ESG Advisory
Materiality assessment, ESG data controls and reporting aligned with GRI, IFRS S1/S2 and Saudi Exchange guidance, plus support with investor questionnaires.
Key benefit: Credible ESG disclosures backed by traceable data
Sustainability, ESG & Climate
GHG and Carbon Accounting
A corporate greenhouse gas inventory built on clear boundaries, documented methods and data you can defend to verifiers and investors.
An emissions baseline you can report, verify and reduce
Overview
GHG and carbon accounting is the process of quantifying an organisation's greenhouse gas emissions over a defined period using recognised standards such as the GHG Protocol Corporate Standard and ISO 14064-1. It sets organisational and operational boundaries, classifies emissions into Scope 1, 2 and 3, applies documented emission factors, and produces an inventory that supports reporting, target setting and independent verification.
A greenhouse gas inventory is the foundation for almost every climate commitment a company makes. ESG reports, IFRS S2 climate disclosures, lender questionnaires, customer requests and net-zero targets all rely on a credible emissions baseline. In Saudi Arabia, where many operations are energy-intensive and fuel-based, the main sources are often clear, but the detail is not: which entities are included, how purchased electricity is treated, how refrigerant losses are estimated, and which value chain categories are significant. Getting these choices right and documenting them is what makes an inventory usable.
We prepare corporate inventories in line with the GHG Protocol Corporate Standard and Scope 2 Guidance, and structure them to meet ISO 14064-1 where verification against that standard is planned. Work begins with boundary setting, using the equity share or control approach that suits your structure. We then map emission sources across stationary and mobile combustion, process emissions, fugitive emissions and purchased energy, screen the 15 Scope 3 categories for relevance, and select emission factors with documented sources. Each calculation is traceable from activity data to result.
The inventory is delivered as a working calculation model and a report that explains methods, assumptions, exclusions and uncertainty. We also set up the data management side: data owners, collection frequency, internal review and a base-year recalculation policy, so the inventory can be updated each year without starting again. If you intend to have the inventory verified, we organise evidence and documentation to support the verifier's review. Product-level footprints are a separate exercise covered under life cycle assessment; this service focuses on emissions at organisation and facility level.
When you need this service
You may need this service when:
- You need a first emissions baseline for an ESG report or climate disclosure.
- Investors, lenders or customers request your Scope 1, 2 or 3 emissions.
- You plan to set a reduction or net-zero target and need a base year.
- Your existing inventory has unclear boundaries, outdated factors or undocumented assumptions.
- You intend to seek third-party verification of your inventory against ISO 14064-1.
- Acquisitions, divestments or new facilities require boundary changes or base-year recalculation.
What we deliver
01
Boundary definition
An organisational boundary using the equity share or control approach, and an operational boundary listing included sources, scopes and justified exclusions.
02
Source mapping and data collection
An inventory of emission sources by facility and scope, with activity data requests, collection templates and a named owner for each data stream.
03
Emission factor selection
Documented emission factors and global warming potentials for fuels, electricity, refrigerants and Scope 3 categories, with sources and update rules recorded.
04
Scope 3 screening
Relevance screening of the Scope 3 categories, with calculation methods chosen for significant categories and data quality noted for each one.
05
Calculation model and inventory report
A transparent calculation workbook and a report explaining boundaries, methods, results by scope and source, assumptions, exclusions and uncertainty.
06
Verification readiness
An evidence pack, inventory management procedure and pre-verification review so the inventory can be checked efficiently by an independent verifier.
Our approach
Boundaries
We review your legal and operational structure, agree the consolidation approach, define the base year and reporting period, and confirm which facilities and activities are included.
Source mapping
We identify emission sources at each facility through document review and site discussions, covering combustion, process, fugitive and purchased energy emissions.
Data collection
We issue data requests, collect fuel, electricity, refrigerant and procurement records, and check them for gaps, units and consistency with financial records.
Calculation
We apply the selected emission factors and methods, calculate emissions by scope, source and facility, and test results against prior years and benchmarks.
Reporting
We prepare the inventory report and model, review them with your team, and document assumptions, exclusions and uncertainty in plain terms.
