The Greenhouse Gas (GHG) Protocol is the leading international standard for measuring and reporting greenhouse gas emissions. It is essential for ESG reporting under ESRS E1, covering direct emissions (Scope 1), indirect energy-related emissions (Scope 2), and all other indirect emissions across the value chain (Scope 3). A carbon footprint report helps companies meet CSRD obligations, identify areas for emission reduction, and gain competitive advantages—particularly in public tenders or partnerships with climate-conscious clients. The process involves five stages and results in a fully auditable carbon report aligned with EU climate regulations.

Table of contents

  1. What is the GHG Protocol?
  2. Carbon Footprint Assessment Process
  3. Benefits of a GHG Emissions Report
  4. Challenges in Measuring Emissions
  5. How Long Does It Take to Prepare a GHG Report?

What is the GHG Protocol?

The GHG Protocol is a globally recognized framework for quantifying and disclosing greenhouse gas emissions. It plays a crucial role in ESG compliance under ESRS E1 and applies not only to reporting entities but also their entire value chain—suppliers, logistics partners, subcontractors, and distributors. Emissions are classified into three scopes:

  • Scope 1: Direct emissions under the organization’s control (e.g., fuel combustion, company vehicles, refrigerant leaks).
  • Scope 2: Indirect emissions from purchased electricity and heat.
  • Scope 3: Other indirect emissions related to upstream and downstream activities (e.g., transport, product usage, end-of-life treatment).

Carbon footprint reporting is mandatory for CSRD-compliant organizations. If ESRS E1 is excluded from a company’s double materiality assessment, the omission must be justified—underscoring the EU’s commitment to the Paris Agreement goal of limiting global warming to 1.5°C.

Carbon Footprint Assessment Process

  1. Introductory meeting: presentation of the GHG Protocol and discussion of project objectives.
  2. Operational boundary setting: mapping of emission sources and identifying key data streams.
  3. Data collection template: a customized form designed to gather relevant Scope 1, 2, and 3 data.
  4. Estimation of missing data: applying assumptions where direct data is unavailable.
  5. Final report: calculating total GHG emissions and providing recommendations for reduction.

Benefits of a GHG Emissions Report

  • Compliance with CSRD and ESRS E1 reporting obligations.
  • Improved market position in green procurement and B2B partnerships.
  • Identification of emission hotspots and decarbonization opportunities.
  • Enhanced brand reputation as a climate-responsible organization.
  • Support for ESG audits and investor communications.

Challenges in Measuring Emissions

The biggest challenge in carbon footprint assessment lies in data availability -especially for Scope 3 emissions. These require input from third-party suppliers and external actors, making data collection and quality assurance complex. Companies need robust internal procedures and tools to ensure accurate and consistent reporting throughout the value chain.

How Long Does It Take to Prepare a GHG Report?

On average, preparing a carbon footprint report takes around 1 month. The exact timeline depends on:

  • The complexity of the business structure and operations.
  • The availability of existing data and documentation.
  • The reporting scopes selected (Scope 1, 2, and/or 3).

Reports should be updated annually in line with financial reporting cycles.