Frequently Asked Questions (FAQs) for GHG (Greenhouse Gas) Toolkit

The GHG Toolkit is a practical data collection and calculation tool developed under the EFP-ILO Just Transition initiative to help SMEs measure and report their greenhouse gas emissions. It is designed for businesses of all sizes—particularly SMEs—that need to calculate their carbon footprint, respond to buyer sustainability requirements, or prepare for Net Zero commitments

These FAQs are designed for Pakistani Small and Medium Enterprises (SMEs) to help them understand and begin measuring and managing greenhouse gas (GHG) emissions in line with international good practices and buyer expectations, through the developed GHG Toolkit.

General QuestionsUnderstanding Emission ScopesData CollectionCalculating EmissionsReporting

1. What are greenhouse gas (GHG) emissions?

Greenhouse gases are gases that trap heat in the Earth’s atmosphere and contribute to climate change. The most common GHGs emitted by businesses are:
– Carbon dioxide (CO₂)
– Methane (CH₄)
– Nitrous oxide (N₂O)
– Refrigerant gases (HFCs)
Emissions are typically reported as carbon dioxide equivalent (CO₂e)..

2. Why should SMEs measure their GHG emissions?

– Measuring GHG emissions helps SMEs:
– Meet customer and buyer requirements
– Identify opportunities to reduce energy costs
– Improve operational efficiency
– Prepare for future climate-related regulations
– Demonstrate commitment to sustainability
– Support access to international markets

3. Is GHG reporting mandatory in Pakistan?

Currently, mandatory GHG reporting depends on the applicable legal and regulatory requirements and the sector. However, many international buyers, financial institutions, and supply chains increasingly request emissions data from suppliers.

4. What is a carbon footprint?

A carbon footprint is the total amount of greenhouse gas emissions generated directly and indirectly by an organization’s activities during a specific reporting period.

5. What does CO₂e mean?

CO₂e (Carbon Dioxide Equivalent) is a standard unit that combines different greenhouse gases into a single measure based on their global warming potential.

6. What are Scope 1 emissions?

Scope 1 emissions are direct emissions from sources owned or controlled by the company, such as:
– Diesel generators
– Company-owned vehicles
– Boilers
– Furnaces
– LPG or natural gas combustion
– Refrigerant leakage

7. What are Scope 2 emissions?

Scope 2 emissions are indirect emissions from purchased electricity, steam, heating, or cooling consumed by the business.
For most SMEs in Pakistan, purchased electricity is the largest Scope 2 emission source.

8. What information is required to calculate GHG emissions?

Typical activity data include:
– Electricity consumption (kWh)
– Diesel consumption (litres)
– Petrol consumption (litres)
– Natural gas consumption (m³)
– LPG consumption (kg or litres)
– Refrigerant refilling records
– Vehicle fuel consumption
– Production volume (optional for intensity calculations).

9. Where can I find the required data?

Data may be available from:
– Utility bills
– Fuel purchase invoices
– Generator logs
– Vehicle fuel records
– Maintenance records
– Production reports
– Finance or procurement records

10. How often should GHG data be collected?

It is recommended to collect data monthly and prepare a complete GHG inventory annually.

11. How are GHG emissions calculated?

Emissions are generally calculated using the following formula:
GHG Emissions = Activity Data × Emission Factor
For example:
Electricity used × Electricity emission factor = CO₂e emissions

12. What is an emission factor?

An emission factor converts activity data (such as litres of diesel or kWh of electricity) into greenhouse gas emissions.

13. Which reporting standard should SMEs follow?

The GHG Protocol Corporate Standard is the most widely used international framework and is recommended for SMEs beginning their GHG journey.

14. How often should SMEs prepare a GHG inventory?

Most organizations prepare a GHG inventory once each year using a consistent reporting period.

15. What is emissions intensity?

Emissions intensity compares GHG emissions to a business activity, such as:
– tCO₂e per tonne of product
– tCO₂e per unit produced
– tCO₂e per employee
– tCO₂e per million PKR of revenue
Tracking intensity helps measure efficiency improvements over time.

16. What are the biggest sources of emissions in manufacturing SMEs?

– Typical sources include:
– Purchased electricity
– Diesel generators
– Natural gas or LPG used in boilers and production
– Company vehicles
– Refrigerant leakage
– Raw material transportation

This FAQ section is suitable for EFP-ILO GHG Toolkit and aligns with internationally recognized approaches such as the GHG Protocol Corporate Standard while remaining practical and accessible for Pakistani SMEs beginning their carbon management journey.

Frequently Asked Questions (FAQs) for GHG (Greenhouse Gas) Toolkit