GHG Accounting Service
We deliver GHG Accounting service, measuring an organization’s carbon footprint across Scope 1, Scope 2, and Scope 3 emissions and turning that measurement into a working reduction strategy. Our consultants follow the GHG Protocol and ISO 14064 standards throughout, so the resulting inventory holds up to external scrutiny.
What Is GHG Accounting?
GHG accounting is the process of measuring and categorizing an organization’s greenhouse gas emissions into three scopes.
- Scope 1 covers direct emissions the organization controls, from sources like boilers, company vehicles, and manufacturing processes.
- Scope 2 covers indirect emissions from purchased electricity, heating, or cooling, emissions the organization is responsible for even though they physically occur at someone else’s facility.
- Scope 3 covers all other indirect emissions across the value chain, both upstream from suppliers and downstream from how customers use the organization’s products, and typically represents the largest share of an organization’s total footprint despite being the hardest to quantify.
What Does This Service Cover?
- Data Collection and Activity Mapping: Gathering the fuel, energy, and value chain activity data needed to calculate emissions across all applicable scopes.
- Emission Factor Selection: Applying emission factors from credible, regularly updated sources appropriate to the organization’s region and activities, rather than generic global averages.
- Baseline Calculation and Verification: Converting activity data into a documented GHG emissions inventory, with appropriate quality checks and supporting evidence to facilitate future third-party verification or assurance.
- Reduction Strategy Development: Identifying the highest-impact reduction opportunities the baseline reveals, feeding directly into the organization’s decarbonization plan.
Why Do Organizations Need GHG Accounting?
An organization can’t manage what it hasn’t measured. Emissions reduction targets, decarbonization plans, and sustainability disclosures all depend on an accurate baseline. Without one, an organization is setting targets against a number it doesn’t actually know, and reporting commitments it can’t verify.
Why Choose Wellkinetics for This Service?
- Ahead of Malaysia’s Scope 3 Mandate: Malaysia’s sustainability reporting requirements are progressively introducing Scope 1, Scope 2 and Scope 3 GHG emissions disclosures, with Scope 3 requirements beginning from 2027 for applicable reporting groups.
- Standards-Aligned Methodology: Wellkinetics follows both the GHG Protocol and ISO 14064 throughout the engagement, giving the resulting inventory the dual grounding investors and auditors most commonly expect to see.
- Connected to the Full ESG Service Range: Because Wellkinetics also develops sustainability roadmaps and prepares ESG disclosures, the same team stays involved from measurement through to public reporting, rather than the client managing handoffs between separate providers at each stage.
Frequently Asked Questions
Do we need to measure all three scopes, or just Scope 1 and 2?
Scope 1 and 2 are the current mandatory disclosure requirement for listed companies in Malaysia. Scope 3 remains voluntary for now, but leaving it out means the reported number likely understates the organization’s real climate impact by a wide margin.
Is GHG accounting mandatory in Malaysia?
GHG disclosure is mandatory for companies listed on Bursa Malaysia’s Main and ACE Markets under the National Sustainability Reporting Framework. Private companies aren’t yet bound by the same requirement, but many face similar expectations from lenders, investors, or larger customers further up their value chain.
Why is Scope 3 so much harder to measure than Scope 1 or 2?
Scope 1 and 2 data comes from sources the organization directly controls or purchases from, like its own fuel use or electricity bills. Scope 3 depends on data from suppliers and customers the organization doesn’t control, which is often incomplete, inconsistent, or simply unavailable, making accurate measurement far more difficult.
How often should the GHG inventory be updated?
Most organizations review and update their inventory annually, since new equipment, process changes, or added facilities can shift the numbers meaningfully from one year to the next.
Can GHG accounting be combined with a decarbonization plan?
Yes, and many clients prefer it that way. Scoping both together means the reduction strategy is built around the same baseline data from the start, rather than a second provider having to re-verify the numbers before they can use them.
Don't Know Your Carbon Footprint Yet?
Whether you’re preparing for mandatory Scope 3 disclosure or setting your first emissions baseline, our ESG consultants can help you scope the assessment.