Emissions Scopes
Greenhouse gas emissions are otherwise known as an organization's carbon footprint. This term includes the total sum of greenhouse gas emissions generated, directly or indirectly, by an organization (group or company), product or person. It consists of all emissions generated throughout the value chain.
The primary method of counting is the internationally recognized GHG protocol[1], and ISO 14064[2] and GRI:305[3] are also used as an auxiliary method.
Emissions included in the calculation should cover three scopes:
Scope 1, or direct emissions. These are emissions that come from sources owned or controlled by the organization. They arise from the combustion of fuels in stationary sources and in mobile sources such as vehicle fleets.
Scope 2, or indirect emissions. They result from the purchase of electricity, heat or cooling. The sources of these emissions are outside the organization, under the control of suppliers. These can be emissions related to electricity or heat generation.
Scope 3, or emissions in the supply chain and resulting from the company's value chain. Scope 3 sources include purchased goods and services, business travel, transportation and distribution, as well as the entire life cycle of products and services sold - including consumer use. Also included in this scope are emissions resulting from the financing of companies' operations, such as through lending and capital investment.
Greenhouse gas emissions are one of the most important environmental factors in ESG reporting. Each reporting institution is required to report range 1,2 and 3 scopes in thousands of tons of CO2 equivalent.