Verification readiness
We compile evidence, write the inventory management procedure and run a pre-verification check before any independent verification begins.
Deliverables
| Deliverable | Format | Stage |
|---|---|---|
| Boundary and methodology note | Consolidation approach, scopes and exclusions (PDF) | End of boundary stage |
| Data request and collection templates | Structured templates by facility and source (Excel) | Data collection stage |
| GHG calculation model | Transparent workbook with activity data, factors and results (Excel) | Calculation stage |
| Scope 3 screening summary | Category relevance assessment and methods (Excel + PDF) | Calculation stage |
| GHG inventory report | Results by scope, source and facility with methods (Word + PDF) | Reporting stage |
| Inventory management procedure | Roles, data flows, review and base-year recalculation (Word) | Final stage |
| Verification evidence pack | Indexed evidence folder and pre-verification findings (digital folder + PDF) | Before verification |
Regulatory context
- GHG Protocol Corporate Standard, Scope 2 Guidance and Corporate Value Chain (Scope 3) Standard
- ISO 14064-1 for quantifying and reporting greenhouse gas emissions and removals at organisation level
- IFRS S2 (ISSB) climate-related disclosures, which draw on GHG Protocol-based emissions data
- Saudi Exchange ESG Disclosure Guidelines for listed companies reporting environmental metrics
- Saudi Arabia's 2060 net-zero target and the Saudi Green Initiative as national context for emissions reporting
Requirements vary by activity, location and permit conditions. We confirm the applicable requirements for your project at the start of every engagement.
Industries served
Frequently asked questions
What is the difference between Scope 1, 2 and 3 emissions?
Scope 1 covers direct emissions from sources you own or control, such as boilers, generators, vehicles, process equipment and refrigerant leaks. Scope 2 covers indirect emissions from purchased electricity, steam, heating or cooling. Scope 3 covers all other indirect emissions in your value chain, such as purchased goods, transport, business travel, waste and the use of sold products. The GHG Protocol divides Scope 3 into 15 categories.
Do we need to include Scope 3 emissions?
It depends on your reporting purpose. Many frameworks and investors expect Scope 1 and 2 as a minimum, and IFRS S2 includes Scope 3 disclosure. For many companies, Scope 3 is the largest share of the footprint. We usually start by screening all categories to see which are significant, then calculate those with the most suitable data available, improving data quality over successive years.
Which emission factors do you use for Saudi Arabia?
We select factors that suit the source and the reporting purpose, preferring country-specific or supplier-specific data where it is available and documented, and recognised international databases where it is not. For purchased electricity we follow the GHG Protocol Scope 2 Guidance. Every factor is recorded with its source, year and unit so that results can be checked and updated consistently each year.
How is a GHG inventory different from a product carbon footprint?
A GHG inventory measures the emissions of an organisation or facility over a period, usually a year. A product carbon footprint measures emissions across the life cycle of a specific product, from raw materials to end of life, per unit of product. They use different standards and serve different purposes. Product footprints are covered by our life cycle assessment service and can draw on the same activity data.
Can you verify our GHG inventory?
Verification should be carried out by a body independent of the team that prepared the inventory, which is what gives it credibility. Our role is to prepare the inventory so that it is verifiable: documented boundaries, methods and factors, an organised evidence pack and a pre-verification review. This reduces findings and clarification requests during the verifier's work and helps the process run to plan.
Related services
Net Zero Advisory
Decarbonisation pathways, science-based target setting, abatement cost analysis and a net-zero roadmap aligned with Saudi Arabia's 2060 net-zero target.
Key benefit: A costed, prioritised path to lower emissions
Life Cycle Assessment
ISO 14040/14044 life cycle assessments, product carbon footprints, comparative studies and hotspot analysis, with data support for environmental product declarations.
Key benefit: Product decisions based on full life cycle evidence
Related insights
Building your first GHG inventory: Scope 1, 2 and 3 explained
A practical guide to a first corporate GHG inventory under the GHG Protocol and ISO 14064-1: boundaries, scopes, data, emission factors and verification.
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