Understanding Scope 1, 2, and 3 Emissions — A Quick Guide

If you’ve looked into carbon reporting, you’ve probably seen the terms: Scope 1, Scope 2, and Scope 3 emissions.

These categories help organize your greenhouse gas emissions based on where they come from. Here's a simple breakdown:

Source: WRI/WBCSD Corporate Value Chain (Scope 3) Accounting and Reporting Standard (pdf)

Scope 1: Direct Emissions

These are emissions from sources you own or control directly.

Examples:

• Fuel burned in your company vehicles

• Emissions from on-site boilers or furnaces

• Industrial process emissions at your facilities

  
  

Scope 2: Indirect Energy Emissions

These come from the electricity, heat, or steam you purchase.

While you don’t produce the emissions at your facility, you're still responsible for them because you consume that energy.

Examples:

• Electricity used to power your office or plant

• Purchased steam or district heating

  
  

Scope 3: Value Chain Emissions

These are all other indirect emissions that occur outside your direct operations—often the most complex and largest category.

Examples:

• Emissions from suppliers (raw material production)

• Business travel or employee commuting

• Product use and end-of-life disposal

• Freight, logistics, and outsourced activities

  
  

Why Does It Matter?

• Scope 1 and 2 are typically easier to measure and are often required for mandatory disclosures.

• Scope 3 is crucial for getting a full picture—especially for companies with complex supply chains.

  
  

Understanding these scopes helps companies:

• Prioritize reduction efforts

• Improve reporting accuracy

• Align with standards like the GHG Protocol, TCFD, or SBTi

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