What are Scope 1, 2 and 3 emissions

Scope 1, 2 and 3 emissions are the three categories defined by the GHG Protocol to classify greenhouse gas (GHG) emissions generated by an organization.

This classification allows companies to analyze their carbon footprint in a structured way, identifying emission sources and understanding the level of control they have over them.

Specifically:

• Scope 1 includes direct emissions from sources owned or controlled by the company

• Scope 2 covers indirect emissions from purchased energy

• Scope 3 includes all other indirect emissions across the value chain

This framework is now a global standard for GHG emissions accounting and forms the foundation for ESG reporting, sustainability management, and regulatory compliance.

Difference between direct and indirect emissions

To fully understand Scope 1, 2 and 3 emissions, it is essential to distinguish between direct and indirect emissions.

Direct emissions are generated by activities under the company’s direct control, such as fuel combustion in facilities or company vehicles (typically classified under Scope 1).

Indirect emissions, on the other hand, originate from activities that are not directly controlled by the organization but are still linked to its operations. These include purchased energy (Scope 2) and value chain activities such as suppliers and logistics (Scope 3).

This distinction is the foundation of the three-scope model and helps companies identify where to act in order to reduce emissions and improve carbon footprint management across the entire value chain.

Scope 1: direct emissions

Scope 1 emissions include all direct greenhouse gas emissions generated from sources owned or controlled by the company.

Typical sources include:

• fuel combustion in company facilities

• industrial process emissions

• emissions from company-owned vehicles

Scope 1 emissions are usually calculated based on direct measurement of energy consumption and operational processes, making them generally more accurate and easier to track compared to other scopes.

For this reason, Scope 1 is the area where companies have the highest level of operational control and where emission reduction actions can often be implemented more directly.

Scope 2: indirect emissions from purchased energy

Scope 2 emissions refer to indirect emissions associated with the generation of energy purchased and consumed by the company, such as:

• electricity

• heating

• steam

Although these emissions are not directly produced by the company, they are a direct consequence of its energy consumption.

For this reason, Scope 2 represents a key area for reducing corporate carbon footprint, for example through:

• adoption of renewable energy

• green energy supply contracts

• improvements in energy efficiency

Scope 3: indirect emissions across the value chain

Scope 3 emissions include all indirect emissions that occur throughout the company’s value chain, both upstream and downstream.

These emissions may include:

• purchased goods and services

• transportation and logistics

• business travel

• use of sold products

• end-of-life treatment of products

In most companies, Scope 3 represents the largest share of total emissions—often more than 70–80% of the total carbon footprint.

However, it is also the most complex category to measure and manage, as it requires collaboration with suppliers, partners, and external stakeholders.

Learn more about Scope 3 emissions and how to calculate them

Why distinguishing Scope 1, 2 and 3 matters

Proper classification of emissions into Scope 1, 2 and 3 is essential for several reasons.

Better understanding of impact
It allows companies to identify the main sources of emissions and prioritize actions.

Regulatory compliance
Standards such as ESRS, under the CSRD framework, require detailed emissions reporting by scope.

Development of reduction strategies
Distinguishing between scopes enables targeted actions, from energy management to supply chain engagement.

This classification is also critical for setting emission reduction targets aligned with international frameworks such as the SBTi (Science Based Targets initiative).

Improved ESG transparency
A clear classification enhances communication with stakeholders, investors, and customers.

Scope 1, 2 and 3 in ESG regulations

Scope 1, 2 and 3 emissions are now at the core of major ESG reporting standards.

In particular:

• the GHG Protocol defines how emissions should be calculated

• the CSRD requires companies to report emissions across the entire value chain

• the ESRS introduce specific disclosure requirements for GHG emissions

For this reason, understanding and correctly applying this classification is essential to ensure regulatory compliance and prepare for ESG reporting obligations.