GHG Protocol categories explained

The GHG accounting and reporting framework defines three distinct scopes (scope 1, scope 2, and scope 3) in order to increase transparency, and clear frameworks for diverse organizations and climate policies.

https://www.epa.gov/sites/default/files/2016-11/scope_3_resource_image.png

Source: Scope 3 Standard, page 5.

Scope 1: Direct Emissions

“Direct GHG emissions occur from sources that are owned or controlled by the company, for example, emissions from combustion in owned or controlled boilers, furnaces, vehicles, etc.; emissions from chemical production in owned or controlled process equipment.” (The GHG Protocol). There are 4 sources for scope 1 emissions:

  1. Stationary combustion

    Emissions from Fuel consumption to produce electricity, steam, heat, or power. Please provide data on fuel consumption - type of fuel, fuel Usage, and units for usage (volume, weight or energy).

  2. Mobile combustion - Need to provide data on business travel in the organization’s owned and/or leased vehicles or privately owned vehicles that are paid for by the company (this may include cases where organizations pay employees a subsidy to run a car in addition to paying for business travel). This includes on-road and off-road travel. You may add few fuels type, for each enter total fuel consumption.

  3. Refrigerants - Refrigerant gases used in HVAC systems, chillers, and refrigerators can escape through leaks. The quantity of gas replaced in the systems is assumed to be equal to the amount of leaked gas from these systems. Need to provide data on refrigerant top ups. This data can be found in records or invoices from your maintenance company showing the amount and type of refrigerant gas (e.g., freon, R-22, HFC-134a, CFC-12) replaced in your buildings’ systems.

  4. Physical or chemical processing - Emissions that are generated during the production or treatment of chemicals and materials, such as cement, aluminum, adipic acid, ammonia manufacturing, and waste management, through physical or chemical means. This category need to be calculated according to the specific process, and is currently not supported in Vert

Scope 2: Energy indirect GHG emissions

  1. Purchased electricity - Please provide data on electricity purchased from your local utility (that is not combusted on-site). You may find in the electricity bills a specific GHG emission factor of your electricity provider. If not, Vert will use the average data of your country’s electricity grid.
  2. Purchased heat and steam - Please provide data on heat and steam purchased from your local utility (that is not combusted on-site). Vert uses average emission factor data for each country, on a many spend base.

Scope 3: Other indirect GHG emissions

Scope 3 emissions refer to the indirect greenhouse gas (GHG) emissions that occur in a company's value chain. These emissions are generated from sources outside of the company's direct control, such as the production of purchased raw materials.

There are 15 categories of Scope 3 emissions defined by the GHG Protocol, which are as follows:

  1. Purchased goods and services - Emissions from the production of purchased goods and services, such as raw materials, equipment, and manufacturing processes. Provide data on the main raw materials, and services that you have purchased, including the the total amount spent. This should also include professional services such as accounting. Note that expenses related to transport fuels, transportation services, facility fuel, waste, and electricity should not be included in this category, as they will be covered elsewhere.

<aside> 💡 Basic Price and Purchaser Prices The basic price is the initial cost set by a producer for a product or service, excluding additional fees such as taxes or delivery costs. If you are not purchasing directly from the producer, trade margins and additional charges are often added to the basic price. The purchaser price, the total amount you usually pay, combines the basic price, trade margin, tax margin, and transport margin. When entering money value to activities, make sure to provided the closets price that you have to the basic price, that was set by the producer without the margins.

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  1. Capital goods - Emissions from the production of capital goods, such as buildings and infrastructure.