What is a Scope?

‘Scopes’ are a means of categorising the different forms of carbon emissions as defined by the Greenhouse Gas Protocol, which introduced a new standard, and level playing field, for companies to report their carbon emissions.

Calculating and reporting Scopes 1, 2, and 3 has become a routine exercise for companies that operate in the UK. Given the widespread adoption of these terms (notably, by the TCFD and CDP), it's worth learning which emissions fall under each of the 3 Scopes.

Scope 1 - Direct Emissions

These emissions are produced by a company's own facilities or by the vehicles it operates.

Scope 2 - Indirect Emissions (Owned)

These emissions result from a company's use of purchased power, steam, heating, and cooling.

Scope 3 - Indirect Emissions (Value Chain)

All emissions that a company is indirectly accountable for, both up and down the value chain (excluding Scope 2). This is often the most significant source of emissions, and the most difficult to quantify.

Scope 3 is the crucial one.

The shift towards Scope 3 reporting is significant since it broadens the definition of what emissions are considered to be within a company's reach. Without this important distinction, the emissions created through funding coal mining or employee air travel could be regarded as outside of a company's direct control and therefore outside of its carbon footprint.

Scope 3 has redefined what it means to be a Net-Zero business. In line with new definitions, companies should calculate their Scope 3, set targets, and track progress against these targets in order to achieve Net-Zero.

What falls under scope 3?

Click arrows to expand.

Upstream emissions

Downstream emissions

You can only manage what you measure. We help your business measure carbon emissions throughout the value chain, building your data capability.

We can help your business become self-sufficient in terms of measuring, managing and reporting carbon emissions — easing the transition to a low-carbon economy. For more information, take a look at our Climate Transition service or contact us here.