The GHG Protocol (Greenhouse Gas Protocol) is the most widely used standard for calculating and reporting an organisation's greenhouse gas emissions. It divides them into three scopes: Scope 1 direct emissions, Scope 2 indirect emissions from purchased energy, and Scope 3 all other emissions in the value chain.
Scope 1, 2 and 3
- Scope 1: direct emissions from sources that the organisation owns or controls, for example natural gas combustion in boilers and furnaces, or company-owned vehicles.
- Scope 2: indirect emissions from purchased electricity, steam, heating and cooling. They are reported in two ways: location-based (using the average emission factor of the grid) and market-based (using the factor of a specific supplier or contract).
- Scope 3: all other indirect emissions in the value chain; the standard divides them into 15 categories (for example purchased goods and services, transport, waste, business travel).
How emissions are calculated
The basis is activity data (for example gas consumption in MWh) multiplied by an emission factor. The result is expressed in tonnes of CO₂e. Factors must be taken from verified sources and their origin must be recorded. The Energy Infra Scan platform calculates Scope 1 and 2 (both location-based and market-based) and allows selected Scope 3 categories to be recorded. Calculations are saved as snapshots that can be approved.
A manufacturing example
A paint shop burns natural gas in a drying oven (Scope 1), the plant purchases electricity (Scope 2) and buys steel semi-finished products (Scope 3, purchased goods category). The largest part of a manufacturing company's footprint is often in Scope 2 and 3, which is why it is important that the figures can be traced back.
Frequently asked questions
Does a small business have to report its carbon footprint?
The obligation depends on company size and legislation. However, customers and banks often require it even from smaller suppliers. The voluntary VSME standard is intended for them.
What is the difference between location-based and market-based?
Location-based uses the average emission factor of the grid in a given country, while market-based uses a factor derived from a specific contract or energy supplier.