Skip navigation
What Is Greenhouse Gas Emissions Reporting Identify key emission sources Emission Scopes NGA Factors Calculating Emissions Emissions Profile Emission Reduction Goals Ongoing Monitoring & Reporting Gross Emissions, Net Emissions, Net Zero, Carbon Neutral, Carbon Negative.... what is the difference?

Emission Scopes

Answer

Greenhouse gas emissions are divided into three categories, or "scopes," to help businesses identify and report their contributions to climate change effectively. Dividing into scopes provides a clear framework for accountability.

Who is responsible depends on who is operationally and financially responsible for an asset (for example, one of the company cars or the warehouse where your team works). 

  • Scope 1: Scope 1 covers emissions from sources that an organisation owns or controls directly – for example from burning fuel in your fleet of vehicles or using bottled gas for cooking. The best way to look at scope 1 emissions is that the pollution is emitted where the activity occurs
  • Scope 2: Scope 2 are emissions caused from the use of grid electricity (but not from your business's own solar panels). This is because electricity is generated far away from where it is used. Power is transmitted through the electricity network (poles and wires) and used in your office building, warehouse and depots. Emissions from electricity consumption are indirect emissions but the business is directly responsible for the pollution. In this instance, the pollution is emitted far away from the activity, but the GHG emissions are still within the operational and financial responsibility of the business. If your business didn't need to use the electricity, the fuel would not be burnt and the power would not be generated. 
  • Scope 3: Scope 3 emissions are not directly produced by the company itself but happen indirectly through the value chain. For example, when we purchase electricity from the grid, we are responsible for the fossil fuel burnt to produce that electricity. But, we are not responsible for the transport of the gas or coal from the ground/ocean/gas wells to the generator. Or, to go back to the internet and phone example, we are only indirectly responsible for the electricity used in the 'cloud' to store data, but we do not directly pay for the electricity invoices of the data centers.

Mandatory reporting will only cover scope 1 and 2 sources