GHG Protocol Software: Tools for Scope 1, 2 & 3 Reporting

Your investors want your emissions numbers. Your biggest customers want them too. A regulator may be asking as well.

Meanwhile, your data sits in a spreadsheet with 47 tabs, three versions of the truth, and one person who understands it.

That is exactly the problem GHG Protocol software solves.

This guide explains what this software does, how it handles Scope 1, 2 and 3, which platforms lead the market, and how to pick the right one. It also covers the big changes coming to the GHG Protocol itself, so you can choose a tool that will still work in the years ahead.

Whether you run a small business or a global group, you will leave with a clear plan.

Table of Contents

What Is GHG Protocol Software?

GHG Protocol software is a digital tool that helps you measure, manage and report greenhouse gas emissions using the rules of the GHG Protocol.

People also call it GHG accounting software, carbon accounting software, GHG inventory software or a carbon footprint platform. The names differ, but the job is the same.

The tool collects your activity data, such as fuel, electricity, travel and purchases. It then applies emission factors and produces a footprint in tonnes of carbon dioxide equivalent (CO2e).

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The GHG Protocol Is a Standard, Not a Product

The GHG Protocol is a set of accounting rules. It comes from the World Resources Institute and the World Business Council for Sustainable Development.

It does not make software, and it does not certify software. When a vendor says its tool is “GHG Protocol aligned,” that is the vendor’s claim.

Ask for proof. Request methodology documents, audit references and examples of customers who passed assurance using the tool.

What the Software Actually Does

A good platform handles the whole reporting cycle:

  • Collects data from utility bills, fuel cards, ERP systems, travel tools and supplier surveys
  • Applies emission factors from trusted databases
  • Calculates Scope 1, Scope 2 and Scope 3 emissions
  • Stores evidence so an auditor can trace every number
  • Produces reports for frameworks such as CSRD, IFRS S2, CDP and California climate laws
  • Tracks targets and models reduction plans

Why GHG Protocol Software Matters More Than Ever

Five years ago, most companies reported emissions voluntarily. That has changed fast.

Many of the world’s major disclosure rules now point back to the GHG Protocol. If you cannot show clean, traceable numbers, you carry real risk.

DriverWhat it asks forHow it links to the GHG Protocol
ISSB (IFRS S2)Scope 1, 2 and 3 disclosureRequires measurement using the GHG Protocol Corporate Standard, unless a local rule says otherwise
EU CSRD and ESRSClimate disclosure for large companiesAligns with the GHG Protocol and its scope structure
California SB 253Annual Scope 1 and 2, then Scope 3, for large companies doing business in the stateRequires the GHG Protocol standards
SBTi targetsScience-based reduction targetsUses GHG Protocol methods for baselines and progress
CDPVoluntary environmental disclosureExpects GHG Protocol based inventories
Customer and investor requestsSupplier emissions dataUsually follow the GHG Protocol categories

The Rules Keep Moving

The EU has narrowed CSRD to the largest companies. The current threshold sits at more than 1,000 employees and more than 450 million euros in turnover, and the reporting standards have been simplified.

That sounds like relief. In practice, smaller suppliers still get data requests from big buyers.

California’s law applies to companies with over 1 billion dollars in revenue that do business in the state. Regulators have adjusted the first deadline and the details more than once, so check the latest guidance before you plan.

Other regions are moving too. Many countries are adopting or aligning with ISSB standards, and each one expects a credible GHG inventory.

The message is simple. Emissions data now needs the discipline of financial data. Spreadsheets struggle to deliver that.

Scope 1, 2 and 3: A Quick Refresher

The software is built around the three scopes. You need to understand them to judge any tool.

ScopeWhat it coversTypical examplesTypical data source
Scope 1Direct emissions from sources you own or controlBoilers, company vehicles, furnaces, refrigerant leaksFuel invoices, fleet cards, maintenance logs
Scope 2Indirect emissions from purchased energyElectricity, steam, heating, coolingUtility bills, meter data, energy contracts
Scope 3All other indirect emissions in your value chainPurchased goods, travel, shipping, product useSpend data, supplier data, logistics data

The GHG Protocol covers seven greenhouse gases. These are carbon dioxide, methane, nitrous oxide, HFCs, PFCs, sulfur hexafluoride and nitrogen trifluoride.

