Understanding Greenhouse Gas Accounting
What Is the GHG Protocol in Packaging?
The Greenhouse Gas Protocol, commonly called the GHG Protocol, provides widely used standards and guidance for measuring, managing and reporting greenhouse gas emissions.
It is the framework associated with the familiar Scope 1, Scope 2 and Scope 3 emissions categories.
For packaging teams, the GHG Protocol matters because emissions associated with purchased bottles, jars, closures, resin, transportation and packaging end-of-life may contribute to a customer's greenhouse gas inventory, particularly within Scope 3.
The GHG Protocol does not determine whether a specific package is sustainable. It provides a framework for accounting for greenhouse gas emissions within defined organizational and value-chain boundaries.
The Fundamental Concept
What Does GHG Protocol Mean?
GHG stands for greenhouse gas. The GHG Protocol provides accounting standards and guidance that organizations can use to develop greenhouse gas inventories.
A greenhouse gas inventory identifies emissions associated with an organization's operations and value chain within defined reporting boundaries.
The framework helps companies organize emissions consistently so they can measure performance, identify emission sources, establish targets and track changes over time.
A Brand Purchasing Bottles and Closures
A manufacturer may purchase bottles, closures and dispensing components from outside suppliers rather than manufacturing those components itself.
The greenhouse gas emissions associated with producing those purchased components may become part of the manufacturer's upstream value-chain inventory.
A Simplified Process
How Is the GHG Protocol Used?
A corporate greenhouse gas inventory typically involves defining the organization's reporting boundaries, identifying relevant emission sources, collecting data, calculating emissions and reporting results.
The Three Emissions Categories
How Does the GHG Protocol Define Scope 1, Scope 2 and Scope 3?
| Scope | What It Covers | Packaging Example |
|---|---|---|
| Scope 1 | Direct greenhouse gas emissions from sources owned or controlled by the reporting organization. | Fuel burned directly in company-owned manufacturing equipment, boilers or vehicles. |
| Scope 2 | Indirect emissions associated with purchased or acquired electricity, steam, heat or cooling consumed by the reporting organization. | Purchased electricity used to operate a company-owned filling, molding, warehouse or manufacturing facility. |
| Scope 3 | Other indirect greenhouse gas emissions occurring across upstream and downstream activities in the organization's value chain. | Purchased packaging, resin production, third-party transportation and packaging end-of-life may contribute to Scope 3 categories. |
Why Packaging Teams Should Understand It
Why Does the GHG Protocol Matter to Packaging?
For many brands and manufacturers, packaging is purchased from external suppliers. This means the emissions associated with manufacturing packaging can become part of the customer's upstream value chain rather than its direct operational emissions.
As companies establish climate goals and work to understand Scope 3 emissions, they may ask packaging suppliers for information about materials, manufacturing, sourcing, transportation and carbon footprint.
Following the Packaging Value Chain
Where Can Packaging-Related Emissions Occur?
Packaging can generate greenhouse gas emissions at multiple points before and after a finished package reaches the consumer.
These emissions can begin with extraction or production of raw materials, continue through resin production and packaging manufacturing, and include transportation, filling, distribution and end-of-life treatment.
Which company reports those emissions — and in which scope — depends on the relationship between the organization and the activity producing the emissions.
Packaging & Scope 3
Which Scope 3 Categories Can Be Relevant to Packaging?
The categories relevant to a particular company depend on its operations and value chain. Packaging can intersect with several common upstream and downstream activities.
Purchased Goods & Services
Purchased bottles, jars, closures, dispensing systems, resin and other packaging materials can contribute to upstream emissions.
Capital Goods
Certain machinery, equipment and other capital assets used in manufacturing, filling or packaging operations can have associated embodied emissions.
Transportation & Distribution
Third-party transportation of packaging components and finished products can contribute to upstream or downstream value-chain emissions.
Waste Generated in Operations
Treatment of packaging scrap, rejected components and other operational waste can contribute to greenhouse gas inventories.
Use of Sold Products
For some product categories, packaging can influence dispensing, storage, product use or other downstream activities.
End-of-Life Treatment
Recycling, landfill, incineration and other modeled treatment pathways for sold packaging can contribute to downstream emissions calculations.
