Glossary entry

Scope 1, 2 and 3 Emissions

Definitions

Option 1

Scope 1, 2 and 3 Emissions means the three classifications of emissions in the GHG Protocol.

Scope 1 Emissions means all direct emissions from the activities of [Company/Organisation] or under its control, including on site fuel combustion and emissions from chemical production in owned or controlled process equipment, refrigerant losses and company vehicles. [Company/Organisation specific examples may be added].

Scope 2 Emissions means all indirect emissions from electricity purchased and used by [Company/Organisation] where the emissions occur at sources owned or controlled by another company. [Company/Organisation examples may be added].

Scope 3 Emissions means all indirect emissions other than Scope 2 Emissions, that are a consequence of the activities of the [Company/Organisation], but occur from sources not owned or controlled by [Company/Organisation], including business travel, procurement, waste and water. [Company/Organisation specific examples may be added].

Option 2 (as defined in Jessica's Clause)

Scope 1 Emissions means the direct Greenhouse Gas emissions emitted from sources directly owned or controlled by the Supplier.

Scope 2 Emissions means the indirect Greenhouse Gas emissions associated with the generation of electricity purchased by the Supplier.

Scope 3 Emissions means all indirect Greenhouse Gas emissions emitted from sources which are not directly owned or controlled by the Supplier, excluding Scope 2 Emissions, which occur both upstream and downstream in the Supplier’s supply or value chain related to the [Product/Services].

Total Emissions means the sum of the Supplier’s Scope 1 Emissions, Scope 2 Emissions, and Scope 3 Emissions, in each case arising out of the performance of its obligations under this agreement, in a given Emissions Reporting Period.

Drafting notes

The GHG Protocol constitutes a partnership between the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD).

The Greenhouse Gas Protocol is recognised by the UK government as an independent standard for reporting Greenhouse Gases.

In order to calculate an organisation’s carbon footprint, it divides emissions into three different scopes.

Under the GHG Protocol, companies should separately account for and report on Scope 1 and 2 Emissions as a minimum. Reporting on Scope 3 Emission is optional. 

The GHG Protocol can be used by a variety of organisations for developing a GHG inventory and reporting on GHG emissions including companies, NGOs, government agencies, and universities.

See also: definition of Carbon Footprint Standards.

Application

Supply chain clauses, national climate laws, GHG standards.

Used in Callum & Theo’s Clause [Climate Standard Transaction Terms].