How should a product carbon footprint reduction target be set under the Greenhouse Gas Protocol Product Standard, and how many offsets would zero need?

The Greenhouse Gas (GHG) Protocol Product Standard says a product target should cover the whole life cycle, to avoid the perception of cherry picking, and be set per unit of analysis. Its offsets example: a million products at 50 kilograms each would need 50,000 tonnes of offsets a year to reach zero.

Setting the target

• Set a target for the total life cycle of the product, to avoid the perception of cherry picking. You may add targets for single stages or processes.
• A target has a completion date and a target level: the numeric reduction per unit of analysis, for example 20 percent.
• The standard says companies should in general set an ambitious target, beyond business as usual.
• Companies usually have most influence over processes they control. The largest potential is often in supplier and customer processes, which the standard says to address through engagement.

Offsets come last, and are reported separately

• The company should strive to reach the target entirely from sources inside the inventory boundary.
• If it cannot, it may use offsets from sources outside the boundary. Offsets bought, sold or banked are reported separately from the inventory results.
• Offsets bought for a product should cover all products sold in the period, for example a year, even though results are per unit of analysis.
• The company should disclose the type of project, where it is, how the offsets were quantified, how double counting was avoided, and whether external programmes have recognised them.
• If you sell offsets from sources inside your own boundary, the standard says those reductions should not be counted towards a target on the same sources.

Watch for trade-offs

The standard notes that a GHG inventory covers one environmental impact only. Before changing a life cycle step, consider whether another impact worsens, for example swapping a GHG-heavy step for one that uses more water.

The standard's own zero-target arithmetic

• Products made: 1,000,000 a year at 50 kilograms of carbon dioxide equivalent per unit of analysis
• Total: 1,000,000 x 50 = 50,000,000 kilograms = 50,000 tonnes a year
• A zero target met by offsets alone would need 50,000 tonnes of offsets each year
• Report 50 kilograms per unit and the total number of products offset

The standard gives this as an example. It does not recommend meeting a target by offsets.

What Senseible does here

Senseible reads fuel invoices and electricity bills into monthly records, so the fuel and power inside your own boundary are on file by month. Senseible does not issue or sell offsets.

• Carbon credits
• Reporting a product footprint reduction
• Changed product unit: new base inventory

Sources: GHG Protocol Product Life Cycle Accounting and Reporting Standard, chapter 14 (steps 2 to 4, section 14.3.2, Box 14.1)

Last reviewed 2026-11-04. Wording is from the 2011 Product Standard. Offset rules differ by buyer and programme, so check what yours accepts.