The GHG (Greenhouse Gas) Protocol is the global standard for carbon accounting, covering direct and indirect emissions across a property’s entire lifecycle. This guide will examine why GHG Protocol Reporting is important, the benefits and challenges, and how to do it.
What is GHG Protocol Reporting and Why It Matters
The GHG Protocol provides a standard way of measuring and managing greenhouse gas emissions. Unlike tools like CRREM, which focuses on real estate risk, the GHG Protocol tracks emissions across multiple sectors. It categorises emissions into:
- Scope 1: Emissions from company-owned resources, e.g. on-site heating.
- Scope 2: Emissions from purchased energy.
- Scope 3: Other indirect emissions across the value chain, e.g. supply chain operations and tenant activities.
Why it’s Important for Commercial Properties
For property owners, GHG Protocol Reporting isn’t just about compliance; it’s about understanding the total environmental impact of their assets. As investors, regulators and tenants demand more transparency, accurate reporting builds trust and strengthens your portfolio’s proposition. The UK’s SECR (Streamlined Energy and Carbon Reporting) regulations clarify this, requiring large companies to report their carbon emissions annually.
Benefits of Full GHG Reporting
Complete GHG Protocol Reporting gives you more than just compliance; it provides commercial property owners with a competitive edge. Property owners can unlock insights that drive efficiency, cost savings and sustainability by having a clear and accurate view of emissions across all areas of their operations. Benefits include:
- Full Transparency and Credibility – Reporting across all three scopes shows property owners fully understand their carbon footprint. This transparency attracts ESG investors who prioritise sustainability.
- Compliance and Regulatory Alignment – The UK targets a 78% reduction in emissions by 2035 and Net Zero by 2050, so meeting regulatory standards has never been more important. The GHG Protocol helps property owners meet the mandatory requirements of SECR and future updates to the Energy Savings Opportunity Scheme (ESOS).
- Strategic Insights for Business Benefit – Full GHG Reporting can highlight areas for improvement, driving better energy efficiency strategies. Companies using structured carbon reporting will reduce energy costs, so identifying inefficiencies is valuable.
Scope 3 Emissions Challenges
Scope 1 and 2 emissions are relatively easy to track, but Scope 3 emissions are a much bigger challenge for commercial property owners. These emissions cover indirect carbon output across the value chain, from tenant energy usage to supply chain activities. Although they often comprise the largest share of a property’s total carbon footprint, Scope 3 emissions are difficult to measure and manage due to their indirect nature. However, tackling these challenges is essential for full GHG reporting and meaningful sustainability goals.
Collaboration across the supply chain is vital. Engaging with suppliers, contractors and tenants to share emission data is critical. Scope 3 data can be hard to get, especially across multiple properties. It requires consistent tracking and communication with external partners, which can lead to inconsistencies. Automated data management systems can help standardise data collection across all properties.
How to Set up GHG Protocol Reporting
Setting up a GHG Protocol Reporting framework is critical for commercial property owners to manage their carbon footprint. But it can seem daunting, especially when it involves tracking emissions across multiple properties and sources. Whether starting from scratch or looking to refine your existing reporting, follow these steps, and your GHG Protocol Reporting will be comprehensive, accurate and compliant or contact us to see how we can support you.
1. Define Your Emission Scopes and Reporting Boundaries
Identify which properties and activities fall under Scope 1, 2 and 3. Defining boundaries will give you clarity on what to track and report.
2. Collect and Consolidate Emission Data
Centralise data collection on fuel usage, electricity consumption, waste management, and other relevant metrics. Consider using digital tools to automate data collection for better accuracy.
3. Analyse and Report Emissions Data
Compare the emissions data to previous benchmarks to see trends. Use the GHG Protocol guidelines to prepare your reports to comply with voluntary and mandatory standards.
4. Implement a Reduction Plan
Use the insights from your reports to develop a targeted plan to reduce emissions. Focus on the highest impact strategies, such as energy retrofits and engaging with tenants on sustainability initiatives.
The Future of GHG Reporting
As sustainability momentum grows, the future of GHG reporting will move fast. Emerging technologies, including AI-powered data analytics and IoT devices, tighter regulations and increasing investor pressure are shaping how commercial property owners track and manage emissions. These innovations will make carbon management more manageable and comprehensive, from data analytics and automation to seamless integration with Net Zero initiatives.
GHG Protocol Reporting gives commercial property owners a framework to measure, manage and reduce emissions. Unlike other frameworks, it provides a broader view of direct and indirect emissions, so it’s a must-have for the sustainability journey. For property owners, GHG Protocol Reporting means not just compliance but a strategic step toward long-term resilience and growth.
Get in touch with us to see how we can help you simplify your GHG Protocol Reporting.
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