From Disclosure to Methodology and Rigor: What the Draft GHG Scope 3 Revisions Mean for Net Zero Certification
The global standard-setter Greenhouse Gas Protocol (GHG Protocol) has released a progress update on proposed revisions from its Technical Working Group to its Scope 3 Standard. The proposed revisions are arguably the most complex and consequential component of corporate greenhouse gas accounting and deserve the full support of those championing net zero accountability.
The March 2026 Phase 1 draft signals a decisive shift from broad disclosure toward comparability and verifiable performance across value chains. For organizations pursuing net zero certifications and for certification systems like the Global Network for Zero’s (GNFZ), this is not an insignificant technical update. Scope 3 emissions, once thought of the “Wild West” is moving closer to the discipline embedded in International Organization for Standardization frameworks such as ISO 14064-1, with clear implications for how emissions are measured, reported, and validated.
The proposed revisions introduce a higher bar for completeness and accountability in Scope 3 reporting. Most notably, companies would be required to account for at least 95% of their total Scope 3 emissions, dramatically reducing the room for omissions and reinforcing the integrity of disclosures.
The draft also introduces Category 16, a new classification designed to capture “other value chain activities” such as facilitated emissions, those linked to platform models, licensing, and financial services that were previously difficult to categorize.
Together, these changes reflect a broader reality: modern business models are evolving, and emissions accounting must evolve with them.
GNFZ’s technical team has conducted a comprehensive review of the extensive Technical Working Group report and has outlined the proposed changes in the revised Scope 3 Standard (Phase 1, March 2026 draft) and their implications for Net Zero Emission Certification by GNFZ, especially in relation to ISO 14064-1.
Principal Changes in Scope 3 Standard (Phase 1 Draft)
Series A – Data Quality
Disaggregation by data type (A1): Scope 3 emissions must be reported by data type (primary, secondary, modelled, etc.) to improve transparency and comparability.
Verification disclosure (A2): Companies must state whether Scope 3 inventories are fully, partially, or not verified.
Emission factor guidance (A5): Stronger emphasis on completeness of emission factors, including regional imports/exports.
Data specificity goals & performance metrics (A6): Companies should set measurable targets for improving specificity of Scope 3 data.
Data quality improvement targets (A7): Year-on-year or mid-term targets recommended for progressive improvement.
Supplier allocation restriction (A8): Corporate-level allocation only allowed for homogeneous suppliers, ensuring representativeness.
Series B – Boundary Setting
95% inclusion threshold (B1): Companies must report ≥95% of total required Scope 3 emissions; exclusions capped at 5%.
Quantification of exclusions (B2, B3, B5): All exclusions must be quantified (hotspot analysis allowed); de minimis emissions defined.
Required vs. optional emissions (B7): Clear separation in reporting.
New Category 16 – Other value chain activities (B11): Captures facilitated emissions (e.g., licensing, platform activities, insurance underwriting) not covered in categories 1–15.
Exclusion disclosure (B4, B6, B8): Companies must justify exclusions with transparent notation.
Series C – Investments (Category 15)
Narrowed definition (C2–C4): Category 15 restricted to financed emissions; other financial services moved to Category 16.
Mandatory inclusion (C5–C7): All investments required; investee Scope 1, 2, and 3 emissions included; 5% exclusion threshold applies.
Justified exclusions clause (C8): Relief for financial instruments lacking calculation methods.
Equity proportionality update (C10): Denominator includes both equity and debt, aligning with PCAF.
Consolidation guidance (C12): Aligned with removal of equity share approach in Corporate Standard.
Alignment with ISO 14064-1
ISO 14064-1 requires:
Completeness & accuracy → addressed by 95% inclusion threshold and quantified exclusions.
Transparency → supported by disaggregation by data type, verification disclosure, and exclusion notation.
Consistency → reinforced by separation of required vs. optional emissions and harmonized investment treatment.
Relevance → expanded boundary (Category 16) ensures modern business models are captured.
Continuous improvement → explicit targets for data quality and specificity.
GNFZ is actively preparing our certification platform for even greater demands in transparency, accuracy and accountability ensuring that our clients, partners, and projects are fully prepared if and when these TAG recommendations are approved. To reach out to schedule a time to get started on your net zero certification journey, visit: www.globalnetworkforzero.com.
