What Is the GHG Protocol?

The Greenhouse Gas Protocol (GHG Protocol) is the world's most widely used standard for measuring and reporting greenhouse gas emissions. It was developed by the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD) and is referenced by the EU, the UN, and virtually every major sustainability framework.

When your EU buyer says "we need a GHG Protocol report from our suppliers," this is what they mean: a carbon inventory structured according to the GHG Protocol Corporate Accounting and Reporting Standard, covering Scope 1, 2, and 3 emissions.

Why it matters: Reports that don't follow GHG Protocol are routinely rejected by EU procurement teams. Using the correct methodology is not just about accuracy — it's what determines whether your report passes the buyer's compliance check.

The Three Scopes: What They Mean for a Textile Factory

Scope 1: Direct Emissions — What Your Factory Burns

Scope 1 covers all direct greenhouse gas emissions from sources owned or controlled by your factory. If you burn fuel at your facility, those emissions are Scope 1.

For a typical textile or garment factory, Scope 1 sources include:

  • Boilers and steam systems: natural gas, heavy fuel oil (HFO), or coal burned to generate steam for dyeing, finishing, and heating
  • Diesel generators: backup power generation during grid outages
  • On-site vehicles: forklifts, trucks, and vehicles operating within the factory premises
  • LPG use: heating, drying, or process equipment using liquefied petroleum gas

Scope 1 is typically the second-largest emissions category for garment factories — after electricity (Scope 2).

Scope 2: Indirect Emissions — Your Electricity Footprint

Scope 2 covers indirect emissions from purchased electricity. When you draw power from the national grid, the power station that generated it burned fossil fuel — and those emissions belong to you as the electricity consumer.

For Pakistan-based factories, Scope 2 is calculated using the NEPRA (National Electric Power Regulatory Authority) grid emission factor — currently 0.442 kgCO₂e/kWh for 2024.

Scope 2 is typically the largest emissions category for energy-intensive textile processes like weaving, dyeing, and finishing.

The GHG Protocol offers two methods for Scope 2:

  • Location-based method: uses the average grid emission factor for your country (most commonly used for supplier reports)
  • Market-based method: uses emission factors from energy attribute certificates (RECs) or power purchase agreements (PPAs) — used when factories have purchased renewable energy

Scope 3: Value Chain Emissions — Beyond Your Factory Gate

Scope 3 covers all other indirect emissions across your value chain — upstream and downstream. This is the most complex scope and increasingly the most important for EU buyer compliance.

Relevant Scope 3 categories for textile exporters:

  • Upstream transportation: freight for raw materials (yarn, fabric, dyes) delivered to your factory
  • Purchased goods and services: the embedded carbon in the yarn, cotton, and synthetic fibres you purchase
  • Downstream transportation: sea, road, and air freight for shipping finished goods to your EU buyers
  • Business travel: flights and ground transport for factory management and sales teams

Not all Scope 3 categories are equally material for every factory. Focus on the categories that represent your largest emission sources — typically freight and raw materials.

How Does GHG Protocol Reporting Work in Practice?

Generating a GHG Protocol-aligned report requires four steps:

  1. Set your organizational boundary: define which operations are included in the report (your factory, ancillary buildings, owned vehicles, etc.)
  2. Collect activity data: gather consumption data for all emission sources — energy bills, fuel purchase records, freight invoices, production data
  3. Apply emission factors: multiply activity data by certified emission factors (IPCC AR6 for combustion, NEPRA for electricity, DEFRA 2024 for freight)
  4. Document and report: structure the inventory with methodology statements, factor references, and scope breakdowns in a format buyers can verify
CarbonReport Pro handles steps 2–4 automatically. You enter your activity data; the platform applies the correct emission factors and generates the structured report. All factors are cited in the report for buyer and auditor verification. Try it now →

Why Emission Factor Selection Matters

Using outdated or incorrect emission factors is one of the most common reasons carbon reports are rejected by EU buyers. The correct sources are:

Emission TypeCorrect SourceWhy
Fuel combustion (Scope 1)IPCC AR6 (2021)Most current IPCC guidance; includes GWP100 values
Pakistan electricity (Scope 2)NEPRA 2024Country-specific grid factor; required for location-based method
Freight (Scope 3)UK DEFRA 2024Most widely cited international freight factors
Raw materials (Scope 3)Ecoinvent / LiteraturePeer-reviewed supply chain emission databases

What Buyers Are Looking For in Your Report

When an EU procurement team reviews a supplier's carbon report, here's what they check:

  • Is it GHG Protocol aligned? (Does it follow the Corporate Standard?)
  • Are all three scopes covered, or at minimum Scope 1 & 2?
  • Are emission factors cited with source and year?
  • Is there a verification seal or quality indicator?
  • Is the report from a recognizable reporting platform or auditor?
  • Does it include the company's emission intensity per unit of production?

CarbonReport Pro reports are specifically designed to answer "yes" to all of these questions.