According to the EPA (United States Environmental Protection Agency), "a greenhouse gas (GHG) inventory is a list of emission sources and the associated emissions quantified using standardized methods".
💡 Organizations develop GHG inventories for a variety of reasons, including:
Managing GHG risks and identifying reduction opportunities
Participating in voluntary or mandatory GHG programs
Participating in GHG markets
Achieving recognition for early voluntary action
In a GHG inventory, a company, a local authority, a public administration or an NGO (the reporting entity) reports yearly greenhouse gas emissions resulting from its activities. The emissions are divided into three scopes and then further divided by category.
A GHG inventory accounts for both direct emissions (emissions from sources that are owned or controlled by the reporting entity) and indirect emissions (emissions resulting from the electricity consumption of the reporting entity or that are linked to its upstream/downstream activities and value chain).
The GHG Protocol is the most common framework used by companies when reporting its GHG emissions.
Once the reporting entity has identified its most significant GHG emissions, it can set targets and define and implement an action plan to reduce its dependency on fossil fuels and reduce its GHG emissions.