What is Scope 1, 2 & 3? | GHG Protocol Guide
Learn about the GHG Protocol's three emission scopes.
The GHG Protocol
The Greenhouse Gas Protocol (GHG Protocol) is the world's most widely used greenhouse gas accounting standard. Developed by the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD), it provides the foundation for nearly all corporate emissions reporting frameworks—including the EU's VSME Standard for SMEs.
The GHG Protocol divides a company's emissions into three "scopes" based on where and how the emissions occur. This categorization helps companies understand their full carbon footprint and identify where reduction opportunities exist.
Visit GHG Protocol websiteThe Three Emission Scopes
Together, these three scopes capture your organization's complete greenhouse gas footprint.
Direct Emissions
Emissions from sources you own or control
Scope 1 covers all direct greenhouse gas emissions from sources that your company owns or controls. These are the emissions you have the most immediate ability to reduce.
Examples:
- •Company vehicles and fleet
- •On-site fuel combustion
- •Manufacturing processes
- •Fugitive emissions (e.g., refrigerants)
Purchased Energy
Emissions from the energy you buy
Scope 2 covers indirect emissions from the generation of purchased electricity, steam, heating, and cooling. While you don't produce these emissions directly, your energy consumption drives them.
Examples:
- •Purchased electricity
- •District heating and cooling
- •Purchased steam
Value Chain Emissions
All other indirect emissions in your value chain
Scope 3 includes all other indirect emissions across your entire value chain—from purchased goods and services to how customers use and dispose of your products. For most companies, this is the largest source of emissions.
Examples:
- •Purchased goods and services
- •Business travel
- •Employee commuting
- •Use of sold products
Direct Emissions
Scope 1 emissions come from sources that are owned or controlled by your organization. This includes combustion of fuels in company-owned vehicles, boilers, and furnaces, as well as process emissions from manufacturing and fugitive emissions from refrigeration and air conditioning systems. Because you directly control these sources, Scope 1 often represents your best opportunity for immediate emission reductions through operational improvements, equipment upgrades, or fuel switching.
Learn more about Scope 1Purchased Energy
Scope 2 emissions are indirect greenhouse gases from the generation of purchased or acquired electricity, steam, heat, or cooling consumed by your company. Although these emissions physically occur at the facility where the energy is generated (such as a power plant), they are attributed to your organization because your demand drives this energy production. The GHG Protocol allows two accounting methods: location-based (using average grid emission factors) and market-based (reflecting contractual arrangements like renewable energy certificates).
Learn more about Scope 2Value Chain Emissions
Scope 3 encompasses all other indirect emissions that occur in your company's value chain, both upstream and downstream. For most companies, Scope 3 represents 70-90% of their total carbon footprint, making it crucial for understanding your full environmental impact.
Learn more about Scope 3Key Takeaways
- Scope 1 + Scope 2 + Scope 3 = Your complete carbon footprint
- Most companies find Scope 3 represents 70-90% of their total emissions
- Starting with Scope 1 & 2 is often easiest as data is more accessible
- The GHG Protocol provides detailed guidance for each scope