What Are Scope 1, 2, 3 Of The GHG Protocol?

The GHG Protocol serves as a standard for measuring and reporting organizational level direct and indirect greenhouse gas emissions, help companies increase transparency and consistency in their GHG accounting and reporting
GHG Protocol establishes comprehensive global standardized frameworks to measure and manage greenhouse gas (GHG) emissions from private and public sector operations, value chains and mitigation actions. In 2016, 92% of Fortune 500 companies responding to the CDP used GHG Protocol directly or indirectly through a program based on GHG Protocol.

The GHG Protocol Corporate Accounting and Reporting Standard provides requirements and guidance for companies and other organizations, such as NGOs, government agencies, and universities, that are preparing a corporate-level GHG emissions inventory.

The GHG Protocol serving as a standard for measuring and reporting organisational level direct and indirect greenhouse gas emissions, help companies increase transparency and consistency in their GHG accounting and reporting.
To help delineate direct and indirect emission sources, improve transparency, and provide utility for different types of organizations and different types of climate poli- cies and business goals, three "scopes" (scope 1, scope 2, and scope 3) are defined for GHG accounting and reporting purposes.

Scope 1: Direct GHG emissions

GHG emissions directly from operations that are owned or controlled by the reporting company

Scope 2: Electricity indirect GHG emissions

Indirect GHG emissions from the generation of purchased or acquired electricity, steam, heating, or cooling consumed by the reporting company

Scope 3: Other indirect GHG emissions

All indirect emissions (not included in scope 2) that occur in the value chain of the reporting company, including both upstream and downstream emissions

About the Scopes 1, 2 and 3

Direct GHG emissions
ESG corporate reporting traditionally focuses on evaluation and assessment of Scope 1 and Scope 2 based on a mature data foundation. The quantification, reduction and reporting of Scope 3 emissions, on the other hand, remains a challenge and at the same time has a considerable impact on the global CO2 footprint of the companies.

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