The Greenhouse Gas Protocol (GHGP), a non-profit organization that sets standards for carbon accounting, is at the center of a heated debate over how tech giants should account for their emissions. The GHGP has announced plans to revise its Scope 2 accounting standards, which cover indirect emissions from purchased electricity and steam, heat, or cooling.
The move has been welcomed by Google and Microsoft, which have advocated for an hourly accounting method that matches every hour of electricity use with new, carbon-free power. However, other companies, including Amazon, Meta, and Salesforce, have pushed for a different approach known as "emissions first," which aims to maximize annual emission cuts by swapping renewable energy certificates.
The debate has spilled into the real world, with the GHGP-sponsored working group on Scope 2 accounting standards facing criticism from some stakeholders. A rival carbon-accounting coalition, Carbon Measures, has been launched by major Fortune 500 companies, including Exxon Mobil and Air Liquide.
The GHGP's financial situation is also under pressure, with sources claiming that the organization is in a "financial bind" and depends on philanthropic and corporate money to run. The organization is forging a new partnership with the International Organization for Standardization to harmonize its standards with those of ISO.
As the debate continues, it remains to be seen how the GHGP's revised Scope 2 accounting standards will shape the future of carbon accounting in the tech industry.
The move has been welcomed by Google and Microsoft, which have advocated for an hourly accounting method that matches every hour of electricity use with new, carbon-free power. However, other companies, including Amazon, Meta, and Salesforce, have pushed for a different approach known as "emissions first," which aims to maximize annual emission cuts by swapping renewable energy certificates.
The debate has spilled into the real world, with the GHGP-sponsored working group on Scope 2 accounting standards facing criticism from some stakeholders. A rival carbon-accounting coalition, Carbon Measures, has been launched by major Fortune 500 companies, including Exxon Mobil and Air Liquide.
The GHGP's financial situation is also under pressure, with sources claiming that the organization is in a "financial bind" and depends on philanthropic and corporate money to run. The organization is forging a new partnership with the International Organization for Standardization to harmonize its standards with those of ISO.
As the debate continues, it remains to be seen how the GHGP's revised Scope 2 accounting standards will shape the future of carbon accounting in the tech industry.