In today’s corporate landscape, Greenhouse Gas (GHG) reporting is no longer optional—it is a critical part of environmental sustainability and corporate responsibility. Businesses across industries are under pressure from regulators, investors, and consumers to disclose their emissions transparently. To streamline and standardize these disclosures, global frameworks such as GRI (Global Reporting Initiative), TCFD (Task Force on Climate-related Financial Disclosures), and CDP (Carbon Disclosure Project) provide guidance and benchmarks for companies to follow.

Aligning with these frameworks not only ensures compliance but also enhances a company’s ESG (Environmental, Social, and Governance) performance, making it more attractive to investors and stakeholders. In this blog, we’ll explore how businesses can align their GHG reporting with these key ESG frameworks and the benefits of doing so.

Understanding the Global ESG Frameworks

1. Global Reporting Initiative (GRI)

GRI is one of the most widely used sustainability reporting frameworks in the world. It provides detailed guidelines for businesses to disclose their environmental impact, including GHG emissions. The GRI standards emphasize transparency and accountability in sustainability reporting.

Key Aspects of GHG Reporting in GRI:

• GRI 305: Emissions standard requires organizations to disclose Scope 1, 2, and 3 emissions.
• Encourages companies to set science-based emission reduction targets.
• Focuses on the impact of emissions on climate change and business risks.

2. Task Force on Climate-related Financial Disclosures (TCFD)

TCFD is a financial disclosure framework developed to help businesses assess climate-related risks and opportunities. It is widely endorsed by investors, regulators, and financial institutions worldwide.

Key Aspects of GHG Reporting in TCFD:

• Requires organizations to disclose GHG emissions as part of financial risks.
• Emphasizes scenario analysis to predict climate-related risks.
• Focuses on governance, risk management, and strategy related to emissions and climate change.

3. Carbon Disclosure Project (CDP)

CDP is a voluntary disclosure platform that enables organizations to report their environmental impact, including GHG emissions. Investors, stakeholders, and customers use CDP reports to assess a company’s sustainability efforts.

Key Aspects of GHG Reporting in CDP:

• Standardized questionnaire-based approach for disclosure.
• Encourages supply chain transparency in GHG reporting.
• Measures corporate climate action and assigns performance scores.

Steps to Align GHG Reporting with Global ESG Frameworks

Step 1: Establish a GHG Inventory

Start by conducting a comprehensive GHG inventory that identifies Scope 1 (direct), Scope 2 (indirect from purchased energy), and Scope 3 (value chain) emissions. Use globally recognized methodologies such as the GHG Protocol to ensure accuracy.

Step 2: Define Reporting Boundaries

Each framework has specific requirements for reporting boundaries. For instance:

• GRI encourages reporting on direct and indirect emissions.
• TCFD focuses on the financial risks associated with emissions.
• CDP emphasizes the entire value chain, including suppliers and customers.

Companies must decide the extent of their disclosure based on these guidelines.

Step 3: Implement Robust Data Collection & Management

Accurate data collection is crucial for GHG reporting. Businesses should:

• Utilize digital tools and software for emissions tracking.
• Ensure data consistency with recognized emission factors and calculations.

• Regularly update their emissions inventory to reflect operational changes.

Step 4: Integrate Climate-Related Risk Assessments

Under TCFD, businesses are required to integrate climate-related risks into their financial reporting. This includes:

• Scenario analysis to assess future climate-related impacts.
• Financial modeling to measure the cost of carbon emissions.
• Board-level governance to oversee climate strategies.

Step 5: Engage with Stakeholders & Enhance Transparency

Organizations should align their GHG disclosures with investor expectations by:

• Participating in CDP’s climate questionnaires to improve ESG ratings.
• Publicly disclosing sustainability reports as per GRI standards.
• Holding stakeholder consultations to align climate goals with business strategies.

Step 6: Set Science-Based Targets & Reduction Strategies

A well-aligned GHG reporting framework should lead to emission reduction strategies, such as:

• Transitioning to renewable energy sources.
• Implementing energy efficiency projects.
• Partnering with suppliers to reduce Scope 3 emissions.

Benefits of Aligning GHG Reporting with ESG Frameworks

1. Regulatory Compliance – Avoid penalties and ensure adherence to international climate policies.
2. Investor Confidence – Enhance credibility and attract ESG-conscious investors.
3. Competitive Advantage – Strengthen brand reputation and customer loyalty.
4. Risk Management – Better preparedness for climate-related business risks.
5. Operational Efficiency – Identify inefficiencies and reduce costs associated with energy use.

How PQSmitra Can Support You

At PQSmitra, we specialize in ESG consultancy, helping businesses align their GHG reporting with global frameworks like GRI, TCFD, and CDP. Our expert team offers:

• End-to-End ESG & GHG Reporting Support – From emissions data collection to final reporting.
• Regulatory Compliance Assistance – Ensuring adherence to SEBI’s BRSR, ISO 14064, and global sustainability norms.
• Customized Sustainability Strategies – Helping businesses set science-based emission reduction targets.
• Stakeholder Engagement & Training – Empowering organizations with workshops on ESG best practices.

By partnering with PQSmitra, businesses can simplify their ESG compliance, improve investor confidence, and demonstrate their commitment to sustainability. Let us help you navigate the evolving landscape of GHG reporting and ESG disclosures for a greener future.

Conclusion

Aligning GHG reporting with global ESG frameworks is not just about compliance—it’s a strategic move towards sustainability leadership. By following recognized frameworks like GRI, TCFD, and CDP, businesses can enhance transparency, reduce emissions, and secure long-term growth. PQSmitra is here to guide you through every step of the ESG journey—because a sustainable business is a future-ready business.