GRI Topic Standard Project for
Climate Change – Climate Change
Exposure draft
Comments to be received by 29 February 2024
This exposure draft of the GRI Climate Change Topic Standard is published for public commentby the Global Sustainability Standards Board (GSSB), the independent standard-setting body of
GRI. This exposure draft incorporates new disclosures and revised disclosures from GRI 305:
Emissions 2016 and GRI 201: Economic Performance 2016 (Disclosure 201-2 Financial
implications and other risks and opportunities due to climate change).
Any interested party can submit comments on this draft by 29 February 2024 via this online
questionnaire. As required by the GSSB Due Process Protocol, only comments submitted inwriting and in English will be considered. Comments will be published on the GRI website andconsidered a matter of public record. Instructions to submit comments are outlined on thefirstpage of the online questionnaire.
An explanatory memorandum preceding the exposure draft summarizes the objectives of the
project and the significant proposals contained within this exposure draft.
This draft is published for comment only and may change before official publication.
For more information, please visit the GRI Standards webpage. For questions regarding theexposure draft or the public comment period, please send an email to climate@globalreporting.org

This document has been prepared by the GRI Standards Division and is made available to observers
at meetings of the Global Sustainability Standards Board (GSSB). It does not represent an official
position of the GSSB. Board positions are set out in the GRI Sustainability Reporting Standards. The
GSSB is the independent standard setting body of GRI. For more information visit
www.globalreporting.org.
© GRI 2023

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Explanatory memorandum

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This explanatory memorandum sets out the objectives for the project to develop new disclosuresrelated to Climate Change, including the review of the GRI 305: Emissions 2016 (Disclosures 305-1 to
305-5), GRI 302: Energy 2016, and GRI 201: Economic Performance 2016 (Disclosure 201-2) , thesignificant proposals resulting from this project, and a summary of the GSSB’s involvement and viewson the development of the draft.

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Objectives for the project

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The primary objective of this project is to review and revise GRI climate change-related Standards
and to incorporate new issues to reflect the stakeholder expectations on reporting climate changerelated impacts, that go beyond GHG emissions and energy consumption. As outlined in the GSSB’s
Due Process Protocol, a multi-stakeholder technical committee was established in May 2023 tocontribute to the review of the climate change-related disclosures.

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The aim is to align with internationally agreed best practice, latest developments, and relevant
authoritative intergovernmental instruments related to climate change, greenhouse gas (GHG)
emissions, and energy. The scope of the revision includes both reviewing the GHG emissions andenergy-related disclosures, as using energy more efficiently and opting for renewable energy sources
is essential for combating climate change and reducing an organization’s overall environmental
footprint.

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Disclosures 305-6 and 305-7 from GRI 305: Emissions 2016 on non-GHG emissions related issues
are excluded from the scope of the project and will be addressed in the future revision of pollutionrelated disclosures. The review of the GRI 201: Economic Performance 2016 (disclosure 201-1, 2013, and 201-4) disclosures will be addressed in the economic-related Standards project commenced in
2023.

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The project is not limited to reviewing the current contents of existing GRI climate change-related
disclosures. It also incorporates new issues to reflect the stakeholders’ expectations related toreporting climate change-related impacts beyond GHG emissions and energy reporting.

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Specifically, the revised climate change-related disclosures will enable an organization to disclose
publicly:

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For more information on the project, consult the Project Proposal and the Technical Committee
biographies.

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Significant proposals

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An exposure draft including new disclosures related to climate change, as well as the review of GRI
305: Emissions 2016 (Disclosures 305-1 to 305-5) and GRI 201: Economic Performance 2016
(Disclosure 201-2) has been developed in line with the project objectives as set out above. Notablechanges and inclusions in this exposure draft are summarized below.

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•

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its most significant impacts on climate change and how the organization manages these impacts,
enhancing transparency of the organization’s impacts and increasing organizational
accountability;
its climate change-related impacts beyond GHG emissions, including impacts related to justtransition, climate transition and adaptation plans, GHG removals in the value chain, and carbon
credits.

Incorporation of just transition principles
The Climate Change draft covers a dedicated disclosure on just transition metrics, including thenumber of jobs created, eliminated, and redeployed due to the transition plan, the number ofPage 2 of 56

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employees that received training for up- and reskilling and the locations where the organization’stransition plan has impacts on local communities and Indigenous Peoples.

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Moreover, the concept of the just transition is present throughout the Climate Change exposure
draft. The draft includes multiple requirements urging organizations to disclose their impacts on
workers, local communities, vulnerable groups associated with the transition and adaptationplans, the use of GHG removals and carbon credits.

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New disclosure on transition plan for climate change mitigation

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The Climate Change exposure draft includes a new management disclosure focused on thedevelopment of a transition plan for climate change mitigation. The disclosure requiresorganizations to report information on policies and actions, alignment with latest scientificevidence and relevant goals and targets. In addition to GHG emissions reduction targets,
organizations are required to report targets to phase out fossil fuels and any other climate change
mitigation targets set. Organizations are also required to report on governance-related aspects,
investment allocated to the implementation of the transition plan, integration within theorganization’s overall business strategy, public policy and stakeholder engagement processes
that organizations perform to shape their transition plans.

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Under this disclosure, organizations report the impacts that result from the implementation of thetransition plan. Specifically, the disclosure integrates the principles of just transition, and requiresorganizations to disclose impacts especially on workers, local communities and vulnerable
groups. Furthermore, given the interconnection of climate change with biodiversity, organizations
are required to report impacts of the transition plan on biodiversity.

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This management disclosure focuses on the development of a climate change adaptation planand the impacts including on local communities, vulnerable groups, workers, and biodiversity
associated with the implementation and outcome of the plan. The disclosure also requiresorganizations to report any impacts associated with climate change-related risks andopportunities that have been identified to inform the development of the adaptation plan.
The disclosure covers details on policies and actions, the scenarios used for the development of
the adaptation plan, and information on investment allocated for the implementation of theadaptation plan, governance, targets and stakeholder engagement. As stakeholder engagement
is a critical aspect of adaptation planning, relevant processes that were implemented in order todevelop the adaptation plan are reported.
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New disclosure on emissions reduction targets and progress
Under this disclosure, organizations report their GHG emissions reduction targets for scope 1, 2,
and 3 separately or combined and how they align with the latest scientific evidence. Furthermore,organizations shall disclose their targets revision policies, the base year they have set, andrecalculations of base year emissions. Importantly, organizations are required to report theirprogress towards each target using the inventory method and explain how that progress wasachieved, including whether it is due to the organization’s initiatives, secondary effects due toother initiatives carried out by the organization, or changes due to external factors.

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New disclosure on climate change adaptation

New disclosure on removals within the value chain
This disclosure aims to increase transparency on the use of GHG removals. Organizations
account and report the total GHG removals and how quality criteria are monitored. They shall also
report the intended use of removals. When reporting under this disclosure, organizations report
impacts associated with GHG removals including on local communities, vulnerable groups,
workers, biodiversity, and the actions taken to manage these impacts.

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New disclosure on carbon credits

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The aim of this disclosure is to increase transparency regarding the use of carbon credits.
Organizations shall disclose the total amount of carbon credits cancelled and provide informationon the projects they purchase the carbon credits from. Organizations shall report details on theadherence to quality criteria and on the purpose of the carbon credit cancellation. As carbon
credits projects may result in positive and negative impacts, organisations are expected to reporton the evaluation and continuous monitoring of such impacts.
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Along with the introduction of new disclosures and terms, new definitions have been included in
the GRI Glossary, including the following terms:
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New terms and relevant definitions

carbon credit
greenhouse gas (GHG) removal

Where necessary, definitions and explanations for other terms have been modified or included in
the guidance of each relevant disclosure (e.g. adaptation, just transition).
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More extensive guidance throughout the drafts
Extensive guidance has been provided within the exposure draft for the new disclosures as well
as for the revised disclosures (e.g. disclosures on Scope 1, 2 and 3 GHG emissions). In addition,
the exposure drafts include example templates for presenting the information for selecteddisclosures.

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GSSB involvement and views on the development of
this draft

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The GSSB has been regularly updated on the content development process. The GSSB appointed
three of its members as sponsors for this project and the sponsors observed the Technical Committee
process and attended most of the meetings.

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The GSSB confirmed its support for the contents of the exposure drafts when it voted to approve thedrafts for public exposure at its meeting on 16 November 2023. The recording of the meeting can beaccessed on the GSSB website.

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Note on reading this document

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This document includes generic text used in all GRI Standards. This text is highlighted in grey andcannot be changed – please do not comment on this text.

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Underlined terms in the draft Standard indicate terms for which definitions have been provided. Mostof these terms are already defined in the GRI Standards Glossary – these definitions are highlighted
in grey in the Glossary and cannot be changed. The proposed new definitions are not highlighted ingrey and are open for review.

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In this document, new disclosures are indicated with the letter code CC, while disclosures updated
from the existing GRI 305 Emissions Standard (2016) are indicated with letter code GH.

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GRI CC: Climate Change 202X

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Content

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Introduction.............................................................................................................................................. 6130

Background on the topic ...................................................................................................................... 6

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System of GRI Standards .................................................................................................................... 7132

Using this Standard ............................................................................................................................. 8133

1. Topic management disclosures ........................................................................................................ 10134

Disclosure CC-1 Transition plan for climate change mitigation ......................................................... 10135

Disclosure CC-2 Climate change adaptation .................................................................................... 16136

2. Topic disclosures .............................................................................................................................. 20

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Disclosure CC-3 Just transition ......................................................................................................... 20

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Disclosure CC-4 GHG emissions reduction target setting and progress .......................................... 23

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Disclosure GH-1 Scope 1 GHG emissions ........................................................................................ 27

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Disclosure GH-2 Scope 2 GHG emissions ........................................................................................ 30

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Disclosure GH-3 Scope 3 GHG emissions ........................................................................................ 34

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Disclosure GH-4 GHG emissions intensity ........................................................................................ 38

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Disclosure CC-5 GHG removals in the value chain .......................................................................... 40

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Disclosure CC-6 Carbon credits ........................................................................................................ 45

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Example templates for presenting information for Disclosures GH-1, GH-2 and GH-3 .................... 51

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Glossary ................................................................................................................................................ 52

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Bibliography .......................................................................................................................................... 55

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Introduction

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GRI CC: Climate Change 202X contains disclosures for organizations to report information about theirclimate change-related impacts, and how they manage these impacts.

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The Standard is structured as follows:• Section 1 contains two disclosures, which provide information about how the organization
manages its climate change-related impacts.
• Section 2 contains eight disclosures, which provide information about the organization's
climate change-related impacts.
• The Glossary contains defined terms with a specific meaning when used in the GRI
Standards. The terms are underlined in the text of the GRI Standards and linked to thedefinitions.
• The Bibliography lists authoritative intergovernmental instruments and additional referencesused in developing this Standard.

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The rest of the Introduction section provides a background on the topic, an overview of the system of
GRI Standards, and further information on using this Standard.

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Background on the topic

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This Standard addresses the topic of climate change.

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The single biggest contributor to climate change is GHG emissions, the impacts of which are
occurring at an accelerated rate. Consequently, the United Nations Framework Convention on
Climate Change (UNFCCC) and the subsequent Kyoto Protocol and Paris Agreement were
implemented to govern the rate of GHG emissions.

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By taking on the challenge of climate change, organizations have the responsibility of contributing toclimate change mitigation and adaptation. Organizations must address the impacts of their mitigation
and adaptation actions, such as securing a just transition. In this context, organizations are expected
to develop and implement transition and adaptation plans and ensure they align with just transition
principles.

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Climate change mitigation requires actions that reduce the rate of climate change and limit global
warming to well below 2°C while pursuing efforts to limit it to 1.5°C above pre-industrial levels, as per
the Paris Agreement.

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Climate change adaptation refers to an organization’s adjustments to current and anticipated climatechange stimuli and their effects.

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Organizations are expected to apply the climate change mitigation hierarchy to inform their actions to
mitigate climate change. The mitigation hierarchy consists of a hierarchy of steps, in the following
order of priority: avoidance, GHG emissions reduction, contribution to climate mitigation beyond thevalue chain, and counterbalancing residual GHG emissions. An organization should prioritize actions
to avoid releasing GHG emissions into the atmosphere and reduce GHG emissions when avoidanceis not possible.

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According to the Intergovernmental Panel on Climate Change (IPCC), organizations should urgently
implement all feasible technical and scientific actions across all sectors to limit global warming to
1.5°C. As such, organizations are expected to set and report short- and long-term GHG emissions
reduction targets and, on an annual basis, disclose emissions inventories and transition plan
progress.

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Organizations are also expected to consider the interrelations of climate change with othersustainable development topics, such as biodiversity or just transition. For example, climate change isa direct driver of biodiversity loss, which in turn accelerates climate change processes. Moreover,Page 6 of 56

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addressing the challenge of climate change will result in fundamental restructuring in certain sectors
with shifts within and between economic sectors and regions. Organizations are expected to ensurethat their transition plans are in line with the principles of just transition.

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System of GRI Standards

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This Standard is part of the GRI Sustainability Reporting Standards (GRI Standards). The GRI
Standards enable an organization to report information about its most significant impacts on theeconomy, environment, and people, including impacts on their human rights, and how it manages
these impacts.

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The GRI Standards are structured as a system of interrelated standards that are organized into threeseries: GRI Universal Standards, GRI Sector Standards, and GRI Topic Standards (see Figure 1 inthis Standard).

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Universal Standards: GRI 1, GRI 2 and GRI 3

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GRI 1: Foundation 2021 specifies the requirements that the organization must comply with to report inaccordance with the GRI Standards. The organization begins using the GRI Standards by consulting
GRI 1.

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GRI 2: General Disclosures 2021 contains disclosures that the organization uses to provide
information about its reporting practices and other organizational details, such as its activities,
governance, and policies.

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GRI 3: Material Topics 2021 provides guidance on how to determine material topics. It also contains
disclosures that the organization uses to report information about its process of determining material
topics, its list of material topics, and how it manages each topic.

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Sector Standards

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The Sector Standards provide information for organizations about their likely material topics. The
organization uses the Sector Standards that apply to its sectors when determining its material topics
and when determining what to report for each material topic.

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Topic Standards

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The Topic Standards contain disclosures that the organization uses to report information about its
impacts in relation to particular topics. The organization uses the Topic Standards according to the listof material topics it has determined using GRI 3.

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Figure 1. GRI Standards: Universal, Sector and Topic Standards

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Using this Standard

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This Standard can be used by any organization – regardless of size, type, sector, geographic location,or reporting experience – to report information about its Climate Change-related impacts. In addition
to this Standard, disclosures that relate to this topic can be found in GRI EN: Energy 202X, GRI 101:
Biodiversity 202X.

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An organization reporting in accordance with the GRI Standards is required to report the following
disclosures if it has determined Climate Change to be a material topic:

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• Any disclosures from this Topic Standard that are relevant to the organization’s
Climate Change-related impacts (Disclosure CC-1 through CC-6).

Disclosure 3-3 in GRI 3: Material Topics 2021.

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See Requirements 4 and 5 in GRI 1: Foundation 2021.

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Reasons for omission are permitted for these disclosures.

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If the organization cannot comply with a disclosure or with a requirement in a disclosure (e.g.,
because the required information is confidential or subject to legal prohibitions), the organization isrequired to specify the disclosure or the requirement it cannot comply with, and provide a reason foromission together with an explanation in the GRI content index. See Requirement 6 in GRI 1 for more
information on reasons for omission.

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If the organization cannot report the required information about an item specified in a disclosure
because the item (e.g., committee, policy, practice, process) does not exist, it can comply with therequirement by reporting this to be the case. The organization can explain the reasons for not having

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this item, or describe any plans to develop it. The disclosure does not require the organization to
implement the item (e.g., developing a policy), but to report that the item does not exist.

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If the organization intends to publish a standalone sustainability report, it does not need to repeat
information that it has already reported publicly elsewhere, such as on web pages or in its annual
report. In such a case, the organization can report a required disclosure by providing a reference in
the GRI content index as to where this information can be found (e.g., by providing a link to the web
page or citing the page in the annual report where the information has been published).

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Requirements, guidance and defined terms

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The following apply throughout this Standard:

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Requirements are presented in bold font and indicated by the word 'shall'. An organization mustcomply with requirements to report in accordance with the GRI Standards.

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Requirements may be accompanied by guidance.

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Guidance includes background information, explanations, and examples to help the organization
better understand the requirements. The organization is not required to comply with guidance.

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The Standards may also include recommendations. These are cases where a particular course ofaction is encouraged but not required.

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The word ‘should’ indicates a recommendation, and the word ‘can’ indicates a possibility or option.

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Defined terms are underlined in the text of the GRI Standards and linked to their definitions in the
Glossary. The organization is required to apply the definitions in the Glossary.

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1. Topic management disclosures

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An organization reporting in accordance with the GRI Standards is required to report how it manages
each of its material topics.
An organization that has determined Climate Change to be a material topic is required to report how it
manages the topic using Disclosure 3-3 in GRI 3: Material Topics 2021. The organization is also
required to report any disclosures from this section (Disclosure CC-1 and Disclosure CC-2) that are
relevant to its climate change-related impacts.

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Disclosure CC-1 Transition plan for climate change
mitigation

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REQUIREMENTS

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The organization shall:

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a. report transition plan-related policies and actions;

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b. describe how the transition plan is in line with the latest scientific evidence on the global
effort needed to limit global warming to 1.5° C, including methodologies and assumptions
used;

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c.

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d. report the bodies or individual roles responsible for overseeing and implementing thetransition plan, including a description of their responsibilities;284

e. describe how the transition plan is embedded in the organization’s overall business strategy;

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f.

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report the investment allocated to the implementation of the transition plan during thereporting period as the total amount and as a percentage of the total investment in thereporting period;

report the targets set to achieve the transition plan and progress toward the targets,
including:

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Gross GHG emission reduction targets to be reported according to Disclosure
CC-4 of this Standard;ii. Targets to phase out fossil fuels, including the base year and standards,
methodologies, and assumptions used to calculate the targets;iii. If any other climate change mitigation targets are set, describe how these wereset, the boundaries, the base year, and their role within the transition plan;293

g. describe how engagement with stakeholders has informed the transition plan;

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h. describe the impacts that may result from the organization’s transition plan, and theactions taken to manage the impacts, including:

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on workers, local communities, and vulnerable groups to be reported
according to Disclosure CC-3 of this Standard;ii. on biodiversity;

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describe how its public policy activities, including lobbying activities, are consistent withthe transition plan;

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describe the reasons why a transition plan is not in place, if applicable, and explain thesteps being taken and the expected time frame to develop it.

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GUIDANCE

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The transition plan for climate change mitigation is an organization’s overall strategy, containing
actions, policies, resources, accountability mechanisms, and targets concerning the global effort
needed to limit global warming.

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Guidance to CC-1-a

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This requirement covers a high-level overview of actions taken relating to the transition plan.

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Disclosure 2-23 in GRI 2: General Disclosures 2021 requires reporting the organization’s policy
commitments. If the organization has described the policies linked to its transition plan under
Disclosure 2-23, it can provide a reference to this information.

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In addition, the organization should describe how its transition plan is intended to address impacts on
the economy, environment, and people associated with transition risks and opportunities.

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Transition risks can include changes in customer behaviors, enhanced regulatory landscape, andincreased costs. Transition opportunities can include diversification of business activities, the use of
more efficient production and transportation processes, and the use of new technologies.

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The climate change-related risks and opportunities covered in this disclosure can be informed byanalysis already performed by the organization for other regulatory frameworks and standards.

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Transition risks can have negative impacts on people, such as on workers and local communities. For
example, changes in consumer behavior can lead to a reduction in sales volume and a loss ofrevenue for the organization, resulting in job loss. To mitigate these potential impacts, organizations
can align with consumer preferences toward more sustainable products and plan changes to theirproduct portfolios, avoiding revenue loss and protecting jobs. Furthermore, transition risks can havenegative impacts also on biodiversity.

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Guidance to CC-1-b

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When describing how the plan aligns with the latest scientific evidence on the global effort needed tolimit global warming to 1.5°C, the organization should disclose how the transition plan is aligned withthe mitigation hierarchy, including:

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Transition plan-related policies can include:• policy on energy usage;• policy on deforestation;• policy on climate-related requirements for suppliers;• review policy of the plan.

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avoiding emitting GHGs by transitioning from fossil fuels to non-emitting energy sources,
such as renewables;
reducing GHG emissions by, for example, improving energy efficiency;
deploying GHG removal methods to counterbalance residual GHG emissions after theorganization has reduced its gross GHG emissions by at least 90%.

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In addition, the organization should disclose which climate and policy scenarios were used to develop
the transition plan. When developing a transition plan, organizations should include at least a scenario
compatible with the Paris Agreement. A scenario compatible with the Paris Agreement will require atemperature rise well below 2ºC while pursuing efforts to limit the temperature rise to 1.5ºC. See The
Use of Scenario Analysis in Disclosure of Climate-Related Risks and Opportunities from the Task
Force on Climate-related Financial Disclosures (TCFD) for more guidance.

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The organization should also explain if it assesses and considers how transition risks and future
developments, such as changes in sales volumes or mergers and acquisitions, can have impacts on
the organization’s transition plan compatibility with the 1.5°C pathway.

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Guidance to CC-1-c

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The organization should report the investment allocated for the transition plan implementation as thetotal amount of capital expenditure (CapEx) and as the percentage of CapEx allocated for
implementing the transition plan of the total CapEx planned.

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To calculate the percentage of CapEx allocated for the implementation of the transition plan, an
organization can apply the following formula:%=355

𝐶𝑎𝑝𝐸𝑥 𝑎𝑙𝑙𝑜𝑐𝑎𝑡𝑒𝑑 𝑡𝑜 𝑡ℎ𝑒 𝑡𝑟𝑎𝑛𝑠𝑖𝑡𝑖𝑜𝑛 𝑝𝑙𝑎𝑛
𝑇𝑜𝑡𝑎𝑙 𝐶𝑎𝑝𝐸𝑥 𝑝𝑙𝑎𝑛𝑛𝑒𝑑 𝑖𝑛 𝑡ℎ𝑒 𝑟𝑒𝑝𝑜𝑟𝑡𝑖𝑛𝑔 𝑝𝑒𝑟𝑖𝑜𝑑

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The organization can also develop different investment metrics, including operational expenditure(OpEx) information or other relevant information.

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The organization should explain how the transition plan is factored into the organization’s financial
planning and whether the highest governance body and senior executives have approved the funding.

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In addition, to ensure transparency on the weight of the investments for the implementation of thetransition plan within an organization’s overall investment strategy, the organization can report:

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•
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CapEx amounts invested in fossil fuel-related activities.
Total CapEx planned in the reporting period.

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Guidance to CC-1-d

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Under this requirement, the organization should report:

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•

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whether the highest governance body is responsible for overseeing the transition plan andwhat is included in this responsibility, for example, approving the transition plan, reviewing
and monitoring it, and ensuring that the transition plan aligns with the principles of justtransition (see Disclosure CC-3 Just transition for further information);whether senior executives are responsible for implementing the transition plan and what this
responsibility includes.

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Disclosure 2-12 and Disclosure 2-13 in GRI 2: General Disclosures 2021 require reporting the highest
governance body's role in overseeing the management of impacts and the delegation of responsibility
for managing impacts. If the organization has described the roles and responsibilities of the bodies
involved in overseeing and implementing the transition plan under Disclosures 2-12 and 2-13, it can
provide a reference to this information.

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Guidance to CC-1-e

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The organization should report the following:

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•

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whether and how the responsibility to manage climate change-related impacts is linked toperformance assessments or incentive mechanisms. This includes whether and how the
remuneration policies for the highest governance body members and senior executives arelinked to the management of impacts that result from the organization’s transition plan. In
addition, the organization can disclose whether the performance of the highest governancebody members is assessed against the GHG emissions reduction targets reported under
Disclosure CC-3 and if dividend distribution is subject to the achievement of the targets;
how research and development activities are aligned with its transition plan;
planned changes to the organization’s portfolio of products and services to deliver thetransition plan. This includes plans to reduce the portfolio of high-carbon products andservices and increase the portfolio of low-carbon products and services that it provides, either
directly or indirectly;
actions taken to build a culture aligned with its transition plan, including how leadership andtraining programs, human resources policies and procedures, workforce engagement, humanrights due diligence, and remedy processes are aligned to its transition plan and inconsideration of its impacts;

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if an internal carbon pricing scheme is in place, a description of it, including which of theorganization’s GHG emissions sources are covered by the scheme and the prices used per
metric ton of CO2.

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Disclosure 2-19 in GRI 2: General Disclosures 2021 requires reporting the remuneration policies formembers of the highest governance body and senior executives. If the organization has described the
incentive mechanisms linked to the management of impacts that result from the organization’stransition plan under Disclosure 2-19, it can provide a reference to this information.

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Guidance to CC-1-f

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404

When reporting progress toward the goals and targets, the organization should include known gaps or
barriers in target achievement and, if applicable, the role of locked-in emissions.

405
406

Locked-in emissions are estimates of future GHG emissions likely caused by an organization’s key
assets or products sold within its operating lifetime. The organization should:

407
408
409
410
411
412

•
•
•

report a qualitative assessment of the potential locked-in GHG emissions from its key assets
and products;
if applicable (e.g., in the oil and gas sector), report a quantitative assessment of the locked-in
GHG emissions from its assets and products; andreport how these emissions may jeopardize the achievement of GHG emissions reduction
targets and plans to manage GHG-intensive assets and products.

413

Guidance to CC-1-f-iii

414
415

The organization can report under CC-1-f-iii, for example, net-zero emissions, energy efficiency, andrenewable energy targets.

416
417
418
419
420

If the organization reports net-zero targets, GHG removals within and beyond the value chain must
only be used to counterbalance residual emissions as the last step of the mitigation hierarchy.
According to the Corporate Net Zero Standard from the Science Based Targets initiative (SBTi),organizations are expected to counterbalance residual emissions at the net-zero target year or after
having reduced at least 90% of their GHG emissions when further reduction is not possible.

421
422
423
424

According to the Net Zero Scenario from the IEA and Corporate Net Zero Standard from the SBTi,
residual emissions refer to the unabated GHG emissions after the organization has reduced at least
90% of its GHG emissions. If an organization is subjected to sectorial decarbonization pathways, it
may be subjected to a different percentage of GHG emissions reduction.

425
426
427
428
429
430

Organizations can finance and contribute to additional climate change mitigation, for example, via
GHG removals or carbon credits, in addition to their GHG emission reduction targets. These
contributions are one of the steps of the mitigation hierarchy and are often referred to as beyond
value chain mitigation or climate contributions. Such contributions cannot be accounted for in the
GHG emissions reduction targets setting and progress reported under Disclosure CC-4 nor used tocounterbalance residual emissions for reaching net-zero targets.

431
432
433

For further information, see Disclosure CC-5 Removals in the value chain and Disclosure CC-6
Carbon credits of this Standard and Corporate Net Zero Standard from the Science Based Targets
initiative (SBTi).

434

Guidance to CC-1-g

435

The organization should report:

436
437

•

how it identifies the stakeholders whose human rights, health, socio-economic well-being, orother interests may be affected as a result of implementing the transition plan;

Page 13 of 56

438
439
440
441
442
443

•
•

how the organization engages with the identified stakeholders or their legitimate
representatives to understand their concerns and interests;
how the insights from stakeholder engagement and possible partnerships with workers, tradeunions, worker representatives, suppliers, Indigenous Peoples, local communities, andgovernments have informed strategies to prevent or mitigate negative impacts and maximize
positive impacts resulting from the transition plan.

444

Guidance to CC-1-h

445
446
447

This requirement covers impacts on biodiversity and people, including human rights andintergenerational equity, resulting from the organization’s transition plan. The aim is to increasetransparency on how an organization’s transition plan incorporates the principles of a just transition.

448
449
450
451
452

Requirements 3-3-a and 3-3-c in GRI 3: Material Topics 2021 entail the description of theorganization’s impacts and the actions taken to manage the impacts. If the organization has described
the impacts on the environment and people that may result from the organization’s transition plan andthe actions taken to manage them under requirements 3-3-a and 3-3-c, it can provide a reference tothis information.

453
454

The organization should also disclose any impacts associated with the failure to implement its
transition plan.

455

Guidance to CC-1-h-i

456
457
458
459
460
461

According to the International Labour Organization (ILO), a just transition involves greening the
economy in a way that is as fair and inclusive as possible to everyone concerned, creating decent
work opportunities and leaving no one behind. A Just Transition involves maximizing the social andeconomic opportunities of climate action, while minimizing and carefully managing any challenges –including through effective social dialogue among all groups impacted, and respect for fundamental
labour principles and rights.

462

Guidance to CC-1-h-ii

463
464
465
466
467

Actions to mitigate climate change can have positive impacts on biodiversity. For example, planting
mangroves can contribute to climate change mitigation by capturing and storing carbon and protecting
biodiversity by increasing wildlife populations. Actions to mitigate climate change can also result in
biodiversity loss. For example, forestation of an area with non-native species can mitigate climatechange by absorbing greenhouse gases, but it may also result in biodiversity loss.

468
469
470
471
472

Disclosure 101-2 in GRI 101: Biodiversity 202X requires describing how the organization enhancessynergies and reduces trade-offs between actions taken to manage its biodiversity impacts and its
climate change impacts. If the organization has described the impacts on biodiversity resulting fromits transition and the actions taken to manage those impacts under Disclosure 101-2, it can provide areference to this information.

473

Guidance to CC-1-i

474
475
476
477
478
479
480
481

The organization should report:• its stance on issues related to the transition plan, e.g., phasing out fossil fuels addressed in its
public policy activities;• any differences between its public policy activities and its stated policies, goals, or otherpublic positions on issues related to its transition plan;• whether it is a member of or contributes to any representative associations or committees thatparticipate in public policy activities on issues related to its transition plan, including:o the nature of this contribution;

Page 14 of 56

482
483
484
485
486
487
488

o

any differences between the organization’s stated policies, goals, or other public
positions on significant issues related to its transition plan and the positions of therepresentative associations or committees.

Requirement CC-1-i is related to the recommendations in GRI 415: Public Policy 2016. The
organization can provide a reference to public policy activities related to its transition plan for climatechange mitigation when it has determined public policy to be a material topic and has reported
information in GRI 415.

Page 15 of 56489

Disclosure CC-2 Climate change adaptation

490

REQUIREMENTS

491

The organization shall:

492
493

a. describe its impacts on the economy, environment, and people, associated with its climatechange-related risks and opportunities;494

b. describe its climate change adaptation plan, including:

495
496
497
498
499
500
501
502
503
504
505
506

i. policies and actions;ii. the climate change-related scenarios, methodologies, and assumptions used;iii. the investment allocated for the implementation of the adaptation plan during
the reporting period as the total amount and as a percentage of the total
investment in the reporting period;
iv. the bodies or individual roles responsible for overseeing and implementing theadaptation plan, including a description of their responsibilities;
v. the targets set to achieve the adaptation plan and progress toward the goals andtargets;
vi. how engagement with stakeholders has informed the plan;c. describe the impacts that may result from the organization’s adaptation plan, and theactions taken to manage the impacts, including:

507
508
509
510

i. on workers, local communities, vulnerable groups;
ii. on biodiversity;d. describe the reasons why an adaptation plan is not in place, if applicable, and explain thesteps being taken and the expected time frame to develop it.

511
512

GUIDANCE

513
514
515
516
517
518
519
520

Organizations contribute to climate change and are simultaneously affected by it. This disclosure
covers:• impacts on the economy, environment, and people, associated with an organization’s climatechange-related risks and opportunities, for example, impacts on workers, local communities,
and biodiversity.
• an organization’s adaptation plan;• impacts of the implementation of the adaptation plan, as for example on workers, local
communities, biodiversity.

521
522
523
524

Adaptation refers to changes in processes, practices, and structures in response to actual or potential
climate-related events and their impacts. Adaptation aims to mitigate potential negative impacts orleverage opportunities associated with climate change. For example, adaptation can include building
flood defenses and redesigning business operations.

525

Under this disclosure, different impacts are reported in CC-2-a and CC-2-c:

526
527
528
529

•
•

Under CC-2-a, the organization reports impacts associated with climate change-related risks
and opportunities used to inform the adaptation plan.
Under CC-2-c, the organization reports the impacts associated with implementing theadaptation plan.

530

Guidance to CC-2-a

531
532

Under this requirement, the organization reports the impacts associated with its climate changerelated risks and opportunities.

Page 16 of 56

533

Climate change-related risks can be classified as physical or transition risks.

534
535

Physical risks can include increased frequency and severity of flooding and storms, rising mean
temperatures, precipitation and sea level changes, and drought.

536
537

Transition risks can include changes in customer behaviors, enhanced regulatory landscape, andincreased costs.

538
539

Impacts associated with physical risks are reported under this requirement. Examples of impacts
associated with physical risks include:

540
541
542
543
544

•
•
•

impacts on workers' health due to extreme weather events (e.g., heat-related illness ordisease);extreme weather events (e.g. hurricane) affecting energy companies and subsequetiallyresulting in lack of access to energy for the population;
the loss of employment due to the need to relocate operations to a less flood-prone area.

545
546
547

In addition, only impacts associated with transition risks and opportunities relevant to the adaptation
plan are required to be reported under this disclosure. For example, regulatory changes such as
upcoming legislation are a type of transition risk that may influence the adaptation plan.

548
549
550
551
552

Opportunities related to climate change can include increased efficiency of production processes,
reduced consumption of resources, access to new markets, integration of new technologies, anddiversification of the business portfolio. Impacts related to opportunities may include job creation,
redefinition of existing jobs resulting in reskilling, and improvements in income through investments inenvironmentally sustainable production.

553
554

The climate change-related risks and opportunities covered in this disclosure can be informed byanalysis already performed by the organization for other regulatory frameworks and standards.

555

Guidance to CC-2-b-i

556
557

The organization should include a description of the policies it has developed specifically to achieve
the adaptation plan and a high-level overview of actions taken.

558
559

The organization can report key adaptation actions by type, such as nature-based adaptation,engineering, or technological solutions.

560
561
562

Disclosure 2-23 in GRI 2: General Disclosures 2021 requires reporting the organization’s policy
commitments. If the organization has described the policies linked to its adaptation plan under
Disclosure 2-23, it can provide a reference to this information.

563
564

In addition, the organization can describe how its adaptation plan contributes to sectoral, regional, or
national adaptation plans.

565

Guidance to CC-2-b-ii

566
567
568
569
570
571
572
573

Scenario analysis allows for the simultaneous consideration of alternative forms of future statesaffected by climate change and can be used to explore climate change-related risks. Organizations
typically define scenarios according to the transition speed, expressed in the average global
temperature changes. When developing an adaptation plan, organizations are expected to include a
range of climate scenarios, including at least a high-emissions scenario and a scenario compatible
with the Paris Agreement. A scenario compatible with the Paris Agreement will require a temperaturerise well below 2ºC while pursuing efforts to limit the temperature rise to 1.5ºC. Other scenarios canbe defined according to an organization’s national context.

574
575

See The Use of Scenario Analysis in Disclosure of Climate-Related Risks and Opportunities from theTask Force on Climate-related Financial Disclosures (TCFD) for more guidance.

Page 17 of 56

576
577
578

Conducting climate change scenario analysis enhances transparency and assists organizations inplanning effective actions to prevent and mitigate potential negative impacts on the economy,
environment, and people, including on their human rights.

579
580

The impacts identified and reported under CC-2-a and the climate change scenario analysis informthe organization’s adaptation plan, reported under CC-2-c.

581

Guidance to CC-2-b-iii

582
583
584

The organization should report the investment allocated for the adaptation plan implementation as thetotal amount of capital expenditure (CapEx) and as the percentage of CapEx allocated for
implementing the adaptation plan of the total CapEx planned.

585
586

To calculate the percentage of CapEx allocated for the implementation of the adaptation plan, an
organization can apply the following formula:%=587

𝐶𝑎𝑝𝐸𝑥 𝑎𝑙𝑙𝑜𝑐𝑎𝑡𝑒𝑑 𝑡𝑜 𝑡ℎ𝑒 𝑎𝑑𝑎𝑝𝑡𝑎𝑡𝑖𝑜𝑛 𝑝𝑙𝑎𝑛
𝑇𝑜𝑡𝑎𝑙 𝐶𝑎𝑝𝐸𝑥 𝑝𝑙𝑎𝑛𝑛𝑒𝑑 𝑖𝑛 𝑡ℎ𝑒 𝑟𝑒𝑝𝑜𝑟𝑡𝑖𝑛𝑔 𝑝𝑒𝑟𝑖𝑜𝑑

588
589

The organization can also develop different investment metrics, including operational expenditure(OpEx) information or other relevant information.

590

Guidance to CC-2-b-iv

591

Under this requirement, the organization should report:

592
593
594
595
596
597
598

•

•

whether the highest governance body is responsible for overseeing the adaptation plan andwhat is included in this responsibility, for example, approving the adaptation plan, reviewing it
and monitoring it, implementing remedial actions if necessary, ensuring that the adaptation
plan aligns with the principles of just transition (see Disclosure CC-3 Just transition for further
information);whether senior executives are responsible for implementing the adaptation plan and what this
responsibility includes.

599
600
601
602
603

Disclosures 2-12 and 2-13 in GRI 2: General Disclosures 2021 require reporting the highest
governance body's role in overseeing the management of impacts and the delegation of responsibility
for managing impacts. If the organization has described the roles and responsibilities of the bodies
involved in overseeing and implementing the adaptation plan under Disclosures 2-12 and 2-13, it can
provide a reference to this information.

604

Guidance to CC-2-b-v

605

The organization should report how:

606
607
608
609
610
611
612

•
•
•

it identifies the stakeholders whose human rights, health, socio-economic well-being, or wider
interests may be impacted as a result of implementing the adaptation plan;
it engages with the identified stakeholders or their legitimate representatives to understandtheir concerns and interests;
the outcomes from stakeholder engagement and possible partnerships with workers, tradeunions and worker representatives, local communities, and suppliers have informed thedevelopment of the adaptation plan.

613

Guidance to CC-2-c

614
615
616
617
618

This requirement covers positive or negative impacts that may result from implementing theadaptation plan. If an adaptation plan is well managed, this can translate into positive impacts such as
economic development and local employment. However, an adaptation plan can also result innegative impacts on the economy, environment, and people, including on their human rights.
Negative impacts associated with adaptation plans can include the relocation of a production site to a

Page 18 of 56

619
620

jurisdiction less prone to climatic weather events such as flooding. Jobs from the original production
site will be eliminated due to the relocation.

621
622
623
624

The organization should also report any impacts associated with the failure to implement its
adaptation plan. For example, an organization’s failure to implement its adaptation plan may
exacerbate impacts such as disruptions in operations, increased occupational health and safety
impacts, loss of livelihood, and food insecurity.

625
626
627
628
629

Under Requirements 3-3-a and 3-3-c in GRI 3: Material Topics 2021 , the organization is required todescribe the organization’s impacts and the actions taken to manage the impacts. If the organization
has described the impacts on the economy, environment, and people that may result from theorganization’s adaptation plan and the actions taken to manage them under 3-3-a and 3-3-c, it can
provide a reference to this information.

630

Guidance to CC-2-c-i

631
632

Examples of actions taken to manage the impacts on people that may result from the organization’s
adaptation plan may include:

633
634
635
636

•
•

supporting workers who lost their jobs due to relocation of operations to find new
employment;
investing and utilizing nature-based or technological solutions on-site, rather than production
relocation, to prevent job elimination.

637

Guidance to CC-2-c-ii

638
639
640
641
642

Actions to adapt to climate change can have positive impacts on biodiversity. For example, planting
mangroves can contribute to climate change adaptation by controlling floods and protecting
biodiversity by increasing wildlife populations. Actions to adapt to climate change can also result in
biodiversity loss. For example, forestation of an area with non-native species can contribute to climatechange adaptation by controlling erosion and flooding, but it may also result in biodiversity loss.

643
644
645
646
647

Disclosure 101-2 in GRI 101: Biodiversity 202X requires describing how the organization enhancessynergies and reduces trade-offs between actions taken to manage its biodiversity impacts and its
climate change impacts. If the organization has described the impacts on biodiversity resulting fromits adaptation plan and the actions taken to manage those impacts under Disclosure 101-2, it can
provide a reference to this information.

Page 19 of 56

648

2. Topic disclosures

649
650
651
652
653

An organization reporting in accordance with the GRI Standards is required to report any disclosuresfrom this section (Disclosure CC-3 Just transition, Disclosure CC-4 GHG emissions reduction targets,
Disclosure GH-1 Scope 1 Emissions, Disclosure GH-2 Scope 2 Emissions, Disclosure GH-3 Scope 3
Emissions, Disclosure GH-4 GHG Emissions intensity, Disclosure CC-5 GHG removals in the value
chain, Disclosure CC-6 Carbon Credits) that are relevant to its Climate Change-related impacts.

654

Disclosure CC-3 Just transition

655

REQUIREMENTS

656

The organization shall:

657
658
659

a. report the total number of jobs created as a result of the organization’s transition planand provide a breakdown of this total by temporary and permanent jobs and describe
the actions taken to determine that adequate remuneration is paid;

660
661

b. report the total number of jobs eliminated as a result of the organization's transition
plan and provide a breakdown of this total by temporary and permanent jobs;

662
663
664

c. report the ratio of the total number of jobs that have been redeployed as a result of theorganization's transition plan to the total number of jobs eliminated as a result of theorganization's transition plan;

665
666

d. report the number of employees that received training for up- and reskilling as a resultof the implementation of the transition plan;

667
668

e. list the locations where the organization’s transition plan has impacts on local
communities and Indigenous Peoples;

669
670

f.

report the percentage of locations listed in CC-3-e in which an agreement has beenreached with local communities and Indigenous Peoples to safeguard their interests.

671
672

GUIDANCE

673
674This disclosure covers both employment aspects that are relevant for workers and implications forother stakeholder groups such as local communities and Indigenous Peoples.

675
676
677
678
679

This disclosure enables organizations to report on the quantitative and qualitative aspects of jobs as aresult of the transition plan. Under the quantitative aspect, organizations report the jobs created,
eliminated, and redeployed. Under the qualitative aspect, organizations can report on the quality ofjobs by indicating whether they are permanent or temporary and if they provide adequate
remuneration.

680
681
682
683

Permanent jobs are those where a contract for an indeterminate period is given for full-time or parttime work. Temporary jobs are when a contract is given for a limited period and it ends when thespecific time period expires, or when the specific task or event that has an attached time estimate iscompleted.

684
685
686

Several benchmarks are available for organizations to determine adequate remuneration, forexample, the minimum wage set by a competent national authority, cost of living estimates, wages set
by collective bargaining agreements, or industry-standard wages applicable for a specific sector.

Page 20 of 56

687
688
689

It is important that just transition safeguards the needs of local communities and Indigenous Peoples
and therefore, this disclosure also enables organizations to report if they have participated in theemerging opportunities for the transition to a greener economy.

690

Guidance to CC-3-a

691
692
693

As a result of the organization’s transition plan, jobs may be created due to the development of new
low-carbon-intensive products, services, and infrastructure. Examples include jobs in renewableenergy, energy efficiency, and adaptation projects.

694
695
696
697
698
699
700

Jobs created in the transition to a low-carbon economy are expected to provide adequate
remuneration and ensure equal pay for work of equal value. When reporting the actions taken to
determine whether adequate remuneration is provided, the organization can report that it:• consults with worker representatives and employer organizations;• relies on external research; or• is part of local civil society initiatives to determine the cost of living estimates and compare itwith the actual remuneration.

701
702
703

When reporting the information under CC-3-a, the organization should provide additional relevant
breakdowns, for example, by gender of those who fulfill the jobs created, the significant locations ofoperation.

704

Guidance to CC-3-b

705
706
707

Jobs may be eliminated – either phased out or massively reduced in numbers – without direct
replacement as a result of the organization’s transition plan. For example, when emitting and energyintensive economic activities are reduced or phased out entirely.

708
709

A breakdown of temporary and permanent jobs eliminated will allow for comparison with thetemporary and permanent jobs created and reported under CC-3-a.

710
711
712
713
714

When reporting the information required by CC-3-b, the organization should provide relevant
breakdowns, for example, by gender of those whose jobs have been eliminated and significant
locations of operation. The breakdown of jobs eliminated by location will allow comparison with jobs
created in those locations and reported under CC-3-a and enable an understanding of the net change
in employment in that location.

715

Guidance to CC-3-c

716
717
718
719
720

Redeployment occurs when, for example, existing employees working in emissions-intensive
economy are up-and-reskilled with the direct assistance of the organizations they work for, andtherefore they are able to continue working for those organizations in less emissions-intensive
activities. For example, an existing employee in automobile manufacturing can work in the production
line of electric cars. Redeployment can help organizations to reduce job elimination.

721

The following formula can be used to calculate the ratio required by CC-3-iii:

722

𝑅𝑎𝑡𝑖𝑜 =

𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑗𝑜𝑏𝑠 𝑟𝑒𝑑𝑒𝑝𝑙𝑜𝑦𝑒𝑑
𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑗𝑜𝑏𝑠 𝑒𝑙𝑖𝑚𝑖𝑛𝑎𝑡𝑒𝑑

723
724
725

When reporting the information required by CC-3-c, the organization should provide relevant
breakdowns, for example, by gender of those who their jobs redeployed or eliminated and significant
locations of operation.

726

Guidance to CC-3-dPage 21 of 56

727
728

When reporting the information required by CC-3-d, the organization should provide relevant
breakdowns, for example, by gender and significant locations of operation.

729
730
731
732

In addition to reporting the number of employees trained, the organization can also describe theimpact of the training. For an organization, the impacts of the training can include improved employee
retention and improved market competitiveness, due to a skilled workforce to implement the transition
plan.

733

Guidance to CC-3-e

734
735
736

The organization provides specific locations within the countries (e.g., states, cities) where it has
operations, and its transition plan impacts the rights of local communities and Indigenous Peoples as
set out in the UN Declaration on the Rights of Indigenous Peoples.

737

Guidance to CC-3-f

738
739
740
741
742
743
744

In the context of just transition, organizations need to engage with local communities and Indigenous
Peoples to prevent and mitigate potential and actual negative impacts. Agreements through free, priorand informed consent (FPIC) that uphold rights and reflect the interests of Indigenous Peoples andlocal communities provide clear, sustainable and accountable outcomes of such engagements. Thisrequirement aims to understand the effectiveness of the organization's engagement actions with local
communities and Indigenous People. When reporting this requirement, the organization calculates thepercentage of locations based on the list of locations reported under CC-3-e.

Page 22 of 56

746

Disclosure CC-4 GHG emissions reduction target
setting and progress

747

REQUIREMENTS

748

The organization shall:

745

749
750

a. report gross GHG emissions reduction short-term and long-term targets in metric tonsof CO2 equivalent and as a percentage of the emissions of a base year, where:

751
752
753
754
755
756

i.

Scope 1, Scope 2, and Scope 3 GHG emissions targets are reported separately
or combined;
ii. A list of Scope 3 categories covered in the Scope 3 GHG emissions targets is
included;iii. A list of the gases covered in the targets is included;
iv. GHG removals, GHG trades, and avoided emissions are excluded;

757
758

b. explain how the targets are in line with the latest scientific evidence on the global effort
needed to limit global warming to 1.5° C;

759

c. report its target revision policy;

760
761
762

d. report the base year for the targets, including:i. the rationale for choosing it;ii. emissions in the base year;

763
764

iii. the context for any significant changes in emissions that triggered
recalculations of base year emissions;

765
766

iv. when there are recalculations of the base year emissions, and the current andpreviously reported values;

767
768

e. report the progress toward the targets using the inventory method, in metric tons of
CO2 equivalent and as a percentage of the emissions of a base year;

769
770

f.

explain how the progress for the targets was achieved, relative to the base year,
including whether it is due to:i. reductions through the organization’s initiatives;
ii. secondary effects through other organization’s initiatives;
iii. external factors;

771
772
773
774
775

g. report standards, methodologies, and assumptions used to calculate the targets andprogress, including a reference to any calculation tool used.

776
777

GUIDANCE

778
779
780

This disclosure should be used in combination with Disclosures GH-1, GH-2, and GH-3 of thisStandard. The organization should ensure consistency between the target boundary and the inventory
boundary.

781
782

The organization should report whether an independent third party has validated the GHG emissions
reduction targets and the related emissions reduction progress.

783

Guidance to CC-4-a

784
785
786

The organization should include biogenic CO2 emissions in the scope of its targets. The organization
can refer to the GHG Protocol Corporate Accounting Standard and Land Sector and Removals
Guidance for further information.

Page 23 of 56

787
788
789

In addition to reporting gross GHG emissions reduction targets for Scope 1, Scope 2, and Scope 3
GHG emissions in metric tons of CO2 equivalent and as a percentage of the emissions of a base year,
the organization can report intensity targets.

790
791
792
793

Organizations are expected to set short-term targets (e.g., for 2030), long-term targets (e.g., for2050), and interim targets. For further information, the organization can refer to the United Nations
High-Level Expert Group on the Net Zero Emissions Commitments of Non-State Entities, ‘Integrity
Matters: Net Zero Commitments by Businesses, Financial Institutions, Cities and Regions’ Report.

794
795
796

If significant changes could compromise the relevance and consistency of existing GHG emissions
reduction targets, the organization should recalculate its targets to reflect those changes. For further
information, the organization can refer to SBTi Corporate Net Zero Standard.

797

The organization should also disclose the year in which the targets were set.

798

Guidance to CC-4-a-i

799
800

When reporting combined GHG emissions reduction targets, the organization should specify which
scopes cover the combined target.

801
802
803

If the organization reports Scope 2 GHG emissions reduction targets using the market-based method,the organization is expected to also set and report separately Scope 2 GHG emissions reduction
targets using the location-based method.

804

Guidance to CC-4-a-ii

805
806
807

In the case a Scope 3 GHG emissions target does not cover all Scope 3 categories, the organization
should report the percentage of Scope 3 categories covered by the target (reported under GH-3-a andGH-3-c). The percentage can be calculated using the following formula:

808

𝑃𝑒𝑟𝑐𝑒𝑛𝑡𝑎𝑔𝑒 (%) 𝑜𝑓 𝑆𝑐𝑜𝑝𝑒 3 𝑒𝑚𝑖𝑠𝑠𝑖𝑜𝑛𝑠 𝑐𝑜𝑣𝑒𝑟𝑒𝑑 𝑏𝑦 𝑡ℎ𝑒 𝑡𝑎𝑟𝑔𝑒𝑡
𝑆𝑐𝑜𝑝𝑒 3 𝑒𝑚𝑖𝑠𝑠𝑖𝑜𝑛𝑠 𝑐𝑜𝑣𝑒𝑟𝑒𝑑 𝑏𝑦 𝑡ℎ𝑒 𝑡𝑎𝑟𝑔𝑒𝑡=∗ 100
𝐺𝑟𝑜𝑠𝑠 𝑆𝑐𝑜𝑝𝑒 3 𝑒𝑚𝑖𝑠𝑠𝑖𝑜𝑛𝑠 (𝐺𝐻 − 3 − 𝑎) + 𝐵𝑖𝑜𝑔𝑒𝑛𝑖𝑐 𝑆𝑐𝑜𝑝𝑒 3 𝑒𝑚𝑖𝑠𝑠𝑖𝑜𝑛𝑠 (𝐺𝐻 − 3 − 𝑐)

809
810
811

The organization should explain why any Scope 3 categories are excluded and describe actions taken
to include all categories in the future.

812

Guidance to CC-4-a-iv

813
814
815
816

GHG removals within the value chain, GHG trades, and avoided emissions cannot be included whencalculating an organization’s gross GHG emissions reduction targets reported under this requirement.
For further information, see Disclosures CC-5 GHG removals within the value chain and CC-6 Carbon
credits.

817
818

Avoided emissions fall under a separate accounting system from corporate inventories and do notcount toward GHG emission reduction targets.

819
820
821
822

The organization may be allowed to include GHG removals in the targets reported under thisrequirement only if subjected to specific sector programs (e.g., the SBTi Forest, Land and Agriculture(FLAG) Guidance). The organization should report the sector program based on authoritative
scientific evidence.

823

Guidance to CC-4-b

824
825
826
827
828
829

The organization should report which guidance or framework has been used to determine the targets,
including the underlying climate and policy scenarios. The organization should explain how it has
considered future developments (e.g., changes in sales volumes, mergers, and acquisitions) andtransition risks (e.g., shifts in customer preferences and demand, regulatory factors, and newtechnologies) when setting the GHG emissions reduction targets. The organization should also
explain how these developments and risks will potentially impact the ambition of the targets.

Page 24 of 56

830

Guidance to CC-4-d-iii

831

Cases that should trigger a recalculation of base year emissions can include:

832
833
834

•

structural changes in the reporting organization that have a significant impact on theorganization’s base year emissions, including mergers, acquisitions, divestments,
outsourcing, and insourcing of emitting activities.

835
836

•

changes in calculation methodology or improvements in the accuracy of emission factors or
activity data that result in a significant impact on the base year emissions data.

837
838
839

•

discovery of significant errors, or a number of cumulative errors, that are collectively
significant. In such a case, the organization should also report the established processes toprevent such errors in future reporting.

840

Guidance to CC-4-e

841
842

When reporting the progress under CC-4-e, GHG removals, GHG trades, and avoided emissions are
excluded.

843
844
845
846

Progress against GHG emissions targets can include reductions and increases in GHG emissions. To
ensure transparency, an organization should report both reductions and increases in GHG emissions.
When reporting separate targets for Scope 1, Scope 2, and Scope 3 GHG emissions, progress should
be reported against each target the organization has set.

847
848

When calculating the progress against the targets, the inventory method is used, which comparesemissions to a base year.

849
850

When reporting the progress in metric tons of CO2 equivalent, an organization should apply thefollowing formula:𝐶ℎ𝑎𝑛𝑔𝑒 𝑖𝑛 𝑒𝑚𝑖𝑠𝑠𝑖𝑜𝑛𝑠 = 𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑦𝑒𝑎𝑟 𝑒𝑚𝑖𝑠𝑠𝑖𝑜𝑛𝑠 − 𝐵𝑎𝑠𝑒 𝑦𝑒𝑎𝑟 𝑒𝑚𝑖𝑠𝑠𝑖𝑜𝑛𝑠

851
852

Further details on this method are available in the GHG Protocol Corporate Accounting Standard.

853
854

When reporting the progress as a percentage of the emissions of a base year, an organization should
apply the following formula:𝐶ℎ𝑎𝑛𝑔𝑒 𝑖𝑛 𝑒𝑚𝑖𝑠𝑠𝑖𝑜𝑛𝑠∗ 100
𝐵𝑎𝑠𝑒 𝑦𝑒𝑎𝑟 𝑒𝑚𝑖𝑠𝑠𝑖𝑜𝑛𝑠

855

𝑃𝑟𝑜𝑔𝑟𝑒𝑠𝑠 (%) =856

The progress as a percentage can be reported as in the following example:

857[Organization name] reduced Scope 1 and Scope 2 GHG emissions by 20% from a 2019 base year.

858
859
860

In addition, the organization should also report the aggregated Scope 1, Scope 2, and Scope 3 GHG
emissions changes relative to the aggregated base year Scope 1, Scope 2, and Scope 3 GHG
emissions.

861
862

For an example of how to present information on requirements CC-4-a-i, CC-4-d-ii, and CC-4-e, see
Table 1.

863

Table 1. Example template for presenting information on GHG emissions reduction targets
GHG
emissions
reduction
targets
Gross
emissions
reduction
targets 1

Scopesincluded

Scope 3categories
included

Gases

Base
year

Base year
emissions(MtCO2e)Target(%)

Progress(%)

Target(MtCO2e)Progress(MtCO2e)Targetyear

Page 25 of 56

Grossemissions
reduction
targets 2
Grossemissions
reduction
targets 3864
865

Guidance to CC-4-f

866
867
868

Progress in GHG inventory emissions can be reductions due to the organization’s initiatives,secondary effects due to other initiatives carried out by the organization, or changes due to external
factors.

869

Initiatives of the organization that result in reductions can include:

870
871
872
873
874
875
876
877
878
879
880
881
882

•
•
•
•

process redesign;
conversion and retrofitting of equipment;
fuel switching;changes in behavior.

Secondary effects due to other initiatives of the organization that result in reductions or increases can
include:••changes in production capacity;
outsourcing.

Changes due to external factors that result in reductions or increases can include:••••

decarbonization of the electricity grid caused by government policy;
changes in consumer behavior, e.g., driving less;decarbonization of purchased goods and services initiated by suppliers;
reduced emissions from waste disposal due to waste governmental policies.

Page 26 of 56

883

Disclosure GH-1 Scope 1 GHG emissions

884

REQUIREMENTS

885

The organization shall:

886
887

a. report gross Scope 1 GHG emissions in metric tons of CO2 equivalent, and in thecalculation:

888
889
890
891
892
893

i. include CO2, CH4, N2O, HFCs, PFCs, SF6, and NF3;
ii. include biogenic non-CO2 GHG emissions from the combustion or biodegradationof biomass from owned or controlled operations;iii. exclude GHG trades, GHG removals, and avoided emissions;iv. use the global warming potential (GWP) values based on a 100-year timeframefrom the latest IPCC assessment reports;

894
895

b. provide a breakdown of gross Scope 1 GHG emissions by CO2, CH4, N2O, HFCs, PFCs, SF6,
and NF3, in metric tons and in metric tons of CO2 equivalent;

896
897
898

c. report biogenic CO2 emissions from the combustion or biodegradation of biomass from
owned or controlled operations in metric tons, separately from gross Scope 1 GHG
emissions;899

d. report the base year for the calculation, including:

900
901
902
903
904
905

i. the rationale for choosing it;ii. emissions in the base year;iii. the context for any significant changes in emissions that triggered recalculationsof base year emissions;iv. when there are recalculations of the base year emissions, and the current andformerly reported values;

906
907

e. report the consolidation approach for emissions, whether equity share, financial control,or operational control;

908
909

f.

report standards, methodologies, and assumptions, including the source of the emission
factors and calculation tools used.

910
911

GUIDANCE

912
913

Gross Scope 1 GHG emissions include, but are not limited to, the CO2 emissions from energy
consumption as reported in Requirement EN-2-a in GRI EN: Energy 20xx.

914
915

Gross Scope 1 GHG emissions can come from the following operations owned or controlled by anorganization:

916
917
918
919
920
921
922
923
924
925
926
927
928

•

•

•

•

Generation of electricity, heating, cooling, and steam – these emissions result from the
combustion of fuels in stationary sources, such as boilers, furnaces, and turbines – and fromother combustion processes such as flaring;
Physical or chemical processing – most of these emissions result from the manufacturing orprocessing of chemicals and materials, such as cement, steel, aluminum, ammonia, andwaste processing;Transportation of materials, products, waste, workers, and passengers – these emissions
result from the combustion of fuels in mobile combustion sources owned or controlled by theorganization, such as trucks, trains, ships, airplanes, buses, and cars;
Fugitive emissions – these emissions result from intentional or unintentional releases of
GHGs. These include equipment leaks from joints, seals, packing, and gaskets; methane(CH4) emissions from coal mines and venting; hydrofluorocarbon (HFC) emissions fromrefrigeration and air conditioning equipment; and CH4 leakages.

Page 27 of 56

929

Guidance to GH-1-a

930
931

All seven gases covered by the Kyoto Protocol are included in the gross Scope 1 GHG emissions
calculation.

932
933

Emissions from other GHGs, such as the Montreal Protocol gases, can be reported by theorganization separately from gross Scope 1 GHG emissions.

934
935
936
937
938
939

Where it aids transparency or comparability over time, the organization can provide additional
breakdowns of gross Scope 1 GHG emissions by, for example:• business unit or facility;• country;• type of source (stationary and mobile combustion, process emissions, fugitive emissions);• type of activity.

940

To present the information for this requirement, see Table 5.

941

The gross Scope 1 GHG emissions calculation excludes GHG removals and GHG trades.

942
943
944

GHGs emitted during Scope 1 removal activities is reported under GH-1-a. If there are Scope 2 or
Scope 3 emissions associated with Scope 1 removal activities, they are reported under GH-2-a andGH-3-a.

945

Guidance to GH-1-a-iv

946
947
948

The organization is required to use the latest Intergovernmental Panel on Climate Change (IPCC)
global warming potential (GWP) values. If the organization used different IPCC GWP values inprevious reporting periods, it should disclose the IPCC GWP values used in each reporting period.

949

The organization should consistently apply GWP values for the information disclosed.

950

Guidance to GH-1-b

951
952
953

The organization is required to report emissions data for all seven gases separately. If theorganization cannot report the emissions data for each gas, it is required to provide a reason foromission. See Requirement 6 in GRI 1 Foundation 2021.

954

To present the information for this requirement, see Table 6.

955

Guidance to GH-1-c

956
957
958
959
960
961

As per the GHG Protocol Corporate Standard, biogenic non-CO2 emissions, such as CH4 and nitrous
oxide (N2O), from the combustion or biodegradation of biomass from owned or controlled operations
are reported under GH-1-a as part of the gross Scope 1 GHG emissions. Biogenic CO2 emissions
from the combustion or biodegradation of biomass from owned or controlled operations are reported
separately under GH-1-c and not included in the gross Scope 1 GHG emissions calculation in GH-1a.

962

To present the information for this requirement, see Table 5.

963

Guidance to GH-1-d

964
965

As specified in the comparability principle in GRI 1: Foundation 2021, the organization should present
the information for the current reporting period and at least two previous reporting periods.

966
967

The organization should report the emissions consistently according to the selected recalculation
policy when there are recalculations of the base year emissions.

968

Cases that should trigger a recalculation of base year emissions can include:

Page 28 of 56

969
970
971
972
973
974
975
976

•

•
•

structural changes in the reporting organization that have a significant impact on theorganization’s base year emissions, including mergers, acquisitions, divestments,
outsourcing, and insourcing of emitting activities.
changes in calculation methodology or improvements in the accuracy of emission factors or
activity data that result in a significant impact on the base year emissions data.
discovery of significant errors, or a number of cumulative errors, that are collectively
significant. In such a case, the organization should also report the established processes toprevent such errors in future reporting.

977
978

For further information on recalculations of emissions in prior reporting periods, the organization canfollow the approach in the GHG Protocol Corporate Standard.

979
980
981

In the case where the organization has reported the base year according to the Disclosure CC-4 GHG
emissions reduction targets and progress, the organization can refer to that disclosure and does notneed to repeat the information.

982

Guidance to GH-1-d-ii

983

This requirement covers separate base year emissions data for:

984
985

•
•

gross Scope 1 GHG emissions (GH-1-a);biogenic CO2 emissions (GH-1-c).

986

Guidance to GH-1-e

987
988
989
990

The organization should select a consistent approach for consolidating gross Scope 1 GHG
emissions, choosing from the equity share, financial control, or operational control methods outlined in
the GHG Protocol Corporate Standard. The approach should be consistent throughout the GHG
inventory. The organization should explain the reason for choosing the consolidation approach.

991
992
993
994

The organization should report GHG emissions for the same group of entities included in its financial
reporting. If the group of entities included in its financial reporting differs from the one included in its
sustainability reporting, the organization is required to specify any differences in Disclosure 2-2 in GRI
2: General Disclosures 2021. See also section 5.1 in GRI 1: Foundation 2021.

995
996

If there are any changes in the organizational boundaries, the organization should report thesechanges.

997

Guidance to GH-1-f

998

Methodologies used to calculate the gross Scope 1 GHG emissions can include:

999
1000

•
•

direct measurements of GHG emissions;calculation of GHG emissions based on activity data (i.e., fuel use) and emission factors.

1001
1002

The organization should describe the reasons why the standards, methodologies, assumptions, andcalculation tools used were chosen.

1003
1004
1005

The emission factors can originate from mandatory reporting requirements, voluntary reporting
frameworks, industry groups, scientific papers, commercial data providers, or suppliers to thereporting organization.

1006

The organization should consistently apply emissions factors for the information disclosed.

Page 29 of 56

1007

Disclosure GH-2 Scope 2 GHG emissions

1008

REQUIREMENTS

1009

The organization shall:

1010
1011

a. report gross location-based and, if applicable, market-based Scope 2 GHG emissions inmetric tons of CO2 equivalent, and in the calculation:

1012
1013
1014
1015
1016

i. include CO2, CH4, N2O;
ii. include biogenic non-CO2 emissions from electricity use;iii. exclude GHG trades, GHG removals, and avoided emissions.
iv. use the global warming potential (GWP) values based on a 100-year timeframefrom the latest IPCC assessment reports;

1017
1018

b. provide a breakdown of gross location-based and, if applicable, market-based Scope 2
GHG emissions by CO2, CH4, N2O, in metric tons and metric tons of CO2 equivalent;

1019
1020

c. report location-based and, if applicable, market-based biogenic CO2 emissions fromelectricity use in metric tons, separately from gross Scope 2 GHG emissions;1021

d. report the base year for the calculation, including:

1022
1023
1024
1025
1026
1027

i. the rationale for choosing it;ii. emissions in the base year;iii. the context for any significant changes in emissions that triggered
recalculations of base year emissions;iv. when there are recalculations of the base year emissions, and the current andformer values;

1028
1029

e. report the consolidation approach for emissions, whether equity share, financial control,or operational control;

1030
1031

f.

report standards, methodologies, and assumptions, including the source of the emission
factors and calculation tools used.

1032
1033

GUIDANCE

1034
1035
1036
1037
1038

Gross Scope 2 GHG emissions include, but are not limited to, the CO2 emissions from the generationof purchased or acquired electricity, heating, cooling, and steam consumed by an organization –disclosed as specified in Requirement EN-2-c in GRI EN: Energy 20xx. For many organizations, theScope 2 GHG emissions that result from the generation of purchased electricity can be much greaterthan the Scope 1 GHG emissions.

1039

Guidance to GH-2-a

1040
1041
1042
1043

This requirement covers CO2, CH4, and N2O, the GHGs which occur from energy production
processes (e.g. combustion) and are relevant for the gross Scope 2 GHG emissions calculation. If theorganization does not have information on all the gases, it is required to provide a reason foromission. See Requirement 6 in GRI 1: Foundation 2021.

1044
1045

Other GHGs which are emitted directly in the energy production process (e.g. combustion) andcovered by the Kyoto Protocol can also be reported, if relevant.

1046
1047

Emissions from other GHGs, such as the Montreal Protocol gases, can be reported by theorganization separately from gross Scope 2 GHG emissions.

1048
1049

Where it aids transparency or comparability over time, the organization can provide additional
breakdowns of gross Scope 2 GHG emissions by, for example:

Page 30 of 56

1050
1051
1052
1053
1054
1055
1056
1057
1058
1059
1060

•
•

•
•

business unit or facility;
country;
type of source (electricity, heating, cooling, and steam);type of activity.

There are two methods to calculate gross Scope 2 GHG emissions:••

A location-based method, which reflects the average GHG emissions intensity of grids onwhich energy consumption occurs, using mostly grid-average emission factor data.
A market-based method, which reflects emissions from the electricity that an organization has
purposefully chosen (or its lack of choice). It derives emission factors from contractual
instruments, including any contract between two parties for the sale and purchase of energy
bundled with attributes about the energy generation or for unbundled attribute claims.

1061
1062

Market-based method is applicable to organizations with operations in markets providing product or
supplier-specific data in the form of contractual instruments.

1063
1064
1065
1066

According to the GHG Protocol Scope 2 Guidance, in a market-based calculation, emission factors
should be chosen based on the following hierarchy: energy attributes and certificates, contracts forelectricity, supplier and utility emission rates, residual mix and other regional, subnational and national
grid average emissions factors.

1067
1068

In case the organization reports information obtained using the market-based method, the following
quality criteria, built on the GHG Protocol Scope 2 Guidance, apply:

1069
1070
1071
1072
1073
1074
1075
1076
1077
1078
1079
1080
1081
1082
1083
1084
1085
1086
1087
1088
1089

•

•
•

•
•
•

Contractual instruments must convey the GHG emission rate attribute associated with
the MWh produced. Attributes are defined as descriptive or performance characteristics
of a particular generation resource. Each contractual instrument must be the only
source of an GHG emission rate attribute claim associated with its quantity of energy
generation.
A contractual instrument must be tracked and redeemed, retired, or canceled by or on
behalf of the reporting organization.
Contractual instruments must have temporal and physical connections to theirassociated energy consumption by demonstrating that they are:o sourced from a region reasonably linked to where it is applied, preferably fromthe same grid market;
o issued and redeemed as close as possible to the energy consumption period to which
the contractual instrument is applied; or based on certifications that demonstrateenergy users may have benefitted from zero emissions electricity during the samehour to match all of their consumption on a 24-hours a day, seven days a week basis;
Utility-specific emission factors should be calculated, including certificates retired on behalf ofcustomers and applying the residual mix rate to null power.
All instruments must be transferred to the reporting organization for direct purchasing or onsite generation.
A residual mix must be used to represent the GHG intensity of unclaimed or publicly sharedelectricity.

1090
1091
1092

For further information on the quality criteria for gross Scope 2 GHG emissions accounting following
the market-based method and how to support accurate accounting if the organization cannot meet the
Scope 2 quality criteria, see the GHG Protocol Scope 2 guidance.

1093
1094
1095
1096

If a residual mix is unavailable, the organization can use grid-average emission factors as a proxywhich can mean that the location-based and market-based are the same number until information on
the residual mix is available. The organization should disclose if a residual mix is unavailable and if
grid-average emission factors are used as a proxy.

Page 31 of 56

1097
1098
1099
1100
1101
1102
1103
1104
1105
1106

In addition, and if applicable, the organization should disclose which types of market-based
contractual instruments it uses, e.g., power purchase agreements, utility green tariffs, unbundledcertificates, and the percentage of purchased electricity covered by each instrument. The organization
can report additional information on the contractual arrangements, for example:••••

the date that the renewable generation facility was commissioned or repowered;
whether the renewable generation facility receives government subsidies or othersupport;the length of the contract for the contractual instruments;
whether the contract was signed before the investment decision to build the renewablegeneration facility.

1107

To present the information for this requirement, see Table 5.

1108

Guidance to GH-2-a-iv

1109
1110
1111

The organization is required to use the latest Intergovernmental Panel on Climate Change (IPCC)
global warming potential (GWP) values. If the organization used different IPCC GWP values inprevious reporting periods, it should disclose the IPCC GWP values used in each reporting period.

1112

The organization should consistently apply GWP values for the information disclosed.

1113

Guidance to GH-2-b

1114
1115
1116

The organization is required to report emissions data for all seven gases separately. If theorganization cannot report the emissions data for each gas, it is required to provide a reason foromission. See Requirement 6 in GRI 1: Foundation 2021.

1117

To present the information for this requirement, see Table 6.

1118

Guidance to GH-2-c

1119

Electricity use refers to the use of purchased electricity, heating, cooling, and steam.

1120
1121
1122
1123
1124

As per the GHG Protocol Corporate Standard and GHG Protocol Scope 2 Guidance, any biogenic
non-CO2 emissions such as methane (CH4) or nitrous oxide (N2O) from electricity use (e.g., biomass
combustion in the electricity value chain) are to be reported under GH-2-a. The information required
under GH-2-c is reported separately and not included in the gross Scope 2 GHG emissions
calculation in GH-2-a.

1125

To present the information for this requirement, see Table 5.

1126

Guidance to GH-2-d

1127
1128

As specified in the comparability principle in GRI 1: Foundation 2021, the organization should present
the information for the current reporting period and at least two previous reporting periods.

1129
1130

For further information on recalculations of emissions in prior reporting periods, the organization canrefer to the Guidance to GH-1-d in this Standard and the GHG Protocol Corporate Standard.

1131
1132
1133

If the organization has reported the base year under Disclosure CC-4 GHG emissions reduction
targets and progress (CC-4-d), it can provide a reference to this information and does not need torepeat the information.

1134

Guidance to GH-2-d-ii

1135

This requirement covers separate base year emissions data for:

1136
1137

•
•

gross Scope 2 GHG emissions (GH-2-a);biogenic CO2 emissions (GH-2-c).

Page 32 of 56

1138

Guidance to GH-2-e

1139
1140
1141
1142

The organization should select a consistent approach for consolidating gross Scope 2 GHG
emissions, choosing from the equity share, financial control, or operational control methods outlined in
the GHG Protocol Corporate Standard. The approach should be consistent throughout the GHG
inventory. The organization should explain the reason behind choosing the consolidation approach.

1143
1144
1145
1146

The organization should report information on GHG emissions for the same group of entities included
in its financial reporting. If the group of entities included in its financial reporting differs from the one
included in its sustainability reporting, the organization is required to specify any differences. See
section 5.1 in GRI 1 Foundation 2021 and Disclosure 2-2 in GRI 2: General Disclosures 2021.

1147
1148

If there are any changes in the organizational boundaries, the organization is required to report thesechanges.

1149

Guidance to GH-2-f

1150
1151

The organization should describe the reasons why the standards, methodologies, assumptions, andcalculation tools used were chosen.

1152
1153

The emission factors can originate from mandatory reporting requirements, voluntary reporting
frameworks, industry groups, or specialized data providers.

1154

The organization should consistently apply emissions factors for the information disclosed.

Page 33 of 56

1155

Disclosure GH-3 Scope 3 GHG emissions

1156

REQUIREMENTS

1157

The organization shall:

1158
1159

a. report gross Scope 3 GHG emissions in metric tons of CO2 equivalent, and in thecalculation:

1160
1161
1162
1163
1164
1165
1166

i. include upstream and downstream categories;
ii. include CO2, CH4, N2O, HFCs, PFCs, SF6, and NF3;
iii. include biogenic non-CO2 emissions from the combustion or biodegradation of
biomass;
iv. exclude GHG trades, GHG removals, and avoided emissions;v. use the global warming potential (GWP) values based on a 100-year timeframefrom the latest IPCC assessment reports;

1167
1168

b. provide a breakdown of gross Scope 3 GHG emissions by each of the 15 Scope 3
categories in metric tons of CO2 equivalent;

1169
1170
1171

c. report, total biogenic CO2 emissions from the combustion or biodegradation of biomass inmetric tons separately from gross Scope 3 GHG emissions, and a breakdown of this total
by each of the 15 Scope 3 categories;

1172

d. report the base year for the calculation, including:

1173
1174
1175
1176
1177
1178

i. the rationale for choosing it;ii. emissions in the base year;iii. the context for any significant changes in emissions that triggered recalculationsof base year emissions;iv. when there are recalculations of the base year emissions, and the current andformer values;

1179
1180

e. report standards, methodologies, and assumptions, including for each of the 15 Scope 3
categories, the sources of the emission factors, and calculation tools used.

1181
1182

GUIDANCE

1183
1184
1185

Gross Scope 3 GHG emissions are indirect greenhouse gas emissions that occur outside theorganization, including upstream and downstream emissions, other than those covered in grossScope 2 GHG emissions.

1186
1187

For many organizations, Scope 3 GHG emissions can be much greater than Scope 1 or Scope 2
GHG emissions.

1188
1189
1190
1191
1192
1193

Gross Scope 3 GHG emissions can come from, but are not limited to, extracting and producing
purchased materials, transporting purchased fuels in vehicles not owned or controlled by theorganization, and the end use of products and services. Gross Scope 3 GHG emissions can alsocome from decomposing the organization’s waste. Process-related emissions during the manufactureof purchased goods and fugitive emissions in facilities not owned by the organization can also
produce Scope 3 GHG emissions.

1194
1195

Gross Scope 3 GHG emissions include, but are not limited to, the CO2 emissions from energy
consumption as reported under Requirement EN-3-a in GRI EN: Energy 20xx.

1196

Guidance to GH-3-a

1197
1198
1199

As detailed in the GHG Protocol Corporate Value Chain (Scope 3) Accounting and ReportingStandard, the organization is required to use the following 15 upstream and downstream categories tocalculate gross Scope 3 GHG emissions:Page 34 of 56

1200
1201
1202
1203
1204
1205
1206
1207
1208

Upstream categories
1. Purchased goods and services
2. Capital goods
3. Fuel- and energy-related activities (not included in gross Scope 1 or Scope 2 GHG emissions)
4. Upstream transportation and distribution
5. Waste generated in operations
6. Business travel
7. Employee commuting
8. Upstream leased assets

1209
1210
1211
1212
1213
1214
1215
1216
1217
1218
1219
1220

Downstream categories
9. Downstream transportation and distribution
10. Processing of sold products
11. Use of sold products
12. End-of-life treatment of sold products
13. Downstream leased assets
14. Franchises
15. Investments

1221
1222

Emissions from other GHGs, such as the Montreal Protocol gases, can be reported by theorganization separately from gross Scope 3 GHG emissions.

1223

To present the information for this requirement, see Table 5.