Software converts them all into CO2e using global warming potential values from the IPCC.

Scope 1: Direct Emissions

Scope 1 is usually the easiest. You burn something or leak something, and you measure it.

Good software handles stationary combustion, mobile combustion, process emissions and fugitive emissions such as refrigerants.

Scope 2: Location-Based and Market-Based

The GHG Protocol asks you to report Scope 2 in two ways.

  • Location-based: uses the average emissions of the local grid
  • Market-based: reflects your energy contracts and certificates, such as renewable energy certificates or power purchase agreements

Your software must calculate both and keep them separate. This is a basic test of quality.

Scope 3: The 15 Categories

Scope 3 is the hardest part. For many companies it is also the largest, often well over half of the total footprint.

The GHG Protocol splits it into 15 categories.

DirectionCategories
Upstream1 Purchased goods and services, 2 Capital goods, 3 Fuel and energy related activities, 4 Upstream transportation and distribution, 5 Waste generated in operations, 6 Business travel, 7 Employee commuting, 8 Upstream leased assets
Downstream9 Downstream transportation and distribution, 10 Processing of sold products, 11 Use of sold products, 12 End-of-life treatment of sold products, 13 Downstream leased assets, 14 Franchises, 15 Investments

Not every category applies to every company. Your software should help you screen them and focus on the ones that matter.

Core Features of Good GHG Protocol Software

Marketing pages all sound alike. Use this table to cut through the noise.

FeatureWhy it mattersWhat to look for
Organizational boundary setupDecides which entities countSupport for equity share, financial control and operational control
Data connectorsCuts manual entryLinks to ERP, accounting, HR, travel and utility data
Emission factor libraryDrives accuracyTrusted sources, version history, regional factors
Scope 2 dual reportingRequired by the standardBoth methods, with residual mix support
Scope 3 methodsHandles data gapsSpend-based, average-data and supplier-specific options
Audit trailPasses assuranceEvery number links to its source file and factor
Base year and recalculationTracks real progressRules for acquisitions, methodology changes and errors
Reporting templatesSaves timeCSRD, ISSB, CDP, California, GRI and local frameworks
Supplier engagementImproves Scope 3 qualitySurveys, data requests and portals
Target and scenario toolsSupports reductionSBTi aligned pathways and what-if models
User roles and approvalsControls riskReview workflows and permission levels
Data export and APIAvoids lock-inClean exports and open integration

Features That Sound Great but Matter Less

Beautiful dashboards help, but they do not pass an audit. Put audit trail, data quality and methodology at the top of your list.

Be careful with instant “AI footprints.” AI can speed up data cleaning and mapping. It cannot replace evidence.

Types of GHG Protocol Software

Not all tools serve the same buyer. Start by finding your category.

TypeBest forStrengthsLimits
Spreadsheets and free calculatorsVery small teams, first estimatesFree, flexibleError prone, weak audit trail, hard to scale
Dedicated carbon accounting platformsMost mid-size and large companiesPurpose built, strong Scope 3 and reportingQuote based pricing, setup effort
ESG and disclosure suitesTeams reporting across many topicsOne system for carbon, social and governance dataCarbon depth varies
ERP and enterprise suitesCompanies already on a large vendor stackNative data linksCan be heavy and less flexible
EHS heritage platformsIndustrial firms with site dataStrong on facility and compliance dataScope 3 may be less advanced
Carbon calculation APIsProduct teams and developersEmbed emissions data in your own appsNot a full reporting tool
Software plus consultingTeams with little in-house expertiseExpert guidance with the toolHigher cost

Leading GHG Protocol Software Tools Compared

The market moves quickly. Vendors merge, launch features and change focus.

Use the list below as a starting point, then verify current features in a live demo. Independent analyst reports from firms such as Verdantix and IDC, and the Gartner market guide, can help you compare.

