The Greenhouse Gas (GHG) Protocol is the globally recognised standard for measuring and managing emissions. It breaks down a company’s carbon footprint into three “Scopes”, which help organisations understand where emissions come from and how to address them.
Each scope represents a different source of greenhouse gases within or connected to your operations:
Scope 1: Direct Emissions
These are emissions from sources that are owned or controlled by the company. For example, emissions from company vehicles or on-site fuel combustion (like a diesel generator) fall under Scope 1.
Scope 2: Indirect Emissions from Purchased Energy
These are emissions from the generation of purchased electricity, heating, cooling, and steam that the company uses. Even though the company doesn't produce these emissions directly, they are responsible for them and they have a measurable influence on them because the company consumes the energy and reducing or increasing consumption is reflected in the payment of energy bills.
Scope 3: Other Indirect Emissions
These are emissions that occur in the company's value chain but are not directly controlled by the company. This includes emissions from the production of goods and services the company buys, waste disposal, business travel, and employee commuting.
The GHG Protocol helps companies measure these emissions and provides guidelines on how to report them. By understanding and managing their emissions, companies can work towards reducing their carbon footprint and contributing to a more sustainable future.
What are sub-scopes?
Sub-scopes, as they are understood in Sage Earth Carbon Accounting, are commonly referred to as 'categories' within the Greenhouse Gas Protocol. In Sage Earth Carbon Accounting we use 'category' to refer to the category of a financial spend, and so we use the term 'sub-scope' to avoid confusion between the two concepts.
These sub-scopes offer a detailed account of the diverse activities that contribute to indirect emissions within the value chain.
By understanding these more detailed sources, companies can identify specific areas within their value chain where they can implement effective emission reduction strategies.
Details of sub-scopes used by Sage Carbon Accounting are below.
Scope | Sub-scopes |
Scope 1: Direct emissions from owned or controlled sources | 1.1 Stationary Combustion: Emissions from burning fuels; not including vehicles (e.g., a gas boiler.) 1.2 Process Emissions: Emissions from business processes (e.g., CO₂ from fermentation). 1.3 Fugitive Emissions: Emissions from equipment using refrigerants (e.g., refrigerant leaks, methane leaks). 1.4 Mobile Combustion: Emissions from burning fuel in vehicles owned or controlled by your business. |
Scope 2*: Indirect emissions from the generation of purchased electricity, heating, cooling, and steam. | Emissions from energy purchased by your business. This can be electricity, heat or steam. |
Scope 3: Other indirect emissions that occur in a company's value chain | 3.1 Purchased Goods and Services: Emissions from the purchase of goods/services, including data centre emissions. |
Note: Sage Carbon Accounting calculates emissions for Scopes 1, 2 and upstream Scope 3; Scopes 3.9 to 3.15 relate to downstream activities and are not currently covered in Sage Carbon Accounting.
Find out more: Scopes 1, 2 and 3 explained in detail:
