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.

Option 2

Scope 1 Emissions means the direct Greenhouse Gas Emissions from sources directly owned or controlled by [the Company][, including on site fuel combustion and emissions from chemical production in owned or controlled process equipment, refrigerant losses and company vehicles.]

Scope 2 Emissions means the indirect Greenhouse Gas Emissions associated with the generation of electricity [, steam, heat and cooling] purchased or acquired by the [Supplier].

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

Option 3

Total Emissions means the sum of [the Company]’s Scope 1, 2 and 3 Emissions, in each case arising out of the performance of its obligations under this [agreement], in a given [emissions reporting period].

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Drafting notes

The GHG Protocol constitutes a partnership between the World Resources Institute and the World Business Council for Sustainable Development. It is recognised by the UK government as an independent standard for reporting greenhouse gases (GHGs).

It classifies GHG emissions into three categories: Scope 1, Scope 2 and Scope 3. To calculate the Carbon Footprint of an organisation or project, the GHG Protocol requires that the three categories of emissions are accounted for separately.

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.

Option 2

If you are using this option, you might like to include company-specific examples.

Application

Supply chain contracts and other agreements or documents that require the measurement and accounting of GHG emissions.