GHG reporting ensures accountability in emissions tracking and climate action. Here are 8 essential terms every business should know:

1. GHG Inventory – The Foundation of Emissions Tracking A comprehensive account of all GHG emissions and removals linked to an organization, project, or process over a specific period.

Essential for sustainability reports and regulatory compliance.
Helps assess carbon footprint and track progress toward reduction goals.

2. Emission Factor – The Multiplier Behind Emission Calculations Quantifies emissions per unit of activity (e.g., CO₂ per kWh of electricity used).

Used to estimate GHG emissions from energy consumption and industrial processes.

3. Global Warming Potential (GWP) – Measuring the Impact of Gases Not all greenhouse gases are equal in their warming effects.

GWP compares the heat-trapping ability of gases relative to CO₂.
Example: Methane (CH₄) is ~28x more potent than CO₂, while nitrous oxide (N₂O) is ~265x stronger.

4. Carbon Dioxide Equivalent (CO₂e) – Standardizing Emission Comparisons GHG emissions are often converted into CO₂e to create a common unit of measurement.

Example: 1 ton of methane = 28 tons of CO₂e.

5. Emission Intensity – Efficiency Matters! Measures GHG emissions per unit of revenue, product, or energy produced.

Lower emission intensity = more sustainable operations.

6. Validation vs. Verification – Ensuring Accuracy

Validation: Evaluates a project’s design and methodology before implementation.
Verification: Independent assessment of reported GHG data to ensure accuracy and compliance.

7. Level of Assurance – How Reliable is the Data?

Reasonable assurance: Higher confidence, deeper data checks.
Limited assurance: Lower confidence but still meets reporting needs.

Why It Matters: Accurate GHG reporting helps businesses meet regulatory requirements, set reduction targets, and demonstrate environmental responsibility. Understanding these key terms strengthens sustainability efforts.