The Greenhouse Gas (GHG) Protocol categorizes greenhouse gas emissions into three scopes. Scope 1 covers direct emissions from owned or controlled sources. Scope 2 includes indirect emissions from the generation of purchased electricity, steam, heating, and cooling. Scope 3 encompasses all other indirect emissions that occur in a company’s value chain, both upstream and downstream, such as purchased goods, business travel, and product use.
The GHG Protocol’s scoping framework provides a standardized methodology for businesses and organizations to measure and manage their greenhouse gas emissions. This categorization is crucial for avoiding double-counting and for identifying the most significant emission sources within an organization’s sphere of influence. Scope 1 emissions are the most direct, such as emissions from company vehicles or industrial processes. Scope 2 emissions are one step removed, relating to the energy a company purchases. Calculating them involves using emission factors for the specific electricity grid. Scope 3 is the most complex and often the largest category, covering everything from business travel and employee commuting to the emissions from the use of sold products and the extraction of raw materials. Accurately measuring Scope 3 emissions requires extensive data collection from suppliers and customers, making it a significant challenge but also offering the greatest opportunities for emission reduction through value chain engagement. This framework has become the de facto international standard for corporate GHG accounting, forming the basis for most carbon reporting standards worldwide.
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