Scope 1, 2 and 3 emissions: differences and examples

Scope 1, 2 and 3 emissions are the three categories the GHG Protocol uses to classify a company's greenhouse gases. In short: scope 1 covers direct emissions from your own sources, scope 2 the indirect emissions from purchased energy, and scope 3 every other indirect emission across the value chain.

This classification is the foundation of any corporate carbon footprint calculation: it identifies the origin of each emission, prevents double counting, and lets you design reduction strategies tailored to each source.

Scope 1, 2 and 3 at a glance

Scope 1 emissions: direct emissions

Scope 1 emissions are the direct GHG emissions from sources the company owns or controls. They are a direct consequence of its activity: burning natural gas or diesel in boilers and furnaces, the fuel used by an own fleet, industrial processes, and leaks of fluorinated gases from refrigeration and air-conditioning equipment.

Strategies to reduce them:

• Energy efficiency: optimise processes and equipment to burn less fuel.
• Cleaner fuels: replace fossil fuels with alternatives such as biogas or renewable hydrogen.
• Electrification: swap combustion equipment for electric solutions (heat pumps, electric vehicles).
• Preventive maintenance: detect and repair refrigerant and fuel leaks.

Residual emissions that cannot be avoided can be neutralised through emissions offsetting with verified projects, always after reducing as far as possible.

Scope 2 emissions: purchased energy

Scope 2 emissions are the indirect emissions associated with generating the electricity, heat, cooling or steam the company buys and consumes but that a third party produces. Although the combustion happens outside the company, the emissions are attributed to it because they answer its consumption.

The GHG Protocol requires two calculation methods: location-based (the average grid electricity mix) and market-based (specific energy contracts and certificates). Measures to reduce them:

• Renewable energy: contract certified renewable electricity backed by guarantees of origin.
• Self-generation: install on-site generation, such as photovoltaic solar panels.
• Energy efficiency: cut overall consumption through efficient lighting, insulation and demand control.

Scope 3 emissions: the value chain

Scope 3 emissions cover all the other indirect emissions that occur across the company's value chain, outside scopes 1 and 2. The GHG Protocol organises them into 15 categories split between upstream and downstream activities.

• Upstream: purchased goods and services, capital goods, upstream transport and distribution, waste generated in operations, business travel, employee commuting and leased assets.
• Downstream: downstream transport and distribution, processing and use of sold products, end-of-life treatment of sold products, leased assets, franchises and investments.

In most companies, scope 3 represents the largest share of the total footprint and is usually the hardest to measure, because it depends on supplier and customer data. See the detail in our guide to the 15 categories of scope 3 and how to overcome the supplier-data barrier with AI.

Strategies to manage it:

• Supplier collaboration: embed sustainability criteria in procurement and request primary emissions data.
• Eco-design: reduce the product footprint with recycled materials, resource efficiency and greater durability.
• Optimised logistics: improve routes, consolidate loads and use lower-emission transport modes.
• End-of-life management: make products easier to recycle and reuse.

Why does distinguishing the three scopes matter?

Separating emissions by scope prevents two companies from counting the same emission as their own, and it helps prioritise: you typically start by controlling scopes 1 and 2, where there is direct control, and then move on to scope 3, which requires engaging the whole value chain. Frameworks such as Science Based Targets (SBTi) require scope 3 to be included when it exceeds 40% of the total footprint.

Frequently asked questions

Which scope is usually the largest?

In most sectors, scope 3 concentrates the bulk of emissions, because it includes the entire supply chain and the use of sold products.

Is reporting scope 3 mandatory?

It depends on the framework. The EU's CSRD and the ESRS standards require scope 3 to be reported when it is material, and the SBTi requires it when it represents more than 40% of the footprint. Spain's MITECO registry focuses mainly on scopes 1 and 2, with scope 3 on a voluntary basis.

Where do electricity emissions fit?

Electricity the company buys and consumes is scope 2. If the company generates its own electricity by burning fuel, those emissions are scope 1.

To calculate and classify your emissions across the three scopes automatically and in line with the GHG Protocol and ISO 14064, you can rely on Manglai's carbon footprint solution.