Comparison: GHG Account vs GHG Reporting

 Dear Reader,

This post is about understanding the difference between GHG Accounting and GHG Reporting. It is described below.

When planning the consolidation of GHG data, it is important to distinguish between GHG accounting and GHG reporting. 

GHG accounting concerns the recognition and consolidation of GHG emissions from operations in which a parent company holds an interest (either control or equity) and linking the data to specific operations, sites, geographic locations, business processes, and owners. GHG reporting, on the other hand, concerns the presentation of GHG data in formats tailored to the needs of various reporting uses and users.

Most companies have several goals for GHG reporting,e.g., official government reporting requirements, emissions trading programs, or public reporting. In developing a GHG accounting system, a fundamental consideration is to ensure that the system is capable of meeting a range of reporting requirements. Ensuring that data are collected and recorded at a sufficiently disaggregated level, and capable of being consolidated in various forms, will provide companies with maximum flexibility to meet a range of reporting requirements.

Reporting goals and level of consolidation 

Reporting requirements for GHG data exist at various levels, from a specific local facility level to a more aggregated corporate level. Examples of drivers for various levels of reporting include:

• Official government reporting programs or certain emissions trading programs may require GHG data to be reported at a facility level. In these cases, consolidation of GHG data at a corporate level is not relevant 
• Government reporting and trading programs may require that data be consolidated within certain geographic and operational boundaries (e.g., the U.K. Emissions Trading Scheme)
• To demonstrate the company’s account to wider stakeholders, companies may engage in voluntary public reporting, consolidating GHG data at a corporate level in order to show the GHG emissions of their entire business activities.

Credit: GHG Protocol

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