Greenhouse Gas Accounting

Greenhouse gas accounting describes the way to measure emissions from an organization. Gobi uses the accounting guidelines of “The Greenhouse Gas Protocol” published by the World Resources Institute and the World Business Council for Sustainable Development. This Protocol is the international accounting tool most widely used by government and business leaders to understand, quantify, and manage greenhouse gas emissions. A copy of the Protocol can be obtained at Greenhouse Gas Protocol Initiative.

Direct vs. Indirect Emissions

Greenhouse gas emissions are produced by a variety of business activities – from heating and lighting the office to travelling to meetings. As defined by The Greenhouse Gas Protocol, greenhouse gases from a business are categorized into direct and indirect emissions.

Direct emissions are from sources that the business owns or controls, such as emissions from boilers, furnaces or company cars. For accounting purposes, direct emissions are called “Scope 1” emissions.

Indirect emissions are also from business activities but occur from sources owned or controlled by another organization. Indirect emissions are divided into “Scope 2” and “Scope 3” emissions. Scope 2 emissions are from the use of purchased electricity, steam, or heat. Scope 3 emissions include all other indirect emissions, such as business travel in non-company-owned vehicles, employee commuting, paper usage, waste disposal, and outsourced activities. Accounting for Scope 2 emissions is required under the GHG Protocol, while accounting for Scope 3 emissions is not mandatory but encouraged.