Scope 1 vs Scope 2 vs Scope 3
Scope 1 is direct emissions from what you own; Scope 2 is indirect emissions from purchased energy; Scope 3 is every other value-chain emission you cause but don't directly control.
Scope 1 and 2 are the emissions a company controls directly or via purchased energy. Scope 3 is everything else in the value chain — typically 70–90% of the total.
Side by side
| Dimension | Scope 1 & 2 | Scope 3 |
|---|---|---|
| Boundary | Owned / controlled operations + purchased energy | 15 upstream & downstream categories |
| Data | Primary meter, invoice and fleet data | Supplier data, activity data or spend-based factors |
| Control | High — direct operational levers | Indirect — requires supplier / customer engagement |
| Reporting | Mandatory under ESRS E1, IFRS S2 | Mandatory for material categories |
| Typical share | 10–30% of total | 70–90% of total |
Focus operational emissions programmes (efficiency, electrification, PPAs) on Scope 1 & 2 first — they are directly controllable.
Structure the long-term decarbonisation plan around Scope 3: supplier engagement, product design and financed-emissions strategy.
Frequently asked questions
Do we have to report Scope 3?+
Under ESRS E1 you must screen all 15 categories and report the material ones. Under SBTi, Scope 3 targets are required where those emissions are material.
What's the difference between location- and market-based Scope 2?+
Location-based uses grid-average emission factors. Market-based reflects contractual choices — PPAs, green tariffs, GOs. Dual reporting is required.
Both are sustainable-finance instruments, but they work differently: a Green Loan finances a specific green project; an SLL is general-purpose credit whose pricing moves with sustainability performance.
The CSRD is the EU directive; the ESRS are the technical standards it mandates. One creates the reporting obligation, the other tells you how to report.
A corporate carbon footprint quantifies the total GHG emissions of an organisation over a period. An LCA quantifies the environmental impacts of a specific product across its full life cycle.