When companies aim to measure and manage their greenhouse gas (GHG) emissions, two major methodologies often come into play: the GHG Protocol and ISO 14064-1. While both aim for accurate quantification and transparent reporting, they differ in structure, terminology, and focus.
In this article, I explore their key differences and evaluate how SAP Sustainability Footprint Management (SAP SFM) can help organizations align with both frameworks.
Key Differences: GHG Protocol vs. ISO 14064-1
FeatureGHG ProtocolISO 14064-1 | Origin | Developed by WRI and WBCSD | Developed by ISO |
| Main Objective | Standardized accounting framework for GHG measurement and reporting | Principles and requirements for GHG quantification and verification |
| Structure | Scope-based: Scopes 1, 2, and 3 (15 categories in Scope 3) | Three-part standard (14064-1, -2, -3); more flexibility |
| Scope 3 Coverage | Mandatory and detailed | Optional, organization-defined |
| Emission Factors | Official or validated internal data | Public or project-specific factors |
| Uncertainty Treatment | Not explicitly required | Required: estimation and disclosure |
| Organizational Boundaries | Based on operational or financial control | Flexible definition allowed |
| Goal | Global comparability | Internal improvement and verification flexibility |
Summary: ISO 14064-1 is more adaptable to organizational context but requires additional documentation and uncertainty analysis for robust verification.
How SAP SFM Aligns with ISO 14064-1 Requirements
ISO 14064-1 RequirementSAP SFM CoverageNotes | Organizational Boundaries | ✅ | Configured via SAP hierarchy (plants, units, etc.) |
| Operational Boundaries (Scopes 1, 2, 3) | ✅ | Fully supports GHG Protocol scopes |
| Emission Sources | ✅ | Automatically identified within SAP systems |
| Activity Data | ✅ | Integrated from SAP ERP or S/4HANA |
| Emission Factors | ✅ | Configurable; compatible with sources like ecoinvent, EPA and Custom inventories. |
| Emission Calculation | ✅ | Automated with standard formulas |
| Emission Classification | ✅ | Compatible; mapping needed for ISO reporting structure |
| Methodological Approach Documentation | ⚠️ Partial | Requires complementary external documentation |
| Uncertainty Reporting | ⚠️Partial | ISO requires uncertainty estimation; SAP SFM allows entry of data quality indicators but does not perform automatic uncertainty quantification |
| Data Traceability | ✅ | Full traceability and source referencing |
| Base Year Revision | ✅ | Periods can be reviewed and adjusted |
| GHG Inventory Report | ⚠️ Partial | Visual dashboards available; narrative must be prepared in SAP SCT |
| Verification Preparedness | ✅ | Exportable Excel documentation supports external verification |
Conclusion
SAP SFM is a powerful tool for achieving GHG Protocol compliance. With the right reporting support—such as SAP Sustainability Control Tower (SCT)—organizations can also meet the technical requirements of ISO 14064-1:2018, enhancing credibility and verification readiness.
Regards!
Bula Sebastián
