The 2026 edition of “ZeroedIn: The Brand Marketing Pulse” is now live.
The 2026 edition of “ZeroedIn: The Brand Marketing Pulse” is now live.
What is the GHG Protocol and The Importance of Using Activity Data
With the issue of climate change gaining significant attention in recent years, many individuals and organisations have been urged to take action to reduce their carbon footprint. One of the key tools and most widely accepted standards for measuring and managing carbon emissions is the Greenhouse Gas Protocol (GHG Protocol). Its guidelines are often used to translate activities by governments, businesses, and organisations into quantifiable emissions data. This tracking and monitoring of emissions can help companies identify ways to reduce their carbon emissions and climate impact.
The GHG Protocol is a widely recognised international standard for accounting and reporting GHG emissions. It was developed by the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD) in 2001 to provide organisations with a comprehensive framework for measuring and managing their emissions. The GHG Protocol divides GHG emissions measurements into Scope 1, 2, and 3 emissions.
In the past few years, the GHG Protocol has developed tools and training to help businesses better track their carbon emissions and climate action, including its Partnership for Carbon Accounting Financials (PCAF) initiative which aims to develop a standard in the financial industry.
For organisations committed to reducing their environmental impact, the first thing they crucially need is an accurate measurement of GHG emissions. However, this may be challenging as this requires enough data, meaning that organisations need standards for data collection, measurement, and reporting. There are two main ways they can approach this data collection.
The first way is by using spend data, which uses the financial value of a good or service and multiples it by an emission factor (the amount of emissions produced per financial unit). However, emission factors are often based on industry average GHG emission levels, which lack specificity.
The second method, which is using activity data, looks to specify how many units of a particular product or material a company uses to calculate emissions output. This could be litres of fuel or kilograms of paper, for example.
While some companies rely on spend data, the use of activity data to calculate emissions is often preferable whenever possible for a multitude of reasons.
Accuracy: Activity data provides a more precise and accurate representation of emissions compared to spend data. In the case of one of our clients, spend-based data resulted in 8 times a larger carbon footprint than activity-based data! By measuring emissions based on actual activities, such as energy consumption, fuel use, and production levels, organisations can obtain a more reliable calculation of their carbon footprint. This enables them to identify emission hotspots, set realistic reduction targets, and make informed decisions on mitigation strategies.
Actionability: Activity data allows organisations to identify specific areas where emissions occur and specific reduction initiatives. For example, by analysing data on energy consumption, organisations can identify inefficient processes, optimise energy usage, and implement energy-saving measures. A spend-based approach would only achieve reductions by spending less, which is an unrealistic approach. Activity-based data provides valuable insights for making informed decisions to reduce emissions throughout the value chain, making their climate impact more actionable.
Auditability: Accurate measurement of emissions using activity data enables organisations to compare their performance against industry benchmarks and track progress over time. It enhances transparency and credibility in sustainability reporting, allowing stakeholders to assess an organisation’s environmental performance accurately. Additionally, utilising activity data supports companies in complying with regulatory requirements and makes them more prepared for audits.
Alliances: Scope 3 emissions, which often account for the majority of an organisation’s carbon footprint, can be challenging to measure accurately. However, by engaging suppliers and partners and gathering activity data throughout the value chain, organisations can gain a comprehensive understanding of their indirect emissions. This collaboration fosters sustainable practices, encourages suppliers to reduce their emissions, and promotes a greener and more resilient supply chain.
While some competitors may rely on spend data, activity data provides a more reliable and comprehensive approach to measuring emissions, which makes it the better option for us here at 51 to Carbon Zero. As individuals and organisations strive to mitigate climate change, understanding the GHG Protocol and the importance of using activity data is critical for effective carbon management and a sustainable future. Our measurement process coherently follows the GHG protocol, and our account managers have the expertise to help businesses gather activity data wherever possible. Setting the groundwork for effective transformation and emissions reduction.
51 to Carbon Zero’s SaaS platform makes carbon tracking for organisations and businesses as simple as possible, empowering companies in their emissions reduction. Our platform solutions can be adopted for true insight into carbon tracking, with our data automation, formatting controls, and flexible reporting.
To find out more about GHG Protocol and activity data, please contact: neil.parker@51tocarbonzero.com