This standard provides requirements and guidance for companies and other organizations to quantify and publicly report an inventory of GHG emissions and removals associated with a specific product.
The GHG Protocol Product Life Cycle Accounting and
Reporting Standard (referred to as the Product Standard)
provides requirements and guidance for companies and
other organizations to quantify and publicly report an
inventory of GHG emissions and removals associated
with a specific product. The primary goal of this standard
is to provide a general framework for companies to make
informed choices to reduce greenhouse gas emissions
from the products (goods or services) they design,
manufacture, sell, purchase, or use. In the context of this
standard, public reporting refers to product GHG-related
information reported publicly in accordance with the
requirements specified in the standard.
As awareness about climate change increases and
concerns grow, investors are demanding more
transparency, and consumers are seeking greater clarity
and environmental accountability. Companies are
increasingly receiving requests from stakeholders to
measure and disclose their corporate GHG inventories,
and these requests often include a company’s products
and supply chain emissions. Companies must be able to
understand and manage their product-related GHG risks
if they are to ensure long-term success in a competitive
business environment and be prepared for any future
product-related programs and policies.
This standard focuses on emissions and removals
generated during a product’s life cycle and does not
address avoided emissions or actions taken to mitigate
released emissions. This standard is also not designed to
be used for quantifying GHG reductions from offsets or
claims of carbon neutrality.
Ultimately, this is more than a technical accounting
standard. It is intended to be tailored to business realities
and to serve multiple business objectives. Companies may
find most value in implementing the standard using a
phased approach, with a focus on improving the quality of
the GHG inventory over time.