Our software enables you to effectively measure and manage your company’s direct and indirect emissions, encompassing Scope 1 and Scope 2 categories under the Greenhouse Gas Protocol.
This article introduces accounting for Scope 1 and Scope 2 emissions and helps you identify emission sources relevant to your business. Below, you can find further reading to deepen your understanding of this topic.
What are Scope 1 and Scope 2 According to the GHG Protocol?
The GHG Protocol defines Scope 1 emissions as direct emissions from owned or controlled sources. Scope 2 emissions cover indirect emissions from the generation of purchased energy, such as electricity, heating, cooling, or steam. Since the emissions occur where the energy is produced, not at your company’s location, they are classified as indirect emissions.
The following lists outline the general emission sources covered under each Scope:
Scope 1
• Fuel Combustion: Emissions from burning fuels in company-owned vehicles, equipment, and heating systems.
• Direct Fugitive and Process Emissions:
• Accidental gas leaks (e.g., from HVAC systems or refrigeration units).
• Process-related emissions, such as CO₂ released during cement production.
Scope 2
• Electricity: Emissions from electricity usage in offices, factories, or other facilities.
• District Heating and Cooling: Energy purchased to heat or cool your buildings.
💡 Our platform fully supports Scope 1 and Scope 2 emissions accounting, including estimation methods for heating and electricity emissions based on office size and location. This enables flexibility even if exact consumption data is unavailable.
Scope 1 and 2 emissions are fundamental in understanding a company's direct impact on climate change and are often the first step in a comprehensive carbon management strategy.
How to Account for Scope 1 & 2 Emissions
Identify Relevant Scope 1 & 2 Emissions
Start by identifying the sources of direct and indirect emissions within your company.
To assist you in this, we've prepared the table below. For every location you report on, use the table to identify all scope 1 and 2 activities taking place there. Then, for each identified activity, report the resulting emissions under the corresponding emission source.
Activity | Corresponding Emission Source | Scope |
Air conditioning using chemicals | Process and Fugitive Emissions | 1 |
Refrigeration using chemicals | Process and Fugitive Emissions | 1 |
Accidental gas leaks on premises | Process and Fugitive Emissions | 1 |
Releasing process emissions during production (e.g., CO₂ from cement production) | Process and Fugitive Emissions | 1 |
Burning fuels in company-owned vehicles (e.g., fleet, trucks, planes) | Fuel in Heating and Fuels | 1 |
Using generators on-site | Fuel in Heating and Fuels | 1 |
Burning fuels to heat buildings on-site | Fuel in Heating and Fuels | 1 |
Heating a building using district heating | District Heating in Heating and Fuels | 2 |
Using electricity in company facilities (e.g., for lights, computers) | Electricity | 2 |
Charging electric vehicles or equipment owned by the company | Electricity | 2 |
💡 Estimation Methods:
For electricity and heating, when direct consumption data is unavailable, emissions can be estimated based on the size and location of the office. This flexibility ensures that accounting is possible even with limited data.
Key Steps for Data Collection and Entry
Identify the Emission Sources:
Use the table above to identify which emission sources are relevant for your business activities and locations.
Gather Data:
Collect the required data from the sources outlined in the “How to Collect” column (e.g., utility bills, vehicle logs).
Select the Data Entry Method:
Consumption Data: Input precise data like fuel consumption, electricity usage, or refrigerant leaks.
• Estimates: Use estimation models based on office size and location for heating and electricity when exact data is unavailable.
Input Data into the Platform.
Follow step-by-step guidance in our software to enter data manually or via bulk upload for larger datasets.
This structure keeps the section streamlined and visual while providing clear steps to follow. Let me know if you’d like any additional tweaks!
Interpreting Results
After data entry, the platform generates analytics to help you understand your direct and indirect energy impacts.
Scope 2 Emissions Analysis: Results include both location-based and market-based methods to account for emissions.
Visualization and Reporting: Easily track your emissions over time, compare results across locations, and identify key areas for reduction.
For more on interpreting your Scope 2 emissions, refer to our guide on location- and market-based methods.
Conclusion
Accounting for Scope 1 and Scope 2 emissions is a critical foundation for understanding your company’s environmental impact. By identifying relevant emissions, collecting accurate data, and leveraging estimation methods where needed, our platform simplifies this process, enabling your business to take meaningful steps toward sustainability.