PlatformBest forStandout strengthWatch out for
WatershedLarge enterprisesDeep Scope 3 work and reduction planningEnterprise pricing and setup effort
PersefoniFinance led teams and financial institutionsAudit ready ledger approach, financed emissions supportMay feel heavy for small teams
SweepDistributed organizationsCollaboration across sites and suppliersNeeds clear internal data owners
NormativeMid-size and large companiesAutomated Scope 3 from accounting dataSpend-based results need refinement over time
Plan AEuropean mid-marketReduction roadmaps and EU focusCheck current ownership and product direction
GreenlySmall and mid-size businessesEasy start and guided processMay lack depth for complex groups
Microsoft Sustainability ManagerMicrosoft based organizationsFits the Azure and Power Platform stackNeeds technical set up
SAP Sustainability solutionsSAP based enterprisesNative ERP data linksBest inside the SAP ecosystem
Salesforce Net Zero CloudSalesforce based organizationsWorks with existing CRM dataLess specialized than pure carbon tools
IBM EnviziLarge, multi-site portfoliosStrong energy and facility data handlingComplex rollout
WorkivaTeams linking ESG to financial reportingStrong disclosure and control workflowsCarbon calculation depth varies by setup
Sphera, Enablon, CorityIndustrial and EHS focused firmsSite level compliance dataScope 3 depth varies
ClimatiqDevelopersEmission factor API for custom appsNot an out-of-the-box reporting tool

How to Read This Table

No platform wins for everyone. The best tool for a 40-person software company differs from the best tool for a global manufacturer.

Treat vendor rankings with care. Many “best of” lists come from vendors themselves.

Free GHG Protocol Tools Worth Knowing

You can start without paying. These options help you build a first estimate:

  • GHG Protocol calculation tools: spreadsheet based tools for common sources, available on the GHG Protocol website
  • Government emission factor sets: for example the UK government conversion factors and US EPA emission factor hubs
  • EPA Simplified GHG Emissions Calculator: a basic tool for small organizations in the United States
  • Starter plans from vendors: several carbon platforms offer free or low-cost entry tiers for small businesses

Free tools suit learning and early baselines. They rarely suit assurance or complex reporting.

How GHG Protocol Software Calculates Scope 1

The basic formula is simple:

Emissions = Activity data x Emission factor

Here is an illustrative example. A company burns 10,000 litres of diesel in its fleet. Diesel produces roughly 2.7 kg of CO2e per litre.

10,000 litres x 2.7 kg = 27,000 kg, or about 27 tonnes CO2e.

Step-by-Step Scope 1 Workflow in Software

  1. Set your boundary. Choose equity share, financial control or operational control.
  2. List your sources. Include fleet, boilers, generators, process emissions and refrigerants.
  3. Upload activity data. Use fuel invoices, fleet card exports or meter readings.
  4. Match emission factors. The tool picks the right factor by fuel, region and unit.
  5. Review exceptions. Fix missing months, odd units and outliers.
  6. Lock and report. Approve the data and generate the output.

Common Scope 1 Traps

  • Missing refrigerant top-ups, which carry a high warming impact
  • Mixing units, such as litres and gallons
  • Forgetting leased vehicles that you operate
  • Leaving out small sites that add up together

How GHG Protocol Software Handles Scope 2

Scope 2 looks easy because you have electricity bills. The tricky part is the dual reporting rule.

Here is an illustrative example. An office uses 500,000 kWh of electricity. The local grid factor is 0.40 kg CO2e per kWh.

Location-based result: 500,000 x 0.40 = 200,000 kg, or 200 tonnes CO2e.

Now suppose the company buys certificates for 300,000 kWh of renewable power. The remaining 200,000 kWh uses a residual mix factor of 0.45 kg per kWh.

Market-based result: 200,000 x 0.45 = 90,000 kg, or 90 tonnes CO2e, plus the emissions attached to the certified supply, which are zero or low.

The two results differ, and both belong in your report.

What to Check in a Scope 2 Tool

  • Does it hold both methods side by side?
  • Does it store contract and certificate details?
  • Does it use residual mix factors where they exist?
  • Can it handle hourly or sub-annual data, if you have it?
  • Does it track certificate retirement to prevent double counting?

That last point matters because the GHG Protocol is reviewing Scope 2 rules, as the next sections explain.

How GHG Protocol Software Handles Scope 3

This is where software earns its fee. Scope 3 pulls data from many teams and many suppliers.

Most companies cannot get perfect data on day one. Good tools let you start with estimates and improve over time.

