What does GHG stand for in the context of sustainability accounting?

In the context of sustainability accounting, GHG stands for Greenhouse Gas. Greenhouse gases are critical to sustainability because they are substances in the atmosphere that trap heat, contributing to the greenhouse effect and, consequently, climate change. Understanding GHG emissions is essential for organizations aiming to manage their environmental impact and enhance sustainability practices.

By measuring and reporting greenhouse gas emissions, companies can assess their carbon footprint and identify opportunities for improvement. This information is vital for compliance with environmental regulations, fulfilling stakeholder expectations, and working towards goals such as reducing emissions and achieving carbon neutrality. This focus on GHG is a cornerstone of sustainability accounting, as it encapsulates the relationship between business activities and environmental impact.