schemes, organisations need to able to effectively calculate their current impact before they can the right steps to reduce and offset the remaining emissions.

There are a lot of different routes to take, and some may look so similar that you have to squint to see a difference.

In this episode, Mel Blackmore breaks down the similarities and differences between the leading GHG emission reporting frameworks, ISO 14064-1 and the GHG Protocol Corporate Standard.

You’ll learn

  • What are the 2 leading GHG accounting frameworks?
  • What are the similarities between the GHG Protocol and ISO 14064?
  • What are the differences between the GHG Protocol and ISO 14064?
  • Reporting on indirect emissions
  • Choosing the right framework
  • How can the GHG Protocol and ISO 14064 complement each other?

Resources

In this episode, we talk about:

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[02:30] Episode summary: Mel will look at the similarities and differences between the 2 leading GHG emissions reporting frameworks, the GHG Protocol and ISO 14064-1:2018.

[02:20] What are the 2 leading GHG accounting frameworks? – Greenhouse gas (GHG) accounting has become increasingly important for organisations seeking to manage their environmental impact and contribute to climate change mitigation efforts. Two prominent frameworks guide this process: ISO 14064-1:2018 and the GHG Protocol Corporate Standard.

Climate change concerns necessitate robust methodologies for quantifying and reporting organisational GHG emissions. Standardised frameworks offer a transparent and reliable approach for organisations to measure their impact and contribute to environmental sustainability goals. This article examines two leading frameworks: ISO 14064-1:2018 and the GHG Protocol Corporate Standard.

[06:10] What are the similarities between the GHG Protocol and ISO 14064? – GHG Scope Definition: Both frameworks categorise emissions into three scopes: Scope 1 (direct emissions from owned or controlled sources), Scope 2 (indirect emissions from purchased electricity, heat, or steam), and Scope 3 (other indirect emissions throughout the value chain).

In general, the GHG Emissions covered in the GHG Protocol Corporate Standard conform to ISO 14064-1 if significant Sope 3 GHG emissions and GHG removals are both considered.

Quantification Principles: Both emphasize the importance of accuracy, completeness, consistency, transparency, and relevance when quantifying emissions.

GHG Reporting Boundaries: Both require clear definition of the organisational boundaries for which emissions are quantified.

GHG Inventory: Both frameworks guide the development of a GHG inventory, a comprehensive record of all organisational emissions.

[09:15] What are the differences between the GHG Protocol and ISO 14064? – Focus: ISO 14064-1 is a more procedural framework, outlining the steps for quantifying, reporting, and verifying GHG emissions. The GHG Protocol, on the other hand, offers detailed guidance on calculating emissions for various activities and sectors but lacks formal verification requirements.

Level of Detail: The GHG Protocol provides a more comprehensive and detailed approach, including calculation methods, guidance on emission factors, and best practices. ISO 14064-1 offers a less prescriptive approach, allowing organisations to choose calculation methodologies based on their specific needs.

Avoided GHG Emissions: The concept of avoided GHG emissions is not addressed in ISO 14064-1.  However, the GHG Protocol Corporate Standard addresses the quantification of avoided emissions, which are required to be reported separately.

Verification: Verification by a third-party verifier is optional under the GHG Protocol but mandatory for organisations seeking public disclosure or certification under ISO 14064-1. Verification enhances the credibility and reliability of reported emissions data, this could be to schemes like EcoVadis.

Value Chain Emissions: While both frameworks acknowledge Scope 3 emissions, the GHG Protocol offers a dedicated standard – the Corporate Value Chain (Scope 3) Standard – providing specific guidance on quantifying these emissions.

Addressing GHG Emissions and Removals: ISO 14064-1 clearly address GHG emissions and removals for each  category and removals are therefore an inherent part of the GHG quantification. The guidance in the GHG protocol is not as clear but allows for the reporting of removals separately from GHG Emissions.

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[17:05] Reporting on indirect emissions:  The main challenge for organisations is the reporting of indirect emissions (Scope 3), often leading to confusion based on a lack of clarity and understanding of how granular the data needs to be, combined with challenges extracting data from third-parties. 

ISO 14064-1 is very clear regarding which Scope 3 emissions are to be included, whereas the GHG Protocol standard maybe viewed as more open to interpretation.

In contrast, GHG Protocol standards require the inclusion of Scope 2 (indirect emissions from purchased energy); the inclusion of other indirect GHG Emissions under scope 3 is optional.

The GHG Protocol standard is referred to in various GHG reporting and disclosure initiatives whose requirements for the reporting of the Scope 3 emissions vary.  Whereas ISO 14064-1 has been created and approved by representatives from 61 nations to determine a specification for Scope 3 emissions reporting.

[20:30] Choosing the right Framework: The choice between ISO 14064-1 and the GHG Protocol depends on an organisation’s specific needs and goals. Here are some considerations:

  • Is there a need for Verification? i.e. is it a mandatory requirement
  • What level of detail is required? If a detailed approach with extensive calculation guidance is preferred, the GHG Protocol might be more suitable.
  • Resource availability – Do you have the resource to do this yourself or will you need a helping hand?
  • Disclosure reporting requirements – check what you need to comply with as this could determine which framework you use.

[23:30] How can the GHG Protocol and ISO 14064 complement each other? –  This podcast may have you thinking that it has to be one or the other, but in actuality the two frameworks can be used together effectively. Organisations can utilise the GHG Protocol’s detailed guidance to develop their GHG inventory and then follow ISO 14064-1’s process for verification and reporting.

If you would like some help with GHG reporting or Verification, please get in touch with Carbonology.

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