What are GHGs and how are they reported?

6 minutes02/24/2025

Greenhouse gases (GHGs) have been at the forefront of environmental discussions for years. Despite their frequent mention in news and policies, global emissions remain unchecked. Understanding what GHGs are and how to properly measure and report them is crucial — especially when you're tasked with quantifying them. 

What are greenhouse gas emissions?

Greenhouse gas emissions, or GHGs, are gases that trap heat in the atmosphere, creating a greenhouse effect. They accumulate, reflecting heat back to the Earth's surface. This trapped heat is absorbed by the land and oceans, resulting in a gradual rise in global temperatures. 

The primary GHGs include: 

• Carbon dioxide (CO2): Produced by burning organic material, especially fossil fuels like oil and gas. Plants absorb CO2 through photosynthesis. 
• Methane (CH4): Released during coal, oil, and natural gas production, as well as from agriculture and livestock. It’s also emitted by landfills. 
• Nitrous oxide (N2O): Emitted through agricultural and industrial activities, as well as from fossil fuel combustion and wastewater treatment. 
• Fluorinated gases: Synthetic gases, including hydrofluorocarbons and perfluorocarbons, released during industrial processes. These gases are less common but have a much higher warming potential. 

Why do GHGs matter?

While many GHGs are naturally occurring, the significant increase in emissions from human activities has far surpassed the Earth's ability to absorb them, driving climate change. 

For instance, CO2 levels have risen 30% in the last 60 years, primarily due to oil, gas, and electricity production. Left unchecked, emissions will continue to rise, leading to severe climate consequences. 

Even if businesses reduce their emissions to zero tomorrow, the CO2 already in the atmosphere will remain for centuries. While it’s too late to reverse the damage, reducing emissions can slow global warming and help prevent future disasters. 

Who has to report GHG emissions?

GHG reporting requirements vary by country. In Canada, industries emitting over 10 kilotons of CO2e annually must report, including sectors like aluminum, cement, mining, and electricity. In the U.S., the GHG Reporting Program mandates reporting for facilities emitting more than 25 kilotons of CO2e each year across 41 sectors, including mining and manufacturing. 

In addition to federal regulations, businesses may be required to report at the state or provincial level or as part of voluntary ESG programs. Reporting may also be a requirement for working with certain investors or customers.

What are the benefits of GHG reporting?

With deadlines for the Paris Agreement fast approaching, businesses should aim to cut their carbon emissions by 30% by 2030. Beyond helping fight climate change, monitoring and reducing GHG emissions offers numerous benefits: 

• Enhanced Corporate Reputation: Reporting reductions in GHG emissions boosts your company’s reputation among customers, investors, employees, and stakeholders. 
• Attracting Responsible Investments: Investors are increasingly interested in businesses with strong ESG commitments, and GHG reporting helps attract such investments. 
• Cost Savings: Energy efficiency, renewable energy adoption, and process optimization can lower operational costs. 
• Reduced Regulatory Risks: Proactively managing climate risks helps businesses stay ahead of evolving policies and reduce the risk of fines or damage to reputation. 
• Improved Supply Chain Resilience: By assessing carbon footprint within your supply chain, you can identify vulnerabilities and reduce emissions. 
• Employee Engagement: A commitment to sustainability can attract top talent who prioritize environmental responsibility. 
• Innovation: Setting emission reduction targets often drives innovation in products, services, and processes, giving your company a competitive edge. 

What is greenhouse gas emissions reporting?

GHG reporting isn’t as simple as checking utility bills. Emissions must be calculated using published emission factors specific to different industrial processes. 

The Greenhouse Gas (GHG) Protocol is the widely recognized standard for measuring and reporting corporate GHG emissions. Developed by the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD), it provides a transparent, standardized approach to calculating and managing carbon footprints. 

The GHG Protocol requires reporting on Scope 1, Scope 2, and Scope 3 emissions: 

• Scope 1: Direct emissions from owned or controlled sources (e.g., company vehicles, on-site manufacturing). 
• Scope 2: Indirect emissions from purchased electricity, steam, or heat. 
• Scope 3: Indirect emissions from the value chain, including suppliers, customers, and transportation. 

Accurate reporting requires collaboration across various departments, as well as data from the supply chain. 

The GHG Protocol Corporate Standard

The GHG Protocol Corporate Standard provides guidance for estimating emissions and identifying risks and opportunities in business operations. Following the six-step process ensures credible and thorough reporting: 

1. Define Organizational Boundaries & Scope: Determine which operations, subsidiaries, and joint ventures will be included. 
2. Data Collection: Gather accurate data from all relevant departments. 
3. Emission Calculation: Use emission factors to convert energy consumption into GHG emissions. 
4. Set Targets & Goals: Define measurable and achievable emission reduction targets. 
5. Verification & Assurance: Seek independent verification to ensure credibility. 
6. Reporting & Communication: Share the report publicly to demonstrate transparency. 

Ready to Start?

The GHG Protocol offers a reliable framework for measuring and reporting emissions, making it easier to navigate sustainability reporting. However, the process of calculating and tracking emissions can be time-consuming and challenging. 

Thankfully, the AMCS ESG Solution (formerly Quentic) simplifies this process by integrating data directly from sources through IoT technology. This streamlines GHG reporting, making it easier to comply with standards like the GHG Protocol while producing tailored reports for leadership, stakeholders, and investors. 

If you’re looking for a solution to support your GHG reporting, contact us to discover how we can help. 

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Quentic is now part of the AMCS Group. Learn more here.