How do you calculate your Scope 1, Scope 2 and Scope 3 emissions?

What does scope 1, 2 and 3 mean?

In the context of CO₂ emissions, a scope refers to the area of application.

The terms scope 1, 2 and 3 have their origins in the Greenhouse Gas Protocol of 1998. Since recording CO₂ emissions can be complicated, a greenhouse gas accounting standard was created in 1998: the GHG Protocol.

The Greenhouse Gas Protocol, or GHG Protocol for short, was drawn up by the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD).

The aim is to create uniform standards for companies on how they can measure and report their CO₂ emissions. This has resulted in the current categorisation of emissions into three groups: scope 1, scope 2 and scope 3.

What does each scope entail?

CO₂ scopes help to categorise companies’ CO₂ emissions correctly. Scope 1 includes emissions that are produced directly by companies. This could be the company vehicle fleet or a coal power plant that burns coal to generate electricity.

Scope 2 comprises CO₂ emissions that arise from the use of energy. Companies cause these emissions indirectly as they do not produce the energy themselves, but they purchase it. This includes electricity, heating and cooling. If your company produces the energy itself, the resulting emissions count as scope 1.

Scope 3 are emissions that are not produced by your company directly and don’t fall under scope 2. These can be CO₂ emissions caused by business travel or waste management.

Which emissions are included in scope 1?

Scope 1 includes CO₂ emissions that are produced by companies directly. For example, if a company produces electricity by burning coal, the resulting CO₂ emissions belong to scope 1. A company’s vehicle fleet also belongs to scope 1.

Calculating scope 1 emissions is relatively straightforward for companies as they simply need to determine the CO₂ emissions of the fuels burnt on site. As the quantities of fuels are already known to the company, scope 1 emissions are generally easier to assess.

Which emissions are included in scope 2?

Scope 2 covers electricity, district heating, steam or cooling energy in buildings and in electric vehicles. Also the emissions in this category can be calculated, as the company is aware of the volumes involved.

Which emissions are included in scope 3?

Scope 3 emissions are all CO₂ emissions that are related to the company but cannot be allocated to either scope 1 or scope 2.

These include CO₂ emissions generated in rented flats, emissions produced in connection with waste disposal and those resulting from business trips by employees. Basically, these are CO₂ emissions that are not caused directly on site, but are generated when using the goods that were produced or when carrying out certain services.

Scope 3 emissions are divided into 15 categories. There are “upstream emissions” and “downstream emissions” in scope 3.

Do companies have to publish their scope 1, scope 2 and scope 3 emissions?

The CSRD specifies which companies and how companies must report on sustainability.

If companies are required by the CSRD to report on their sustainability movements, they must disclose their greenhouse gas footprint.

ESRS E1 is part of the CSRD directive and in turn specifies exactly what must be reported.

The EU and Germany want to be climate-neutral by 2050, and the majority of emissions are generated in industry. Accordingly, politicians are very interested in knowing the scope 123 emissions of industry.

The greenhouse gas balance

First of all, you need to check whether your company has to publish a CO₂ report. As of 2024 under the new CSRD reporting obligation, companies with more than 500 employees must submit a CSRD-compliant greenhouse gas balance sheet.

This reporting obligation, however, is now being gradually extended and will also affect smaller companies by 2028 at the latest.

The Greenhouse Gas Protocol

Scope emissions in the greenhouse gas report are based on the GHG Protocol, the Greenhouse Gas Protocol. As described above, the Greenhouse Gas Protocol divides the emissions of companies into three areas: scope 1, scope 2 and scope 3.

The Greenhouse Gas Protocol also specifies which scope emissions must be included in a company’s balance sheet. Previously, companies only had to disclose their scope 1 and scope 2 emissions. Now, however, scope 3 emissions must also be included in the greenhouse gas balance sheet.

Where can you find support for calculating scope 1, scope 2 and scope 3 emissions?

If you would like to calculate your scope 1, scope 2 and scope 3 emissions and are looking for support, please reach out to our partner company www.viacero.earth or contact andreas\@viacero.earth directly.

If you would like to offset scope 1, scope 2 and scope 3 emissions, please use our form or contact us at: business@fortomorrow.eu.