The Four Calculation Methods

MethodHow it worksData qualityEffort
Supplier-specificUses emissions data from your supplierHighestHigh
HybridMixes supplier data with estimatesHighMedium to high
Average-dataUses physical quantities x average factorsMediumMedium
Spend-basedUses money spent x factors per currency unitLowestLow

Here is an illustrative spend-based example. A company spends 2 million dollars on packaging. The tool applies an average factor of 0.35 kg CO2e per dollar.

2,000,000 x 0.35 = 700,000 kg, or 700 tonnes CO2e.

That is a fast estimate. It is also a blunt one, because switching to a greener supplier does not change the result unless the spend changes.

Step-by-Step Scope 3 Workflow

  1. Screen all 15 categories. Rank them by likely size and relevance.
  2. Start with spend data. Pull from your accounting system and map spend to categories.
  3. Find the hotspots. A few suppliers or product lines usually drive most emissions.
  4. Upgrade data for hotspots. Request supplier data or use physical quantities.
  5. Document assumptions. Record why you excluded anything.
  6. Repeat every cycle. Improve quality each year.

Features That Help Scope 3 Most

  • Spend mapping that links your chart of accounts to categories
  • Supplier portals that collect primary data
  • Product carbon footprint tools for companies with physical products
  • Data quality scoring that shows where estimates are weak
  • Allocation logic for shared emissions

The GHG Protocol’s Scope 3 revision aims to push companies toward better data and clearer rules. The next sections cover it.

Data Quality, Emission Factors and Audit Trails

Software is only as good as the data inside it. Three things decide whether your numbers hold up.

1. Emission Factors

Factors convert activity into emissions. Reputable sources include government datasets, the IEA for electricity, IPCC defaults and life cycle databases such as ecoinvent.

Ask which factors the tool uses and how often they update. Make sure it keeps old versions for past reports.

2. Data Quality

Look for a data quality score on every line. Primary data from suppliers beats spend-based estimates.

3. Audit Trail

An auditor will pick a number and ask where it came from. Your software should show the invoice, the factor, the formula and who approved it in a few clicks.

Assurance requirements are rising across several regimes. Limited assurance is already common, and some rules point toward stronger assurance over time. Build for audit now.

How to Choose the Right GHG Protocol Software

Follow these steps. They save months of confusion.

Step 1: Define Your Reporting Drivers

List every framework you must meet. Examples include CSRD, IFRS S2 based local rules, California laws, CDP, customer scorecards and SBTi.

Step 2: Map Your Footprint

Do a rough screening first. Know whether your emissions come mainly from fuel, electricity or the value chain.

A logistics company needs strong fleet and transport features. A retailer needs strong purchased goods and product data.

Step 3: Check Your Systems

List your ERP, accounting, HR and travel tools. Prefer software that connects to them.

Step 4: Count Users and Entities

Some tools charge by entity, site or data volume. Know your numbers before you ask for quotes.

Step 5: Run a Real Demo

Send your own sample data. Ask the vendor to process it live. Watch how they handle messy files.

Step 6: Ask the Right Questions

AreaQuestion to ask
MethodologyCan I see your full methodology documents?
AssuranceWhich customers passed external assurance using your tool?
UpdatesHow fast do you update for GHG Protocol and regulatory changes?
Scope 2How do you handle hourly matching and market boundaries if the rules change?
Scope 3Which categories do you cover with primary data options?
DataCan I export all my data at any time?
SupportDo I get a named expert or only a help desk?
SecurityWhere is my data hosted and who can access it?

Step 7: Compare Total Cost

Look beyond the licence fee. Include setup, consulting, extra modules, supplier portal fees and internal time.

What Does GHG Protocol Software Cost?

Most vendors do not publish prices. They quote based on your situation.

Costs usually rise with company size, number of entities, data volume, modules and support level. Small business plans sit at the low end, while enterprise contracts can run much higher.

Cost driverWhy it changes the price
Number of entities or sitesMore data and more setup
Scope 3 depthSupplier engagement and product footprints cost more
Reporting modulesEach framework may add cost
IntegrationsERP and data feeds need work
Support and advisoryExpert help adds to the fee
Assurance supportAudit-ready features may sit in higher tiers

A practical tip: ask for a multi-year quote and a clear price for adding modules later. Surprise upgrades cause the most pain.

A 90-Day Implementation Roadmap

Buying the tool is the easy part. Here is how to launch it well.