Related But Different Concepts
GHG Protocol vs. Carbon Footprint: What's the Difference?
The terms are related, but they do not mean the same thing.
| Concept | What It Means | Packaging Context |
|---|---|---|
| GHG Protocol | A framework of standards and guidance used for greenhouse gas accounting and reporting. | Helps companies organize emissions into categories such as Scope 1, Scope 2 and Scope 3. |
| Carbon Footprint | An estimate of greenhouse gas emissions associated with a defined product, organization, activity or system boundary. | A package may have a calculated carbon footprint expressed in CO₂e. |
| Life Cycle Assessment | A method for evaluating environmental impacts across defined life-cycle stages. | Can consider climate change as well as additional environmental impact categories. |
The Packaging Supplier Connection
Why Are Customers Asking Packaging Suppliers for Emissions Data?
Companies working to understand their Scope 3 emissions need information about activities occurring outside their own facilities.
Material Information
Customers may need to understand resin type, recycled content, package weight and other material characteristics.
Manufacturing Information
Production methods, energy use and manufacturing geography can influence packaging-related emissions.
Transportation Data
Distance, freight mode, pallet efficiency and sourcing location can affect transportation-related emissions.
Supplier Carbon Data
Some customers may request product carbon-footprint information, emission factors or other supplier-specific environmental data.
Recycled Content Data
PCR percentage and supporting documentation may be relevant when evaluating packaging alternatives.
Documentation Quality
Clear methodology, boundaries, assumptions and data sources help customers understand what environmental information actually represents.
Important Context
Does the GHG Protocol Tell You Which Package Is More Sustainable?
No. The GHG Protocol is primarily a greenhouse gas accounting framework. It does not provide a universal ranking of packaging materials or determine which package is environmentally preferable.
A packaging decision should still consider product protection, performance, material use, recycled content, recyclability, transportation, manufacturing, cost, availability and other relevant environmental and operational factors.
Greenhouse gas emissions are one part of the sustainability picture — not the entire picture.
Common Misconceptions
What Should Packaging Teams Avoid Assuming?
Practical Questions
What Should Packaging Teams Ask When Reviewing Emissions Data?
What Is the Boundary?
Understand which operations, suppliers, life-cycle stages and geographic regions are included.
What Data Was Used?
Determine whether results use supplier-specific data, industry-average data, emission factors or other sources.
What Time Period Is Covered?
Emissions data can change as manufacturing processes, energy sources, suppliers and transportation networks change.
What Is Being Compared?
Make sure packaging alternatives are evaluated using equivalent performance requirements and comparable methodologies.
What Claims Are Supported?
Avoid translating greenhouse gas information into broader environmental claims that the available data does not substantiate.
Does the Package Still Perform?
Climate goals should not compromise product protection, compatibility, regulatory requirements or supply-chain performance.
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Sustainability Simplified™ in Under a Minute
What Is the GHG Protocol?
Suggested Narration
“The GHG Protocol is a widely used framework for measuring and reporting greenhouse gas emissions. It organizes corporate emissions into Scope 1, Scope 2 and Scope 3. For many brands and manufacturers, purchased packaging can contribute to Scope 3 because bottles, jars and closures are produced by outside suppliers. Understanding the GHG Protocol helps packaging teams see where packaging fits into a company's larger climate strategy.”
When the video is published, include the transcript as HTML text so visitors and answer engines can access the information.
Sustainability Simplified™ — At a Glance
Three Things to Remember About the GHG Protocol
Frequently Asked Questions
GHG Protocol FAQs
What is the GHG Protocol?
What does GHG stand for?
Does the GHG Protocol define Scope 1, Scope 2 and Scope 3?
How does the GHG Protocol relate to packaging?
Is purchased packaging Scope 3?
Is the GHG Protocol the same as a carbon footprint?
Is the GHG Protocol the same as a Life Cycle Assessment?
Does using the GHG Protocol mean a company is carbon neutral?
Can packaging changes help reduce Scope 3 emissions?
Connect Climate Goals to Packaging Decisions
Packaging Data Is Becoming Part of the Climate Conversation.
Empire EMCO helps manufacturers evaluate rigid packaging options based on material, package weight, recycled content, supplier capabilities, manufacturing, sourcing, transportation, performance, availability, cost and sustainability objectives.