Introducing the concept of scope
The international carbon accounting methodology GHG Protocol is the origin of the categorisation of emissions in "scopes". This approach has been incorporated into various methodologies, including the Carbon Balance method. The main international standards and methods likewise define three categories of GHG emissions corresponding to scopes 1, 2, and 3.To clarify the categorisation of direct and indirect emission sources, enhance transparency, and adapt to the diverse needs of various organisations and climate policies or business objectives, the concept of "scopes" (scope 1, scope 2, and scope 3) has been introduced for the purposes of GHG accounting and reporting. To prevent the overlap of emissions reporting between different companies, scopes 1 and 2 are precisely defined within this framework. Such specificity allows these scopes to be effectively utilised in GHG initiatives where avoiding duplicate counting is crucial. At a minimum, companies are required to maintain separate accounts for and report their scope 1 and scope 2 emissions.
Scope 1: Direct GHG emissions
Scope 1 refers to direct GHG emissions from sources owned or controlled by the company, including fuel combustion in facilities and vehicles, and emissions from in-house chemical processes. Direct CO2 emissions from biomass combustion are excluded from scope 1 and should be reported separately, as should non-Kyoto Protocol gases like CFCs and NOx.
Scope 2: Electricity indirect emissions
Scope 2 covers GHG emissions resulting from the production of electricity that a company buys and uses. This includes electricity acquired or brought within the company's operational bounds. The emissions under scope 2 actually originate at the place where the electricity is produced from sources owned or controlled by the company, including fuel combustion in facilities and vehicles, and emissions from in-house chemical processes.
Scope 3: Other indirect emissions
Scope 3 is a voluntary category for reporting all other indirect emissions not included in scopes 1 and 2. These emissions result from a company's actions but come from sources it neither owns nor controls. Examples of scope 3 activities include the extraction and manufacturing of bought materials, the transportation of acquired fuels, and the usage of products and services sold by the company.
