Measuring and Disclosing Greenhouse Gas Emissions

This chapter explores the practical aspects of greenhouse gas (GHG) emissions reporting, emphasizing the Greenhouse Gas Protocol as the leading framework for categorizing and measuring emissions across Scopes 1, 2, and 3. It describes the distinctions among these scopes, with a particular focus on Scope 3 emissions, which encompass the entire value chain from suppliers to customers. Using the food sector as a case study, the chapter illustrates the complexities and significance of Scope 3 emissions. It also provides a sectoral analysis of GHG emissions, highlighting the challenges firms face in mitigating emissions and the progress made toward achieving reductions in line with the Paris Agreement, which originally set a target of limiting global warming to well below 2 °C above pre-industrial levels while pursuing efforts to limit it to 1.5 °C (United Nations Framework on Climate Change UNFCCC, 2015). Scientific consensus, reflected in subsequent IPCC reports, underscores that staying below 1.5 °C is crucial to avoiding the worst climate impacts. The chapter underscores the importance of standardized measurement methodologies and the evolving regulatory landscape, including the European Union’s Corporate Sustainability Reporting Directive (CSRD). It concludes by setting the stage for the subsequent chapter, which will discuss pathways to a decarbonized future and the potential consequences of failing to adequately address the climate crisis.