Scope 1 Emissions
Definition
Scope 1 emissions are direct greenhouse gas emissions from sources owned or controlled by an organisation. These include emissions from on-site fuel combustion, company vehicles, and industrial processes. They are the most straightforward emissions for a company to measure and reduce.
Why It Matters
Scope 1 reporting is a foundational requirement under most ESG disclosure frameworks. Investors view Scope 1 data as a baseline indicator of a company's direct climate exposure and management capability.
Related Terms
Scope 2 Emissions
Scope 2 emissions are indirect greenhouse gas emissions from the generation of purchased electricity, steam, heating, and cooling consumed by the reporting organisation. They occur at the facility where the energy is generated, not where it is consumed. Companies can reduce Scope 2 emissions by switching to renewable energy sources.
Scope 3 Emissions
Scope 3 emissions are all indirect greenhouse gas emissions that occur in a company's value chain, both upstream and downstream. They include emissions from purchased goods, business travel, employee commuting, waste disposal, and use of sold products. For most companies, Scope 3 represents the largest share of their total emissions.
Carbon Footprint
A carbon footprint is the total amount of greenhouse gas emissions caused directly and indirectly by an individual, organisation, event, or product. It is usually expressed in tonnes of carbon dioxide equivalent (tCO2e). The measurement encompasses emissions across an entity's entire value chain.