1224
1225
1226

GHG emissions associated with Scope 3 removal activities within an organization’s inventory
boundary are reported under GH-3-a. If there are Scope 1 or Scope 2 GHG emissions associatedwith Scope 3 removal activities, they should be reported under GH-1-a and GH-2-a.

1227

Guidance to GH-3-a-iii

1228
1229
1230

Under requirement GH-3-a, an organization is required to include biogenic non-CO2 emissions fromthe combustion or biodegradation of biomass in the calculation of gross Scope 3 GHG emissions, forexample, methane (CH4) and nitrous oxide (N2O) emissions from the combustion of biofuels.

1231
1232

For further information, refer to the GHG Protocol Corporate Standard and GHG Protocol Scope 3
Standard.

1233

Guidance to GH-3-a-iv

1234
1235
1236

The organization is required to use the latest Intergovernmental Panel on Climate Change (IPCC)
global warming potential (GWP) values. If the organization used different IPCC GWP values inprevious reporting periods, it should disclose the IPCC GWP values used in each reporting period.

1237

The organization should consistently apply GWP values for the information disclosed.

1238

Guidance to GH-3-b

1239
1240
1241
1242

Emissions data in metric tons of CO2 equivalent are reported for each of the 15 Scope 3 categories.
The organization should ensure that the Scope 3 inventory appropriately reflects the GHG emissionsof the organization. The organization should not exclude any category that would compromise therelevance of the reported inventory.

1243
1244
1245

If the organization cannot report the emissions data for a particular category, it is required to provide a
reason for omission. Where data cannot be reported because it is unavailable or incomplete, theorganization is required to specify which information is unavailable or incomplete and why, andAll seven gases covered by the Kyoto Protocol are included in the gross Scope 3 GHG emissions
calculation. If the organization does not have data on all the gases, it should refer to Requirement 6 in
GRI 1: Foundation 2021 to provide a reason for the omission.

Page 35 of 56

1246
1247
1248

describe the steps being taken and the expected time frame to obtain the information. If the GHG
emissions value of a particular category is identified as not applicable, the organization is required to
explain why the category is considered not applicable. See Requirement 6 in GRI 1 Foundation 2021.

1249
1250

The organization can refer to the GHG Protocol Corporate Value Chain Standard for information on
the Scope 3 GHG accounting quality criteria.

1251
1252
1253

An organization can also provide the breakdown of gross Scope 3 GHG emissions of carbon dioxide(CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs),
sulfur hexafluoride (SF6), and nitrogen trifluoride (NF3), in metric tons.

1254
1255
1256
1257

To ensure transparency, for each of the 15 Scope 3 categories, the organization should report thepercentage of the total emissions obtained through primary data on the total for each category.
Primary data is obtained from suppliers or other value chain entities. The following formula may be
used:𝑃𝑟𝑖𝑚𝑎𝑟𝑦 𝑑𝑎𝑡𝑎 (%) = 100 ∗1258

𝑃𝑟𝑖𝑚𝑎𝑟𝑦 𝑑𝑎𝑡𝑎 (𝑀𝑡𝐶𝑂2𝑒)
𝑡𝑜𝑡𝑎𝑙 𝑆𝑐𝑜𝑝𝑒 3 𝑐𝑎𝑡𝑒𝑔𝑜𝑟𝑦 𝑒𝑚𝑖𝑠𝑠𝑖𝑜𝑛𝑠 (𝑀𝑡𝐶𝑂2𝑒)

1259
1260
1261
1262
1263
1264
1265

Where it aids transparency or comparability over time, the organization can provide additional
breakdowns of gross Scope 3 GHG emissions by, for example:••••

business unit or facility;
country;
type of source;
type of activity.

1266

To present the information for this requirement, see Table 5.

1267

Guidance to GH-3-c

1268
1269
1270

Biogenic CO2 emissions from the combustion or biodegradation of biomass in the value chain arereported separately from gross Scope 3 GHG emissions and, therefore, are not included in thecalculation for GH-3-a.

1271
1272

The organization can refer to the GHG Protocol Corporate Standard and GHG Protocol Scope 3
Standard for further information.

1273

To present the information for this requirement, see Table 5.

1274

Guidance to GH-3-d

1275
1276

As specified in the comparability principle in GRI 1: Foundation 2021, the organization should present
the information for the current reporting period and at least two previous reporting periods.

1277
1278

For further information on recalculations of emissions in prior reporting periods, the organization canrefer to Guidance to GH-1-d in this Standard and the GHG Protocol Corporate Standard.

1279
1280

If the organization has reported the base year under Disclosure CC-4 GHG emissions reduction
targets and progress (GH-1-d), it can refer to that information and does not need to repeat it.

1281

Guidance to GH-3-d-ii

1282

This requirement covers separate base year emissions data for:

1283
1284
1285
1286

•
•

gross Scope 3 GHG emissions (GH-3-a);biogenic CO2 emissions (GH-3-c).

In addition, the organization should provide the breakdowns of base year emissions by categories(GH-3-b and GH-3-c).

Page 36 of 56

1287

Guidance to GH-3-e

1288
1289

When reporting gross Scope 3 GHG emissions, the organization should ensure consistency with theconsolidation approach selected under Scope 1 and 2.

1290
1291

The organization should describe the reasons why the standards, methodologies, assumptions, andcalculation tools used were chosen.

1292
1293

The emission factors can originate from mandatory reporting requirements, voluntary reporting
frameworks, or industry groups.

1294

The organization should consistently apply emissions factors for the information disclosed.

Page 37 of 56

1295

Disclosure GH-4 GHG emissions intensity

1296

REQUIREMENTS

1297

The organization shall:

1298
1299

a. report GHG emissions intensity ratio(s), including the specific metrics (the denominators)
chosen to calculate the ratio(s);

1300
1301

b. report the types of GHG emissions included in the intensity ratio(s), whether Scope 1,
Scope 2, or Scope 3.

1302
1303

GUIDANCE

1304
1305

Intensity ratios are obtained by dividing the absolute GHG emissions by an organization-specificmetric (the denominator). Many organizations track environmental performance with intensity ratio(s).

1306
1307
1308
1309

GHG emissions intensity expresses the amount of GHG emissions per unit of activity, output, or any
other organization-specific metric. In combination with an organization’s absolute GHG emissions,
reported in Disclosures GH-1, GH-2, and GH-3, GHG emissions intensity helps to contextualize theorganization’s efficiency, including in relation to other organizations.

1310
1311
1312
1313

The organization selects a specific metric that applies to its activities. For example, organizations that
manufacture products may choose 'tons of product produced' as a denominator, whereasorganizations with diversified activities and services may choose 'full-time equivalent employee (FTE)'
as a denominator.

1314

Table 2. Example template for presenting information on GHG emissions intensity ratio(s)GHG emissions
intensity ratios

Scopes(1,2,3)Specific metric

Reportingperiod (1)Reportingperiod (2)Reportingperiod (3)Ratio 1
Ratio 2
Ratio XX
1315
1316

Guidance to GH-4-a

1317
1318
1319

The organization can report intensity ratios for Scope 1, Scope 2, or Scope 3 separately or combinedfor Scope 1 and Scope 2. The organization should specify whether biogenic emissions are included in
the numerator of the selected ratio(s).

1320
1321

Where it aids transparency or comparability over time, the organization should provide a breakdownof the GHG emissions intensity ratios by, for example:

1322
1323
1324
1325
1326

•
•
•
•
•

business unit or facility;
country;
type of source;
type of activity;
Scope 3 category.

1327

Guidance to GH-4-b

1328

Organization-specific metrics (denominators) can include, but are not limited to:

1329
1330
1331

•
•
•

units of product;
production volume (such as metric tons, liters, or MWh);size (such as m2 floor space);

Page 38 of 56

1332
1333
1334
1335
1336

•
•

number of full-time employees;
monetary units (such as revenue or sales).

Relevant denominators will be different from industry to industry or even among different business
units of an organization. Therefore, the organization should choose a denominator relevant to its
industry and aligned with current industry standards.

Page 39 of 56

1337

Disclosure CC-5 GHG removals in the value chain

1338

REQUIREMENTS

1339

The organization shall:

1340
1341

a. report total GHG removals in metric tons of CO2 equivalent in the value chain, excluding
any GHG trades, and a breakdown of this total by:

1342
1343

i. Scope 1 GHG removals and a further breakdown by storage pool;ii. Scope 3 GHG removals and a further breakdown by storage pool;

1344
1345

b. for each storage pool, describe how quality criteria are monitored in order to manage therisk of non-permanence;1346

c. report the intended use of GHG removals;

1347

d. report standards, methodologies, assumptions, and calculation tools used;

1348
1349

e. report the impacts associated with GHG removals and the actions taken to manage these
impacts, including on:

1350
1351
1352
1353

i. local communities, vulnerable groups and workers;
ii. biodiversity.
GUIDANCE

1354

This disclosure aims to increase transparency by helping organizations report on GHG removals.

1355
1356
1357
1358
1359

GHG removals are anthropogenic activities removing CO2 or other GHGs from the atmosphere anddurably storing it in geological or terrestrial reservoirs. CO2 removals occur when CO2 is transferredfrom the atmosphere to a non-atmospheric carbon pool (e.g., land-based pool or geologic pool). CO2
removals can also be referred to as carbon sequestration or enhanced carbon storage, where thecarbon is derived from atmospheric CO2.

1360
1361
1362
1363
1364
1365
1366
1367
1368
1369
1370
1371

According to the Intergovernmental Panel on Climate Change (IPCC), removals have two distinct
elements:• transfer of CO2 or other GHGs from the atmosphere via sinks (the process, activity, or
mechanism that removes greenhouse gases from the atmosphere); and• storage of CO2 or other GHGs within pools (the physical reservoir or medium where theremoved CO2 or other GHGs are stored).

1372
1373
1374
1375
1376
1377
1378
1379

Consistent with the climate change mitigation hierarchy, organizations are expected to prioritize
implementing all feasible technical and scientific actions to avoid and reduce emissions in alignment
with the effort to limit global warming to 1.5°C. Therefore, GHG removals cannot be counted as
emission reductions toward an organization’s gross GHG emissions reduction targets reported under
Disclosure CC-4 GHG emissions reduction target setting and progress. If the organization reports netzero targets under CC-1-f, GHG removals can only be used to counterbalance residual emissions at
the net-zero target year or after having reduced at least 90% of their GHG emissions when further
reduction is not possible.

1380

Guidance to CC-5-a

Globally accepted accounting methods for GHG removals are currently under development.
Organizations can refer to the Land Sector and Removals Guidance of the GHG Protocol, where
guidance on accounting for CO2 removals and carbon pools is provided. However, there is potential
for removing other GHGs from the atmosphere, and additional guidance may be developed in the
future.

Page 40 of 56

1381
1382

The organization should exclude from the calculation any removal activity undertaken by anorganization within its inventory boundary that is sold as a carbon credit.

1383
1384
1385

In cases where the organization reports removals other than CO2, it should separately report
removals for each GHG covered by the Kyoto Protocol and use the GWP based on a 100-year
timeframe.

1386

To present the information for this requirement, see Table 3.

1387

Guidance to CC-5-a-i

1388
1389
1390
1391
1392

Scope 1 removals are direct and constitute removals for which the reporting organization owns orcontrols the sink that transfers CO2 or other GHGs from the atmosphere and the storage pool. Scope
3 removals are indirect and result from the activities of the reporting organization and where theorganization does not own or control both the sink (that transfers GHG from the atmosphere) and thepool (that stores CO2 or other GHGs).

1393
1394
1395
1396
1397

There are no Scope 2 removals since removals do not occur when generating electricity, heating,cooling, or steam. According to the Land Sector and Removals Guidance of the GHG Protocol,
removals occurring in the value chain of the energy generation process are accounted for in Scope 3,
category 3, fuel- and energy-related activities as per the Scope 3 categories of the Corporate
Standard of the GHG Protocol.

1398

Guidance to CC-5-a-ii

1399
1400

By reporting the storage pool, the organization provides transparency on the removal and storage
activity and the technology used.

1401
1402

A storage pool is a physical reservoir or medium where a greenhouse gas or its constituent elements
are stored. There are two types of storage pools considered for reporting under this disclosure:

1403
1404
1405
1406
1407
1408
1409
1410

•

•

Land-based pools store carbon in terrestrial biomass, dead organic matter, and soil carbon
pools. The organization can report CO2 removals resulting from annual increases in carbon
stored in land-based carbon pools due to land management. All land management removals
are from biogenic sinks;
Geologic pools are geologic formations that store inorganic minerals not used as products, forexample, fossil carbon in sedimentary formations containing oil and natural gas. The
organization can report CO 2 removals resulting from annual increases of carbon stored ingeologic pools derived from biogenic or technological CO 2 sinks.

1411
1412
1413

In addition, the organization should disaggregate the total GHG removals by sink process. The United
Nations Framework Convention on Climate Change (UNFCCC) defines a sink as any biogenic ortechnological process that removes greenhouse gases from the atmosphere.

1414
1415

As explained in the GHG Protocol’s Land Sector and Removals Guidance, two main types of sinkprocesses remove CO2 from the atmosphere:

1416
1417
1418
1419

•
•

Biogenic CO2 removals resulting from atmospheric CO2 transferred via biological sinks, suchas photosynthesis, to storage in biogenic carbon pools;
Technological CO2 removals resulting from atmospheric CO2 transferred via technologicalsinks to storage in geologic carbon pools.

1420

To present the information for this requirement, see Table 3.

1421
1422

Table 3. Example template for presenting information on GHG removals
GHG removals in the value chain

Scope 1 removals

Scope 3 removals

in metric tons

in metric tons

Storage pool 1
Storage pool 2

Page 41 of 56

Storage pool 3
Storage pool 4
Storage pool 5
Total GHG removals in the value chain in
metric tons

1423
1424

Guidance to CC-5-b

1425
1426
1427
1428

Risk of non-permanence means the inability to demonstrate that CO2 or other GHGs remain stored
and losses of CO2 and other GHG stock are accounted for and reported as emissions or reversals in
future inventory periods. Reversals are GHG emissions from carbon pools previously reported as
GHG removals by the organization.

1429

The risk of non-permanence should also include possible losses or leaks during transport.

1430
1431
1432

The risk of non-permanence may be in the form of unintentional natural factors such as fire, wind, andother extreme weather events, intentional or purposeful actions such as harvests that are not part ofthe management plan, conversion, or changes to land use.

1433
1434

In order to implement the permanence principle, quality criteria are used to manage removals. Quality
criteria include:

1435
1436
1437
1438
1439
1440
1441
1442
1443
1444
1445
1446
1447
1448
1449
1450

•

1451
1452
1453
1454

If GHG removals do not meet one or more quality criteria listed above, or the organization cannot
describe how the removals meet one or more quality criteria, the organization should state this andprovide an explanation. The organization should also describe the planned or implemented actions tomeet the quality criteria.

1455

Guidance to CC-5-c

1456

This requirement covers the intended use of GHG removals reported under CC-5-a.

1457
1458
1459
1460
1461

GHG removals can be used to counterbalance residual emissions as the last step of the mitigation
hierarchy. Organizations are expected to counterbalance residual emissions at the net-zero target
year or after having reduced at least 90% of their GHG emissions when further reduction is notpossible, according to the Corporate Net Zero Standard from the Science Based Targets initiative(SBTi).

1462
1463
1464

Residual emissions refer to the unabated GHG emissions after the organization has reduced at least
90% of its GHG emissions, when further reduction is not possible, according to the Net Zero Scenario
from the International Energy Agency (IEA) and Corporate Net Zero Standard from the Science

•

•

•

•

An ongoing storage monitoring program – to demonstrate that CO2 and other GHGs remain stored
or used to detect losses of stored CO2 and other GHGs;
Traceability – where the organization can identify, track, and collect information throughout theentire removal pathway, particularly in the case of Scope 3 removals, where the sinks and pools
are both not owned or controlled by the organization;
Availability of primary data – where the organization demonstrates that it has accounted forremovals using empirical data specific to the sinks and pools where GHG is stored in its own
operations or within its value chain;
Uncertainty – where the organization provides a quantitative uncertainty range for the removals,
including the removal value, the uncertainty range for the removal estimate is based on a
specified confidence level, and the organization can justify how the selected value does notoverestimate removals;
Reversals accounting – where the organization reports CO2 stock and other GHG losses ofpreviously reported removals. The CO2 stock and other GHG losses should be reported as GHG
emissions, if storage pools are part of the GHG inventory boundary in the reporting period or asreversals, if storage pools are no longer part of the GHG inventory in the reporting period.

Page 42 of 56

1465
1466

Based Targets initiative (SBTi). In the case an organization is subjected to sectorial decarbonization
pathways, it may be subjected to a different percentage of GHG emissions reduction.

1467
1468
1469

GHG removals cannot be counted as emission reductions toward an organization’s gross GHG
emissions reduction targets reported under Disclosure CC-4 GHG emissions reduction target setting
and progress.

1470
1471
1472
1473

The organization may be allowed to include GHG removals in the targets reported under thisdisclosure only if subjected to specific sector programs (e.g., the SBTi Forest, Land and Agriculture(FLAG) Guidance). The organization should report the sector program based on authoritative
scientific evidence.

1474
1475
1476
1477
1478

In addition, the organization should disclose whether GHG removal targets are in place and the
purpose of the targets. The purpose of GHG removal targets can include counterbalancing residual
emissions at the net-zero target year (as part of their net-zero strategy) and beyond value chain
mitigation. If the organization sets GHG removal targets for other purposes, it should report andexplain them.

1479
1480

The organization should also report its reversals accounting policy, including how reversals ofpreviously reported GHG removals in their target are accounted.

1481

Guidance to CC-5-e

1482
1483

Under requirement CC-5-e, an organization should report impacts associated with GHG removals that
occur both in the value chain and beyond its value chain.

1484
1485
1486

The organization should also report how it engages with stakeholders to identify impacts on people,
including local communities, vulnerable groups and workers and on the environment including
biodiversity.

1487

Guidance to CC-5-e-i

1488
1489

Examples of impacts associated with GHG removals on local communities, vulnerable groups andworkers can include:
•

1490
1491
1492
1493
1494
1495
1496
1497
1498
1499

Guidance to CC-5-e-ii

1500

Examples of impacts associated with GHG removals on biodiversity can include:

1501
1502
1503
1504
1505
1506

•
•

•
•
•

Local communities lose the right to access lands if lands are used for new infrastructure,
afforestation, or reforestation for removals and if the land is not acquired through inclusive
and participatory processes.
Indigenous Peoples can be negatively impacted when land is not acquired with their free,prior, and informed consent.
Workers in carbon capture and storage facilities may face negative impacts on their health in
the case of leakage of CO2, as leakage may occur at any stage of capture, transport andstorage.

Negative impacts on species when removal activities occur in or near threatened species’
habitats.
Water is no longer available for use by ecosystems or local communities due to the extensive
use of water for removal activities, leading to reduced water table levels.
Impacts on air quality and thereby on the health of local communities, resulting from potential
leakage of CO2 from storage pools.

Page 43 of 56

1507
1508
1509
1510
1511

Disclosure 101-2 in GRI 101: Biodiversity 202X requires describing how the organization enhancessynergies and reduces trade-offs between actions taken to manage its biodiversity impacts and its
climate change impacts. If the organization has described the impacts on biodiversity resulting fromits GHG removals and the actions taken to manage those impacts under Disclosure 101-2, it can
provide a reference to this information.

Page 44 of 56

1512

Disclosure CC-6 Carbon credits

1513

REQUIREMENTS

1514

The organization shall:

1515
1516

a. report the total amount of carbon credits in metric tons of CO2 equivalent canceled and a
breakdown of this total by types of carbon credit project;1517

b. for each project for which carbon credits have been canceled, report:

1518
1519
1520
1521
1522

i. Project name and project ID;
ii. Project type, i.e., whether a reduction or removal project;iii. Cancellation serial number, cancellation date, and vintage;c. for each carbon credit project reported under CC-5-b, describe how the project adheres toeach of the following quality criteria;i. additionality;
ii. credible baselines;iii. permanence;iv. leakage avoidance;
v. unique issuance and claiming;
vi. regular monitoring;vii. independent validation and verification;viii. GHG program governance;

1523
1524
1525
1526
1527
1528
1529
1530
1531

d. report the purpose of cancellation of carbon credits;

1532
1533

e. describe how the organization continuously monitors and evaluates the positive andnegative impacts of the projects from which carbon credits are purchased, including:

1534
1535
1536
1537
1538
1539
1540

i. categories of stakeholders consulted in the implementation of the project;ii. how human rights are respected;
iii. how socio-economic benefits for local communities and vulnerable groups areprovided;iv. how biodiversity is conserved;
v. how trade-offs are assessed.

1541

GUIDANCE

1542

This disclosure aims to increase transparency regarding the use of carbon credits.

1543
1544
1545

A carbon credit is a transferable or tradable instrument representing one metric ton of CO2 equivalent.
Carbon credits are GHG emissions reduction or removal generated outside the organization’s value
chain and purchased by the organization.

1546

Carbon credits can be generated as follows:

1547
1548
1549
1550
1551
1552
1553
1554
1555

•

•

GHG emissions reduction projects, such as renewable energy projects, to replace planned
fossil fuel power plants or improve cookstoves’ energy efficiency, and REDD+ projects(Reducing emissions from deforestation and forest degradation in developing countries).
Removal projects, for example, afforestation, reforestation, soil carbon sequestration, direct
air carbon capture and storage (DACS), and bioenergy with carbon capture and storage(BECCS).

Consistent with the climate change mitigation hierarchy, organizations are expected to prioritize
implementing all feasible technical and scientific actions to avoid and reduce GHG emissions inalignment with the effort to limit global warming to 1.5° C.

Page 45 of 56

1556
1557
1558

Therefore, carbon credits cannot be counted as emission reductions toward an organization’s gross
GHG emissions reduction targets reported under Disclosure CC-4 GHG emissions reduction target
setting and progress.

1559
1560
1561

If the organization reports net-zero targets under CC-1-f, GHG removal carbon credit projects canonly be used to counterbalance residual emissions at the net-zero target year or after having reduced
at least 90% of their GHG emissions, when further reduction is not possible.

1562
1563
1564

Organizations can use carbon credits to finance additional climate change mitigation beyond the
expected GHG emission reduction targets, in line with the latest scientific evidence to limit global
warming to 1.5 C°.

1565

Guidance to CC-6-a

1566

A carbon credit is canceled when permanently removed from circulation in a registry account.

1567
1568
1569
1570
1571
1572
1573
1574
1575
1576
1577
1578
1579

In this requirement, the organization provides a breakdown of the total carbon credits canceled in thereporting period by type of project, i.e., whether the carbon credits were from GHG emissions
reduction or removal activities. The organization can additionally report the percentage corresponding
to the type of project.
The organization may also report the amount of carbon credits purchased and not canceled during
the reporting period in metric tons of CO2 equivalent.
To present carbon credits canceled, purchased, and not canceled during the reporting period, theorganization can use Table 4.
Table 4. Example template for presenting information on carbon credits canceled and carbon
credits purchased and not canceled by type of project
Carbon credits

mtCO2e%Total carbon credits canceled during the reporting period
Emissions reduction projects
Removal projects
Total carbon credits purchased and not canceled during thereporting period
Emissions reduction projects
Removal projects
1580

Guidance to CC-6-b-iii

1581
1582

Serial numbers are allocated to credits within the scope of trading programs to ensure that the serial
numbers are retired once used.

1583
1584
1585
1586

According to the Voluntary Carbon Market Integrity Initiative (VCMI), Claims Code of Practice, credit
vintage refers to the year the carbon emission reduction occurred. As the verification process cantake two to three years from project inception, projects may generate credits for already reduced
emissions.

1587

Guidance to CC-6-c

1588
1589

In the case where carbon credits that are canceled and reported under CC-6-a do not meet one ormore quality criteria, or the organization is not able to describe how the carbon credits cancelled meet

Page 46 of 56

1590
1591

the quality criteria, the organization should state it and provide an explanation. The organization
should also describe the planned or implemented actions to meet the quality criteria.

1592

Guidance to CC-6-c-i

1593

A project is additional if it would not have occurred without the incentives provided by the credit.

1594

Guidance to CC-6-c-ii

1595
1596
1597
1598
1599

GHG emissions reduction or removal are quantified based on a realistic estimate using a baseline
scenario or performance standard. Carbon credits are calculated relative to a baseline that representsa hypothetical scenario for what GHG emissions would have been in the absence of the project. See
the GHG Protocol for Project Accounting for more information on project-specific and performancestandard baseline approaches.

1600

Guidance to CC-6-c-iii

1601
1602
1603
1604
1605
1606
1607

The GHG emission reduction and GHG removal projects are permanent. The longevity of a carbon
pool and the stability of its stocks over time (such as 100 years or other periods defined by a carbon
credit program) must meet the criterion of permanence.

1608

Guidance to CC-6-c-iv

1609
1610
1611
1612

GHG emissions reduction and removal projects must mitigate the risk of causing impacts elsewhere
and account for any increase in emissions or decrease in removals outside the project’s boundary. In
order to avoid leakage, the organization should report which measures are in place to determine andmonitor leakage.

1613

Guidance to CC-6-c-v

1614

Carbon credits are expected to be uniquely issued, claimed, and canceled by an electronic registry.

1615
1616
1617

The organization that cancels the credit should claim the carbon credit. Double counting credits is not
permitted, so another organization or entity cannot claim the same GHG emissions reduction or
removal.

1618
1619

Organizations developing GHG emissions reduction or removal projects within value chains to sell ascarbon credits are expected to have procedures to prevent double counting.

1620

Double counting includes the following:

1621
1622
1623
1624
1625
1626
1627
1628
1629
1630
1631

When reporting how a project adheres to the criteria of permanence, the organization should report
how the risk of non-permanence is managed, including disclosing which measures are in place toaddress the risks of reversal and to compensate for reversals.

•••

Double use occurs if multiple parties use a single GHG emission reduction or removal unit.
Double issuance occurs when multiple GHG emission reductions or removal units are issued
for the same GHG emission reduction or removal.
Double claiming occurs when multiple parties claim the right to a single emission reduction,
removal, or mitigation outcome.

Double use can be avoided through registry systems that assign unique serial numbers to individual
offset credits, track transfer, and ownership, and record the purpose of use. A way by which double
issuance can be avoided is by checking that the accounting boundaries used to quantify GHG
reductions for different projects do not overlap. Double claiming can be avoided if project developers
sign legal attestations asserting exclusive claims to any credited emission reductions and legallyconveying the claims to the buyers of credits.

Page 47 of 56

1632
1633

The organization should report whether the carbon credits qualify as corresponding adjustments. For
further information, see the UN Paris Agreement, Article 6.

1634

Guidance to CC-6-c-vi

1635
1636
1637

GHG emissions reduction and removal credits are monitored and quantified ex-post. This should
include accurate and precise measurement, sampling, and quantification protocols. The organization
should report the processes for data monitoring throughout the crediting period.

1638

Guidance to CC-6-c-vii

1639
1640
1641

Carbon credits are verified according to recognized quality standards by independent third-party
validators and verifiers. The organization should report the processes in place for the independent
third-party validation and verification of the carbon credits, as well as the relevant standards used.

1642

Guidance to CC-6-c-viii

1643
1644
1645
1646
1647
1648
1649

GHG programs issue GHG emissions reduction and removal credits with a clearly defined andtransparent governance structure. The organization should report the GHG governance structure of
the carbon credit projects. Specifically, the organization should report the relevant published rules andprocedures, accreditation procedures for third-party auditors, and stakeholder consultation
procedures for developing or refining program requirements and as part of the project approval
process, with established grievance and input mechanisms to address complaints about projects after
implementation.

1650

Guidance CC-6-d

1651
1652

This requirement covers the purpose of the cancellation reported under CC-6-a.
Purpose of cancellation includes, for example:

1653
1654
1655
1656
1657
1658
1659
1660
1661
1662
1663
1664
1665
1666
1667
1668
1669
1670
1671
1672
1673
1674
1675
1676

•
•

•

Compliance with any country, regional, or industry-level sectorial carbon-crediting program.
Financing and contributing additional climate change mitigation in addition to theorganization’s GHG emission reduction actions. These contributions are one of the steps ofthe mitigation hierarchy. Such contributions cannot be used to counterbalance residual
emissions for reaching net-zero targets.
Counterbalancing residual emissions is the last step of the mitigation hierarchy. Only GHG
removal from carbon credit projects can be used to counterbalance residual emissions
according to the Corporate Net Zero Standard from the Science Based Targets initiative(SBTi). Organizations are expected to counterbalance residual emissions at the net-zerotarget year or after having reduced at least 90% of their GHG emissions, when further
reduction is not possible.

Residual emissions refer to the unabated GHG emissions after the organization has taken all feasible
technical and scientific actions to reduce at least 90% of its GHG emissions, when further reduction is
not possible, according to the Net Zero Scenario from the International Energy Agency (IEA) andCorporate Net Zero Standard from the Science Based Targets initiative (SBTi).
When reporting the purpose of carbon credit cancellation, the organization should indicate how thecancellation does not impede nor reduce the achievement of its GHG emissions reduction targets.
Carbon credits cannot be counted as emission reductions toward an organization’s gross GHG
emissions reduction targets reported under Disclosure CC-4 GHG emissions reduction target setting
and progress.
Guidance to CC-6-e

Page 48 of 56

1677
1678
1679

Organizations are expected to have a due diligence process in place to select carbon credit projects
that maximize positive impacts and prevent or mitigate negative impacts on people and theenvironment.

1680

Guidance to CC-6-e-i

1681

The organization can refer to Guidance 2-29 in GRI 2 for reporting under this requirement.

1682

Guidance CC-6-e-ii

1683
1684
1685
1686
1687

The organization is expected to select carbon credit projects that respect human rights, with special
attention to vulnerable groups and Indigenous Peoples. For further information, the organization canrefer to the United Nations High-Level Expert Group on the Net Zero Emissions Commitments of NonState Entities ‘Integrity Matters: Net Zero Commitments by Businesses, Financial Institutions, Cities
and Regions’ Report.

1688
1689
1690

Carbon credit projects should not negatively impact the livelihoods and earnings of workers, foodsecurity, water rights, or land rights. These projects should not result in physical violence towards
workers or local communities.

1691
1692
1693
1694
1695

When reporting on the human rights impacts of carbon credit projects, the organization can describe
how local communities are consulted and how tenure rights for the land used for projects arerespected without the threat of forceable eviction. The organization can also describe how it obtains
the free, prior, and informed consent of Indigenous Peoples with regard to any action that affects theirlands, territories, or resources.

1696

Guidance to CC-6-e-iii

1697
1698
1699
1700
1701

In this disclosure, the organization explains how the carbon credit activities generate socio-economic
benefits for local communities and vulnerable groups.
Examples of socio-economic benefits for local communities and vulnerable groups resulting fromcarbon credit projects can include providing them with a portion of the payments for each credit
purchased, creating new jobs, and developing technical skills and training.

1702

Guidance to CC-6-e-iv

1703
1704

Requirement CC-6-e-iv enables the organization to describe how its carbon credit projects contributeto biodiversity conservation.

1705
1706
1707
1708

Carbon credit projects can result in positive and negative impacts on biodiversity. An example of apositive impact can be when a carbon credit project leads to the recovery of a degraded ecosystem.
An example of a negative impact can be when a carbon credit project leads to biodiversity loss, forexample, from afforesting an area with single-species trees.

1709
1710
1711

The organization can also describe the impacts of the carbon credit projects on biodiversity, forexample, whether the variety of plant and animal species increases or decreases or whether the
projects support land regeneration or lead to land degradation.

1712
1713
1714
1715

Disclosure 101-2 in GRI 101: Biodiversity 202X requires describing how the organization enhancessynergies and reduces trade-offs between actions taken to manage its biodiversity impacts and its
climate change impacts. If the organization has described how its carbon credit projects conserve
biodiversity under Disclosure 101-2, it can provide a reference to this information.

1716

Guidance to CC-6-e-v

Page 49 of 56

1717
1718

Carbon credit projects are likely to involve trade-offs. For example, land-based removal projects can
reduce the availability of land for food production.

1719

Under requirement CC-6-e-v, the organization should also describe the process to mitigate trade-offs.

Page 50 of 56

1720

Example templates for presenting information for Disclosures GH-1, GH-2 and GH-3

1721
1722

Table 5. Example template for presenting information on Scope 1, Scope 2 and Scope 3 GHG
emissions
Scope 1, Scope 2 andBase year
Reporting period-2
Reporting period-1
Reporting period
Scope 3 GHG emissions
Emissions
in mtCO2e

Biogenic
CO2
emissionsin metric tons

Emissions
in mtCO2e

Biogenic
CO2
emissionsin metric tons
biogenic CO2Emissions
in mtCO2e

Biogenic
CO2
emissions

Emissions
in mtCO2ein metric tons
biogenic CO2

Biogenic
CO2
emissionsin metric tons
biogenic CO2

Scope 1 GHG emissions
Scope 2 GHG emissions
Location-based
Market-based
Scope 3 GHG emissions
Category 1: Purchased
goods and services
Category 2: Capital goods
Category 3: Fuel- andenergy-related activities (notincluded in Scope 1 or Scope
2)
Category 4: Upstream
transportation anddistribution
Category 5: Waste
generated in operations
Category 6: Business travel
Category 7: Employee
commuting
Category 8: Upstream leased
assetsCategory 9: Downstream
transportation anddistribution
Category 10: Processing ofsold products
Category 11: Use of soldproducts
Category 12: End-of-life
treatment of sold products
Category 13: Downstream
leased assets
Category 14: Franchises
Category 15: Investments

1723
1724
1725

Table 6. Example template for presenting information on Scope 1 and Scope 2 GHG emissions
by gasEmissions – Breakdown bygas

Reporting period-2

metric tons

mtCO2eReporting period-1

metric tons

mtCO2eReporting period
mtCO2emetric tons

Scope 1 GHG emissions
CO2
CH4
N2O
HFCs
PFCs

Page 51 of 56

SF6
NF3
Scope 2 GHG emissions(location-based)
CO2
CH4
N2O
Scope 2 GHG emissions(market-based)
CO2
CH4
N2O

1726

Glossary

1727
1728

This glossary provides definitions for terms used in this Standard. The organization is required toapply these definitions when using the GRI Standards.

1729
1730
1731

The definitions included in this glossary may contain terms that are further defined in the complete
GRI Standards Glossary. All defined terms are underlined. If a term is not defined in this glossary or in
the complete GRI Standards Glossary, definitions that are commonly used and understood apply.

1732
1733

base year

1734
1735
1736
1737

historical datum (a specific year or an average over multiple years) against which a measurement istracked over time
Source: World Resources Institute (WRI) and World Business Council for Sustainable Development(WBCSD), GHG Protocol Corporate Accounting and Reporting Standard, Revised Edition, 2004; modified.

1738
1739

biogenic carbon dioxide (CO2) emission

1740

emission of CO2 from the combustion or biodegradation of biomass

1741
1742

carbon credit

1743
1744

Transferable or tradable instrument that represents one metric ton of CO2 equivalent emissions
reduction or removal

1745
1746

Note: Carbon credits are uniquely serialized, issued, tracked, and canceled according to recognized
quality standards.

1747
1748

carbon dioxide (CO2) equivalent

1749
1750
1751

The universal unit of measurement to indicate the global warming potential (GWP) of eachgreenhouse gas, expressed in terms of the GWP of one unit of carbon dioxide. It is used to evaluate
the release, or avoiding the release, of different greenhouse gases against a common basis

1752
1753
1754
1755

Source: World Resources Institute (WRI) and World Business Council for Sustainable Development(WBCSD), GHG Protocol Scope 2 Guidance. An amendment to the GHG Protocol Corporate
Standard, 2015 and GHG Protocol Corporate Value Chain (Scope 3) Accounting and ReportingStandard, 2011.

1756
1757

Note: The CO2 equivalent for a gas is determined by multiplying the metric tons of the gas by the
associated GWP.

Page 52 of 56

1758
1759

global warming potential (GWP)

1760
1761

Factor describing the radiative forcing impact (degree of harm to the atmosphere) of one unit of agiven greenhouse gas (GHG) relative to one unit of CO2

1762
1763
1764
1765

Source: World Resources Institute (WRI) and World Business Council for Sustainable Development(WBCSD), GHG Protocol Scope 2 Guidance. An amendment to the GHG Protocol Corporate
Standard, 2015 and GHG Protocol Corporate Value Chain (Scope 3) Accounting and ReportingStandard, 2011.

1766

Note: GWP values convert GHG emissions data for non-CO2 gases into units of CO2 equivalent.

1767
1768

greenhouse gas (GHG)

1769

gas that contributes to the greenhouse effect by absorbing infrared radiation

1770
1771
1772

Note: For the purposes of this Standard, GHGs are the seven gases covered by the UNFCCC:
carbon dioxide (CO2); methane (CH4); nitrous oxide (N2O); hydrofluorocarbons (HFCs);
perfluorocarbons (PFCs); sulphur hexafluoride (SF6); and nitrogen triflouride (NF3).

1773
1774

greenhouse gas (GHG) removal

1775
1776

anthropogenic activities to remove CO2 or other greenhouse gas (GHGs) emissions fromthe atmosphere and durably store them in geological, terrestrial, or ocean reservoirs

1777
1778
1779
1780
1781
1782

Source: Intergovernmental Panel on Climate Change (IPCC), Global Warming of 1.5°C. An IPCC
Special Report on the impacts of global warming of 1.5°C above pre-industrial levels andrelated global greenhouse gas emission pathways, in the context of strengthening the global
response to the threat of climate change, sustainable development, and efforts to eradicate
poverty, Annex I: Glossary, 2018; modified.

1783
1784

greenhouse gas (GHG) trade

1785

purchase, sale, or transfer of carbon credits or greenhouse gas (GHG) allowances

1786
1787
1788

Source: World Resources Institute (WRI) and World Business Council for Sustainable Development(WBCSD), GHG Protocol Corporate Accounting and Reporting Standard, Revised Edition, 2004;
modified

1789
1790

human rights

1791
1792
1793
1794

rights inherent to all human beings, which include, at a minimum, the rights set out in the United
Nations (UN) International Bill of Human Rights and the principles concerning fundamental rights set
out in the International Labour Organization (ILO) Declaration on Fundamental Principles and Rights
at Work

1795
1796

Source: United Nations (UN), Guiding Principles on Business and Human Rights: Implementing theUnited Nations “Protect, Respect and Remedy” Framework, 2011; modified

1797
1798

Note:

See Guidance to 2-23-b-i in GRI 2: General Disclosures 2021 for more information on ‘humanrights’.

1799
1800

Page 53 of 56

1801

impact

1802
1803
1804

effect the organization has or could have on the economy, environment, and people, including on their
human rights, which in turn can indicate its contribution (negative or positive) to sustainable
development

1805
1806

Note 1: Impacts can be actual or potential, negative or positive, short-term or long-term, intended orunintended, and reversible or irreversible.

1807

Note 2: See section 2.1 in GRI 1: Foundation 2021 for more information on ‘impact’.

1808
1809

material topics

1810
1811

topics that represent the organization’s most significant impacts on the economy, environment, andpeople, including impacts on their human rights

1812
1813

Note:

See section 2.2 in GRI 1: Foundation 2021 and section 1 in GRI 3: Material Topics 2021 formore information on ‘material topics’.

1814
1815

Scope 1 GHG emissions

1816

Greenhouse gas (GHG) emissions from operations that are owned or controlled by the organization

1817
1818
1819
1820

Source: World Resources Institute (WRI) and World Business Council for Sustainable Development(WBCSD), GHG Protocol Scope 2 Guidance. An amendment to the GHG Protocol Corporate
Standard, 2015 and GHG Protocol Corporate Value Chain (Scope 3) Accounting andReporting Standard, 2011.

1821

Examples: CO2 emissions from fuel consumption

1822

Note: A GHG source is any physical unit or process that releases GHG into the atmosphere.

1823
1824

Scope 2 GHG emissions

1825
1826

Indirect greenhouse gas (GHG) emissions from the generation of purchased or acquired electricity,
steam, heating, and cooling consumed by the organization

1827
1828
1829
1830

Source: World Resources Institute (WRI) and World Business Council for Sustainable Development(WBCSD), GHG Protocol Scope 2 Guidance. An amendment to the GHG Protocol Corporate
Standard, 2015 and GHG Protocol Corporate Value Chain (Scope 3) Accounting andReporting Standard, 2011.

1831
1832

Scope 3 GHG emissions

1833
1834

All indirect greenhouse gas (GHG) emissions (not included in Scope 2) that occur in the value chainof the organization, including both upstream and downstream emissions

1835
1836
1837
1838

Source: World Resources Institute (WRI) and World Business Council for Sustainable Development(WBCSD), GHG Protocol Scope 2 Guidance. An amendment to the GHG Protocol Corporate
Standard, 2015 and GHG Protocol Corporate Value Chain (Scope 3) Accounting andReporting Standard, 2011.

1839
1840

sustainable development / sustainability

1841
1842

development that meets the needs of the present without compromising the ability of future
generations to meet their own needs

Page 54 of 56

1843

Source: World Commission on Environment and Development, Our Common Future, 1987

1844
1845

Note:

1846

The terms ‘sustainability’ and ‘sustainable development’ are used interchangeably in the GRI
Standards.

Bibliography

1847
1848
1849
1850
1851
1852
1853
1854
1855
1856
1857
1858
1859
1860
1861
1862
1863
1864
1865
1866
1867
1868
1869
1870
1871
1872
1873
1874
1875
1876
1877
1878
1879
1880
1881
1882
1883

Authoritative instruments
1. Intergovernmental Panel on Climate Change (IPCC), Global Warming of 1.5°C. An IPCC
Special Report on the impacts of global warming of 1.5°C above pre-industrial levels andrelated global greenhouse gas emission pathways, in the context of strengthening the global
response to the threat of climate change, sustainable development, and efforts to eradicate
poverty, Annex I: Glossary, 2018
2. Intergovernmental Panel on Climate Change (IPCC), Climate Change 2022: Mitigation of
Climate Change. Contribution of Working Group III to the Sixth Assessment Report of theIntergovernmental Panel on Climate Change, 2022.
3. United Nations (UN) Framework Convention, United Nations Framework Convention on
Climate Change, 1992.
4. United Nations (UN) Protocol, Kyoto Protocol to the United Nations Framework Convention
on Climate Change, 1997.
5. United Nations (UN), Declaration on the Rights of Indigenous Peoples, 2007.
6. United Nations Environment Programme (UNEP), Montreal Protocol on Substances that
Deplete the Ozone Layer, 1987.
7. United Nations Framework Convention on Climate Change (UNFCCC), Paris Agreement, 2016

1884

(WBCSD), GHG Protocol Corporate Value Chain (Scope 3) Accounting and Reporting

1885
1886

17.

Standard, 2011.
World Resources Institute (WRI) and World Business Council for Sustainable Development

1887
1888

18.

(WBCSD), GHG Protocol for Project Accounting, 2005.
World Resources Institute (WRI) and World Business Council for Sustainable Development

1889
1890

Additional references
8.
International Energy Agency (IAE) Net Zero Emissions by 2050 Scenario (NZE),
https://www.iea.org/reports/global-energy-and-climate-model/net-zero-emissions-by-2050scenario-nze, accessed on 5 October 2023.
9.
International Labour Organization (ILO) Frequently Asked Questions on just transition,
https://www.ilo.org/global/topics/green-jobs/WCMS_824102/lang--en/index.htm, accessed on 5
October 2023.
10.
Science-Based Target initiative (SBTi), FLAG Science Based Target Setting Guidance, 2022.
11.
Science-Based Target initiative (SBTi), SBTi Corporate Net Zero Standard, Version 1.1, 2023.
12.
Task Force on Climate-related Financial Disclosures (TCFD), The Use of Scenario Analysis in
Disclosure of Climate-related Risks and Opportunities, Technical Suplement, 2017.
13.
United Nations (UN), Integrity Matters: Net Zero Commitments by Businesses, Financial
Institutions, Cities and Regions, Report from the United Nations High-Level Expert Group on
the Net Zero Emissions Commitments of Non-State Entities, 2022.
14.
Voluntary Carbon Market Integrity Initiative (VCMI), Claims Code of Practice, 2023.
15.
World Resources Institute (WRI) and World Business Council for Sustainable Development(WBCSD), GHG Protocol Corporate Accounting and Reporting Standard, Revised Edition,
2004.
16.
World Resources Institute (WRI) and World Business Council for Sustainable Development(WBCSD), GHG Protocol Scope 2 Guidance. An amendment to the GHG Protocol Corporate
Standard, 2015.

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1891
1892
1893
1894
1895

19.

20.

World Resources Institute (WRI) and World Business Council for Sustainable Development(WBCSD), Land Sector and Removals Guidance, Part 1: Accounting and Reporting
Requirements and Guidance, Supplement to the GHG Protocol Corporate Standard and Scope
3 Standard, Draft for Pilot Testing and Review, 2022.
World Resources Institute (WRI) and World Business Council for Sustainable Development

1896
1897

(WBCSD), ‘Greenhouse Gas Protocol Accounting Notes, No. 1, Accounting and ReportingStandard Amendment’, 2012.

1898
1899
1900
1901
1902
1903
1904
1905
1906
1907
1908
1909

Resources
21.
Carbon Disclosure Project (CDP), Technical Note: Accounting of Scope 2 emissions, 2023
22.
Science-Based Target initiative (SBTi), Science Based Targets Initiative Public Consultation on
Beyond Value Chain Mitigation (BVCM), Version 1, 2023.
23.
Task Force on Climate-related Financial Disclosures (TCFD), Recommendations of the Task
Force on Climate-related Financial Disclosures, 2017.
24.
United Nations Framework Convention on Climate Change (UNFCCC), Just Transition of the
Workforce, and the Creation of Decent Work and Quality Jobs, Technical Paper, 202025.
United Nations Development Programme (UNDP), How Just Transition Can Help Deliver theParis Agreement, 2022.
26.
World Resources Institute (WRI) and World Business Council for Sustainable Development

1910(WBCSD), Technical Guidance for Calculating Scope 3 Emissions, 2013.

1911

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