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In the 2000s, a number of different calculation methods were developed to account for a company's greenhouse gas (GHG) emissions. These are commonly referred to as carbon accounting. In this article, we have chosen to focus on the main reference systems used: GHG Protocol, BEGES and Bilan Carbone. Despite their particularities, they are all compatible with the leading ISO standard on the subject, ISO 14064.
L'ISO 14064 is a voluntary global standard that provides guidelines for measuring greenhouse gas (GHG) emissions in organizations. Published in 2006, its aim is to integrate with other energy and environmental standards. All the methods mentioned below are therefore in line with this standard.
Understand the main carbon accounting standards.
➡️ GHG Protocol
The GHG Protocol or "Greenhouse Gas Protocol Corporate Accounting and Reporting Standard" is a methodology created in 1998 and now widely adopted internationally. This methodology is used as a reference by leading initiatives such as the SBTi and in numerous legislations around the world, such as the European Union's Corporate Sustainability Reporting Directive (CSRD).
The GHG Protocol defines 3 scopes categorizing a company's carbon emissions. Only the accounting of scope 1, linked to direct emissions, and scope 2, linked to indirect emissions due to energy use, is mandatory within the framework of the methodology.
However, the methodology strongly recommends that Scope 3 emissions should also be included, since they cover all emissions generated by a company's upstream and downstream value chain: raw material purchases, transport, product use, waste...
➡️ GRI 305
The Global Reporting Initiative or GRI, is an independent organization that has developed several standards relating to ESG (Environment, Social and Governance) criteria.
The GRI 305 standard covers all gas emissions generated by a company. The GRI 305 recommendations on GHG accounting refer in their entirety to the GHG Protocol methodology. The GRI 305 carbon accounting methodology is therefore equivalent to that of the GHG Protocol.
➡️ BEGES
The BEGES or Bilan des Émissions de Gaz à Effet de Serre, is a mandatory exercise for all companies operating in France with over 500 employees in mainland France and 250 employees in overseas departments and regions.
All direct emissions (scope 1), energy-related indirect emissions (scope 2) and all significant indirect emissions (scope 3) must be included in the BEGES methodology. The BEGES methodology is now in its 5th regulatory version, the latest changes to which were made mandatory in January 2023. To find out more, read our article on the subject.
Significant indirect emissions include indirect emissions associated with energy, transport and products bought and sold. These significant indirect emissions are defined after carrying out a BEGES that is as exhaustive as possible.
➡️ Bilan carbone®
Created by ADEME in 2004, the Bilan Carbone is France's historic methodological standard for quantifying GHG emissions.
Since 2011, the Association pour la Transition Bas Carbone (ABC), co-founded by ADEME and APCC (Association des Professionnels en Conseil Climat Energie et Environnement), has been promoting and distributing the Bilan Carbone® brand and methodology.
Today, this methodology is widely used and followed by French companies. In particular, its dissemination has led to the democratization of carbon accounting and the concept of corporate carbon footprints.
What is the difference between carbon accounting standards?
Despite a certain apparent homogeneity between the various standards and norms, there are nevertheless notable differences in methodologies, scopes and actionability.
Differences in carbon accounting.
The calculation methods and perimeters taken into account by the existing standards differ in a number of respects:
- the carbon footprint of visitor or customer travel is not taken into account in the GHG Protocol,
- depreciation is generally treated as a "stock" item in the BEGES and as a "flow" item in the GHG Protocol,
- Biomass is taken into account differently depending on the methodology used,
- investments are not taken into account in the Bilan Carbone®, unlike the BEGES and GHG Protocol,
- deductibles no longer exist as a separate item in the BEGES.
Another major difference between the standards concerns scope 3. The GHG Protocol, unlike the BEGES and Bilan Carbone®, does not require companies to carry out a carbon footprint of upstream and downstream indirect emissions. In practice, however, the majority of companies following the GHG Protocol framework do carry out a carbon footprint on their scope 3, notably with a view toobtaining SBTi (Science Based Target initiative)certification .
Differences in expected carbon accounting data.
Finally, these methodologies also require or recommend certain information that goes beyond simple emissions accounting, and which also varies.
For example, it is compulsory to provide information on the uncertainties associated with emission items in the context of a Bilan Carbone®, whereas this is only optional in the context of a BEGES or GHG Protocol reporting.
On the other hand, the transition plan required by the BEGES, comprising an assessment of past actions, medium- and long-term objectives, an action plan and expected volumes of reductions, is not required by other methodologies, although the Bilan Carbone® and GHG Protocol recommend carrying out an assessment of past actions.
Finally, how do you choose the carbon methodology best suited to your company?
On the whole, the 3 methodological standards described here are broadly similar, equally valid and, if followed rigorously, ensure accurate, actionable carbon accounting. Measuring GHG emissions is not an end in itself. A company's carbon footprint, on the other hand, is a prerequisite for taking concrete action.
Whether you're looking to carry out your first carbon footprint measurement, or set up a regular carbon measurement program, it' s important to set high standards for the quality of your carbon accounting from the outset, otherwise you won't be able to obtain accounting that can be used to truly decarbonize your business.
Carbon measurement is intended to be a recurring exercise, enabling us to see our efforts over time and to maintain a sound reduction trajectory. Companies that are slow to carry out serious carbon accounting of their activities are falling behind when it comes to the future low-carbon transition, from which no organization will escape. In any case, serious carbon accounting will require the same level of investment, whatever the chosen methodology.
The challenge for companies today is therefore more to commit to regular carbon measurement and, above all, to the actual deployment of reduction actions, than to choose between 3 serious methodological standards. That said, in order to choose the methodology best suited to your organization, it is important to consider the regulatory framework in which it operates.
If you want to commit your company to a serious low-carbon transition, make an appointment with our team to find out how Traace's carbon footprint platform can bring you the highest level of quality on your carbon accounting and enable you to effectively pilot your climate action plan.
Sources
https://www.ecologie.gouv.fr/decret-bilan-des-emissions-gaz-effet-serre-beges
https://ghgprotocol.org/sites/default/files/standards/ghg-protocol-revised.pdf
https://www.ecologie.gouv.fr/sites/default/files/methodo_BEGES_decli_07.pdf
