A classification system for corporate greenhouse gas (GHG) emissions, developed by the Greenhouse Gas Protocol (GHG Protocol), that helps organizations measure, manage, and reduce their carbon footprint. Scope 1, 2, and 3 emissions categorize emissions based on how directly they are controlled by a company.
Why It Matters
Provides a standardized approach to carbon accounting, helping businesses track emissions and develop reduction strategies.
Enables effective decarbonization planning, ensuring companies prioritize actions across operations, supply chains, and energy use.
Increasingly required by regulators and investors, as disclosures on Scope 1, 2, and 3 emissions are mandated under frameworks like SBTi, CDP, and SEC climate disclosure rules.
Scope 1, 2, and 3 Explained
Scope 1: Direct Emissions
Emissions from sources owned or controlled by the company, such as fuel combustion in company vehicles, on-site industrial operations, and heating systems.
Scope 2: Indirect Energy Emissions
Emissions from purchased electricity, steam, heating, and cooling that a company consumes but does not generate itself.
Scope 3: Value Chain Emissions
All other indirect emissions from a company’s supply chain, products, and operations, including:
