Scope 1-2-3

The differences between Scope 1-2-3

• Scope 1 indicates direct greenhouse gas (GHG) emissions from sources owned or controlled by the entity reporting its emissions;
• Scope 2 indicates indirect greenhouse gas (GHG) emissions associated with the production of electricity, heat or steam purchased by the entity reporting its emissions;
• Scope 3 indicates all indirect greenhouse gas (GHG) emissions not included in Scope 2, i.e. those associated with the extraction and production of purchased materials, fuels and services, transport in vehicles not owned or controlled by the reporting entity, outsourced activities and waste disposal.

Read More

The label comes from the Greenhouse Gas Protocol, which is the world’s most used greenhouse gas accounting standard. The three scopes allow companies to broaden their reporting to include all the greenhouse gas emissions that they produce throughout their operations and in its wider value chain, from their suppliers to their customers. Developing a full inventory where all emissions are reported and their source is clearly identified is a first important step towards reduction and compensation. Initially, the reporting of emissions was limited to those included in Scope 1, i.e. direct emissions. However, this left a significant portion of emissions and thus potential reductions in the shadows.