Greenhouse Gas Protocol: a New Ally for New Opportunities?

India’s commitment to sustainable economy topics has become a central focus of industrial and political thought. The Greenhouse Gas Protocol (GHG Protocol) is an international accounting tool used by government and business leaders to detect, quantify and control greenhouse gas emissions. It results from the partnership between the World Resources Institute and the World Business Council for Sustainable Development, which brings together the world’s businesses, governments and environmental institutions to work on sustainable issues. The GHG protocol has made its way in India since the Energy Resources Institute partnered with the above-mentioned organizations to launch two new tools, the Product Life Cycle and Corporate Value Chain, to meet new GHG Protocol standards.

The launch took place in Delhi on March 15, 2012. India’s booming industrial and economic growth and its involvement in climate change has made greenhouse gas emissions an essential concern. Value chain management is a new practice that businesses and organizations must address. The two new standards should help companies save money, reduce risks and gain sizeable competitive advantages. The Carbon Disclosure Project 2011 India Report estimates that 57 companies submitted reports and that 89% reported their GHG emissions using GHG protocol standards. More than being committed to world climate issues, the standards allow Indian companies to recognize and target new market opportunities in the field of low carbon products. The Corporate Value Chain standard shows potential opportunities enabling sustainable decisions about production and products. The Product Life Cycle standard enables companies to measure the greenhouse gas emissions of an individual product.

However, implementing the standard means that companies have to incorporate climate and environmental concerns in their developmental strategies. The GHG Protocol represents a big step towards clean and sustainable development, but could put some severe strains on businesses that are not properly prepared to meet expectations. Requirements should not be too drastic, if environmental protection is to become a fundamental principle.