PhaseTimingKey actions
PlanWeeks 1 to 2Set the boundary, pick a base year, name data owners
ConnectWeeks 3 to 5Load Scope 1 and 2 data, link systems, test factors
EstimateWeeks 6 to 9Run Scope 3 screening, map spend, find hotspots
ReviewWeeks 10 to 11Check data quality, document assumptions, fix gaps
ReportWeek 12Generate outputs, brief leadership, plan upgrades

Real-World Style Examples

These are illustrative scenarios, not named companies.

A mid-size manufacturer. It starts with Scope 1 and 2 from plant data. The tool shows that purchased raw materials make up most of the footprint. The team then requests supplier data for its top ten materials.

A software company. Its Scope 1 is tiny. Cloud hosting, purchased services and employee commuting dominate. A spend-based tool linked to accounting gives a fast baseline.

A global retailer. It uses an enterprise platform with supplier portals. Purchased goods and product use drive the numbers, so product-level data becomes the main priority.

Upcoming GHG Protocol Changes and What They Mean for Your Software

The GHG Protocol is going through its biggest update in many years. It touches the Corporate Standard, Scope 2 Guidance and Scope 3 Standard.

Your software choice should survive these changes. Here is where things stand.

AreaWhat is happeningWhat it means for software
Scope 2Public consultation has taken place. Proposals keep dual reporting and add stricter time matching and market boundaries for certificatesTools need hourly data support and better certificate tracking
Scope 3A working progress update has been published, with a fuller public consultation draft to followExpect tighter category rules and more demand for primary data
Corporate StandardBeing consolidated, with a joint approach with ISOExpect one combined rulebook and updated reporting logic
Land sector and removalsA new standard has been published for land-related emissions and removalsRelevant to agriculture, forestry and food companies
Product level standardsThe GHG Protocol and ISO are working together on product footprintsProduct carbon footprint features will grow in importance

Why Scope 2 Is the Change to Watch

Today, many companies match annual electricity use with annual certificates. The proposal moves toward matching by the hour and within the same grid region.

That could change how companies claim renewable electricity. A company using solar certificates alone may no longer claim zero emissions for night-time use.

Proposals also include transition measures, such as legacy treatment for existing long-term contracts. The details may still change before the final standard.

What to Do Now

  • Ask vendors about their roadmap. Good vendors already support interval meter data and hourly grid factors.
  • Do not claim rules are final. Describe proposals as proposals until the GHG Protocol publishes the final standards.
  • Keep raw data. Store meter data and contract files, not only annual totals.
  • Plan for restatements. Choose a tool with strong base year recalculation features.
  • Check official sources. Timelines shift, so review the GHG Protocol website before you plan budgets.

Common Mistakes When Using GHG Protocol Software

Most problems come from process, not technology. Avoid these traps.

MistakeWhy it hurtsFix
Buying before scopingYou pay for features you never useDo a rough screening first
Skipping the boundary decisionNumbers change between yearsDocument your approach early
Relying only on spend dataYou cannot see the effect of real reductionsUpgrade hotspot data over time
Ignoring data ownersData arrives late or wrongAssign owners in each team
Treating the tool as the reportSoftware does not explain contextAdd narrative and review
Forgetting the base year policyProgress looks false after acquisitionsSet recalculation rules
Mixing methods across yearsTrends become meaninglessRecord every method change
Assuming AI output is rightErrors slip throughReview samples and keep evidence

Which GHG Protocol Software Fits Your Company?

Use this guide as a quick filter.

Your situationWhat to prioritizeTool types to explore
Small business, first inventorySimplicity and low costFree calculators, starter plans from guided platforms
Growing company with investor or customer requestsFast set up and clear reportsMid-market carbon platforms
Large multinationalScale, audit trail, many entitiesEnterprise carbon platforms and suites
Company on a major ERPNative data linksERP based sustainability modules
Financial institutionFinanced emissions and portfolio dataPlatforms with financed emissions features
Industrial or heavy site operatorSite level data and complianceEHS heritage platforms and enterprise tools
Product companyProduct carbon footprintsPlatforms with life cycle features
Developer or app builderFlexible data accessEmission factor APIs

Not Required to Report? You Still Need the Data

Many smaller firms sit below legal thresholds. Even so, large customers pass down requests, and banks ask about emissions in lending reviews.

