Scope 1, 2 and 3

Carbon emissions are grouped into three scopes, categorising the different kinds of emissions a company creates in its own operations and in its wider ‘value chain’ (its suppliers and customers). 

• Scope 1 emissions are all the direct greenhouse gas emissions (GHG) from the company’s owned / controlled sources. This includes on-site energy such as heat, electricity, as well as emissions from fleet vehicles.
• Scope 2 are indirect greenhouse gas emissions from purchased or acquired energy. For instance the electricity purchased from a utility company that is generated offsite, are considered indirect emissions.
• Scope 3 includes all indirect emissions that occur in the value chain (what a corporation is indirectly responsible for up and down the value chain). While these emissions may be out of the control of a reporting company, they can represent the largest portion of its greenhouse gas emissions inventory.

The GHG Protocol divides the scope 3 emissions into upstream and downstream emissions. Upstream emissions are indirect GHG emissions within a company’s value chain related to purchased or acquired goods (tangible products) and services (intangible products) and generated from cradle to gate.

Downstream emissions include the indirect GHG emissions within a company’s value chain related to sold goods and services and emitted after they leave the company’s ownership or control