Scope 1, 2 & 3 emissions explained
For reporting purposes, the GHG protocol divides emissions into three “Scopes”.
The GHG protocol provides standards, guidance, tools and training for businesses and governments to measure and manage emissions. The GHG has become the most widely used accounting standard globally. Initially created by the World Resources Institute (WRI) and World Business Council for Sustainable Development (WBCSD) who recognised the need for a globalised standard for reporting in the late 1990’s, the first edition of the corporate standard was published in 2001 and has been updated since.
For reporting purposes, the GHG protocol divides emissions into three “Scopes”.
Scope 1 emissions include the direct emissions from assets that are owned or controlled by the reporting company. This includes the combustion of solid or liquid fuels purchased to produce energy, heat or steam for use in stationary or mobile equipment (e.g. vehicles, vessels, aircraft, locomotives, generators) and/or buildings associated with logistics sites (e.g. warehouses).
Scope 2 emissions are indirect emissions from the production and distribution of electricity, heat and steam purchased by the reporting company for use in its own logistics sites, electric vehicles or other owned asset requiring electricity.
Scope 3 emissions are indirect emissions from the reporting company’s supply chain. Most notably, this includes transportation emissions required to move goods from suppliers to the reporting company and
from the reporting company to the end customer. Scope 3 also covers the production and distribution of fuels burned in Scope 1, transport emissions embedded within purchased goods and services, product use and end-of-life.
We think that this short video from ClimatePartner hosted on YouTube provides a great overview of the scopes of the TCFD. As the video is hosted externally, we cannot take responsibility for its content.
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