A simple, well-kept inventory gives you an edge in tenders. It also helps you spot cost savings, since less fuel and energy means lower bills.

Where GHG Protocol Software Is Heading

The category keeps evolving. Watch these trends.

  • Audit-grade accounting. Vendors now compete on traceability and controls, much like financial software.
  • AI assisted data work. AI helps read invoices, map spend and suggest factors. Humans still need to verify results.
  • Supplier data exchange. Tools increasingly share primary data between buyers and suppliers.
  • Product carbon footprints. Companies want emissions per product, not only per company.
  • Hourly energy accounting. Scope 2 changes will push more granular electricity data.
  • Better links to finance. Emissions data increasingly sits next to financial data in reporting workflows.
  • Platform consolidation. Vendors keep merging and expanding, so check roadmaps and ownership.

Quick Buyer Checklist

Before you sign, confirm these points:

  1. The tool supports all three scopes and all 15 Scope 3 categories
  2. Scope 2 shows both location-based and market-based results
  3. Every number links to source evidence
  4. Emission factors are named, versioned and updated
  5. The vendor explains how it handles GHG Protocol revisions
  6. You can export your data at any time
  7. The tool covers the reporting frameworks you actually need
  8. A reference customer has passed assurance using it
  9. Pricing for extra modules is clear in writing
  10. Your team can run it without constant vendor help

Conclusion: Choose GHG Protocol Software That Grows With You

GHG Protocol software turns scattered data into numbers you can defend. It saves time, cuts errors and prepares you for audits.

Start with your reporting drivers and your biggest emission sources. Then match them to the right type of tool, from a free calculator to an enterprise platform.

Remember the basics. Scope 1 needs clean fuel data. Scope 2 needs both methods. Scope 3 needs a smart plan that starts with estimates and improves over time.

Also look ahead. The GHG Protocol is revising its rules, so pick a vendor that explains its roadmap clearly and stores your raw data properly.

The best tool is not the most famous one. It is the one your team will actually use, and your auditor will actually trust.

Take one step this week. List your reporting requirements, and request a live demo with your own data.

FAQ: GHG Protocol Software

What is GHG Protocol software?

It is software that calculates and reports greenhouse gas emissions using the GHG Protocol rules. It covers Scope 1, Scope 2 and Scope 3 and usually produces reports for major disclosure frameworks.

Is there official GHG Protocol certified software?

No. The GHG Protocol sets the standard but does not certify software. Vendors describe their tools as aligned with the standard, so ask for methodology documents and customer proof.

What is the best GHG Protocol software?

It depends on your size, industry and systems. Large enterprises often look at enterprise carbon platforms. Smaller firms often prefer guided tools with simpler set up. Always test with your own data.

Is there free GHG Protocol software?

Yes. The GHG Protocol offers free calculation tools, and government agencies publish emission factors and basic calculators. Some vendors also offer free or low-cost starter tiers. Free options suit early estimates more than formal assurance.

How much does GHG Protocol software cost?

Most vendors quote based on company size, entities, modules and support. Small business plans cost far less than enterprise contracts. Ask for full pricing, including setup and add-on modules.

Can GHG Protocol software calculate Scope 3 emissions?

Yes, most leading platforms do. They usually offer spend-based, average-data and supplier-specific methods across the 15 categories. Check how deeply each tool supports primary supplier data.

Do I need software for GHG Protocol reporting?

Not always. A very small business can start with spreadsheets. Once you have many sites, suppliers or reporting duties, software saves time and improves accuracy and audit readiness.

What is the difference between GHG accounting software and ESG software?

GHG accounting software focuses on emissions and carbon data. ESG software covers wider topics such as social and governance metrics. Some platforms do both, but carbon depth varies.

Which reporting frameworks use the GHG Protocol?

IFRS S2, the European sustainability reporting standards, California climate disclosure laws, CDP and the Science Based Targets initiative all rely on GHG Protocol methods or align with them.

Will the GHG Protocol changes make my current software outdated?

Not if your vendor keeps pace. Ask how quickly it updates methods, supports hourly data and handles base year recalculation. Keep your raw data so you can recalculate when the rules change.

Explore more guides, tools, and resources on Carbon Market Network to deepen your understanding of carbon markets and emissions measurement.

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