5a. GHG Accounting and Reporting Principles


Best practices proposed by the GHG Protocol identify 5 core principles that all GHG inventory developers and quantifiers should aim to adhere to and implement during GHG inventory development and reporting. These five principles are:

  • Relevance
  • Completeness
  • Consistency
  • Transparency
  • Accuracy 

Relevance

The principle of Relevance will attempt to ensure that the GHG inventory appropriately reflects the GHG emissions of the organization and supports the decision-making needs of internal and external stakeholders.

Completeness

The principle of Completeness requires that the GHG inventory quantifier accounts for and reports all GHG emissions activities and sources for the defined inventory boundary. The inventory quantifier should document, disclose, and justify any specific exclusions, as well as any inclusions that may not meet the materiality threshold.

Consistency

The principle of Consistency requires that GHG quantifiers use recommended approaches and methodologies in a consistent manner over time. This will allow for meaningful comparative analysis of GHG emissions year on year.

Transparency

The principle of Transparency enables internal and external stakeholders to review all relevant GHG inventory development processes and procedures with clear understanding on how the inventory is developed and reported. A factual and coherent audit trail will disclose all relevant assumptions and make appropriate references to the accounting, calculation methodologies, and data sources used.

Accuracy

The primary aim of the principle of Accuracy is to ensure that the inventory quantification process of GHG emissions is systematically neither over nor under actual emissions. This principle attempts to ensure that calculation uncertainties are reduced as far as possible. This will provide stakeholders with sufficient confidence in the accuracy of the GHG inventory allowing them to make decisions with a reasonable assurance as to the integrity of the reported information.